<SEC-DOCUMENT>0000355019-13-000016.txt : 20130520
<SEC-HEADER>0000355019-13-000016.hdr.sgml : 20130520
<ACCEPTANCE-DATETIME>20130520172342
ACCESSION NUMBER:		0000355019-13-000016
CONFORMED SUBMISSION TYPE:	8-K/A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20130305
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20130520
DATE AS OF CHANGE:		20130520

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FONAR CORP
		CENTRAL INDEX KEY:			0000355019
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845]
		IRS NUMBER:				112464137
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		8-K/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-10248
		FILM NUMBER:		13859416

	BUSINESS ADDRESS:	
		STREET 1:		110 MARCUS DR
		CITY:			MELVILLE
		STATE:			NY
		ZIP:			11747
		BUSINESS PHONE:		6316942929

	MAIL ADDRESS:	
		STREET 1:		110 MARCUS DRIVE
		CITY:			MELVILLE
		STATE:			NY
		ZIP:			11747
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K/A
<SEQUENCE>1
<FILENAME>fonar_8ka-final1.htm
<TEXT>
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<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">SECURITIES
AND EXCHANGE COMMISSION</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Washington,
D.C. 20549</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FORM
8-K/A</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">CURRENT
REPORT</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Pursuant
to Section 13 or 15(d) of the Securities Act of 1934</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Date
of Report (Date of earliest event reported): March 5, 2013</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FONAR
CORPORATION</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">------------------------------------------------------</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(Exact
name of registrant as specified in its charter)</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 28%; font: 10pt Courier New, Courier, Monospace; text-align: center; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Delaware</FONT></TD><TD STYLE="width: 8%; font: 10pt Courier New, Courier, Monospace"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 28%; font: 10pt Courier New, Courier, Monospace; text-align: center; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">0-10248</FONT></TD><TD STYLE="width: 8%; font: 10pt Courier New, Courier, Monospace"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 28%; font: 10pt Courier New, Courier, Monospace; text-align: center; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">11-2464137</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">State or other jurisdiction
    of incorporation)</FONT></TD><TD STYLE="font: 10pt Courier New, Courier, Monospace"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Courier New, Courier, Monospace; text-align: center; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(Commission
    File Number)</FONT></TD><TD STYLE="font: 10pt Courier New, Courier, Monospace"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Courier New, Courier, Monospace; text-align: center; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(I.R.S.
    Employer Identification No.)</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">110
Marcus Drive</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Melville,
New York 11747</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(631)
694-2929</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(Address,
including zip code, and telephone number</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">of
registrant's principal executive office)</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 22.5pt; text-indent: -22.5pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">[
] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 22.5pt; text-indent: -22.5pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">[
] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 22.5pt; text-indent: -22.5pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">[
] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 22.5pt; text-indent: -22.5pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">[
] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">EXPLANATORY
NOTE</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">On
March 5, 2013, Fonar Corporation, a Delaware corporation (&ldquo;Fonar&rdquo;), filed a Form 8-K to report its acquisition, through
its wholly-owned subsidiary Health Management Corporation of America (&ldquo;HMCA&rdquo;), a Delaware corporation, through a majority
interest in a newly formed limited liability company, a business managing 12 stand-Up MRI centers and two other scanning centers.
The newly formed limited liability company is now known as Health Diagnostics Management, LLC (&ldquo;HDM&rdquo;). In response
to parts (a) and (b) of Item 9.01 of such Form 8-K, Fonar stated that it would file the required financial information by amendment,
as permitted by Items 9.01(a)(4) and 9.01(b)(2) of Form 8-K. Fonar hereby amends its Form 8-K filed on March 11, 2013 to provide
the required financial information.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Item 9.01.
Financial Statements and Exhibits.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 76.5pt; text-align: justify; text-indent: -45pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(a)
Consolidated Financial statements of business acquired, Health Diagnostics, LLC and Subsidiaries.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Consolidated
Balance Sheets of Health Diagnostics, LLC and subsidiaries as of December 31, 2011 and 2010 and related Consolidated Statements
of Income and Comprehensive Loss, Members Equity and Cash Flows for the years ended December 31 ,2011 and 2010, with the report
of the Independent Registered Public Accounting Firm thereon.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Unaudited
Consolidated Balance Sheet of Health Diagnostics, LLC and subsidiaries as of September 30, 2012 and 2011 and the related unaudited
Consolidated Statement of Income and Comprehensive Loss, Members Equity and Cash Flows of the nine months then ended.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 3em"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(b)
Pro forma financial information.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Unaudited
Pro Forma Condensed Consolidated Balance Sheet as of September 30, 2012.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Unaudited
Pro Forma Condensed Consolidated Statement of Operations for the year ended June 30, 2012.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Unaudited
Pro Forma Condensed Consolidated Statement of Operations for the three months ended September 30, 2012.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Notes
to Unaudited Pro Forma Condensed Consolidated Financial Statements.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 22.5pt; text-indent: -22.5pt"></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 3em; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 3em; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(a)
Financial Statements of Business Acquired&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">On
March 5, 2013, Fonar, through its subsidiary HMCA, acquired through a majority interest in a newly formed limited liability company,
a business managing 12 Stand-Up MRI centers and two other scanning centers. The newly formed limited liability company will be
known as Health Diagnostics Management, LLC (&ldquo;HDM&rdquo;) (a New York limited liability company). The following financial
statements are those of Health Diagnostics, LLC and subsidiaries (&ldquo;HD&rdquo;). They are not the financial statements of
Fonar Corporation&rsquo;s wholly-owned subsidiary.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 22.5pt; text-indent: -22.5pt">&nbsp;</P>



<P STYLE="margin: 0"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>HEALTH DIAGNOSTICS, LLC</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&amp; SUBSIDIARIES</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FOR THE YEARS ENDED DECEMBER 31, 2011 AND
DECEMBER 31, 2010</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;<B>HEALTH DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; border-bottom: Black 2.25pt solid"><B>CONTENTS</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 70%; font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                                             <P STYLE="margin-top: 0; margin-bottom: 0">Independent Auditors&rsquo; Report</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"></P></TD><TD STYLE="width: 10%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 18%; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                                 <P STYLE="margin-top: 0; margin-bottom: 0">Consolidated Financial Statements</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><BR></P></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Consolidated Balance Sheets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3-4</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Consolidated Statements of Income and Comprehensive Loss</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5-6</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Consolidated Statement of Changes in Members&rsquo; Equity</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Consolidated Statements of Cash Flows</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8-9</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Notes to Consolidated Financial Statements</P></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10-39</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 24pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>MARCUM</B></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>ACCOUNTANTS &amp; ADVISORS</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>INDEPENDENT AUDITORS&rsquo; REPORT</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">To the Managing Member of</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Health Diagnostics, LLC</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have audited the accompanying consolidated
balance sheets of Health Diagnostics, LLC and Subsidiaries (the &ldquo;Company&rdquo;) as of December 31, 2011 and 2010, and the
related consolidated statements of income and comprehensive loss, changes in members&rsquo; equity, and cash flows for the years
then ended. These consolidated financial statements are the responsibility of the Company&rsquo;s management. Our responsibility
is to express an opinion on these consolidated financial statements based on our audit.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We conducted our audit in accordance with auditing
standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes consideration
of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the Company&rsquo;s internal control over financial reporting.
Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the consolidated financial statements, assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In our opinion, the consolidated financial
statements referred to above present fairly, in all material respects, the financial position of Health Diagnostics, LLC and Subsidiaries
as of December 31, 2011 and 2010, and the results of their operations and their cash flows for the years then ended, in conformity
with accounting principles generally accepted in the United States of America.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Marcum LLP</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">/s/ Marcum LLP</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">New York, NY</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">September 13, 2012</P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>CONSOLIDATED
BALANCE SHEETS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>DECEMBER
31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1pt solid">2010</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-left: 5.4pt">Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-left: 5.4pt">Current Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Cash</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">11,643,094</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">1,190,760</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 12pt; padding-left: 5.4pt">Accounts receivable, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,837,564</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,331,135</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 12pt; padding-left: 5.4pt">Prepaid expenses and other current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,446,042</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,290,275</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: 12pt; padding-left: 5.4pt">Assets of discontinued operations</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">5,987,487</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">24,360,831</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt; vertical-align: middle"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Total Current Assets</P></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">32,914,187</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">39,173,001</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Property and Equipment, Net</P></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">6,761,225</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">8,589,771</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-left: 5.4pt">Other Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 12pt; padding-left: 5.4pt">Amortizable intangible assets, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">151,448</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">356,955</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 12pt; padding-left: 5.4pt">Goodwill</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">52,709,844</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">52,709,844</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: 12pt; padding-left: 5.4pt">Other assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">393,641</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">356,086</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Total Other Assets</P></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">53,254,933</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">53,422,885</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Total Assets</P></TD><TD STYLE="padding-bottom: 1pt"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P></TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">92,930,345</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">101,185,657</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;<FONT STYLE="font-variant: small-caps"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: right"><I>&nbsp;</I></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: right"><I>The accompanying notes are an integral
part of these consolidated financial statements.</I></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: right">&nbsp;</P>



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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>CONSOLIDATED
BALANCE SHEETS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>DECEMBER
31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">2010</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><P STYLE="margin-top: 0; margin-bottom: 0">Liabilities and Members' Equity</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Current Liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%; font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Obligations under capital leases, current portion</TD><TD STYLE="width: 8%; font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 12%; font: 12pt Times New Roman, Times, Serif; text-align: right">368,924</TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 12%; font: 12pt Times New Roman, Times, Serif; text-align: right">791,118</TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Obligations under long-term debt, current portion</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">145,431</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">947,907</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Accounts payable, accrued expenses and other liabilities</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">6,001,708</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">8,705,978</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; text-indent: 12pt; padding-left: 5.4pt">Liabilities of discontinued operations</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">1,647,865</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">9,357,876</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Total Current Liabilities</P></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">8,163,928</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">19,802,879</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Long-Term Liabilities</P></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Obligations under capital lease, less current portion</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">425,646</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">481,180</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; text-indent: 12pt; padding-left: 5.4pt">Obligations under long-term debt, less current portion</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">387,107</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Total Long-Term Liabilities</P></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">425,646</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">868,287</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Total Liabilities</P></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">8,589,574</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">20,671,166</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Commitments and Contingencies</P></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Members' Equity</P></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Controlling interest</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">82,661,731</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">79,885,990</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; text-indent: 12pt; padding-left: 5.4pt">Non-controlling interests in subsidiaries</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">1,679,040</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">628,501</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Total Members' Equity</P></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">84,340,771</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">80,514,491</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Total Liabilities and Members' Equity</P></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">92,930,345</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">101,185,657</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: right"><FONT STYLE="font-variant: small-caps"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: right">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: right"><I>The accompanying notes are an integral
part of these consolidated financial statements.</I></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: right">&nbsp;</P>



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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>CONSOLIDATED
FINANCIAL STATEMENTS OF INCOME AND COMPREHENSIVE LOSS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; color: black; text-align: right; border-bottom: Black 1pt solid">2011</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; color: black; text-align: right; border-bottom: Black 1pt solid">2010</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Revenues, Net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 56%; font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Patient revenue</TD><TD STYLE="width: 8%; font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 12%; font: 12pt Times New Roman, Times, Serif; text-align: right">18,387,674</TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 12%; font: 12pt Times New Roman, Times, Serif; text-align: right">20,163,162</TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; text-indent: 12pt; padding-left: 5.4pt">Management fee revenue</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">14,268,592</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">13,619,373</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Total Revenues, Net</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">32,656,266</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">33,782,535</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Operating Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: -12pt; padding-left: 24pt">Clinic operating costs, exclusive of depreciation, <BR>
amortization and corporate office costs:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 0.4in; padding-left: 5.4pt">Cost of medical services</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">4,618,357</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">4,348,645</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 0.4in; padding-left: 5.4pt">Salaries and related costs</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">9,659,922</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">11,366,722</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 0.4in; padding-left: 5.4pt">Facilities cost</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">5,136,630</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">5,786,196</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 0.4in; padding-left: 5.4pt">Equipment lease expense and service</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">1,651,738</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">1,406,407</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 0.4in; padding-left: 5.4pt">Travel, entertainment and marketing costs</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">726,498</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">822,734</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; text-indent: 0.4in; padding-left: 5.4pt">Other clinic operating costs</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">2,974,902</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">1,716,566</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Total clinic operating costs</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">24,768,047</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">25,447,270</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Corporate office costs</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">3,651,975</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">8,324,343</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Depreciation</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">3,590,285</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">3,125,245</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; text-indent: 12pt; padding-left: 5.4pt">Amortization of intangible assets</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">204,738</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">553,600</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Total Operating Expenses</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">32,215,045</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">37,450,458</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Income (Loss) from Operations</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">441,221</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">(3,667,923</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Other (Expense) Income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">(Loss) gain on sale or disposition of assets</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">(1,009,136</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">495,535</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Other expense</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">(4,383</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">(2,000</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; text-indent: 12pt; padding-left: 5.4pt">Interest expense</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">(130,974</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">(199,303</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Total Other (Expense) Income</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">(1,144,493</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">294,232</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: right"><FONT STYLE="font-variant: small-caps"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: right"><I>The accompanying notes are an integral
part of these consolidated financial statements.</I></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CONSOLIDATED STATEMENTS OF INCOME AND
</B></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>COMPREHENSIVE LOSS (CONTINUED) </B></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1pt solid">2011</TD>
    <TD STYLE="color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1pt solid">2010</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); height: 30pt">
    <TD STYLE="width: 66%; font-weight: bold; text-align: left; padding-left: 5.4pt">Loss from Continuing Operations&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">(703,272</TD>
    <TD STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">(3,373,691</TD>
    <TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; height: 25pt">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Income (Loss) from Discontinued Operations</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,344,642</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">(12,787,413</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); height: 25pt">
    <TD STYLE="font-weight: bold; text-align: left; padding-left: 5.4pt">Net Income (Loss)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,641,370</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(16,161,104</TD>
    <TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; height: 40pt">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 17.4pt; text-indent: -12pt">Non-Controlling Interest in Subsidiaries in Net Loss of Subsidiaries</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">(865,629</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">(528,129</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); height: 25pt">
    <TD STYLE="color: black; font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Controlling Interest - Net Income (Loss)</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,775,741</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">(16,689,233</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; height: 25pt">
    <TD STYLE="color: black; font-weight: bold; text-align: left; padding-left: 5.4pt">Net Income (Loss)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">3,641,370</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(16,161,104</TD>
    <TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); height: 40pt">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 17.4pt; text-indent: -12pt">Other Comprehensive Loss - Unrealized Loss on Interest Rate Hedge</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">--</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">(18,489</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; height: 25pt">
    <TD STYLE="font-weight: bold; text-align: left; padding-left: 5.4pt">Total Comprehensive Income (Loss)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,641,370</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(16,179,593</TD>
    <TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); height: 40pt">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 17.4pt; text-indent: -12pt">Non-Controlling Interest in Subsidiaries in Total Comprehensive Loss</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">(865,629</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">(528,129</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; height: 25pt">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Controlling Interest in Total Comprehensive Income (Loss)</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">2,775,741</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right"><P STYLE="margin-top: 0; margin-bottom: 0">$</P>
                                                                   <P STYLE="margin-top: 0; margin-bottom: 0">+</P></TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">(16,707,722</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
</TABLE>



<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0; text-align: right">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>The accompanying notes are
an integral part of these consolidated financial statements.</I></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>HEALTH DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CONSOLIDATED STATEMENTS OF CHANGES IN
MEMBERS' EQUITY</B></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FOR THE YEARS ENDED DECEMBER 31, 2011
AND 2010</B></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">Controlling</P> <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">Interest</P></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">Non-Controlling</P> <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">Interest</P> <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">In Subsidiaries</P></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">Accumulated</P> <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">Other</P> <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">Comprehensive</P> <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">Loss</P></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; color: black">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; color: black; text-align: right"><FONT STYLE="color: black">Total</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 40%; font: bold 12pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Members' Equity - January 1, 2009</TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 12pt Times New Roman, Times, Serif; text-align: right">96,575,223</TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 12pt Times New Roman, Times, Serif; text-align: right">544,512</TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 12pt Times New Roman, Times, Serif; text-align: right">(293,511</TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 12pt Times New Roman, Times, Serif; text-align: right">96,826,224</TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; color: black; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Distributions</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">(444,140</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">(444,140</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; color: black; text-align: left; text-indent: -12pt; padding-left: 29.4pt">Other comprehensive loss - interest rate hedge</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">--</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">--</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(18,489</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(18,489</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; color: black; text-align: left; text-indent: -12pt; padding-left: 29.4pt">Settlement of interest rate hedge</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">312,000</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">312,000</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; color: black; text-align: left; padding-bottom: 1pt; text-indent: 12pt; padding-left: 5.4pt">Net loss for the year</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">(16,689,233</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">528,129</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">(16,161,104</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Members' Equity - December 31, 2010</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">79,885,990</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">628,501</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">80,514,491</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; color: black; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Contributions</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">1,569,845</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">1,569,845</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; color: black; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Distributions</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">(736,622</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">(736,622</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; color: black; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Dispositions</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">(648,313</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">(648,313</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; color: black; text-align: left; padding-bottom: 1pt; text-indent: 12pt; padding-left: 5.4pt">Net income for the year</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">2,775,741</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">865,629</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">3,641,370</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Members' Equity - December 31, 2011</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">82,661,731</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">1,679,040</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">84,340,771</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0; text-align: right"><FONT STYLE="font-size: 12pt"><I>The accompanying notes are an integral part of these
consolidated financial statements.</I></FONT></P>


<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>HEALTH DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CONSOLIDATED STATEMENTS OF CASH FLOWS</B></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FOR THE YEARS ENDED DECEMBER 31, 2011
AND 2010</B></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">2010</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; color: black; text-align: left; padding-left: 5.4pt">Cash Flows from Continuing Operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Cash Flows from Operating Activities</P></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 65%; font: 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Net loss from continuing operations</TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 12%; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">(703,272</TD><TD STYLE="width: 1%; padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 12%; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">(3,373,691</TD><TD STYLE="width: 1%; padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: -12pt; padding-left: 24pt">Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 24pt; padding-left: 5.4pt">Depreciation</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">3,590,285</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">3,125,245</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 24pt; padding-left: 5.4pt">Amortization</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">204,738</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">553,600</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 24pt; padding-left: 5.4pt">Loss on sale of BMC</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">788,861</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 24pt; padding-left: 5.4pt">Loss on sale of Hollywood</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">220,275</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 24pt; padding-left: 5.4pt">Gain on sale of Tricat</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">(525,323</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 24pt; padding-left: 5.4pt">Loss on disposal of Freehold</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">1,004,909</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 24pt; padding-left: 5.4pt">Gain on sale of MTI/DTG</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">(1,693,421</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 24pt; padding-left: 5.4pt">Loss on disposal of Yonkers</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">74,434</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 24pt; padding-left: 5.4pt">Loss on sale of Dolphin</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">643,866</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Changes in operating assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 24pt; padding-left: 5.4pt">Accounts receivable, net</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">(1,506,429</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">(1,179,221</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 24pt; padding-left: 5.4pt">Accounts payable, accrued expenses and other current liabilities</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">(2,806,314</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">(1,141,764</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; text-indent: 24pt; padding-left: 5.4pt">Prepaid expenses and other assets</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">820,258</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">4,597,452</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Total Adjustments</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">1,311,674</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">5,459,777</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Net Cash Provided by Operating Activities</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">608,402</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">2,086,086</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Cash Flows from Investing Activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Purchases of property and equipment</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">(397,209</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">(976,414</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Cash received from BMC sale</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">13,930,000</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Cash received from Hollywood sale</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">150,000</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Cash received from Tricat sale</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">3,500,000</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Cash received from MTI/DTG sale</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">28,000,000</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; text-indent: 12pt; padding-left: 5.4pt">Cash received from Freehold disposition</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">--</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">332,000</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Net Cash Provided by Investing Activities</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">13,682,791</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">30,855,586</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0; text-align: right"><FONT STYLE="font-size: 12pt"><I>The accompanying notes are an integral
part of these consolidated financial statements.</I></FONT></P>

<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>HEALTH DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CONSOLIDATED STATEMENTS OF CASH FLOWS
(CONTINUED)</B></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FOR THE YEARS ENDED DECEMBER 31, 2011
AND 2010</B></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">2011</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; color: black; text-align: center; border-bottom: Black 1pt solid">2010</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Cash Flows from Financing Activities</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 66%; font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Payments on long term debt and capital leases</TD>
    <TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD>
    <TD STYLE="width: 12%; font: 12pt Times New Roman, Times, Serif; text-align: right">(2,502,034</TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD>
    <TD STYLE="width: 12%; font: 12pt Times New Roman, Times, Serif; text-align: right">(1,902,968</TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Deferred financing costs</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">(20,949</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; text-indent: 12pt; padding-left: 5.4pt">Distributions to non-controlling interests in subsidiaries</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">(191,180</TD>
    <TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); height: 25pt">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Net Cash Used in Financing Activities</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">(2,714,163</TD>
    <TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">(1,902,968</TD>
    <TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; height: 25pt">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Net Increase in Cash from Continuing Operations</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">11,577,030</TD>
    <TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">31,038,704</TD>
    <TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); height: 25pt">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Cash Flows of Discontinued Operations</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Operating cash flows</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">4,487,288</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">1,363,318</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Investing cash flows</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">(998,802</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">(183,289</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; text-indent: 12pt; padding-left: 5.4pt">Financing cash flows</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">(4,613,182</TD>
    <TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">(31,587,695</TD>
    <TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); height: 25pt">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Net Cash Used In Discontinued Operations</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">(1,124,696</TD>
    <TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">(30,407,666</TD>
    <TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; height: 25pt">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Net Increase in Cash</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">10,452,334</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">631,038</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); height: 25pt">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Cash - Beginning</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">1,190,760</TD>
    <TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">559,722</TD>
    <TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; height: 25pt">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Cash - Ending</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">$</TD>
    <TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">11,643,094</TD>
    <TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">$</TD>
    <TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">1,190,760</TD>
    <TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); height: 25pt">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt">Supplemental Disclosure of Cash Flow Information</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; height: 25pt">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Cash paid during the years for:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 24pt; padding-left: 5.4pt">Interest - continuing operations</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">130,972</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">360,554</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 24pt; padding-left: 5.4pt">Income taxes - discontinuing operations</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">51,549</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); height: 25pt">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt">Non-cash investing and financing activities:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: -12; padding-left: 50">Non-cash contribution from non-controlling interest - continuing operations</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">300,000</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: -12; padding-left: 50">Contribution of assets from non-controlling interests in subsidiaries</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">699,863</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: -12; padding-left: 50">Receivable from non-controlling member</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">569,982</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: -12; padding-left: 50">Capital lease obligation incurred for equipment</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">416,060</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">269,612</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: -12; padding-left: 50">Insurance financing</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">418,663</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">367,556</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: -12; padding-left: 50">Increase in derivative liability and accumulated other comprehensive loss</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">18,489</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>




<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: right"><FONT STYLE="font-size: 12pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: right"><FONT STYLE="font-size: 12pt"><I>The accompanying notes are an integral
part of these consolidated financial statements.</I></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
1 - Description of Business and Basis of Consolidation</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Description
of Business</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Health Diagnostics, LLC (the
&ldquo;Company&rdquo;) is a national provider of healthcare business management services. The Company provides outpatient diagnostic
imaging equipment, facilities and business management solutions for radiologists. Outpatient imaging services, such as Magnetic
Resonance Imaging (&ldquo;MRI&rdquo;), Ultrasound and X-Ray, are provided at the Company&rsquo;s 14 locations. Many locations offer
Stand-Up MRI services, allowing patients to be scanned in weight-bearing and virtually any other position without the claustrophobic
nature of traditional MRI scanning.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Health Diagnostics was formed
in 2007 as a Delaware Limited Liability Company, and grew through a combination of acquisitions and newly-formed entities. The
Company&rsquo;s facility count by year is summarized as follows:</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Year</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Acquisition</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Divestiture</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Newly Formed</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Total</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 16%; text-align: right">2007</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 16%; text-align: right">22</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 16%; text-align: right">--</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; text-align: right">--</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; text-align: right">22</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2008</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">--</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">--</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2009</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">--</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2010</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">--</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">--</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2011</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">--</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">7</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">--</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">14</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">Total</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">33</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">21</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">2</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 2pt double; font: 12pt Times New Roman, Times, Serif; text-align: right">14</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Basis
of Consolidation</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The consolidated financial statements
include the accounts of the Company and all of its wholly-owned subsidiaries and joint ventures. All of the consolidated entities
are structured as limited liability companies (&ldquo;LLCs&rdquo;). The Company consolidates the joint ventures due to majority
ownership or control through the operating agreement. All significant intercompany balances and transactions have been eliminated
in consolidation.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
2 - Summary of Significant Accounting Policies</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.35in"><FONT STYLE="font-variant: small-caps"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Use
of Estimates</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The preparation of the consolidated
financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities in the
consolidated financial statements and accompanying notes.<BR>
<BR>
</P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
2 - Summary of Significant Accounting Policies (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Use
of Estimates (continued)</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The most significant estimates relate
to revenue recognition, valuation of accounts receivable and depreciation and amortization of assets and determination of asset
impairments. In addition, healthcare industry reforms and reimbursement practices will continue to impact the Company's operations
and the determination of contractual and other allowance estimates. Actual results could differ from these estimates.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Property
and Equipment</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Property and equipment purchased
in the normal course of business are stated at cost. Property and equipment are depreciated for financial reporting purposes using
the straight-line method over the shorter of their estimated useful lives, generally five to seven years, or the term of a capital
lease, if applicable. Leasehold improvements are amortized over the shorter of the useful life or remaining lease term. Upon retirement
or other disposition of these assets, the cost and related accumulated depreciation of these assets will be removed from the accounts
and the resulting gains or losses reflected in the results of operations as incurred. Expenditures for maintenance and repairs
are charged to operations. Renewals and betterments are capitalized.<U> </U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Construction-in-progress will include
direct costs, including interest, which will continue to be capitalized until the facility is opened. Depreciation of the capitalized
costs related to the facility, including interest capitalized, will commence the month after the facility is opened and will be
based upon the useful life of the asset, as outlined above.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Long-Lived
Assets</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The Company evaluates the carrying
value of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset
(including property and equipment and amortizable intangible assets) within the scope of Accounting Standards Codification (&ldquo;ASC&rdquo;)
360-10, &ldquo;Accounting for the Impairment or Disposal of Long-Lived Assets&rdquo;, may not be recoverable. The amount of impairment
is calculated by comparing discounted future cash flows with the carrying value of the related asset. In performing this analysis,
management determined that the carrying value of the related assets were not impaired and as such did not record an impairment
loss in 2011 or 2010.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
2 - Summary of Significant Accounting Policies (continued)</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Goodwill
and Other Intangible Assets</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The Company follows the provision
of ASC 350-10, &ldquo;Goodwill and Other Intangible Assets,&rdquo; which requires goodwill and other intangible assets that have
indefinite useful lives to be tested at least annually for impairment, or whenever events or circumstances indicate that the carrying
amount of the assets may not be recoverable. ASC 350-10 also requires an evaluation of existing acquired goodwill and other intangible
assets for proper classification. The Company recorded an impairment charge of $3,992,142 in 2010 to reduce the carrying value
of its goodwill related to operations classified as discontinuing. There was no impairment charge recorded in 2011 related to goodwill
and other intangible assets.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Fair
Value of Financial Instruments</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">ASC 825, &ldquo;<I>Financial
Instruments</I>,&rdquo; defines fair value of a financial instrument as the amount at which the instrument could be exchanged in
a current transaction between willing parties. The methods and assumptions used to estimate the fair value of the financial instruments
are as follows:</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Receivables and accounts payable
and accrued expenses, other current assets and other liabilities: The carrying amounts approximate fair value because of the short
maturity of those instruments.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Long-term debt, including obligations
under capital leases: The fair value of long-term debt and obligations under capital leases approximate their carrying value because
the effective interest rates reflect recent market conditions.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Revenue
- Net and Accounts Receivable</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The Company recognizes revenue
from services provided to patients (&lsquo;Net Patient Revenue&rdquo;), primarily from their business in Florida, California and
New Jersey, and from services provided under management agreements (&ldquo;Management Fee Revenue&rdquo;), primarily from their
business in New York.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 25.2pt"></TD><TD STYLE="width: 19.8pt"><B><I>a.</I></B></TD><TD STYLE="text-align: justify"><B><I>Net Patient Revenue and Related Accounts Receivable</I></B></TD></TR></TABLE>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The Company recognizes revenue
as medical services are provided to patients. Revenue is reported at the estimated net realizable amount from insurance companies,
third-party payors, hospitals, patients and others for services rendered. These services are typically billed to insurance companies,
hospitals, patients, or the patient's legal counsel. Substantially all the revenue relates to patients residing in Florida.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
2 - Summary of Significant Accounting Policies (continued)</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.35in"><FONT STYLE="font-variant: small-caps"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Revenue
- Net and Accounts Receivable (continued)</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 25.2pt"></TD><TD STYLE="width: 19.8pt"><B><I>a.</I></B></TD><TD STYLE="text-align: justify"><B><I>Net Patient Revenue and Related Accounts Receivable (continued)</I></B></TD></TR></TABLE>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">The carrying amount of accounts
receivable may be reduced by an allowance that reflects management's best estimate of the amounts that will not be collected. The
Company determines allowances for contractual adjustments and uncollectible accounts based on the specific agings and payor classifications
at each clinic. Management periodically reviews all accounts receivable in order to determine the portion, if any, of the balance
that will not be collected.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 25.2pt"></TD><TD STYLE="width: 19.8pt"><B><I>b.</I></B></TD><TD STYLE="text-align: justify"><B><I>Management Fee Revenue and Management Fees Receivable</I></B></TD></TR></TABLE>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">As of December 31, 2011, the Company
has management agreements with nine separate New York-based Medical Entities (&ldquo;MEs&rdquo;), all owned by one unrelated radiologist.
The contractual fees for services rendered to the each of the nine New York-based MEs consist of fixed annual fees ranging from
approximately $1,560,000 to $2,788,450. Each management agreement is cancellable by either party with 180 days written notice,
and otherwise provides for an annual renegotiation of fees to be charged and services to be provided. Revenue is recognized under
the management contracts on a monthly basis equal to the lower of the contractual fee or the net realizable amount based on the
revenue recognition criteria enumerated in ASC 605. On a quarterly basis, management assesses the net realizable value of its management
fees.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">As part of that assessment, management
reviews and analyzes the data furnished to the Company by each ME, including the MEs receivables from third party medical reimbursement
organizations and the MEs operating expenses. The Company's receivables from the MEs consist of fees outstanding under management
agreements with the MEs. Payment of the outstanding fees is dependent upon collection by the MEs of fees from third party medical
reimbursement organizations, principally insurance companies and health management organizations. The management fees receivable
are collateralized by the respective medical receivables of each ME.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify">Collection by the Company of its
management fees receivable may be impaired by the uncollectibility of the MEs&rsquo; medical fees from third-party payors, particularly
insurance carriers covering automobile no-fault and workers&rsquo; compensation claims, because of longer payment cycles and rigorous
informational requirements. The Company considers the aging of its management fees receivable and net realizable value of MEs&rsquo;
medical receivables in determining the amount of allowance for uncollectible accounts and unrecognized contractual billings. The
Company takes all legally available steps to collect its receivables.</P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
2 - Summary of Significant Accounting Policies (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.35in"><FONT STYLE="font-variant: small-caps"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Advertising
Costs</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Advertising costs are expensed as
incurred. Advertising expense for the years ended December 31, 2011 and 2010 amounted to approximately $55,269 and $123,138, respectively.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Operating
Leases</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Leases that are operating leases
with defined scheduled rent increases are accounted for in accordance with ASC Topic 840. The scheduled rent increases are recognized
on a straight-line basis over the lease term.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify; background-color: white"><FONT STYLE="font-variant: small-caps"><B><I>Fair
Value Measurements</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The Company adopted ASC 820, <I>&ldquo;Fair
Value Measurements and Disclosures&rdquo;</I>, effective January&nbsp;1, 2008. ASC 820 defines fair value as the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date (exit price) in the principal or most advantageous market for the asset or liability. ASC 820 establishes a three-level fair
value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of
observable inputs and minimizes the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 70.55pt; text-align: justify; text-indent: -45.35pt">Level 1:
&#9;Quoted prices in active markets for identical assets or liabilities.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 70.55pt; text-align: justify; text-indent: -45.35pt">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 70.55pt; text-align: justify; text-indent: -45.35pt">Level 2:
&#9;Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in
active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that
are observable or can be corroborated by observable data.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 70.55pt; text-align: justify; text-indent: -45.35pt">Level 3:
&#9;Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets
or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant
unobservable inputs.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
2 - Summary of Significant Accounting Policies (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify; background-color: white"><FONT STYLE="font-variant: small-caps"><B><I>Fair
Value Measurements (continued)</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The Company has classified financial
assets and liabilities based on the lowest level of input that is significant to the fair value measurement. The Company&rsquo;s
assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation
of the fair value of assets and liabilities and their placement within the fair value hierarchy levels.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The Company does not have any financial
assets that are required to be recorded at fair value.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Concentration
of Credit Risk and Equipment Supplier</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Management fees receivable and net
management revenues are substantially derived from nine separate MEs, which are all owned by one unrelated radiologist. For the
years ended December 31, 2011 and 2010, approximately 49% and 50%, respectively, of the MEs&rsquo; billings were derived from no-fault
and workers&rsquo; compensation claims, approximately 24% and 24%, respectively, of the ME&rsquo;s billings were billed to commercial
insurance carriers and 11% and 11%, respectively, of the ME&rsquo;s billings were billed to Medicare.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">For the years ended December 31,
2011 and 2010, approximately 49% and 49%, respectively, of the Company&rsquo;s net patient revenue were billed to no-fault and
personal injury insurers, 20% and 19%, respectively, of the Company&rsquo;s net patient revenue were billed to commercial insurance
carriers and approximately 9% and 10%, respectively, of the Company&rsquo;s net patient revenue were billed to Medicare contractors.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The Company places its cash deposits
and temporary cash investments with AAA-rated financial institutions. At times, its cash may be uninsured or in deposit accounts
that exceed the Federal Deposit Insurance Corporation insurance limit.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">As of December 31, 2011, the Company
has 12 stand-up MRI machines manufactured by FONAR Corporation, a related party (NASDAQ: FONR) (&ldquo;FONAR&rdquo;). FONAR is
the exclusive manufacturer and the only authorized vendor to service the stand-up MRI machines.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>&nbsp;</I></B></FONT></P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
2 - Summary of Significant Accounting Policies (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.35in"><FONT STYLE="font-variant: small-caps"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Non-Controlling
Interest in Subsidiaries</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The Company records adjustments
to non-controlling interest for the allocable portion of income or loss that the non-controlling interest holders are entitled
to based upon their percentage ownership of the subsidiaries. Distributions to non-controlling interest partners are recorded to
the respective non-controlling interest account.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The following are entities in which
the Company has less that 100% ownership percentage as of December 31, 2011:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="text-align: right; vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid">Company&rsquo;s Ownership Percentages</TD></TR>
<TR STYLE="text-align: right; background-color: rgb(204,238,255); vertical-align: top">
    <TD STYLE="width: 20%; color: black; padding-left: 5.4pt; text-align: left"></TD><TD STYLE="width: 35%; text-align: left; vertical-align: bottom">Health Diagnostics Orlando</TD>
    <TD STYLE="width: 1%">&nbsp;</TD><TD STYLE="width: 39%">78.84</TD><TD STYLE="width: 5%">%</TD></TR>
<TR STYLE="text-align: right; background-color: White; vertical-align: middle">
    <TD STYLE="color: black; padding-left: 5.4pt; text-align: left"></TD><TD STYLE="text-align: left; vertical-align: bottom">HD Ultrasound, LLC</TD>
    <TD>&nbsp;</TD><TD>50.00</TD><TD>%</TD></TR>
<TR STYLE="text-align: right; background-color: rgb(204,238,255); vertical-align: top">
    <TD STYLE="color: black; padding-left: 5.4pt; text-align: left"></TD><TD STYLE="text-align: left; vertical-align: bottom">HD of Hicksville</TD>
    <TD>&nbsp;</TD><TD>50.00</TD><TD>%</TD></TR>
</TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">On March 22, 2011, a group of investors
(&ldquo;Buckeye&rdquo;) contributed assets at fair value of $699,863 and $569,982 of cash which was received subsequent to December
31, 2011 in exchange for a 21.16% interest in Health Diagnostics Orlando. Buckeye is made up primarily of Company and FONAR management
and unrelated third parties.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Employee
Benefit Plans</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The Company sponsors a defined-contribution
401(k) Plan (&ldquo;Plan&rdquo;) to provide retirement and incidental benefits for its employees. Employees may contribute a discretionary
annual contribution to the Plan, limited to a maximum annual amount as set periodically by the Internal Revenue Service. The Plan
provides for discretionary contributions as determined by management. Such contributions to the Plan are allocated among eligible
participants in the proportion of their salaries to the total salaries of all participants. The Company did not make contributions
to the plan during the years ended December 31, 2011 and 2010.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Subsequent
Events</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Management has evaluated subsequent
events to determine if events or transactions occurring through September 13, 2012, the date these financial statements were available
to be issued, require adjustment to or disclosure in the financial statements.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
2 - Summary of Significant Accounting Policies (continued)</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Recently
Promulgated Accounting Pronouncements</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">In July 2011, Accounting Standards
Update (&ldquo;ASU&rdquo;) No. 2011-07, &ldquo;Presentation and Disclosure of Patient Service Revenue, Provision of Bad Debts,
and the Allowance for Doubtful Accounts for Certain Healthcare Entities&rdquo; was issued by the Financial Accounting Standards
Board Emerging Issues Task Force. This amendment to the accounting code instructs healthcare entities to provide greater transparency
about health care entity&rsquo;s net patient service revenue.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Healthcare entities will be
required to assess the patient&rsquo;s ability to pay at the time service is provided and to reduce the patient service revenue
amount by this (as opposed to including within the provision for bad debts). This guidance is in effect for annual periods ending
after December 15, 2012. The Company is currently evaluating the impact that the adoption of ASU No. 2011-07 will have on its consolidated
financial statements.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">In September 2011, the Financial
Accounting Standards Board (&ldquo;FASB&rdquo;) issued ASU No. 2011-08, Intangibles-Goodwill and Other (Topic 350): Testing Goodwill
for Impairment, to simplify how entities test goodwill for impairment. ASU 2011-08 allows entities to first assess qualitative
factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount.
If a greater-than-50-percent likelihood exists that the fair value is less than the carrying amount, then a two-step goodwill impairment
test, as described in Topic 350, must be performed. The guidance provided by this update becomes effective for annual and interim
goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The adoption of this standard is not expected
to have a material impact on the Company&rsquo;s consolidated financial position and results of operations.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
3 - Sale of Assets/Divestitures</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>2010
Transactions</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><B><I>Tricat Sale</I></B></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">On July 31, 2010, the Company
sold substantially all of the physical assets of the Tricat (New Jersey) facilities, excluding Freehold, for $3,500,000. The acquirer
also assumed the remainder of the leases on the facilities, however did not acquire the related Accounts Receivable. The results
of the sold facilities operations are classified within discontinued operations for the year ended December 31, 2010. An impairment
loss of $2,136,054 was recorded in 2009 related to these assets. A gain of $525,323 was recorded on the transaction for the year
ended December 31, 2010.</P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
3 - Sale of Assets/Divestitures (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow"></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow"></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>2010
Transactions</I>/Divestitures<I> (continued)</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><B><I>Freehold Divestiture</I></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">On July 31, 2010, the Company ceased
operations at the Freehold facility in New Jersey. On August 30, 2010, the Company entered into an agreement to sell the Diagnostic
Imaging equipment for $332,000. 10% was due upon receipt of the countersigned agreement and the balance due upon pickup of the
equipment, which occurred in September 2010.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The results of the sold facility&rsquo;s
operations are classified within discontinued operations for the year ended December 31, 2010. A loss of $1,004,909 was recorded
on the transaction for the year ended December 31, 2010.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><B><I>MTI/DTG Sale</I></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">On September 24, 2010, the Company
sold substantially all of the physical assets of the Midtown &amp; DTG facilities, except for accounts receivables in exchange
for $28,000,000 in cash, plus $3,000,000 placed into an escrow account for two years control by the acquirer. The acquirer assumed
the remainder of the leases on the facilities. The results of the sold facilities&rsquo; operations are classified within discontinued
operations for the year ended December 31, 2010. An impairment loss of $8,698,598 was recorded in 2009 related to these assets.
A gain of $1,693,421 was recorded on the transaction for the year ended December 31, 2010.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><B><I>Yonkers Divestiture</I></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">On September 21, 2010, the Company
agreed to assign the lease for the Yonkers facility prior to its opening to a subsidiary of FONAR. The Company was required to
pay the appropriate facility costs through March 2011 in order for the assignment to be valid. The assets of the facility were
deemed to a deminimus value and a loss of $74,434 was recorded for the year ended December 31, 2010. The rent and other operations
costs from 2010 and 2011 were included within discontinued operations.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><B><I>Dolphin Sale</I></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">On October 1, 2010, the Company
sold substantially all of the physical assets of the Santa Rosa facility for $1. The acquirer also assumed the remainder of the
lease on the facility. The results of this facility&rsquo;s operations are classified within discontinued operations for the year
ended December 31, 2010. A loss of $643,866 was recorded on the transaction for the year ended December 31, 2010.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>


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    <!-- Field: /Page -->

<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
3 - Sale of Assets/Divestitures (continued)</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>2011
Transactions</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><B><I>Hollywood Sale</I></B></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">On May 31, 2011, the Company
sold substantially all of the physical assets of the Hollywood facility for $150,000 and a $50,000 contingent note payable two
years after the close of the transaction, if certain pre-set volume thresholds were met. The acquirer also assumed the remainder
of the lease on the facility. The Company kept the related Accounts Receivable. The results of this facility&rsquo;s operations
are classified within discontinued operations for 2010 through the date of the sale. A loss of $220,275 was recorded on the transaction
for the year ended December 31, 2011.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><B><I>BMC Sale</I></B></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">On December 15, 2011, the Company
sold substantially all of the physical assets of the BMC facilities, excluding the medical receivables and the San Jose Medical
Group and California Ultra Sound facilities in exchange for $13,930,000 in cash. The acquirer also assumed the remainder of the
leases on the sold facilities. The results of the included facilities operations are classified within discontinued operations
for 2010 through the date of sale. An impairment loss of $3,992,142 was recorded in 2010 related to these assets. A loss of $788,861
was recorded on the transaction for the year ended December 31, 2011.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
4 - Accounts Receivable, Net</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The breakdown of accounts receivable,
net, at December 31, 2011 and 2010, is as follows:</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid">December 31, 2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Receivables Due from Healthcare Payors</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Receivables Due under Management Agreements</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Total Accounts Receivable - Net</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 46%; text-align: justify; padding-left: 5.4pt">Accounts receivable, net of contractual allowances</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">5,262,310</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">9,075,254</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">14,337,564</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Allowance for uncollectible accounts</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(500,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">--</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(500,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Accounts Receivable, Net</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">4,762,310</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">9,075,254</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">13,837,564</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">December 31, 2010</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Receivables Due from Healthcare Payors</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Receivables Due under Management Agreements</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="11" STYLE="text-align: center; border-bottom: Black 1pt solid">Total Accounts Receivable - Net</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 46%; font-size: 10pt; text-align: justify; padding-left: 5.4pt">Accounts receivable, net of contractual allowances</TD><TD STYLE="width: 5%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">4,907,427</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">7,923,708</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">12,831,135</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Allowance for uncollectible accounts</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(500,000</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">--</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(500,000</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Accounts Receivable, Net</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">4,407,427</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">7,923,708</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">12,331,135</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>


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    <!-- Field: /Page -->

<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
5 - Property and Equipment, Net</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Property and equipment, net, consist
of the following at December 31, 2011 and 2010:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="text-align: center; vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">Useful Life</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid">2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid">2010</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 49%; text-align: left; padding-left: 5.4pt; vertical-align: bottom">Fixtures</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 16%; text-align: center; padding-left: 5.4pt; vertical-align: bottom">5 to 7 years</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: right; vertical-align: bottom">$</TD><TD STYLE="width: 11%; text-align: right; vertical-align: bottom">409,087</TD><TD STYLE="width: 1%; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: right; vertical-align: bottom">$</TD><TD STYLE="width: 11%; text-align: right; vertical-align: bottom">403,865</TD><TD STYLE="width: 1%; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt; vertical-align: bottom">Diagnostic equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt; vertical-align: bottom">5 to 7 years</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: right; vertical-align: bottom">10,222,476</TD><TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: right; vertical-align: bottom">9,255,245</TD><TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt; vertical-align: bottom">Leasehold improvements</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt; vertical-align: bottom">5 to 10 years</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: right; vertical-align: bottom">3,558,101</TD><TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: right; vertical-align: bottom">3,006,300</TD><TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt; vertical-align: bottom">Computer and billing system</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt; vertical-align: bottom">3 to 5 years</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom">3,900,273</TD><TD STYLE="padding-bottom: 1pt; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom">3,662,788</TD><TD STYLE="padding-bottom: 1pt; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: right; vertical-align: bottom">18,089,937</TD><TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: right; vertical-align: bottom">16,328,198</TD><TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt; vertical-align: bottom">Less: accumulated depreciation</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom">(11,328,712</TD><TD STYLE="padding-bottom: 1pt; text-align: right; vertical-align: bottom">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom">(7,738,427</TD><TD STYLE="padding-bottom: 1pt; text-align: right; vertical-align: bottom">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt; vertical-align: bottom">Property and Equipment, Net</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">6,761,225</TD><TD STYLE="padding-bottom: 1pt; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">8,589,771</TD><TD STYLE="padding-bottom: 1pt; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow"></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow"></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Depreciation expense for property
and equipment for the years ended December 31, 2011 and 2010 was $3,590,285 and $3,125,245, respectively. There was depreciation
expense of $10,515 and $1,029,560 recorded for discontinued assets in 2011 and 2010, respectively.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps; background-color: yellow"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps; background-color: yellow"><B></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
6 - Amortizable Intangible Assets, Net</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The following is a summary of amortizable
intangible assets at December 31, 2011 and 2010:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid">December 31, 2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Cost</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Accumulated <BR>Amortization</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Net Carrying <BR>Value</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid">Amortizable <BR>Life</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 18%; text-align: justify; padding-left: 5.4pt">Management, employment <BR>and <BR>non-compete agreements</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 1%">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 16%">1,701,300</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 1%">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 16%">1,549,852</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 1%">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 15%">151,448</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 17%; text-align: center; padding-left: 5.4pt">5 years</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow"></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid">December 31, 2010</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Cost</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Accumulated <BR>Amortization</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Net Carrying <BR>Value</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid">Amortizable <BR>Life</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 18%; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt"><P STYLE="margin-top: 0; margin-bottom: 0">Management, employment</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">and <BR>non-compete agreements</P></TD><TD STYLE="width: 3%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 1%">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 16%">1,701,300</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 1%">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 16%">1,344,345</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 1%">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 15%">356,955</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 17%; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;<BR>5 years</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Amortization expense for the years
ended December 31, 2011 and 2010 was $204,738 and $553,600,</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">respectively. The balance will be amortized during 2012.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
7 - Capital Leases</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Obligations under capital leases
in connection with the purchase of property and equipment are as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Each of the obligations under capital
leases assumed from the Integrity Group acquisition listed below is collateralized by the respective receivables from each diagnostic
imaging facility.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid">Lessee</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2010</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 67%; text-align: justify; padding-left: 0.05in">Equipment lease dated December 9, 2003 with Hitachi Capital America Corp. for the facility located in Manhattan, New York. Lease provides for 66 monthly payments: 1-3 months of $--, 4-66 of $30,047, including interest of 10.2% per annum. At termination of the lease, equipment purchase option is $1. Assumed from Integrity Group acquisition.</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">68,096</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 0.05in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 0.05in">Equipment lease dated December 9, 2003 with Hitachi Capital America Corp. for the facility located in Queens, New York. Lease provides for 66 monthly payments: 1-3 months of $--, 4-66 of $30,047, including interest of 10.2% per annum. At termination of the lease, equipment purchase option is $1. Assumed from Integrity Group acquisition.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">68,096</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 0.05in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 0.05in">Equipment lease with IFC Credit Corporation for the facility located in Orlando, Florida. Lease provides for 60 monthly payments: 1-6 months of $99, 7-60 of $1,728, including interest of 11.65% per annum through January 15, 2012. At termination of the lease, equipment purchase option is $1.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,406</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,013</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 0.05in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 0.05in">Equipment lease with Key Equipment Finance, Inc., bearing interest at 7.58%, payable in monthly installments of $30,052, including interest through November 2011. At termination of lease, equipment purchase option is $1.</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">318,363</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 0.05in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 0.05in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
7 - Capital Leases (continued)</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid">Lessee</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2010</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 67%; text-align: justify; padding-left: 0.05in">Equipment lease dated October 8, 2008 with Philips Medical Capital for the facility located in Miami, Florida. Lease provides for 60 monthly payments: 1-3 months of $--, 4-60 of $21,893, including interest of 6.10% per annum. At termination of the lease, equipment purchase option is $1.</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">454,612</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">700,361</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 0.05in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 0.05in">Equipment lease with Key Equipment Finance, Inc., bearing interest at 6.24% payable in monthly installments of $3,459, including interest, through January 21, 2012. At termination of the lease, equipment purchase option is $1.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">43,372</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 0.05in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 0.05in">Equipment lease with Western Financial Lease bearing interest at 8.25%, payable in monthly installments of $1,959, including interest through March 16, 2016. At termination of lease, the equipment purchase option is $1.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">84,022</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 0.05in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 0.05in">Equipment lease with Forum Financial Services bearing interest at 8.4%, payable in monthly installments of $5,558, including interest through April 1, 2014. At termination of lease, the equipment purchase option is $1.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">129,493</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 0.05in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 0.05in">Equipment lease with Susquehanna Commercial Finance, Inc. bearing interest at 14.4%, payable in monthly installments of $2,253, including interest through March 16, 2016. At termination of lease, the Company will own the equipment.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">85,619</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 0.05in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 0.05in">Equipment lease with Hewlett Packard Financial Services bearing interest at 10.00%, payable in monthly installments of $1,269, including interest, through October 12, 2014. At termination of the lease, equipment purchase option is $1.</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">37,418</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">49,997</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 0.05in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 0.05in">Principal balance</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">794,570</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,272,298</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 0.05in">Less: current maturities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(368,924</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(791,118</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 0.05in">Total Long-Term Maturities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">425,646</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">481,180</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
7 - Capital Leases (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Future minimum lease payments under
the capital lease obligations, as of December 31, 2011 are as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom">For the Year Ending December 31,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Amount</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 5%; text-align: center">&nbsp;</TD><TD STYLE="width: 60%; text-align: left">2012</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 18%; text-align: right">420,529</TD><TD STYLE="width: 5%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left">2013</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">329,501</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left">2014</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">71,622</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left">2015</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,542</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left">2016</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">12,640</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left">Total minimum lease payments</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">884,834</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.05in; text-align: justify">Less: amount representing interest, with interest</P> <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.05in; text-align: justify; text-indent: 0.5in">rates varying from 6.1% to 14.4%</P></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(90,264</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left"><B>Present Value of Minimum Lease Payments</B></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">794,570</TD><TD STYLE="padding-bottom: 1pt; color: black; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">At December 31, 2011 and 2010, the
gross amount of property and equipment and related accumulated depreciation recorded under capital leases were as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2010</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%; text-align: justify; padding-left: 5.4pt">MRI Equipment under capital leases</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">1,588,061</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">3,634,183</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Less: accumulated depreciation</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(859,306</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,875,545</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Total</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">728,755</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">1,758,638</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow"></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">For property and equipment under
capital leases, depreciation expense for the years ended December 31, 2011 and 2010 was $310,971 and $674,661, respectively.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
8 - Long-Term Debt</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">At December 31, 2011 and 2010, long-term
debt consisted of the following:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2010</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 70%; text-align: justify; padding-left: 5.4pt">Note payable to Key Equipment Finance, Inc. bearing interest at 8%, payable in 24 monthly installments of $66,031, including interest, starting July 2010.</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,116,529</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Note payable to Microsoft Financing bearing no interest, payable in monthly installments of $2,965, through July 2011.</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left"></TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left"></TD><TD STYLE="text-align: right">29,651</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">Note payable to First Insurance Funding bearing interest at 2.59%, payable in monthly installments of approximately $27,731, including interest, through March 2011.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"></TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"></TD><TD STYLE="text-align: right">82,834</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">Note payable to First Insurance Funding bearing interest at 2.07%, payable in monthly installments of approximately $14,750, including interest, through March 2011.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">44,097</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">Note payable to First Insurance Funding bearing interest at 2.62%, payable in monthly installments of approximately $5,702, including interest, through March 2011.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">61,903</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Note payable to First Insurance Funding bearing interest at 2.59%, payable in monthly installments of approximately $48,687, including interest, through March 2012.</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">145,431</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">Principal balance</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">145,431</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,335,014</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Less: current portion</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(145,431</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(947,907</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Long-Term Portion</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">387,107</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
9 - Commitments and Contingencies</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Operating
Lease Commitments</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The Company leases all office facilities
and certain diagnostic and office equipment under operating leases that expire at various dates through February, 2019. Certain
operating leases provide the Company with the option to renew for additional periods. Where operating leases contain escalation
clauses, rent abatements and/or concessions, such as rent holidays and landlord or tenant incentives or allowances, they are applied
in the determination of straight-line rent expense over the lease term. Leasehold improvements made at inception or during the
lease term are amortized over the shorter of the asset life or the lease term.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Approximate future minimum lease
payments under operating leases, excluding common area and real estate tax reimbursements, are as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom">For the Year Ending December 31,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom">Facilities Leases</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Equipment Leases</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 40%; text-align: right; vertical-align: bottom">2012</TD><TD STYLE="width: 1%">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 22%; text-align: right">2,244,895</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 22%; text-align: right">68,568</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right; vertical-align: bottom">2013</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,721,102</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,290</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right; vertical-align: bottom">2014</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,316,650</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,270</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right; vertical-align: bottom">2015</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,208,784</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,270</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right; vertical-align: bottom">2016</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,219,251</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: right">Thereafter</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,273,438</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="text-align: left; background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right; vertical-align: bottom"><B>Total Minimum Obligations</B></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">9,984,120</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">109,398</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Rent expense for facilities amounted
to approximately $2,105,960 and $2,213,061 for the years ended December 31, 2011 and 2010, respectively.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Equipment rental expense for the
years ended December 31, 2011 and 2010 amounted to approximately $123,213 and $9,037, respectively.<FONT STYLE="background-color: yellow">
</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Employment
Agreements</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The Company enters into employment
agreements with certain key employees from time-to-time. These agreements last for 2-3 years, are terminable by either party for
any reason and may provide for a guaranteed inflationary adjustment to base salary and/or for discretionary bonuses. These agreements
contain a covenant not-to compete, which restricts employment after voluntary/involuntary termination from the Company. The length
of the covenant not-to compete is stated in the contract; however may be adjusted based on which party terminates the agreement.</P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
9 - Commitments and Contingencies (continued)</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Service
Agreements</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The Company is a party to various
service agreements that provide for routine maintenance, upgrades and repairs on most of its diagnostic equipment. Some of these
agreements cover periods of more than one year. Payment obligations under these agreements are as follows:</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="text-align: right; vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid">For the Year Ending December 31,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid">Amount</TD></TR>
<TR STYLE="text-align: right; background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="width: 1%">&nbsp;</TD><TD STYLE="width: 50%">2012</TD><TD STYLE="width: 1%">&nbsp;</TD><TD STYLE="width: 26%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD><TD STYLE="width: 20%">1,329,886</TD><TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="text-align: right; background-color: White; vertical-align: bottom">
    <TD>&nbsp;</TD><TD>2013</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD><TD>22,260</TD><TD>&nbsp;</TD></TR>
<TR STYLE="text-align: right; background-color: rgb(204,238,255); vertical-align: bottom">
    <TD>&nbsp;</TD><TD>2014</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD><TD>22,260</TD><TD>&nbsp;</TD></TR>
<TR STYLE="text-align: right; background-color: White; vertical-align: bottom">
    <TD>&nbsp;</TD><TD>2015</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid">22,260</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="text-align: right; background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold"><P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0pt"><B>Total
Service Agreement Obligations</B><FONT STYLE="background-color: yellow">&nbsp;</FONT></P></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">1,396,666</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0; text-indent: 22pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">MANAGEMENT
AGREEMENT</FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I></I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">In 2011 and 2010, the Company
entered into management agreements with multiple subsidiaries of FONAR in which the Company provided sales services for two diagnostic
imaging facilities. For the years ended December 31, 2011 and 2010, the Company earned $235,752 and $324,069, respectively.<FONT STYLE="background-color: yellow">
</FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Litigation
</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The Company is involved in various
legal proceedings in the ordinary course of business. Management believes that the ultimate resolution of such legal proceedings
will not have a material adverse effect on the consolidated financial position, results of operations and cash flows of the Company.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Zotec
Litigation</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The Company and Zotec Partners,
LLC (&ldquo;Zotec&rdquo;) signed an agreement in 2007, pursuant to which the Company would license Zotec&rsquo;s radiology information
system and Zotec would provide consultation and implementation services. The Company paid Zotec a deposit of $375,000 upon signing
the agreement. The Company filed suit against Zotec in the Hamilton County, Indiana, Superior Court. The suit alleges, among other
things, Zotec&rsquo;s materially false representations about the functionality of the software and of Zotec&rsquo;s consulting
capabilities, each of which the Company relied upon in signing the agreement. The Company is seeking a rescission of the agreement,
a return of its deposit, along with accumulated interest, actual and punitive damages.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
9 - Commitments and Contingencies (continued)</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Zotec
Litigation (continued)</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">In 2008, the Company wrote off
its $375,000 deposit. In 2012, the Company and Zotec reached a settlement, whereby the Company paid Zotec $42,000. This was accrued
for in full as of December 31, 2011.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Tricat
Litigation</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">On March 20, 2009, the former
owners of Tricat filed a lawsuit against the Company in the Superior court of New Jersey, Middlesex County alleging, among other
things, the Company did not fulfill certain post-closing covenants. This suit was settled out of court, with the former owners
releasing the full escrow balance, plus an additional amount, totaling $900,000 in 2011. These funds were applied against a receivable
amount that is reflected as an asset in discontinued operations as of December 31, 2010, as well as additional income of $438,845
recorded in 2011 within discontinued operations.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Midtown
Litigation</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">On July 3, 2008, the Company
acquired 100% of the equity of Midtown Imaging, LLC in exchange for cash payments to the sellers totaling $39,000,000, of which
$3,000,000 was placed in an escrow account, an assumption of a subordinated promissory note held by Midtown Imaging, P.A. in the
amount of $4,000,000, and assumption of certain other liabilities.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">On January 14, 2010, the Company
was sued by Midtown Imaging, P.A. for alleged breach of a Guaranty agreement in connection with the $4,000,000 promissory note
held by Midtown Imaging, P.A. from Midtown Imaging, LLC. The Company settled the allegations in 2011 and reduced the promissory
note&rsquo;s value to $1,000,000 in exchange for releasing their claim to the escrow. In 2011, the Company recorded a $3,000,000
reduction in the notes carrying value as an increase to other income from discontinued operations and paid the $1,000,000 amount
in full in 2011.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Carecore
Litigation</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The complaint alleged an illegal
horizontal conspiracy among a group of radiologists to preclude their competitors, including the Company, from providing outpatient
medical diagnostic imaging services to patients residing in various counties in New York City, Long Island and Westchester. In
particular, this case concerned the actions of CareCore (&ldquo;CCN&rdquo;) and its principals.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
9 - Commitments and Contingencies (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Carecore
Litigation (continued)</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">CCN is owned and controlled by a
group of competing diagnostic imaging providers located throughout New York. CCN has entered into exclusive agreements with the
largest health care insurance plans in New York City, Long Island and Westchester -- including Oxford Healthcare, Aetna Healthcare,
GHI, Healthfirst, Healthnet, HIP, and United Healthcare -- to manage radiology benefits for their subscribers.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Pursuant to its exclusive contracts
with these commercial payers, CCN &quot;certifies&rdquo; or approves diagnostic imaging providers for admission into the payer
physician networks which it controls. In this manner, CCN controls imaging providers' ability to obtain health insurance reimbursement
from the health plans with which CCN contracts. Diagnostic imaging providers in New York City, Long Island and Westchester not
receiving CCN certification are thus precluded from servicing patients who have their imaging services reimbursed by these dominant,
commercial health insurance plans.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">During 2010, the Company alleged
by commencing litigation that CCN and its owner-providers allocated the market for diagnostic imaging services in New York City,
Long Island and Westchester among themselves by boycotting competing imaging providers' access to the networks CCN controls. The
Company alleged that CCN has further allocated the market for such services by &quot;steering&quot; patient referrals towards its
owner-providers and away from non-CCN-owned providers that are &quot;admitted&quot; to the CCN-controlled networks. The Company
alleges that CCN's conduct is illegal and has yielded anticompetitive effects in the market for imaging services, notably by reducing
the output and quality of such services and by hampering innovation by imaging providers.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">During 2010, the Company won a judgment
which was appealed by CCN. On March 8, 2012, the Company settled the litigation with CCN. The financial terms of the settlement
are subject to a confidentiality agreement. Under the terms of the settlement the amount paid by CareCore was received in full
as of May 15, 2012. In accordance with ASC 855-10-15, the resolution of a gain contingency after the balance sheet date but before
issuance of the financial statements should be considered a nonrecognized subsequent event and therefore the gain has been recorded
in 2012, net of related legal fees and other expenses resulting from the settlement. This net gain will be included in other income
in the 2012 consolidated statement of operations.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
9 - Commitments and Contingencies (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Embarcadero
Open MRI Litigation</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The Company was found to be in violation
relating to a breach of contract in connection with a facility acquired by BMC prior to BMC&rsquo;s acquisition by the Company.
The Company was found to owe $354,000, plus interest of 10% per year, as well as the possibility of legal fees. A follow-up hearing
is scheduled for June, 2012 to determine the payment terms. The debt of $354,000 is included within the liabilities of discontinued
operations and three and twelve months of interest have been recorded and included in the results of operations for discontinued
operations for the years ended December 31, 2010 and 2011, respectively.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Significant
Risks and Uncertainties </I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The Company receives reimbursements
from Medicare, Medicaid, private insurance, no-fault and workers&rsquo; compensation carriers, self-pay and other third-party payors.
The health care industry is experiencing the effects of the federal and state governments&rsquo; trend toward cost containment,
as government and other third-party payors seek to impose lower reimbursement and utilization rates and negotiate reduced payment
schedules with providers. The cost-containment measures, consolidated with the increasing influence of managed-care payors and
competition for patients, have resulted in reduced rates of reimbursement for services provided by the Company from time to time.
The Company&rsquo;s future revenues and results of operations may be adversely impacted by future reductions in reimbursement rates.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">While the Company has prepared certain
estimates of the impact of the above discussed changes and proposed changes, it is not possible to fully quantify their impact
on its business. There can be no assurance that the impact of these changes will not be greater than estimated or that any future
health care legislation or reimbursement changes will not adversely affect the Company&rsquo;s business.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><FONT STYLE="background-color: white">&nbsp;</FONT></P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
10 - Income Taxes</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The Company and all of its subsidiaries
are organized as LLCs and the Company is treated as a partnership for income tax purposes. As such, the Company will pay no federal
or state income taxes, rather, its income or loss will be taxed directly to its members. Accordingly, no provision for federal
or state income taxes is included in the accompanying consolidated financial statements.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The Managing Member has concluded
that the Company is a pass-through entity and there are no uncertain tax positions that would require recognition in the financial
statements. If the Company was to incur an income tax liability in the future, interest on any income tax liability would be reported
as interest expense and penalties on any income tax liability would be reported as income taxes.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">In connection with the New York
City Unincorporated Business Tax (&ldquo;NYCUBT&rdquo;), deferred tax assets and liabilities are provided based on the differences
between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates in effect in the
years in which the differences are expected to reverse.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The Managing Member&rsquo;s conclusions
regarding uncertain tax positions may be subject to review and adjustment at a later date based upon ongoing analyses of tax laws,
regulations and interpretations thereof as well as other factors. Generally, federal, state and local authorities may examine the
Company&rsquo;s tax returns for three years from the date of filing and the current and prior three years remain subject to examination
as of December 31, 2011. The Company is subject to NYCUBT based on income apportioned to New York City. However, due to the net
loss experienced in 2011 and 2010, the amount was deemed to be immaterial.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">As of December 31, 2011 and 2010,
the Company had New York City NOLs of approximately $4,418,000 and $2,735,000, respectively, available to offset future taxable
income.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
11 - Related Party Transactions</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Pursuant to its Amended and Restated
Limited Liability Company Agreement (the &quot;Operating Agreement&quot;), the Company may be required to pay Blackfin Capital,
LLC (&quot;Blackfin&quot;) a monthly management fee for services provided on its behalf.&nbsp; The Company's Managing Member is
a member of Blackfin. Services may include, but are not limited to, executive management, merger and acquisition consultation,
advising the Company on its capital structure and raising capital. Pursuant to the Operating Agreement, the management fee may
be increased or decreased at the sole discretion of the Managing Member. For the years presented, a monthly fee of $50,000 was
charged to the Company with a bonus of $369,000 paid in 2011.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
12 - Discontinued Operations</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">In accordance with ASC topic 360
(formerly SFAS 144), the Company has elected to classify the assets, liabilities and results of operations for Tricat, MTI, DTG,
Hollywood, Dolphin and BMC as assets and liabilities held for sale and as a discontinued operation in the accompanying consolidated
financial statements.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Assets
and Liabilities of Business held for Sale</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The major categories of assets and
liabilities held for sale or sold included in the consolidated balance sheet at December 31, 2011 and 2010 are as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.3in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2010</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: justify; padding-left: 0.05in; text-indent: 20pt">Assets Held for Sale</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 61%; text-align: justify; padding-left: 5.4pt; text-indent: 30pt">Accounts receivable, net</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">2,950,516</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 12%; text-align: right">5,722,745</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 0.05in; text-indent: 30pt">Receivable from sale of MTI/DTG</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,000,000</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,000,000</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 0.05in; text-indent: 30pt">Prepaid expenses and other current assets</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">18,246</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">874,827</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 0.05in; text-indent: 30pt">Property, plant and equipment - net</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,964</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,733,017</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 50pt; text-indent: -18pt">Amortizable intangible assets - net, including goodwill of $-- and $1,541,176, respectively</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">11,936,176</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 0.05in; text-indent: 30pt">Other assets</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">13,761</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">94,066</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; height: 25pt">
    <TD STYLE="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 0.05in; text-indent: 20pt">Total
    Assets Held for Sale <BR> </TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">5,987,487</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">24,360,831</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); height: 25pt">
    <TD STYLE="font-weight: bold; text-align: justify; padding-left: 0.05in; text-indent: 20pt">Liabilities Held for Sale</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 0.05in; text-indent: 30pt">Obligations under capital leases</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">128,499</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 0.05in; text-indent: 30pt">Obligations under debt</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">354,388</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,286,503</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 0.05in; text-indent: 30pt">Accounts payable and accrued expenses</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,293,477</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,942,874</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); height: 25pt">
    <TD STYLE="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 0.05in; text-indent: 20pt">Total Liabilities Held for Sale</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">1,647,865</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">9,357,876</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.3in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>


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    <!-- Field: /Page -->

<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
12 - Discontinued Operations (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Statement
of Operations of Discontinued Operations</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The following results of operations
are presented as a loss from a discontinued operation in the consolidated statements of operations.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2010</TD></TR>
<TR STYLE="text-align: right; background-color: rgb(204,238,255); vertical-align: top">
    <TD STYLE="width: 56%; font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt; vertical-align: bottom"><P STYLE="margin-top: 0; margin-bottom: 0">Patient Revenue</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P></TD><TD STYLE="width: 8%; padding-bottom: 1pt; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left; vertical-align: bottom">$</TD><TD STYLE="width: 12%; border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom">15,764,618</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="width: 8%; padding-bottom: 1pt; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left; vertical-align: bottom">$</TD><TD STYLE="width: 12%; border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom">40,297,990</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">Costs of medical services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,462,679</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,546,823</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">Salaries and related costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,891,457</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,302,171</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">Facilities cost</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,677,190</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,869,646</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">Equipment lease expense and service</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,037,396</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,706,820</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">Travel, entertainment and marketing costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">290,886</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">518,616</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Other clinic operating costs</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,410,902</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">5,223,948</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,770,510</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">43,168,024</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">Corporate overhead</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">369,533</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">795,981</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">Depreciation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,515</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,029,560</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">Amortization of intangible assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,620,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Impairment charges</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,992,142</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="text-align: right; background-color: rgb(204,238,255); vertical-align: middle; height: 10">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt; height: 20; vertical-align: bottom"><BR>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Total
Operating Expenses&nbsp;</P></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">14,150,558</P></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">50,605,707</P></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="text-align: right; background-color: White; vertical-align: top">
    <TD STYLE="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 5.75pt"><P STYLE="margin-top: 0; margin-bottom: 0">Income (Loss) from Operations</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,614,060</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(10,307,717</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">Interest income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(24</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(988</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">Other income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,035,930</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(299,711</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">Amortization of finance costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">580,927</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Interest expense</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">305,372</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,169,888</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="text-align: right; background-color: rgb(204,238,255); vertical-align: middle">
    <TD STYLE="font-weight: bold; text-align: justify; padding-left: 5.4pt"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                            <P STYLE="margin-top: 0; margin-bottom: 0">Total Other Expense (Income)</P>
                                                                            <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,730,582</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,450,116</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Income Taxes</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">29,580</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Income (Loss) from Discontinued Operations</P></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">4,344,642</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">(12,787,413</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
</TABLE>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
12 - Discontinued Operations (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Accounts
Receivable, Net</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">All of the accounts receivable classified
as Assets Held for Sale are receivable from healthcare payors. The amounts presented are at net realizable value at December 31,
2011 and 2010.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The breakdown of accounts receivable,
net, at December 31, 2011 and 2010, is as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid">December 31, 2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Receivables Due From Healthcare Payors</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Receivables Due under Management Agreements</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Total Accounts Receivable - Net</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 29%; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Accounts receivable, net of <BR>contractual allowances</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 1%">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 20%">2,950,516</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 1%">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 20%">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 1%">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 20%">2,950,516</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid">December 31, 2010</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Receivables Due From Healthcare Payors</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Receivables Due under Management Agreements</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Total Accounts Receivable - Net</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 29%; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Accounts receivable, net of <BR>contractual allowances</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 1%">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 20%">5,722,745</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 1%">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 20%">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 1%">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right; width: 20%">5,722,745</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


<P STYLE="margin-top: 0; margin-bottom: 0; text-indent: 22pt"><FONT STYLE="font-size: 12pt; font-variant: small-caps"><B><I>
Property and  Equipment, Net</I></B></FONT></P>

<P STYLE="margin-top: 0; margin-bottom: 0; text-indent: 22pt"></P>

<P STYLE="margin-top: 0; margin-bottom: 0"> </P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Property and equipment, net, consist
of the following at December 31, 2011 and 2010:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">Estimated</P>
                                                                   <P STYLE="margin-top: 0; margin-bottom: 0">Useful Life</P></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2010</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; text-align: justify; padding-left: 4.5pt">Fixtures</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 17%; text-align: center; padding-left: 5.4pt">5 to 7 years</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">175,321</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 4.5pt">Diagnostic equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">5 to 7 years</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,419,522</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 4.5pt">Leasehold improvements</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">5 to 10 years</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,964</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">938,982</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 4.5pt">Computer and billing system</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">3 to 5 years</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">94,076</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 4.5pt"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                         <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,964</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,627,901</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 4.5pt">Less: Accumulated depreciation</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(2,894,884</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 4.5pt"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Property and Equipment, Net</P></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">4,964</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">2,733,017</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Depreciation expense for property
and equipment for the years ended December 31, 2011 and 2010 was $10,515 and $1,029,560, respectively, and is recorded as a component
of income (loss) on discontinued operations. The Company recorded $-- and $1,029,560 in depreciation expense for assets that were
disposed of in 2011 and 2010, respectively.</P>


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    <!-- Field: /Page -->

<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
12 - Discontinued Operations (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Intangible
Assets - Net</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="color: black">On December
15, 2011, the Company sold substantially all of the physical assets of the BMC facilities. </FONT>The Company performed its fair
value test on the assets classified as held for sale, comparing the carrying value of the assets held for sales against the price
of the assets as mentioned in the sales agreement. Based on this analysis, the Company recorded an impairment charge of $3,992,142
in 2010 to reduce the carrying value of its goodwill.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid">December 31, 2010</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Cost</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Accumulated <BR>Amortization</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Net Carrying <BR>Value</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid">Amortizable <BR>Life</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 32%; text-align: left; padding-left: 5.4pt">Referral networks and payor contracts</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">16,200,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">5,805,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">10,395,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 14%; text-align: center; padding-left: 5.4pt; vertical-align: bottom">10 years</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 5.4pt">Goodwill</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,533,318</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,533,318</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt; vertical-align: bottom">N/A</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Impairment for impaired assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(3,992,142</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(3,992,142</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt; vertical-align: bottom">N/A</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt; vertical-align: bottom"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Intangible Assets, Net</P></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">17,741,176</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">5,805,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">11,936,176</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Amortization expense for intangible
assets classified as held for sale for the year ended December 31, 2010 was $1,620,000.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Capital
Leases</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Obligations under capital leases
in connection with the purchase of property and equipment for those facilities classified as assets of discontinued operations
are as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid">Lessee</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2010</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 70%; text-align: justify; padding-left: 0.05in">Equipment lease with CCA Financial for the facility located in San Rafael, California. Lease provides for 24 monthly payments of $10,344, including interest of 9.22%, through January 1, 2012. At termination of the lease, equipment purchase option is $1.</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; vertical-align: top">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">128,499</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.05in; vertical-align: bottom"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                               <P STYLE="margin-top: 0; margin-bottom: 0">Principal balance</P></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">128,499</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 0.05in"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                               <P STYLE="margin-top: 0; margin-bottom: 0">Less: current maturities</P></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(118,155</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 0.05in"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Total Long-Term Maturities</P></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">10,344</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
12 - Discontinued Operations (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Capital
Leases (continued)</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">At December 31, 2010, the gross
amount of property and equipment and related accumulated depreciation recorded under capital leases were as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.4in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 9%">&nbsp;</TD>
    <TD STYLE="width: 64%; text-align: left; padding-left: 0.05in">MRI equipment under capital lease</TD><TD STYLE="width: 9%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 16%; text-align: right">229,425</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 0.05in">Less: accumulated depreciation</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(42,973</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 0.05in">Total</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">186,452</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.4in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">For property and equipment under
capital leases, depreciation expense for the year ended 2010 was $42,973.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Long-Term
Debt</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">On July 3, 2008, the Company entered
into a $30 million senior secured credit facility (the &ldquo;Credit Facility&rdquo;) which was paid off in full at the closing
of the BMC Divestiture. The Credit Facility was structured as a $30 million revolving credit facility maturing on July 3, 2011
however several forbearance agreements allowed the debt to remain current through the date of the BMC divestiture. The Company
drew down the entire $30 million on the Credit Facility to fund the MTI acquisition. The Company recorded approximately $1,050,000
in fees and expenses related to the Credit Facility, which were written off as part of the MTI/DTG divestiture.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The Credit Facility was available
for loans denominated in U.S. dollars and for letters of credit. Borrowings under the Credit Facility bore interest, at the Company&rsquo;s
option, at either a base rate plus an applicable margin, ranging from 2.0% to 3.25% per annum, or the LIBOR rate plus an applicable
margin, ranging from 3.00% to 4.25% per annum, based on the Company&rsquo;s total leverage ratio as defined in the Credit Facility
at the time of borrowing. The base rate was effectively the Prime Rate. There was also a commitment fee on the unused portion of
the Credit Facility from 0.375% to 0.50% per annum, based on the Company&rsquo;s total leverage ratio as defined in the Credit
Facility. The Company entered in a swap agreement on March 18, 2009 that was paid off at the closing of the MTI/DTG divestiture
that fixed the floating aspect of the interest rate associated with the Credit Facility described above at 1.59%.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
12 - Discontinued Operations (continued)</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Long-Term
Debt (continued)</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The Credit Facility contained
various limitations, including limitations on changes in business, mergers, acquisitions, asset sales, liens, operating leases,
investments and guaranty obligations, restricted payments, financial covenants, restrictive agreements, transactions with affiliates,
plan terminations and minimum funding, amendment of acquisition documents and anti-terrorism laws. The Company was not in compliance
with the terms of the agreement and avoided default through a forbearance agreement with the bank.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Indebtedness under Credit Facility
was collateralized by all of the Company&rsquo;s assets exclusive of assets which serve as collateral for the other indebtedness
disclosed in Notes 7 and 8. The Company used $23,245,000 of its proceeds from the September 24, 2010 sale of MTI/DTG to pay down
its credit facility in 2010.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">At December 31, 2011 and 2010,
long-term debt consisted of the following:</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2010</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 70%; text-align: justify; padding-left: 0.05in">Credit Facility with KeyBank National Association expiring July 3, 2011. Significant terms are discussed above.</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,928,187</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 0.05in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 0.05in">Note Payable to Embarcadero Open MRI, Inc., non-interest bearing, payable in quarterly installments through September 30, 2010. Payments are calculated as 15% of certain prescribed actual collections over a predetermined threshold with a balloon at the end of a five-year term. The note is collateralized by substantially all of the assets of the Company&rsquo;s California reporting unit.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">354,388</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">354,388</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 0.05in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 0.05in">Note Payable to Bank of America, bearing interest at 8.27%, payable in monthly installments of $408, through November 2011.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,928</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 0.05in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 0.05in">Unsecured, non-interest bearing subordinated note, payable to Robert D. Burke, M.D., a former owner of MTI.</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,000,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 0.05in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 0.05in">Current Principal Balance</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">354,388</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">7,286,503</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
12 - Discontinued Operations (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Operating
Lease Commitments</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Approximate future minimum lease
payments under operating leases for the facilities whose assets are being held for sale, excluding common area and real estate
tax reimbursements, are as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: left; border-bottom: Black 1pt solid; vertical-align: top">For the Year Ending December
    31,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Facilities Leases</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 7%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 40%; text-align: right">2012</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 28%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 15%; text-align: right">164,278</TD><TD STYLE="width: 7%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: right">2013</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">27,521</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); height: 20">
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left"><P STYLE="text-align: right">&nbsp;</P>
                                                                                <P STYLE="text-align: right">&nbsp;</P></TD><TD STYLE="text-align: right"><B>Total Minimum Obligations</B></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">191,799</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow"></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="background-color: yellow"></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Rent expense for the above facilities
amounted to approximately $1,153,769 and $3,160,836 for the years ending December 31, 2011 and 2010, respectively, and is a component
of loss on discontinued operations.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Equipment rental expense for the
years ended December 31, 2011 and 2010 amounted to approximately $1,219,710 and $2,315,380, respectively, and is a component of
loss on discontinued operations.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
13 - HD Ultrasound</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Upon completion of the BMC divestiture,
the Company created HD Ultrasound, LLC (&ldquo;HDU&rdquo;) as the operator of the business that was not included in the sale consummated
on December 15, 2011. In addition, the Company entered into an agreement with HDU to provide collections services for the accounts
receivable balance for the business that was sold as part of the same transaction. As of December 31, 2011, HDU was owned equally
by both the Company and the former Vice President of Operations for California (&ldquo;VP-CA&rdquo;). The VP-CA funded his contribution
to HDU by foregoing his profits percentage within the Company.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The operations of HDU are consolidated
with Health Diagnostics LLC for financial reporting. For the years ended December 31, 2010 and December 31, 2011, 100% of the results
of HDU are included within continuing operations.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
14 - Members&rsquo; Equity </B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Pursuant to the operating agreement,
the member capital accounts are to comply with Section 704(b) of the Internal Revenue Code and the Treasury Regulations promulgated
thereunder and will be interpreted and applied in a manner consistent with those provisions. Net profit or loss for each taxable
year (or portion thereof) shall be allocated (after any special allocations or required tax allocations) in such a manner so as
to cause the capital account balance of such member at the beginning of such period, adjusted for all contributions and distributions
during such period (and any special allocations or required tax allocations) to equal as nearly as possible the capital account
balance that such member would receive upon the distribution of proceeds from a hypothetical sale of all Company assets at book
value after the satisfaction of all Company liabilities according to the terms of such debt. No loss or deduction shall be allocated
to any member to the extent that such allocation would cause or increase an adjusted capital account deficit of such member.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">The Company&rsquo;s restated
operating agreement provides for, in the event of the sale or liquidation of the Company, any cash proceeds must first be applied
against the unreturned capital contribution made by the contributing member plus a return based on the London Interbank Offered
Rate, which in aggregate totaled $129 million and $127 million as of December 31, 2011 and 2010, respectively.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Since inception, the Company
has granted profit interest units to certain executive management with the intent of management holding approximately 15% of the
future profits of the Company in excess of the preference noted above. At December 31, 2011 and 2010, these units entitle the executives
to share in approximately 3% and 7.75% of future profits, respectively. During 2011 and 2010, key employees left the Company as
a result of the divestitures and their profit interest units were forfeited. The Company made a series of grants to executives
effective January 1, 2012 whereby management now holds 15% of future profits. The value of these units at date of each grant was
nominal.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
15 - Subsequent Events</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Acquisitions</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">On March 22, 2012, the Company
acquired the assets of a MRI/CT suite located in Plainview, New York for a cost of $760,375. Adjacent to the MRI/CT suite is a
womens&rsquo; center containing modalities specific to womens&rsquo; diagnostic imaging - mammography, ultrasound, as well as a
bone density scanner. The Company acquired the mammography and ultrasound machine at a cost of $160,000 and $38,726, respectively,
and negotiated a new lease with the landlord for both suites. Management agreements have been put in place for both suites with
the prior professional corporation effective May 15, 2012.</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>


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<P STYLE="font: 14pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>FOR
THE YEARS ENDED DECEMBER 31, 2011 AND 2010</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
15 - Subsequent Events (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B><I>Acquisitions
(continued)</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">On May 9, 2012, the Company acquired
an MRI and CT in lower Manhattan for $1,050,000. The Company assumed the lease of the prior tenant and immediately placed a deposit
of $150,000 with the landlord. A management agreement was signed with a newly established professional corporation and procedures
are expected to begin during July, 2012.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;<FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 14pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>CONSOLIDATED
FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; border-bottom: Black 2.25pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>CONTENTS</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: normal 12pt Times New Roman, Times, Serif">
<TR STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif; vertical-align: bottom">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif">Consolidated
Financial Statements</TD><TD STYLE="font: bold 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 12pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 12pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif; vertical-align: bottom; height: 36">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">Consolidated
    Balance Sheets</FONT></TD><TD STYLE="font: bold 12pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: middle"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">2-3</FONT></TD><TD STYLE="font: bold 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="text-align: left; background-color: White; vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">Consolidated
    Statements of Income</FONT></TD><TD STYLE="font: bold 12pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: middle"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">4-5</FONT></TD><TD STYLE="font: bold 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif; vertical-align: bottom">
    <TD STYLE="width: 70%; font: bold 12pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">Consolidated
    Statement of Changes in Members&rsquo; Equity</FONT></TD><TD STYLE="width: 20%; font: bold 12pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: bold 12pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 8%; font: bold 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: middle"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">6</FONT></TD><TD STYLE="width: 1%; font: bold 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="text-align: left; background-color: White; vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">Consolidated
    Statements of Cash Flows</FONT></TD><TD STYLE="font: bold 12pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: middle"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">7-8</FONT></TD><TD STYLE="font: bold 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif; vertical-align: bottom; height: 36">
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif"><B>Notes
    to Consolidated Financial Statements</B></FONT></TD><TD STYLE="font: bold 12pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 12pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: bold 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: middle"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">9-36</FONT></TD><TD STYLE="font: bold 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD></TR>
</TABLE>




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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">CONSOLIDATED BALANCE SHEETS</FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">ENDED SEPTEMBER 30, 2012
AND 2011</FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD COLSPAN="9" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"></TD></TR>
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2012</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2011</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Assets</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 40">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Current
    Assets</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="width: 56%; font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Cash</FONT></TD><TD STYLE="width: 8%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 12%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">30,781,223</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 8%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 12%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">436,317</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Accounts
    receivable, net</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">15,387,520</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">14,014,705</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Prepaid
    expenses and other current assets</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,521,837</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,513,549</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Assets
    of discontinued operations</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">3,753,217</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">21,588,789</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 40">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Total
    Current Assets</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">51,443,797</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">37,553,360</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 40">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Property
    and Equipment, Net</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">7,751,512</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">7,450,675</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 40">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Other
    Assets</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Amortizable
    intangible assets, net</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">202,825</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Goodwill</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">35,900,000</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">52,709,844</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Other
    assets</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">575,750</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">342,070</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 40">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Total
    Other Assets</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">36,475,750</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">53,254,739</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 40">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Total
    Assets</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">95,671,059</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">98,258,774</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>




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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">CONSOLIDATED
BALANCE SHEETS</FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">SEPTEMBER
30, 2012 AND 2011</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2012</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2011</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Liabilities
    and Members' Equity</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 40">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Current
    Liabilities</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="width: 56%; font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Obligations
    under capital leases, current portion</FONT></TD><TD STYLE="width: 8%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 12%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">426,065</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 8%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 12%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">504,624</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Obligations
    under long-term debt, current portion</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">118,187</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">881,908</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Accounts
    payable, accrued expenses and other liabilities</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">3,488,698</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">5,733,174</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Liabilities
    of&nbsp;&nbsp;discontinued operations</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">374,396</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">3,451,008</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 40">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Total
    Current Liabilities</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">4,407,346</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">10,570,714</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 40">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Long-Term
    Liabilities</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Obligations
    under capital lease, less current portion</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">172,176</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">520,382</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 40">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Total
    Long-Term Liabilities</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">172,176</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">520,382</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 40">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Total
    Liabilities</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">4,579,522</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">11,091,096</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 40">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Commitments
    and Contingencies</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 40">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Members'
    Equity</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Controlling
    interest</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">89,565,170</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">85,113,256</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Non-controlling
    interests in subsidiaries</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,526,367</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2,054,422</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 40">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Total
    Members' Equity</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">91,091,537</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">87,167,678</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 40">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Total
    Liabilities and Members' Equity</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">95,671,059</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">98,258,774</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>

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<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

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<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">CONSOLIDATED BALANCE SHEETS</FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011</FONT></P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">For the Nine Months Ended</TD></TR>
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2012</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2011</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Revenues,
    Net</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="width: 56%; font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Patient
    revenue</FONT></TD><TD STYLE="width: 8%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 12%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">12,057,161</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 8%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 12%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">10,584,271</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Management
    fee revenue</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">17,124,427</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">14,566,706</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 40">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Total
    Revenues, Net</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">29,181,588</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">25,150,977</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 35">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Operating
    Expenses</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Clinic
    operating costs, exclusive of depreciation,</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 24pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">amortization
    and corporate office costs:</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 0.5in; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Cost
    of medical services</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">3,861,471</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">3,430,763</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 0.5in; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Salaries
    and related costs</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">7,594,026</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">7,019,617</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 0.5in; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Facilities
    cost</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">4,061,076</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">3,902,186</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 0.5in; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Equipment
    lease expense and service</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,393,535</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,202,483</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 0.5in; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Travel,
    entertainment and marketing costs</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">757,662</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">527,930</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 0.5in; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Other
    clinic operating costs</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">3,255,744</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,967,126</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Total
    clinic operating costs</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">20,923,514</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">18,050,105</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Corporate
    office costs</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2,315,340</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2,763,865</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Depreciation
    and amortization</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2,928,467</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2,808,258</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Goodwill
    impairment</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">16,809,844</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 35">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Total
    Operating Expenses</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">42,977,165</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">23,622,228</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 40">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>(Loss)
    Income from Operations</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(13,795,577</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,528,749</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 30">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Other
    Income (Expense)</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Gain
    from legal settlement, net</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">21,952,581</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Interest
    income</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">36,566</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Other
    expense</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(1,692</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(4,383</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Interest
    expense</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(55,413</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(111,284</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 30">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Total
    Other Income (Expense)</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">21,932,042</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(115,667</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD></TR>
</TABLE>




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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">CONSOLIDATED BALANCE SHEETS</FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">SEPTEMBER 30, 2012 AND 2011</FONT></P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="text-align: center; vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2012</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2011</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 30">
    <TD STYLE="width: 56%; font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">I<B>ncome
    from Continuing Operations</B></FONT></TD><TD STYLE="width: 8%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 12%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">8,136,465</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 8%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 12%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,413,082</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 30">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>(Loss)
    Income from Discontinued Operations</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(1,148,049</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">4,422,076</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 30">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Net
    Income</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">6,988,416</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">5,835,158</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 30">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Non-Controlling
    Interest in Net Income of Subsidiaries</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(84,977</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(607,892</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 30">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Controlling
    Interest - Net Income</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">6,903,439</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">5,227,266</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>




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<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS&rsquo;
EQUITY</FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOE THE NINE MONTHS ENDED SEPTEMBER 30, 2012
AND 2011</FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center; vertical-align: bottom; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: center; vertical-align: bottom; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Controlling
                                                                                                                                                                                                              Interest</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Non-Controlling
                                                                                                                                                                                                              Interest
                                                                                                                                                                                                              In
                                                                                                                                                                                                              Subsidiaries</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Total</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 35">
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD><TD STYLE="width: 41%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Members'
                                                                                                                                                               Equity
                                                                                                                                                               </B>-
                                                                                                                                                               December
                                                                                                                                                               31,
                                                                                                                                                               2010</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 14%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">79,885,990</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 14%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">628,501</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 14%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">80,514,491</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Contributions</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,269,845</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,269,845</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Distributions</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(451,816</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(451,816</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Net
                                                                                                                                                    income
                                                                                                                                                    for
                                                                                                                                                    the
                                                                                                                                                    nine
                                                                                                                                                    months</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">5,227,266</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">607,892</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">5,835,158</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 35">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Members'
                                                                                                                                                    Equity
                                                                                                                                                    </B>-
                                                                                                                                                    September
                                                                                                                                                    30,
                                                                                                                                                    2011</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">85,113,256</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2,054,422</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">87,167,678</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 36">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Members'
                                                                                                                                                    Equity
                                                                                                                                                    </B>-
                                                                                                                                                    December
                                                                                                                                                    31,
                                                                                                                                                    2011</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">82,661,731</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,679,040</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">84,340,771</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 36">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Contributions</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">100,000</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">100,000</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Distributions</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(337,650</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(337,650</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Net
                                                                                                                                                    income
                                                                                                                                                    for
                                                                                                                                                    the
                                                                                                                                                    nine
                                                                                                                                                    months</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">6,903,439</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">84,977</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">6,988,416</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 36">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Members'
                                                                                                                                                    Equity
                                                                                                                                                    </B>-
                                                                                                                                                    September
                                                                                                                                                    30,
                                                                                                                                                    2012</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">89,565,170</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,526,367</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">91,091,537</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>





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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">CONSOLIDATED STATEMENTS OF CASH FLOWS</FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOE THE NINE MONTHS ENDED SEPTEMBER 30, 2012
AND 2011</FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2012</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2011</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 36">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Cash
    Flows from Continuing Operations</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 36">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Cash
    Flows from Operating Activities</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="width: 56%; font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;&nbsp;Net
    income from continuing operations</FONT></TD><TD STYLE="width: 8%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid; width: 1%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid; width: 12%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">8,136,465</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 8%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid; width: 1%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid; width: 12%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,413,082</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Adjustments
    to reconcile net loss from continuing</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;operations
    to net cash provided by operating activities:</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 24pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Depreciation
    and amortization</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2,928,467</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2,808,258</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 24pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Loss
    on sale of Hollywood</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">220,275</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 24pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Goodwill
    impairment</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">16,809,844</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Changes
    in operating assets and liabilities:</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 24pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Accounts
    receivable, net</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(1,549,957</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(1,683,570</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 24pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Accounts
    payable, accrued expenses and</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 0.5in; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">other
    current liabilities</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(2,708,689</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(2,960,564</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 24pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Prepaid
    expenses and other assets</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">388,320</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">799,297</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 36">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Total
    Adjustments</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">15,867,985</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(816,304</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 36">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Net
    Cash Provided by Operating Activities</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">24,004,450</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">596,778</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 36">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Cash
    Flows from Investing Activities</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Purchases
    of property and equipment</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(1,414,115</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(221,086</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Acquisition
    of Plainview</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(985,317</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Acquisition
    of Park Place</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(1,200,000</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Loan
    receivable</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(100,000</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Cash
    received from Hollywood sale</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">150,000</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 36">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Net
    Cash Used in Investing Activities</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(3,699,432</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(71,086</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 36">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Cash
    Flows from Financing Activities</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Payments
    on long term debt and capital leases</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(734,367</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(1,972,742</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Contributions
    from minority partners</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">100,000</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">200,000</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Deferred
    financing costs</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(21,719</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: 12pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Distributions
    to non-controlling interests in subsidiaries</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(337,650</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(101,319</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 36">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Net
    Cash Used in Financing Activities</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(972,017</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(1,895,780</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD></TR>
</TABLE>




<P STYLE="margin-top: 0; margin-bottom: 0; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B></B>CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)</FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOE THE NINE MONTHS ENDED SEPTEMBER 30, 2012
AND 2011</FONT></P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2012</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,255); height: 36">
    <TD STYLE="width: 66%; text-align: left; padding-left: 5.4pt"><B>Net Increase (Decrease) in Cash from Continuing Operations</B></TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid; width: 1%">$</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid; width: 10%">19,333,001</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid; width: 1%">$</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid; width: 10%">(1,370,088</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; height: 36">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><B>Cash Flows from Discontinued Operations</B></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,255)">
    <TD STYLE="text-align: left; text-indent: 12pt; padding-left: 5.4pt">&nbsp;Operating cash flows</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">159,516</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,192,310</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 12pt; padding-left: 5.4pt">&nbsp;Investing cash flows</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(206,869</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,255)">
    <TD STYLE="text-align: left; text-indent: 12pt; padding-left: 5.4pt">&nbsp;Financing cash flows</TD><TD>&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">(354,388</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">(6,369,796</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; height: 36">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><B>Net Cash (Used in) Provided by Discontinued Operations</B></TD><TD>&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">(194,872</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">615,645</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,255); height: 36">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><B>Net Increase (Decrease) in Cash</B></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,138,129</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(754,443</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; height: 36">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><B>Cash</B> &nbsp;- Beginning</TD><TD>&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">11,643,094</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">1,190,760</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,255); height: 36">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><B>Cash</B> - Ending</TD><TD>&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double">$</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double">30,781,223</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double">$</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double">436,317</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; height: 36">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><B>Supplemental Disclosure of Cash Flow Information</B></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,255); height: 36">
    <TD STYLE="text-align: left; text-indent: 12pt; padding-left: 5.4pt">Cash paid during the years for:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 24pt; padding-left: 5.4pt">Interest - continuing operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">78,658</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">111,284</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,255); height: 36">
    <TD STYLE="text-align: left; text-indent: 12pt; padding-left: 5.4pt">Non-cash investing and financing activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 12pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Insurance financing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">118,187</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">306,956</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,255)">
    <TD STYLE="text-align: left; text-indent: 12pt; padding-left: 5.4pt">Contribution of assets from non-controlling interests in subsidiaries</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">499,863</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 12pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Receivable from non-controlling member</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">569,982</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>





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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
1 - Description of Business and Basis of Consolidation</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Description
of Business</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Health
Diagnostics, LLC (the &ldquo;Company&rdquo;) is a national provider of healthcare business management services. The Company provides
outpatient diagnostic imaging equipment, facilities and business management solutions for radiologists. Outpatient imaging services,
such as Magnetic Resonance Imaging (&ldquo;MRI&rdquo;), Ultrasound and X-Ray, are provided at the Company&rsquo;s 16 locations.
Many locations offer Stand-Up MRI services, allowing patients to be scanned in weight-bearing and virtually any other position
without the claustrophobic nature of traditional MRI scanning.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Health
Diagnostics was formed in 2007 as a Delaware Limited Liability Company, and grew through a combination of acquisitions and newly-formed
entities. Most recently in 2012, the Company acquired two additional facilities at locations in Plain View, New York and in lower
Manhattan. The Company&rsquo;s facility count by year is summarized as follows:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD COLSPAN="3" STYLE="text-align: right; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Year</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: right; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Acquisition</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: right; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Divestiture</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: right; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Newly
    Formed</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Total</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 16%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2007</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 16%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">22</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 16%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 15%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 15%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">22</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2008</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">10</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">32</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2009</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">35</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2010</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">14</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">21</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2011</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">7</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">14</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2012</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">16</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Total</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">35</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">21</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">16</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>




<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Basis
of Consolidation</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries and joint venture.
All of the consolidated entities are structured as limited liability companies (&ldquo;LLCs&rdquo;). The Company consolidates
the joint venture due to majority ownership or control through the operating agreement. All significant intercompany balances
and transactions have been eliminated in consolidation.</FONT></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>&nbsp;HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
2 - Summary of Significant Accounting Policies</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.35in"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Use
of Estimates</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities in the consolidated financial statements and accompanying notes. The most significant estimates relate
to revenue recognition, valuation of accounts receivable and depreciation and amortization of assets and determination of asset
impairments.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">In
addition, healthcare industry reforms and reimbursement practices will continue to impact the Company's operations and the determination
of contractual and other allowance estimates. Actual results could differ from these estimates.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Property
and Equipment</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Property
and equipment purchased in the normal course of business are stated at cost. Property and equipment are depreciated for financial
reporting purposes using the straight-line method over the shorter of their estimated useful lives, generally five to seven years,
or the term of a capital lease, if applicable. Leasehold improvements are amortized over the shorter of the useful life or remaining
lease term. Upon retirement or other disposition of these assets, the cost and related accumulated depreciation of these assets
will be removed from the accounts and the resulting gains or losses reflected in the results of operations as incurred. Expenditures
for maintenance and repairs are charged to operations. Renewals and betterments are capitalized.<U> </U></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Construction-in-progress
will include direct costs, including interest, which will continue to be capitalized until the facility is opened. Depreciation
of the capitalized costs related to the facility, including interest capitalized, will commence the month after the facility is
opened and will be based upon the useful life of the asset, as outlined above.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Long-Lived
Assets</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company evaluates the carrying value of long-lived assets for impairment whenever events or changes in circumstances indicate
that the carrying value of an asset (including property and equipment and amortizable intangible assets) within the scope of Accounting
Standards Codification (&ldquo;ASC&rdquo;) 360-10, &ldquo;Accounting for the Impairment or Disposal of Long-Lived Assets&rdquo;,
may not be recoverable. The amount of impairment is calculated by comparing discounted future cash flows with the carrying value
of the related asset.</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif"><BR>
<BR></FONT></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>&nbsp;HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
2 - Summary of Significant Accounting Policies (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Long-Lived
Assets (continued)</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">In
performing this analysis, management determined that the carrying value of the related assets were not impaired and, as such,
did not record an impairment loss for the nine months ended September 30, 2012 or 2011.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Goodwill
and Other Intangible Assets</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company follows the provision of ASC 350-10, &ldquo;Goodwill and Other Intangible Assets,&rdquo; which requires goodwill and other
intangible assets that have indefinite useful lives to be tested at least annually for impairment, or whenever events or circumstances
indicate that the carrying amount of the assets may not be recoverable. ASC 350-10 also requires an evaluation of existing acquired
goodwill and other intangible assets for proper classification. For the nine months ended September 30, 2012, the Company recorded
$16,809,844 of goodwill impairment charge in its consolidated statement of operations. There was no impairment charge recorded
related to goodwill and other intangible assets for the nine months ended September 30, 2011.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Fair
Value of Financial Instruments</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">ASC
825, &ldquo;<I>Financial Instruments</I>,&rdquo; defines fair value of a financial instrument as the amount at which the instrument
could be exchanged in a current transaction between willing parties. The methods and assumptions used to estimate the fair value
of the financial instruments is as follows:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B><I>Receivables
and Accounts Payable and Accrued Expenses, Other Current Assets and Other Liabilities</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
carrying amounts approximate fair value because of the short maturity of those instruments.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B><I>Long-term
Debt, including Obligations under Capital Leases</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
fair value of long-term debt and obligations under capital leases approximate their carrying value because the effective interest
rates reflect recent market conditions.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Revenue
- Net and Accounts Receivable</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company recognizes revenue from services provided to patients (&lsquo;Net Patient Revenue&rdquo;) primarily from their business
in Florida and California, and from services provided under management agreements (&ldquo;Management Fee Revenue&rdquo;) primarily
from their business in New York.</FONT></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>&nbsp;HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
2 - Summary of Significant Accounting Policies (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.35in"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Revenue
- Net and Accounts Receivable (continued)</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 12pt Times New Roman, Times, Serif">
<TD STYLE="width: 25.2pt; font: 12pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 19.8pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">a.</FONT></TD><TD STYLE="text-align: justify; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B><I>Net
                                                                                                                              Patient
                                                                                                                              Revenue
                                                                                                                              and
                                                                                                                              Related
                                                                                                                              Accounts
                                                                                                                              Receivable</I></B></FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company recognizes revenue as medical services are provided to patients. Revenue is reported at the estimated net realizable amount
from insurance companies, third-party payors, hospitals, patients and others for services rendered. These services are typically
billed to insurance companies, hospitals, patients, or the patient's legal counsel. Substantially, all the revenue relates to
patients residing in Florida. The carrying amount of accounts receivable may be reduced by an allowance that reflects management's
best estimate of the amounts that will not be collected. The Company determines allowances for contractual adjustments and uncollectible
accounts based on the specific agings and payor classifications at each clinic. Management periodically reviews all accounts receivable
in order to determine the portion, if any, of the balance that will not be collected.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 12pt Times New Roman, Times, Serif">
<TD STYLE="width: 25.2pt; font: 12pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 19.8pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">b.</FONT></TD><TD STYLE="text-align: justify; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B><I>Management
                                                                                                                              Fee
                                                                                                                              Revenue
                                                                                                                              and
                                                                                                                              Management
                                                                                                                              Fees
                                                                                                                              Receivable</I></B></FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">As
of September 30, 2012 and 2011, the Company has management agreements with eleven and nine, respectively, separate New York-based
Medical Entities (&ldquo;MEs&rdquo;), all owned by one unrelated radiologist. The contractual fees for services rendered to each
of the New York-based MEs consist of fixed fees ranging from $1,170,000 to $2,091,337 for each of the nine month periods ended
September 30, 2012 and 2011. Each management agreement is cancellable by either party with 180 days written notice, and otherwise
provides for an annual renegotiation of fees to be charged and services to be provided. Revenue is recognized under the management
contracts on a monthly basis equal to the lower of the contractual fee, or the net realizable amount, based on the revenue recognition
criteria enumerated in Accounting Standards Codification 605. On a quarterly basis, management assesses the net realizable value
of its management fees.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 45.35pt; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">As
part of that assessment, management reviews and analyzes the data furnished to the Company by each ME, including the MEs&rsquo;
receivables from third-party medical reimbursement organizations and the MEs&rsquo; operating expenses. The Company's receivables
from the MEs consist of fees outstanding under management agreements with the MEs. Payment of the outstanding fees is dependent
upon collection by the MEs of fees from third-party medical reimbursement organizations, principally insurance companies and health
management organizations. The management fees receivable are collateralized by the respective medical receivables of each ME.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 45.35pt; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
2 - Summary of Significant Accounting Policies (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.35in"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Revenue
- Net and Accounts Receivable (continued)</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 12pt Times New Roman, Times, Serif">
<TD STYLE="width: 27pt; font: 12pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 18pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B><I>b.</I></B></FONT></TD><TD STYLE="text-align: justify; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B><I>Management
                                                                                                                                        Fee
                                                                                                                                        Revenue
                                                                                                                                        and
                                                                                                                                        Management
                                                                                                                                        Fees
                                                                                                                                        Receivable
                                                                                                                                        (continued)</I></B></FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 45.35pt; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Collection
by the Company of its management fees receivable may be impaired by the uncollectibility of the MEs&rsquo; medical fees from third-party
payors, particularly insurance carriers covering automobile no-fault and workers&rsquo; compensation claims, because of longer
payment cycles and rigorous informational requirements. The Company considers the aging of its management fees receivable and
net realizable value of MEs&rsquo; medical receivables in determining the amount of allowance for uncollectible accounts and unrecognized
contractual billings. The Company takes all legally available steps to collect its receivables.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Advertising
Costs</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Advertising
costs are expensed as incurred. Advertising expense for the nine months ended September 30, 2012 and 2011 amounted to $215,154
and $47,042, respectively.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Operating
Leases</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Leases
that are operating leases with defined scheduled rent increases, are accounted for in accordance with ASC Topic 840. The scheduled
rent increases are recognized on a straight-line basis over the lease term.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify; background-color: white"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Fair
Value Measurements</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company follows ASC 820, <I>&ldquo;Fair Value Measurements and Disclosures&rdquo;</I>, which defines fair value as the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date (exit price) in the principal or most advantageous market for the asset or liability. ASC 820 establishes a three-level
fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the
use of observable inputs and minimizes the use of unobservable inputs. The three levels of inputs used to measure fair value are
as follows:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 70.55pt; text-align: justify; text-indent: -45.35pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Level
1: &#9;Quoted prices in active markets for identical assets or liabilities.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 70.55pt; text-align: justify; text-indent: -45.35pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 70.55pt; text-align: justify; text-indent: -45.35pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Level
2: &#9;Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities
in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs
that are observable or can be corroborated by observable data.</FONT></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
2 - Summary of Significant Accounting Policies (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify; background-color: white"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Fair
Value Measurements (continued)</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 70.55pt; text-align: justify; text-indent: -45.35pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Level
3: &#9;Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets
or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant
unobservable inputs.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company has classified financial assets and liabilities based on the lowest level of input that is significant to the fair value
measurement. The Company&rsquo;s assessment of the significance of a particular input to the fair value measurement requires judgment,
and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company does not have any financial assets that are required to be recorded at fair value as of September 30, 2012 and 2011.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Concentration
of Credit Risk and Equipment Supplier</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Management
fees receivable and net management revenues are substantially derived from separate MEs (eleven in 2012 and nine in 2011), which
are all owned by one unrelated radiologist. For the nine months ended September 30, 2012 and 2011, approximately 51% and 49%,
respectively, of the MEs&rsquo; billings were derived from no-fault and workers&rsquo; compensation claims, approximately 24%
and 24%, respectively, of the MEs&rsquo; billings were billed to commercial insurance carriers, and 10% and 11%, respectively,
of the MEs&rsquo; billings were billed to Medicare.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">For
the nine months ended September 30, 2012 and 2011, approximately 44% and 44%, respectively, of the Company&rsquo;s net patient
revenue were billed to no-fault and personal injury insurers, 19% and 18%, respectively, of the Company&rsquo;s net patient revenue
were billed to commercial insurance carriers and approximately 9% and 8%, respectively, of the Company&rsquo;s net patient revenue
were billed to Medicare contractors.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company places its cash deposits and temporary cash investments with AAA-rated financial institutions. At times, its cash may
be uninsured or in deposit accounts that exceed the Federal Deposit Insurance Corporation (&ldquo;FDIC&rdquo;) insurance limit.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">As
of September 30, 2012, the Company has 12 Stand-Up MRI machines manufactured by FONAR Corporation, a related party (NASDQ &ldquo;FONR&rdquo;)
(&ldquo;FONAR&rdquo;). FONAR is the exclusive manufacturer and the only authorized vendor to service the Stand-Up MRI machines.</FONT></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
2 &ndash; Summary of Significant Accounting Policies (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.35in"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Non-Controlling
Interest </I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company records adjustments to non-controlling interest for the allocable portion of income or loss that the non-controlling interest
holders are entitled to based upon their percentage ownership of the subsidiaries. Distributions to non-controlling interest partners
are recorded to the respective non-controlling interest account.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
following are entities in which the Company has less than 100% ownership percentage as of September 30, 2012:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: right; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Company&rsquo;s
    Ownership Percentages</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="width: 70%; font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Health
    Diagnostics Orlando</FONT></TD><TD STYLE="width: 10%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 18%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">78.84</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">HD
    Ultrasound</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">40.00</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">HD
    of Hicksville</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">50.00</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">%</FONT></TD></TR>
</TABLE>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">On
March 22, 2011, a group of investors (&ldquo;Buckeye&rdquo;) contributed assets at fair value of $699,863 and $569,982 of cash,
which was received in January 2012, in exchange for a 21.16% interest in Health Diagnostics Orlando (&ldquo;HD-Orlando&rdquo;).
Buckeye is made up primarily of Company and FONAR management and unrelated third parties.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Employee
Benefit Plans</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company sponsors a defined contribution 401(k) Plan (&ldquo;Plan&rdquo;) to provide retirement and incidental benefits for its
employees. Employees may contribute a discretionary annual contribution to the Plan, limited to a maximum annual amount as set
periodically by the Internal Revenue Service. The Plan provides for discretionary contributions as determined by management. Such
contributions to the Plan are allocated among eligible participants in the proportion of their salaries to the total salaries
of all participants. The Company did not make contributions to the Plan during the nine months ended September 30, 2012 and 2011.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Subsequent
Events</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Management
has evaluated subsequent events to determine if events or transactions occurring through March 5, 2013, the date these financial
statements were available to be issued, require adjustment to or disclosure in the financial statements.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
2 - Summary of Significant Accounting Policies (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Recently
Promulgated Accounting Pronouncements</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">In
July 2011, Accounting Standards Update (&ldquo;ASU&rdquo;) No. 2011-07, &ldquo;Presentation and Disclosure of Patient Service
Revenue, Provision of Bad Debts, and the Allowance for Doubtful Accounts for Certain Healthcare Entities&rdquo;, was issued by
the Financial Accounting Standards Board Emerging Issues Task Force. This amendment to the accounting code instructs healthcare
entities to provide greater transparency about healthcare entity&rsquo;s net patient service revenue.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Healthcare
entities will be required to assess the patient&rsquo;s ability to pay at the time service is provided, and to reduce the patient
service revenue amount by this (as opposed to including within the provision for bad debts). This guidance is in effect for annual
periods ending after December 15, 2012. The Company is currently evaluating the impact that the adoption of ASU No. 2011-07 will
have on its consolidated financial statements.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">In
July 2012, the FASB issued ASU 2012-02, &ldquo;Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible
Assets for Impairment.&quot; This ASU simplifies how entities test indefinite-lived intangible assets for impairment, which improve
consistency in impairment testing requirements among long-lived asset categories. These amended standards permit an assessment
of qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset
is less than its carrying value. For assets in which this assessment concludes it is more likely than not that the fair value
is more than its carrying value, these amended standards eliminate the requirement to perform quantitative impairment testing
as outlined in the previously issued standards. The guidance is effective for annual and interim impairment tests performed for
fiscal years beginning after September 15, 2012 when early adoption is permitted. The adoption of this standard is not expected
to have a material impact on the Company&rsquo;s consolidated financial position and results of operations.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
3 - Sale of Assets/Divestitures</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>2011
transactions</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B><I>Hollywood
Sale</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">On
May 31, 2011, the Company sold substantially all of the physical assets of the Hollywood facility for $150,000 and a $50,000 contingent
note payable two years after the close of the transaction if certain pre-set volume thresholds were met. The acquirer also assumed
the remainder of the lease on the facility. The Company kept the related Accounts Receivable.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 3pt 0 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
3 - Sale of Assets/Divestitures (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>2011
transactions (continued)</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B><I>Hollywood
Sale (continued)</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
results of this facility&rsquo;s operations are classified within discontinued operations for 2011 through the date of the sale.
A loss of $220,275 was recorded on the transaction for the nine months ended September 30, 2011.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B><I>BMC
Sale</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">On
December 15, 2011, the Company sold substantially all of the physical assets of the BMC facilities, excluding the medical receivables
and the San Jose Medical Group and California Ultra Sound facilities in exchange for $13,930,000 in cash. The acquirer also assumed
the remainder of the leases on the sold facilities. The results of the included facilities operations are classified within discontinued
operations for 2010 through the date of sale. An impairment loss of $3,992,142 was recorded in 2010 related to these assets. A
loss of $788,861 was recorded on the transaction for the year ended December 31, 2011.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
4 - Accounts Receivable, Net</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
breakdown of accounts receivable, net, at September 30, 2012 and 2011, is as follows:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">September
    30, 2012</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Receivables
    Due from Healthcare Payors</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Receivables
    Due under Management Agreements</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total
    Accounts Receivable - Net</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="width: 52%; text-align: justify; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Accounts
    receivable, net of&nbsp;&nbsp;contractual allowances</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 11%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">5,205,977</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 11%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">10,681,543</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 11%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">15,887,520</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Allowance for
    uncollectible accounts</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">(500,000</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">(500,000</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Accounts Receivable,
    Net</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">4,705,977</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">10,681,543</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">15,387,520</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>





<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">September
    30, 2011</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Receivables
    Due from Healthcare Payors</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Receivables
    Due under Management Agreements</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total
    Accounts Receivable - Net</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="width: 52%; text-align: justify; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;Accounts
    receivable, net of&nbsp;contractual allowances</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 11%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">5,207,897</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 11%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">9,306,808</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 11%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">14,514,705</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Allowance for
    uncollectible accounts</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">(500,000</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">(500,000</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Accounts Receivable,
    Net</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">4,707,897</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">9,306,808</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">14,014,705</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>




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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
5 - Property and Equipment, Net</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Property
and equipment, net, consist of the following at September 30, 2012 and 2011</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Useful
    Life</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2012</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2011</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="width: 53%; font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Fixtures</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 14%; font: 12pt Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">5
    to 7 years</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">444,454</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">405,733</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Diagnostic
    equipment</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">5
    to 7 years</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">13,163,369</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">10,124,377</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Leasehold
    improvements</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">5
    to 10 years</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">3,897,840</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">3,558,101</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Computer
    and billing system</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">3
    to 5 years</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">4,351,580</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">3,736,562</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">21,857,243</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">17,824,773</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 36">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Less:&nbsp;&nbsp;accumulated
    depreciation and amortization</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">(14,105,731</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">(10,374,098</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 36">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Property
    and Equipment, Net</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">7,751,512</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">7,450,675</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>




<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Depreciation
and amortization expense for property and equipment for the nine months ended September 30, 2012 and 2011 was $2,777,019 and $2,654,897,
respectively.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
6 - Amortizable Intangible Assets, Net</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
following is a summary of amortizable intangible assets at September 30, 2012 and 2011</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">September 30, 2012</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Cost</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Accumulated
    Amortization</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Net Carrying
    Value</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Amortizable Life</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 5.4pt; width: 42%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Management,
    employment and non-compete agreements</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 1%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 10%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,701,300</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 1%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 10%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,701,300</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 1%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 10%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 10%; font: 12pt Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">5
    years</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>




<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">September 30, 2011</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Cost</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">Accumulated
    Amortization</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">Net Carrying
    Value</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">Amortizable Life</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="width: 42%; text-align: left; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Management,
    employment and non-compete agreements</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 10%"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,701,300</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 10%"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,498,475</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 10%"><FONT STYLE="font-family: Times New Roman, Times, Serif">202,825</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 10%; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;5 years &nbsp;
    &nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Amortization
expense for the nine months ended September 30, 2012 and 2011 was $151,448 and $153,361, respectively.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-variant: small-caps"><B>Note
7 - Capital Leases</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Obligations
under capital leases in connection with the purchase of property and equipment are as follows:</FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Each
of the obligations under capital leases assumed from the Integrity Group acquisition listed below is collateralized by the respective
receivables from each diagnostic imaging facility.</FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">Lessee</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">2012</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">2011</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="width: 72%; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Equipment
    lease with IFC Credit Corporation for the facility located in Orlando, Florida.&nbsp;&nbsp;Lease provides for 60 monthly payments:&nbsp;&nbsp;1-6
    months of $99, 7-60 of $1,728, including interest of 11.65% per annum through January 15, 2012.&nbsp;&nbsp;At termination
    of the lease, equipment purchase option is $1.</FONT></TD><TD STYLE="width: 3%; padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 9%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 9%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">8,394</FONT></TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 70">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Equipment
    lease with Key Equipment Finance, Inc., bearing interest at 7.58%, payable in monthly installments of $30,052, including interest
    through November 2011.&nbsp;&nbsp;At termination of lease, equipment purchase option is $1.</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">59,536</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 90">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Equipment
    lease dated October 8, 2008 with Philips Medical Capital for the facility located in Miami, Florida. Lease provides for 60
    monthly payments: 1-3 months of $--, 4-60 of $21,893, including interest of 6.10% per annum. At termination of the lease,
    equipment purchase option is $1.</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">254,242</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">512,769</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 90">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Equipment
    lease with Key Equipment Finance, Inc., bearing interest at 6.24%, payable in monthly installments of $3,459, including interest,
    through January 21, 2012. At termination of the lease, equipment purchase option is $1.</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">13,659</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 90">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Equipment
    lease dated April 1, 2012 with Philips Medical Capital for the facility located in Orlando, Florida.&nbsp;&nbsp;Lease provides
    for 24 monthly payments of $6,424, including interest of 3.70% per annum.&nbsp;&nbsp;At termination of the lease, equipment
    purchase option is $1. &nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">112,321</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">$<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>

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<P STYLE="margin-top: 0; margin-bottom: 0"></P>



<P STYLE="margin-top: 0; margin-bottom: 0; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<P STYLE="margin-top: 0; margin-bottom: 0; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-variant: small-caps; background-color: yellow"><B></B></FONT></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-variant: small-caps"><B>Note
7 - Capital Leases (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">Lessee</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">2012</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">2011</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 90">
    <TD STYLE="width: 72%; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Equipment
    lease with FONAR Corporation, bearing interest at 10.00%, payable in monthly installments of $4,182.53, including interest,
    through March 11, 2012. At termination of lease, the Company will own the equipment.</FONT></TD><TD STYLE="width: 3%; padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 9%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 9%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">12,946</FONT></TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 90">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Equipment
    lease with FONAR Corporation, bearing interest at 10.00%, payable in monthly installments of $6,281.42, including interest,
    through December 10, 2011. At termination of lease, the Company will own the equipment.</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">18,535</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 90">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Equipment
    lease with FONAR Corporation, bearing interest at 10.00%, payable in monthly installments of $6,358.97, including interest,
    through December 13, 2011. At termination of lease, the Company will own the equipment.</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">18,763</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 90">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Equipment
    lease with FONAR Corporation, bearing interest at 10.00%, payable in monthly installments of $6,320.19, including interest,
    through December 18, 2011. At termination of lease, the Company will own the equipment.</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">18,649</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 80">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Equipment
    lease with Western Financial Lease, bearing interest at 8.25%, payable in monthly installments of $1,959, including interest,
    through March 16, 2016.&nbsp;&nbsp;At termination of lease, the equipment purchase option is $1.</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">71,244</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">88,109</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 80">
    <TD STYLE="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Equipment
    lease with Forum Financial Services, bearing interest at 8.4%, payable in monthly installments of $5,558, including interest
    through April 1, 2014.&nbsp;&nbsp;At termination of lease, the equipment purchase option is $1.</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">86,407</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">143,266</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>

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<P STYLE="margin-top: 0; margin-bottom: 0"></P>



<P STYLE="margin-top: 0; margin-bottom: 0; font: 12pt Times New Roman, Times, Serif"></P>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-variant: small-caps; background-color: yellow"><B></B></FONT></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-variant: small-caps"><B>Note
7 - Capital Leases (continued)</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: center; padding-left: 0.05in; vertical-align: bottom">Lessee</TD><TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom">2012</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom">2011</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; height: 70">
    <TD STYLE="width: 74%; text-align: left; padding-left: 5.4pt">Equipment lease with Susquehanna Commercial Finance, Inc,
    bearing interest at 14.4% payable in monthly installments of $2,253 including interest through March 16, 2016. At termination
    of lease, the Company will own the equipment.</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">74,027</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">89,216</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); height: 90">
    <TD STYLE="text-align: justify; padding-left: 0.05in">Equipment lease with Hewlett Packard Financial Services, bearing interest at 10.00%, payable in monthly installments of $1,269, including interest, through October 12, 2014.&nbsp;&nbsp;The lease was paid off in June 2012 and the Company exercised equipment purchase option.</TD><TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">41,164</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; height: 36">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Principal balance</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">598,241</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,025,006</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 0.05in">Less:&nbsp;&nbsp;current maturities</TD><TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">(426,065</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right">(504,624</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; height: 33">
    <TD STYLE="text-align: justify; padding-left: 0.05in"><B>Total Long-Term Maturities</B></TD><TD>&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double">$</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double">172,176</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double">$</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double">520,382</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>





<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">Future minimum lease payments under
the capital lease obligations, as of September 30, 2012 are as follows:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD COLSPAN="3" STYLE="text-align: justify; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">For
    the Nine Months Ending September 30,</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Amount</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 50%; text-align: left; vertical-align: bottom; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">2013</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 25%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 15%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">457,049</FONT></TD><TD STYLE="width: 7%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; vertical-align: bottom; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">2014</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">114,156</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; vertical-align: bottom; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">2015</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">50,542</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; vertical-align: bottom; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">2016</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">25,272</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; vertical-align: bottom; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">2017</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; vertical-align: bottom; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total
                                                                                                            minimum lease payments</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">647,019</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; vertical-align: bottom; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Less:
                                                                                                            amount representing
                                                                                                            interest, with interest
                                                                                                            rates varying from
                                                                                                            3.7 % to 14.4%</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">(48,778</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; vertical-align: bottom; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Present
                                                                                                            Value of Minimum Lease
                                                                                                            Payments</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">598,241</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>





<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-variant: small-caps"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>Note
7 - Capital Leases (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of September 30, 2012 and 2011, the gross
amount of property and equipment and related accumulated recorded under capital leases were as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2011</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,255)">
    <TD STYLE="width: 56%; text-align: justify; padding-bottom: 1pt">MRI Equipment under capital leases</TD><TD STYLE="width: 8%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: #CCFFFF 1pt solid; text-align: left">$</TD><TD STYLE="width: 12%; border-bottom: #CCFFFF 1pt solid; text-align: right">1,602,714</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: #CCFFFF 1pt solid; text-align: left">$</TD><TD STYLE="width: 12%; border-bottom: #CCFFFF 1pt solid; text-align: right">2,995,670</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1pt">Less: accumulated depreciation</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">(995,823</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">(1,344,389</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,255)">
    <TD STYLE="text-align: justify; padding-bottom: 1pt">Total</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double">$</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double">606,891</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double">$</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double">1,651,281</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif">&nbsp;<B>Note
8 - Long-Term Debt</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">At
September 30, 2012 and 2011, long-term debt consisted of the following:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2012</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2011</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 70">
    <TD STYLE="width: 72%; font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Note
    Payable to Key Equipment Finance, Inc., bearing interest at 8%, payable in 24 monthly installments of $66,031 including interest
    starting July 2010.</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 9%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 9%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">574,952</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 70">
    <TD STYLE="text-align: left; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;Note Payable
    to First Insurance Funding, bearing interest at 2.62% payable in monthly installments of approximately $5,702 including interest,
    through March 2011.</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">17,031</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 70">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Note
    Payable to First Insurance Funding, bearing interest at 2.59% payable in monthly installments of approximately $48,687 including
    interest, through March 2012.</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">289,925</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 70">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Note
    Payable to First Insurance Funding, bearing interest at 2.59% payable in monthly installments of approximately $4,835 including
    interest, through December 2012.</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">14,440</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
8 - Long-Term Debt (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2012</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2011</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="width: 72%; font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Note
    Payable to First Insurance Funding, bearing interest at 2.59% payable in monthly installments of approximately $52,042 including
    interest, through December 2012.</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif">103,747</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 36">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Principal
    balance</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">118,187</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">881,908</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Less:&nbsp;&nbsp;current
    portion</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">(118,187</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">(881,908</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 36">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Long-Term
    Portion</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
9 - Commitments and Contingencies</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Operating
Lease Commitments</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company leases all office facilities and certain diagnostic and office equipment under operating leases that expire at various
dates through February, 2021. Certain operating leases provide the Company with the option to renew for additional periods. Where
operating leases contain escalation clauses, rent abatements and/or concessions, such as rent holidays and landlord or tenant
incentives or allowances, they are applied in the determination of straight-line rent expense over the lease term. Leasehold improvements
made at inception or during the lease term are amortized over the shorter of the asset life or the lease term.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Approximate
future minimum lease payments under operating leases, excluding common area and real estate tax reimbursements, are as follows:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD COLSPAN="3" STYLE="text-align: right; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">For
    the Nine Months Ending September 30,</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Facilities
    Leases</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Equipment
    Leases</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 58%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">2013</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 15%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,571,721</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 15%; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">17,917</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">2014</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,904,508</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">12,270</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">2015</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,814,807</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">12,270</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">2016</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,833,867</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">3,068</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">2017</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,664,574</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">Thereafter</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,087,253</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 36">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total
                                                                                                                                                      Minimum
                                                                                                                                                      Obligations</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">11,876,730</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">45,525</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>




<P STYLE="margin-top: 0; margin-bottom: 0; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>
<P STYLE="margin-top: 0; margin-bottom: 0; font: 12pt Times New Roman, Times, Serif"></P>



<P STYLE="margin-top: 0; margin-bottom: 0; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B>&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;<FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
9 - Commitments and Contingencies (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Operating
Lease Commitments (continued)</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Rent
expense for facilities amounted to $1,751,998 and $1,575,983 for the nine months ended September 30, 2012 and 2011, respectively.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Equipment
rental expense for the nine months ended September 30, 2012 and 2011 amounted to $124,937 and $73,644, respectively.<FONT STYLE="background-color: yellow">
</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Employment
Agreements</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company enters into employment agreements with certain key employees from time-to-time. These agreements last for 2-3 years, are
terminable by either party for any reason and may provide for a guaranteed inflationary adjustment to base salary and/or for discretionary
bonuses. These agreements contain a covenant not-to compete, which restricts employment after voluntary/involuntary termination
from the Company. The length of the covenant not-to compete is stated in the contract; however may be adjusted based on which
party terminates the agreement.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Service
Agreements</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company is a party to various service agreements that provide for routine maintenance, upgrades and repairs on most of its diagnostic
equipment. Some of these agreements cover periods of more than one year. Payment obligations under these agreements are as follows:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD COLSPAN="3" STYLE="text-align: right; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">For
    the Nine Months Ending September 30,</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Amount</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 55%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">2013</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 27%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 14%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">809,933</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">2014</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">295,699</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">2015</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">245,738</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">2016</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">76,161</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">2017</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">26,160</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 30">
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Total
                                                                                                                                                      Service
                                                                                                                                                      Agreement
                                                                                                                                                      Obligations</B></FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,453,691</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>




<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Management
Agreements</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company entered into management agreements with multiple subsidiaries of FONAR (&ldquo;FONAR Subsidiaries&rdquo;) in which the
Company provided sales services for two diagnostic imaging facilities. For the nine months ended September 30, 2012 and 2011,
the Company earned $413,791 and $152,727, respectively.</FONT></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
9 - Commitments and Contingencies (continued</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Litigation</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company is involved in various legal proceedings in the ordinary course of business. Management believes that the ultimate resolution
of such legal proceedings will not have a material adverse effect on the consolidated financial position, results of operations
and cash flows of the Company.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Zotec
Litigation</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company and Zotec Partners, LLC (&ldquo;Zotec&rdquo;) signed an agreement in 2007, pursuant to which the Company would license
Zotec&rsquo;s radiology information system and Zotec would provide consultation and implementation services. The Company paid
Zotec a deposit of $375,000 upon signing the agreement. The Company filed suit against Zotec in the Hamilton County, Indiana,
Superior Court.. The suit alleges, among other things, Zotec&rsquo;s materially false representations about the functionality
of the software and of Zotec&rsquo;s consulting capabilities, each of which the Company relied upon in signing the agreement.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company is seeking a rescission of the agreement, a return of its deposit, along with accumulated interest, actual and punitive
damages.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">In
2008, the Company wrote-off its $375,000 deposit. In January 2012, the Company and Zotec reached a settlement, whereby the Company
paid Zotec $42,000.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Tricat
Litigation</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">On
March 20, 2009, the former owners of Tricat filed a lawsuit against the Company in the Superior Court of New Jersey, Middlesex
County, alleging among other things, the Company did not fulfill certain post-closing covenants. This suit was settled out of
court in favor of the Company, with the former owners releasing the full escrow balance, plus an additional amount, totaling $900,000
in June 2011. These funds were applied against a receivable amount that is reflected as an asset in discontinued operations as
of December 31, 2010&nbsp;, as well as additional income of $438,845 recorded in June 2011 within discontinued operations.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
9 - Commitments and Contingencies (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Midtown
Litigation</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">On
July 3, 2008, the Company acquired 100% of the equity of Midtown Imaging, LLC in exchange for cash payments to the sellers totaling
$39,000,000, of which $3,000,000 was placed in an escrow account, an assumption of a subordinated promissory note held by Midtown
Imaging, P.A. in the amount of $4,000,000 and assumption of certain other liabilities.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">On
January 14, 2010, the Company was sued by Midtown Imaging, P.A. for alleged breach of a Guaranty agreement in connection with
the $4,000,000 promissory note held by Midtown Imaging, P.A. from Midtown Imaging, LLC. The Company settled the allegations in
2011 and reduced the promissory note&rsquo;s value to $1,000,000 in exchange for releasing their claim to the escrow. In March
2011, the Company recorded a $3,000,000 reduction in the notes carrying value as an increase to other income from discontinued
operations and paid the $1,000,000 amount in full in December 2011.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Carecore
Litigation</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
complaint alleged an illegal horizontal conspiracy among a group of radiologists to preclude their competitors, including the
Company, from providing outpatient medical diagnostic imaging services to patients residing in various counties in New York City,
Long Island and Westchester. In particular, this case concerned the actions of CareCore (&ldquo;CCN&rdquo;) and its principals.
CCN is owned and controlled by a group of competing diagnostic imaging providers located throughout New York. CCN has entered
into exclusive agreements with the largest health care insurance plans in New York City, Long Island and Westchester -- including
Oxford Healthcare, Aetna/.S. Healthcare, GHI, Healthfirst, Healthnet, HIP, and United Healthcare -- to manage radiology benefits
for their subscribers.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Pursuant
to its exclusive contracts with these commercial payers, CCN &quot;certifies&rdquo; or approves diagnostic imaging providers for
admission into the payer physician networks which it controls. In this manner, CCN controls imaging providers' ability to obtain
health insurance reimbursement from the health plans with which CCN contracts. Diagnostic imaging providers in New York City,
Long Island and Westchester not receiving CCN certification are thus precluded from servicing patients who have their imaging
services reimbursed by these dominant, commercial health insurance plans.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT>&nbsp;Note
9 - Commitments and Contingencies (continued)</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Carecore
Litigation (continued)</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">During
2010, the Company alleged, by commencing litigation, that CCN and its owner-providers allocated the market for diagnostic imaging
services in New York City, Long Island and Westchester among themselves by boycotting competing imaging providers' access to the
networks CCN controls. The Company alleged that CCN has further allocated the market for such services by &quot;steering&quot;
patient referrals towards its owner-providers and away from non-CCN-owned providers that are &quot;admitted&quot; to the CCN-controlled
networks. The Company alleges that CCN's conduct is illegal and has yielded anticompetitive effects in the market for imaging
services, notably by reducing the output and quality of such services and by hampering innovation by imaging providers.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">During
2010, the Company won a judgment which was appealed by CCN. On March 8, 2012, the Company settled the litigation with CCN. The
financial terms of the settlement are subject to a confidentiality agreement. Under the terms of the settlement the amount paid
by CareCore was received in full as of May 15, 2012. In accordance with ASC 855-10-15, the resolution of a gain contingency after
the balance sheet date but before issuance of the financial statements should be considered a nonrecognized subsequent event and
therefore the gain has been recorded in 2012, net of related legal fees and other expenses resulting from the settlement. This
net gain is included in other income in the nine months ended September 30, 2012 consolidated statement of operations.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Embarcadero
Open MRI Litigation</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company was found to be in violation relating to a breach of contract in connection with a facility acquired by BMC prior to BMC&rsquo;s
acquisition by the Company. The Company was found to owe $354,000 plus interest of 10% per year as well as the possibility of
legal fees. The debt of $354,000 is included within the liabilities of discontinued operations and three and twelve months of
interest have been recorded and included in the results of operations for discontinued operations for the years ended December
31, 2010 and 2011, respectively. This amount, plus accrued interest, was paid in full in August 2012.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
9 - Commitments and Contingencies (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Significant
Risks and Uncertainties </I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company receives reimbursements from Medicare, Medicaid, private insurance, no fault and workers&rsquo; compensation carriers,
self-pay and other third-party payors. The health care industry is experiencing the effects of the federal and state governments&rsquo;
trend toward cost containment, as government and other third-party payors seek to impose lower reimbursement and utilization rates
and negotiate reduced payment schedules with</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif"><BR>
<FONT STYLE="font-size: 12pt">providers. The cost-containment measures, consolidated with the increasing influence of managed-care
payors and competition for patients, have resulted in reduced rates of reimbursement for services provided by the Company from
time to time. The Company&rsquo;s future revenues and results of operations may be adversely impacted by future reductions in
reimbursement rates.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">While
the Company has prepared certain estimates of the impact of the above discussed changes and proposed changes, it is not possible
to fully quantify their impact on its business. There can be no assurance that the impact of these changes will not be greater
than estimated or that any future health care legislation or reimbursement changes will not adversely affect the Company&rsquo;s
business.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; background-color: white">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
10 - Income Taxes</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company and all of its subsidiaries are organized as limited liability companies and the Company is treated as a partnership for
income tax purposes. As such, the Company will pay no federal or state income taxes; rather its income or loss will be taxed directly
to its members. Accordingly, no provision for federal or state income taxes is included in the accompanying consolidated financial
statements. The Managing Member has concluded that the Company is a pass-through entity and there are no uncertain tax positions
that would require recognition in the financial statements. If the Company was to incur an income tax liability in the future,
interest on any income tax liability would be reported as interest expense and penalties on any income tax liability would be
reported as income taxes.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">In
connection with the NYCUBT, deferred tax assets and liabilities are provided based on the differences between the financial statement
carrying amounts and tax bases of assets and liabilities using enacted tax rates in effect in the years in which the differences
are expected to reverse.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
10 - Income Taxes (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Managing Member&rsquo;s conclusions regarding uncertain tax positions may be subject to review and adjustment at a later date
based upon ongoing analyses of tax laws, regulations and interpretations thereof, as well as other factors. Generally, federal,
state and local authorities may examine the Company&rsquo;s tax returns for three years from the date of filing and the current
and prior three years remain subject to examination as of December 31, 2011. The Company is subject to New York City Unincorporated
Business Tax (&ldquo;NYCUBT&rdquo;) based on income apportioned to New York City. However, due to the net loss experienced in
2011 and 2010, the amount was deemed to be immaterial.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
11 - Related Party Transactions</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Pursuant
to its Amended and Restated Limited Liability Company Agreement (the &quot;Operating Agreement&quot;), the Company may be required
to pay Blackfin Capital, LLC (&quot;Blackfin&quot;) a monthly management fee for services provided on its behalf.&nbsp; The Company's
Managing Member is a member of Blackfin. Services may include, but are not limited to, executive management, merger and acquisition
consultation, advising the Company on its capital structure and raising capital. Pursuant to the Operating Agreement, the management
fee may be increased or decreased at the sole discretion of the Managing Member. For the periods&rsquo; presented, a monthly fee
of $50,000 was charged to the Company with an annual bonus of approximately $281,000.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
12 - Discontinued Operations</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">In
accordance with ASC topic 360 (formerly SFAS 144), the Company has elected to classify the assets, liabilities and results of
operations for Tricat, MTI, DTG, Hollywood, Dolphin and BMC as assets and liabilities held for sale and as a discontinued operation
in the accompanying consolidated financial statements.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
12 - Discontinued Operations (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Assets
and Liabilities of Business held for Sale</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
major categories of assets and liabilities held for sale or sold included in the consolidated balance sheet at September 30, 2012
and 2011 are as follows:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">2012</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">2011</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 0.05in; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Assets
    Held For Sale</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 0.05in; width: 56%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Accounts
    receivable, net *</FONT></TD><TD STYLE="width: 8%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 12%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">720,437</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 8%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 12%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">3,631,944</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 0.05in; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Escrow receivable
    from sale of MTI/DTG</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">3,000,000</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">3,000,000</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 0.05in; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Prepaid expenses
    and other current assets</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">378,425</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 0.05in; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Property, plant
    and equipment - net</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,469,942</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 0.05in; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Amortizable
    intangible assets - net, including &nbsp;goodwill of $-- and $1,541,176, respectively</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">11,936,177</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 0.05in; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;Other
    assets</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">32,780</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">172,301</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 36">
    <TD STYLE="text-align: justify; padding-left: 0.05in; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Total
    Assets Held for Sale</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">3,753,217</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">21,588,789</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 36">
    <TD STYLE="text-align: justify; padding-left: 0.05in; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Liabilities
    Held for Sale</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 0.05in; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;Obligations
    under capital leases</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">40,908</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 0.05in; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;Obligations
    under debt</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,354,794</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 0.05in; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;Accounts
    payable and accrued expenses</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">374,396</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,055,306</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 36">
    <TD STYLE="text-align: justify; padding-left: 0.05in; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Total
    Liabilities Held for Sale</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">374,396</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">3,451,008</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>




<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.3in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.3in; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 12pt Times New Roman, Times, Serif">
<TD STYLE="width: 27pt; font: 12pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 18pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">*</FONT></TD><TD STYLE="text-align: justify; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">On
                                                                                                                         December
                                                                                                                         15, 2011,
                                                                                                                         the Company
                                                                                                                         sold
                                                                                                                         substantially
                                                                                                                         all of
                                                                                                                         the physical
                                                                                                                         assets
                                                                                                                         of the
                                                                                                                         BMC facilities,
                                                                                                                         excluding
                                                                                                                         the medical
                                                                                                                         receivables
                                                                                                                         and San
                                                                                                                         Jose
                                                                                                                         Medical
                                                                                                                         group
                                                                                                                         and California
                                                                                                                         Ultra
                                                                                                                         Sound
                                                                                                                         facilities.</FONT></TD></TR></TABLE>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
12 - Discontinued Operations (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Statement
of Operations of Discontinued Operations</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
following results of operations are presented as a loss from a discontinued operation in the consolidated statements of operations.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">2012</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">2011</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="width: 56%; text-align: justify; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Patient
    Revenue</B></FONT></TD><TD STYLE="width: 8%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 12%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(188,813</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="width: 8%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 12%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">12,541,341</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 30">
    <TD STYLE="text-align: justify; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Operating
    Expenses</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;Costs
    of medical services</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">6,916</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">3,476,526</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;Salaries
    and related costs</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">109,576</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,337,320</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;Facilities
    cost</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">71,167</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,305,000</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;Equipment
    lease expense and service</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">68,423</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,666,977</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;Travel,
    entertainment and marketing costs</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">3,339</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">200,666</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;Other
    clinic operating costs</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">675,970</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,721,804</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 30">
    <TD STYLE="text-align: justify; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Total
    Operating Expenses.</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">935,391</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">10,708,293</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 36">
    <TD STYLE="text-align: justify; padding-left: 5.75pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(Loss)
    Income from Operations</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1,124,204</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,833,048</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 30">
    <TD STYLE="text-align: justify; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Interest income</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">24</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Other income</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">(600</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,799,504</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Interest expense</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">(23,245</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">(210,500</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 30">
    <TD STYLE="text-align: justify; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Total
    Other (Expense) Income</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">(23,845</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,589,028</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 30">
    <TD STYLE="text-align: justify; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(Loss)
    Income from Discontinued Operations</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1,148,049</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">4,422,076</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>



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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
12 - Discontinued Operations (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif; background-color: yellow"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Accounts
Receivable, Net</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">All
of the accounts receivable classified as Assets Held for Sale are receivable from healthcare payors. The amounts presented are
at net realizable value at September 30, 2012 and 2011.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
breakdown of accounts receivable, net, at September 30, 2012 and 2011, is as follows:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">September
    30, 2012</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Receivables
    Due from Healthcare Payors</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Receivables
    Due under Management Agreements</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Total
    Accounts Receivable - Net</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="width: 52%; text-align: justify; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Accounts
    receivable, net of contractual allowances</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 1%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 11%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">720,437</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 1%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 11%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 1%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 11%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">720,437</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>



<P STYLE="margin-top: 0; margin-bottom: 0; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">September
    30, 2011</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Receivables
    Due from Healthcare Payors</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Receivables
    Due under Management Agreements</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Total
    Accounts Receivable - Net</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="width: 52%; text-align: justify; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Accounts
    receivable, net of&nbsp;&nbsp;contractual allowances</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 1%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 11%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">3,631,944</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 1%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 11%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 3%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 1%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 11%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">3,631,944</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Property
and Equipment, Net</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Property
and equipment, net, consist of the following at September 30, 2011:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">Estimated</FONT> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT>Useful
    Life</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">2011</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="width: 40%; text-align: justify; padding-left: 4.5pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Fixtures</FONT></TD><TD STYLE="width: 12%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 18%; text-align: center; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">5
    to 7 years</FONT></TD><TD STYLE="width: 12%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 16%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">173,552</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 4.5pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Diagnostic equipment</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">5 to 7 years</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">3,940,196</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 4.5pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Leasehold improvements</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">5 to 10 years</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">862,660</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 4.5pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Computer and
    billing system</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">3 to 5 years</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">98,245</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 30">
    <TD STYLE="text-align: justify; padding-left: 4.5pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">5,074,653</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; padding-left: 4.5pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Less:&nbsp;&nbsp;Accumulated
    depreciation</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">(2,645,709</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 30">
    <TD STYLE="text-align: justify; padding-left: 4.5pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Property
    and Equipment, Net</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,428,944</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
12 - Discontinued Operations (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Capital
Leases</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Obligations
under capital leases in connection with the purchase of property and equipment for those facilities classified as assets of discontinued
operations are as follows:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Lessee</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2012</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2011</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="width: 66%; font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 0.05in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Equipment
    lease with CCA Financial for the facility located in San Rafael, California.&nbsp;&nbsp;Lease provides for 24 monthly payments
    of $10,344, including interest of 9.22% through January 1, 2012.&nbsp;&nbsp;At termination of the lease, equipment purchase
    option is $1.</FONT></TD><TD STYLE="width: 5%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 5%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">40,908</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 36">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.05in; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">Principal
    balance</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">40,908</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 0.05in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Less:&nbsp;&nbsp;current
    maturities</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">(40,908</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 36">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 0.05in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Total
    Long-Term Maturities</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Long-Term
Debt</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">On
July 3, 2008, the Company entered into a $30 million senior secured credit facility (the &ldquo;Credit Facility&rdquo;) which
was paid off in full at the closing of the BMC Divestiture. The Credit Facility was structured as a $30 million revolving credit
facility maturing on July 3, 2011 however several forbearance agreements allowed the debt to remain current through the date of
the BMC divestiture. The Company drew down the entire $30 million on the Credit Facility to fund the MTI acquisition. The Company
recorded approximately $1,050,000 in fees and expenses related to the Credit Facility, which were written off as part of the MTI/DTG
divestiture.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Credit Facility was available for loans denominated in U.S. dollars and for letters of credit. Borrowings under the Credit Facility
bore interest, at the Company&rsquo;s option, at either a base rate plus an applicable margin, ranging from 2.0% to 3.25% per
annum, or the LIBOR rate plus an applicable margin, ranging from 3.00% to 4.25% per annum, based on the Company&rsquo;s total
leverage ratio as defined in the Credit Facility at the time of borrowing. The base rate was effectively the Prime Rate. There
was also a commitment fee on the unused portion of the Credit Facility from 0.375% to 0.50% per annum, based on the Company&rsquo;s
total leverage ratio as defined in the Credit Facility. The Company entered in a swap agreement on March 18, 2009 that was paid
off at the closing of the MTI/DTG divestiture that fixed the floating aspect of the interest rate associated with the Credit Facility
described above at 1.59%.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
12 - Discontinued Operations (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Long-Term
Debt (continued)</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Credit Facility contained various limitations, including limitations on changes in business, mergers, acquisitions, asset sales,
liens, operating leases, investments and guaranty obligations, restricted payments, financial covenants, restrictive agreements,
transactions with affiliates, plan terminations and minimum funding, amendment of acquisition documents and anti-terrorism laws.
The Company was not in compliance with the terms of the agreement and avoided default through a forbearance agreement with the
bank.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">At
September 30, 2012 and 2011, long-term debt consisted of the following:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2012</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2011</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 0.05in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Credit
    Facility with KeyBank National Association expiring July 3, 2011.&nbsp;&nbsp;Significant terms are discussed above.</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 130">
    <TD STYLE="width: 66%; font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 0.05in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Note
    Payable to Embarcadero Open MRI, Inc. non-interest bearing, payable in quarterly installments, through September 30, 2010.&nbsp;&nbsp;Payments
    are calculated as 15% of certain prescribed actual collections over a predetermined threshold with a balloon at the end of
    a five-year term.&nbsp;&nbsp;The note is collateralized by substantially all of the assets of the Company&rsquo;s California
    reporting unit.</FONT></TD><TD STYLE="width: 5%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 10%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 5%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 10%; text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">354,388</FONT></TD><TD STYLE="width: 1%; text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 50">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 0.05in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Note
    Payable to Bank of America, bearing interest at 8.27%, payable in monthly installments of $408, through November 2011.</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">406</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 12pt Times New Roman, Times, Serif; height: 50">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 0.05in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Unsecured,
    non-interest bearing subordinated note payable to Robert D. Burke, M.D., a former owner of MTI.</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,000,000</FONT></TD><TD STYLE="text-align: left; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif; height: 35">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify; padding-left: 0.05in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Current
    Principal Balance</B></FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,354,794</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>


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    <!-- Field: /Page -->

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
12 - Discontinued Operations (continued)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Operating
Lease Commitments</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Approximate
future minimum lease payments under operating leases for the facilities whose assets are being held for sale, excluding common
area and real estate tax reimbursements, are as follows:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 12pt Times New Roman, Times, Serif">
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: right; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">
    For     the Twelve Months Ending September 30,</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">Facilities
    Leases</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 12pt Times New Roman, Times, Serif">
    <TD STYLE="width: 7%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 52%; font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">2013</FONT></TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 19%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 2pt double; width: 16%"><FONT STYLE="font-family: Times New Roman, Times, Serif">68,803</FONT></TD><TD STYLE="width: 4%; font: 12pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Rent
expense for the above facilities amounted to approximately $-- and $901,102 for the nine months ending September 30, 2012 and
2011, respectively, and is a component of loss on discontinued operations.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Equipment
rental expense for the nine months ended September 30, 2012 and 2011 amounted to approximately $62,337 and $1,002,627, respectively,
and is a component of loss on discontinued operations.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
13 - HD Ultrasound</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Upon
completion of the BMC divestiture, the Company created HD Ultrasound, LLC (&ldquo;HDU&rdquo;) as the operator of the business
that was not included in the sale consummated on December 15, 2011. In addition, the Company entered into an agreement with HDU
to provide collections services for the accounts receivable balance for the business that was sold as part of the same transaction.
As of December 31, 2011 HDU was owned equally by both the Company and the former Vice President of Operations for California (&ldquo;VP-CA&rdquo;).
The VP-CA funded his contribution to HDU by foregoing his profits percentage within the Company. On January 15, 2012, an unrelated
party purchased 20% interest in HDU. As of September 30, 2012, HDU was owned 40% by the Company, 40% by the VP-CA and 20% by unrelated
investor.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
operations of HDU are consolidated with Health Diagnostics LLC for financial reporting. For the nine months ended September 30,
2012, 100% of the results of HDU are included within continuing operations.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT>&nbsp;</P>


<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
14 &ndash; Members&rsquo; Equity</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Pursuant
to the operating agreement, the member capital accounts are to comply with Section 704(b) of the Internal Revenue Code and the
Treasury Regulations promulgated thereunder and will be interpreted and applied in a manner consistent with those provisions.
Net profit or loss for each taxable year (or portion thereof) shall be allocated (after any special allocations or required tax
allocations) in such a manner so as to cause the capital account balance of such member at the beginning of such period, adjusted
for all contributions and distributions during such period (and any special allocations or required tax allocations) to equal
as nearly as possible the capital account balance that such member would receive upon the distribution of proceeds from a hypothetical
sale of all Company assets at book value after the satisfaction of all Company liabilities according to the terms of such debt.
No loss or deduction shall be allocated to any member to the extent that such allocation would cause or increase an adjusted capital
account deficit of such member.</FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company&rsquo;s restated operating agreement provides for, in the event of the sale or liquidation of the Company, any cash proceeds
must first be applied against the unreturned capital contribution made by the contributing member plus a return based on the London
Interbank Offered Rate, which in aggregate totaled $130 million and $128 million as of September 30, 2012 and 2011, respectively.</FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Since
inception, the Company has granted profit interest units to certain executive management with the intent of management holding
approximately 15% of the future profits of the Company in excess of the preference noted above. At September 30, 2012 and 2011,
these units entitle the executives to share in approximately 15% and 3% of future profits, respectively. During 2011 and 2010,
key employees left the Company as a result of the divestitures and their profit interest units were forfeited. The Company made
a series of grants to executives effective January 1, 2012 whereby management now holds 15% of future profits. The value of these
units at date of each grant was nominal.</FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
15 - Acquisitions</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Acquisitions</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">On
March 22, 2012 the Company acquired the assets of a MRI/CT suite located in Plainview, New York for a cost of $760,375. Adjacent
to the MRI/CT suite is a womens&rsquo; center containing modalities specific to womens&rsquo; diagnostic imaging - mammography,
ultrasound as well as a bone density scanner. The Company acquired the mammography and ultrasound machine at a cost of $160,000
and $38,726, respectively and negotiated a new lease with the landlord for both suites. Management agreements have been put in
place for both suites with the prior professional corporation effective May 15, 2012.</FONT></P>


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<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>HEALTH
DIAGNOSTICS, LLC &amp; SUBSIDIARIES</B></FONT>&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">NOTES
TO&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(UNAUDITED)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT>&nbsp;</P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
15 &ndash; Acquisitions (continued)</B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>Acquisitions
(continued)</I></B></FONT></P>

<P STYLE="font: 12pt/95% Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">On
May 9, 2012 the Company acquired an MRI and CT in lower Manhattan for $1,050,000. The Company assumed the lease of the prior tenant
and immediately placed a deposit of $150,000 with the landlord.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: small-caps 12pt Times New Roman, Times, Serif"><B>Note
16 - Subsequent Events</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">On
March 5, 2013, the Company agreed to sell either the assets or their equity interests in 14 centers in New York and Florida, as
well as the Company&rsquo;s headquarters, for approximately $34,400,000 to FONAR Corporation.&nbsp; The purchase price was paid
in cash and transferred immediately upon closing.&nbsp; Assets included all rights in outstanding patient and management fee receivables,
as well as all in-service fixed assets.</FONT></P>




































<P STYLE="margin: 0; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="margin: 0; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="margin: 0; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;<FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 22.5pt; text-indent: -22.5pt"></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 3em"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(b)&#9;Pro
Forma Financial Information.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Introduction
to Unaudited Pro Forma Condensed Consolidated Financial Information</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">On
February 13, 2013 the HMCA entered into an agreement with outside investors to acquire a 50.5% controlling interest in a newly
formed limited liability company, Health Diagnostics Management, LLC (HDM). During March 2013 HMCA contributed $20,200,000 to
HDM and the group of outside investors contributed $19,800,000 for its non-controlling membership interest.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">To
fund HMCA&rsquo;s capital contribution Fonar borrowed a total of $14 million from a bank in the form of a term loan aggregating
$11 million and a revolving credit loan aggregating $3 million. Fonar lent the proceeds from the loan to HMCA, together with additional
cash, which HMCA used to make its capital contribution to HDM. The bank term loan is payable by Fonar in 60 consecutive monthly
installments, commencing September 1, 2013. The revolving credit loan is due March 5, 2016. Fonar can prepay the loan in whole
or in part in multiples of $100,000 at any time without penalty. All borrowings under the loan agreements are collateralized by
substantially all of FONAR&rsquo;s assets. The loan agreements also contain certain financial covenants that must be met on a
periodic basis.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">On
March 5, 2013, HDM purchased from Health Diagnostics, LLC and certain of its subsidiaries (&ldquo;HD&rdquo;), a business managing
twelve (12) Stand-Up&reg; MRI Centers and two (2) other scanning centers located in the States of New York and Florida. The acquisition
was accounted for using the purchase method in accordance with ASC 805, &ldquo;Business Combinations&rdquo;.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
following unaudited pro forma condensed consolidated financial information gives effect to the above described acquisition. The
following unaudited pro forma condensed consolidated balance sheet combines the balance sheet of Fonar with HD as of September
30, 2012, as if the acquisition occurred on that date. The following unaudited pro forma condensed consolidated statements of
operations combine the results of operations of Fonar with HD for the year ended June 30, 2012, and the three month period ended
September 30, 2012, as if the acquisition of HD had been completed as of July 1, 2011.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
following unaudited pro forma condensed consolidated financial information is based on historical amounts for the year ended June
30, 2012 and the three months ended September 30, 2012 and certain amounts at the close of the acquisition. The information presented
is for illustrative purposes only and is not necessarily indicative of the results of operations of the consolidated company that
would have occurred had the acquisition been completed as of the beginning of the periods indicated or that may be attained in
the future. Actual future results will likely be materially different from these pro forma results. This unaudited pro forma financial
information should be read in conjunction with the historical financial information of Fonar and HD included elsewhere in this
report and in other reports and documents Fonar files with the United States Securities and Exchange Commission.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 5em; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif"></FONT></P>


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<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 3pt"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">Fonar
Corporation</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 3pt"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif"><BR>
Pro Forma Condensed Consolidated Balance Sheet</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 3pt"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">(Unaudited)</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 9pt"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">As
of September 30, 2012</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">FONAR </TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">HD </TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">PRO FORMA ADJUSTMENTS</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">PRO FORMA TOTAL</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">ASSETS</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom">(a)</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom">(b)</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">Current Assets:</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10; width: 41%">Cash &amp; cash equivalents</TD><TD STYLE="width: 1%; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="width: 10%; font-weight: normal; font-style: normal; text-align: right">12,904,828</TD><TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="width: 10%; font-weight: normal; font-style: normal; text-align: right">30,781,223</TD><TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="width: 11%; font-weight: normal; font-style: normal; text-align: right">(30,781,223</TD><TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">)(c)</TD><TD STYLE="width: 3%; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="width: 10%; font-weight: normal; font-style: normal; text-align: right">6,704,828</TD><TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(6,200,000</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(f)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">Accounts Receivable - net</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">4,910,356</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">4,910,356</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">Accounts Receivable - related party</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">89,822</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">89,822</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">Management and other fees receivable - net</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">4,282,489</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">15,387,520</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(1,313,673</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(c)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">18,356,336</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">Management and other fees receivable - related medical practices -net</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">1,708,587</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">1,708,587</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">Costs and estimated earnings in excess of billings of uncompleted contracts</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">1,159,057</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">1,159,057</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">Inventories</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">2,517,148</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">2,517,148</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">Current portion of notes receivable - net</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">117,166</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">117,166</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">Assets of discontinued operations</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">3,753,217</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(3,753,217</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(c)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">Prepaid expenses and other current assets</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">201,992</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">1,521,837</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(1,239,353</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">)(c)</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">484,476</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: 20">Total Current Assets</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">27,891,445</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">51,443,797</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(43,287,466</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">36,047,776</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">Property and equipment - Net</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">3,123,138</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">7,751,512</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">9,721,489</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">(g)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">18,035,788</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(2,560,351</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(c)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">Notes Receivable</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">241,427</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">241,427</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">Goodwill</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">35,900,000</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(35,900,000</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(c)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">1,231,529</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">1,231,529</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">(g)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">Other intangible assets - net</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">3,716,311</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">9,400,000</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">(g)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">13,116,311</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">Other assets</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">490,150</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">575,750</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">1,065,900</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: 20">&nbsp;Total Assets</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">35,462,471</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">95,671,059</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">(61,394,799</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">69,738,731</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;<FONT STYLE="font-size: 10pt">&nbsp;&nbsp;See
accompanying notes to pro forma unaudited condensed financial statements</FONT></FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif"></FONT></P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;</P>


<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 3pt"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">Fonar
Corporation</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 3pt"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif"><BR>
Pro Forma Condensed Consolidated Balance Sheet</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 3pt"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">(Unaudited)</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 9pt"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">As
of September 30, 2012</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 9pt"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">(Continued)&nbsp;</FONT></P>


<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: White; height: 30">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center">FONAR</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center">HD</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center">PRO FORMA ADJUSTMENTS</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center">PRO FORMA TOTAL</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; height: 20">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center">LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; border-bottom: Black 1pt solid">(a)</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; border-bottom: Black 1pt solid">(b)</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; height: 30">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; width: 43%"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 12pt">Current
                                                                                      Liabilities:</FONT></P></TD><TD STYLE="font-weight: normal; font-style: normal; width: 1%">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right; width: 10%">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; width: 2%">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right; width: 10%">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; width: 2%">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right; width: 11%">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; width: 2%">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right; width: 11%">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left; width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">Current portion of long-term debt and capital leases</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">1,658,363</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">544,252</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(240,168</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(c)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">1,962,447</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">&nbsp;&nbsp;&nbsp;Accounts payable</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">2,211,559</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">3,488,698</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(3,488,698</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(c)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">2,211,559</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">&nbsp;&nbsp;&nbsp;Other current liabilities</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">8,001,377</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">8,001,377</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">&nbsp;&nbsp;&nbsp;Unearned revenue on service contracts</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">5,619,521</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">5,619,521</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">&nbsp;&nbsp;&nbsp;Unearned revenue on service contracts - related parties</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">82,500</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">82,500</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">&nbsp;&nbsp;&nbsp;Customer advances</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">3,897,679</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">3,897,679</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">&nbsp;&nbsp;&nbsp;Liabilities of discontinued operations</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">374,396</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(374,396</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(c)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">&nbsp;&nbsp;&nbsp;Income taxes</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">25,000</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">25,000</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Liabilities</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">21,495,999</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">4,407,346</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(4,103,262</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">21,800,083</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; padding-left: 5.4pt">Long-Term Liabilities:</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">&nbsp;&nbsp;&nbsp;Accounts payable, non current</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">24,800</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">24,800</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">&nbsp;&nbsp;&nbsp;Due to related medical practices</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">230,914</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">230,914</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">&nbsp;&nbsp;&nbsp;Long-term debt and capital leases, less current portion</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">706,301</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">172,176</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">14,000,000</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">(d)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">14,878,477</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">&nbsp;&nbsp;&nbsp;Other Liabilities</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">389,993</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">389,993</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Long-Term Liabilities</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">1,352,008</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">172,176</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">14,000,000</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">15,524,184</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilties</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">22,848,007</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">4,579,522</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">9,896,738</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">37,324,267</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 5.4pt">Stockholders' Equity:</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">&nbsp;&nbsp;&nbsp;Class A non-voting preferred stock</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">31</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">31</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">&nbsp;&nbsp;&nbsp;Preferred stock</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">&nbsp;&nbsp;&nbsp;Common Stock</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">590</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">590</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">&nbsp;&nbsp;&nbsp;Class B Common Stock</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">&nbsp;&nbsp;&nbsp;Class C Common Stock</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">38</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">38</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">&nbsp;&nbsp;&nbsp;Paid-in capital in excess of par value</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">174,084,007</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">174,084,007</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">&nbsp;&nbsp;&nbsp;Accumulated othr comprehensive loss</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(18,309</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(18,309</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">&nbsp;&nbsp;&nbsp;(Accumulated deficit)/Members Interest</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(166,882,014</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">89,565,170</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(91,091,537</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(c)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(168,408,381</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">&nbsp;&nbsp;&nbsp;Notes
    receivable from employee stockholders</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(68,839</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(68,839</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">&nbsp;&nbsp;&nbsp;Treasury stock, at cost</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(675,390</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(675,390</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10">&nbsp;&nbsp;&nbsp;Non controlling interest</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">6,174,350</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">1,526,367</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">19,800,000</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">(e)</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">27,500,717</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Stockholders' Equity</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">12,614,464</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">91,091,537</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(71,291,537</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">32,414,464</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
    Liabilities and Stockholders' Equity</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">35,462,471</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">95,671,059</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">(61,394,799</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">69,738,731</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
    accompanying notes to pro forma unaudited condensed financial statements</FONT></FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif"></FONT></P>


<!-- Field: Page; Sequence: 81 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 3pt"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">Fonar
Corporation</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 3pt"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">Pro
Forma Condensed Consolidated Statement of Operations</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 3pt"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">(Unaudited)</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 12pt"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">For
the year ended June 30, 2012</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: center">FONAR</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: center">HD</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: center">PRO FORMA ADJUSTMENTS</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: center">PRO FORMA TOTAL</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: normal; font-style: normal">REVENUES</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: center">(a)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: center">(b)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 20; text-indent: -10; width: 41%">&nbsp;&nbsp;&nbsp;Product sales - net</TD><TD STYLE="width: 1%; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="width: 10%; font-weight: normal; font-style: normal; text-align: right">6,922,464</TD><TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="width: 10%; font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="width: 11%; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="width: 10%; font-weight: normal; font-style: normal; text-align: right">6,922,464</TD><TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Service and repair fees - net</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">11,674,541</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(1,170,000</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(c)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">10,504,541</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Service and repair fees - related parties - net</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">110,000</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">110,000</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Management and other fees - related medical practices - net</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">6,677,138</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">6,677,138</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Management and other fees - net</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">14,060,275</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">19,451,425</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(1,929,802</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(c)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">31,581,898</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Patient fee income</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">12,929,360</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">12,929,360</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">TOTAL REVENUES - NET</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">39,444,418</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">32,380,785</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(3,099,802</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">68,725,401</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 5.4pt">COST AND EXPENSES</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Costs related to product sales</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">5,387,923</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">5,387,923</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Costs related to service and repair</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">3,453,116</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(1,170,000</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(c)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">2,283,116</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Costs related to service and repair - related parties</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">32,536</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">32,536</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Costs related to management and other fees - related medical practices</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">3,588,282</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">3,588,282</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Costs related to management and other fees</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">8,733,823</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">14,113,062</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(105,000</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(c)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">22,125,321</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(616,564</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(e)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Costs related to patient fees</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">9,853,101</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(747,719</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(e)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">9,105,382</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Research and development expenses</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">1,242,656</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">1,242,656</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Selling, general and administrative expenses</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">8,749,090</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">6,746,494</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(1,824,802</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(c)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">14,461,305</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(709,578</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(e)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">1,500,101</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">(f)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 35; text-indent: -20">Goodwill Impairment</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">16,809,844</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right"></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">16,809,844</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;Provision for bad debts</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">1,050,442</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right"></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">1,050,442</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 5.4pt">TOTAL COST AND EXPENSES</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">32,237,868</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">47,522,501</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(3,673,562</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">76,086,807</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 5.4pt">INCOME/(LOSS) FROM OPERATIONS</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">7,206,550</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(15,141,716</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">573,760</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(7,361,406</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 5.4pt">OTHER INCOME AND (EXPENSES)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;&nbsp;Other income (expense)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">45,056</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(1,115,975</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(1,070,919</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;&nbsp;Interest income</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">243,254</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">17,760</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">261,014</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;&nbsp;Interest expense</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right; border-bottom: Black 1pt solid">(478,663</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right; border-bottom: Black 1pt solid">(85,257</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right; border-bottom: Black 1pt solid">(642,500</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(d)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right; border-bottom: Black 1pt solid">(1,206,420</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 5.4pt">INCOME BEFORE PROVISION FOR INCOME TAXES</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">7,016,197</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(16,325,188</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(68,740</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(9,377,731</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Provision for Income Taxes</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">141,125</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">141,125</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; padding-left: 5.4pt">NET INCOME/(LOSS)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">6,875,072</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(16,325,188</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(68,740</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(9,518,856</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 5.4pt">NET INCOME/(LOSS) - Non Controlling Interests</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(1,098,592</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(397,616</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(8,277,788</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(g)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(9,773,996</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">NET INCOME/(LOSS) - Controlling Interests</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">5,776,480</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(16,722,804</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(8,346,528</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(19,292,852</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
    accompanying notes to pro forma unaudited condensed financial statements</FONT></FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif"></FONT></P>


<!-- Field: Page; Sequence: 82 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 3pt"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">Fonar
Corporation</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 3pt"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">Pro
Forma Condensed Consolidated Statement of Operations</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 3pt"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">(Unaudited)</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 12pt"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">For
the year ended June 30, 2012</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Continued)</FONT></P>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">FONAR</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">HD</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">PRO FORMA ADJUSTMENTS</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">PRO FORMA TOTAL</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center; padding-bottom: 2.5pt; padding-left: 5.4pt; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">(a)</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">(b)</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt; width: 40%">Net Income/(Loss) Available to Common Stockholders</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; width: 3%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left; width: 1%">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right; width: 10%">5,392,211</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; width: 3%">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right; width: 9%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; width: 3%">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right; width: 9%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; width: 3%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left; width: 1%">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right; width: 12%">(19,292,852</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left; width: 1%">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Net Income/(Loss) Available to Class A Non Voting Preferred Stockholders</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">286,406</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Net Income/(Loss) Available to Class C Common Stockholders</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">97,863</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Basic Net Income/(Loss) Per Common Share Available to Common Stockholders</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">0.93</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">(3.34</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Diluted Net Income/(Loss) Per Common Share Available to Common Stockholders</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">0.91</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">(3.34</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Basic and Diluted Income/(Loss) Per Share - Common C</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">0.26</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">0.00</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; padding-left: 5.4pt">Weighted Average Basic Shares Outstanding - Common Stockholder</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">5,778,695</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">5,778,695</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; padding-left: 5.4pt">Weighted Average Diluted Shares Outstanding - Common Stockholder</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">5,906,199</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">5,906,199</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Weighted Average Basic Shares Outstanding - Class C Common</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">382,513</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">382,513</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Weighted Average Diluted Shares Outstanding - Class C Common</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">382,513</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">382,513</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
    accompanying notes to pro forma unaudited condensed financial statements</FONT></FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"></P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;<FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 3pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">Fonar
Corporation</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 3pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">Pro
Forma Condensed Consolidated Statement of Operations</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 3pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">(Unaudited)</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 12pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">For
the three months ended September 30, 2012</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: center">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: center">PRO FORMA</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: center">PRO FORMA</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: center">FONAR</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: center">HD</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: center">ADJUSTMENTS</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: normal; font-style: normal; text-align: center">TOTAL</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: normal; font-style: normal">REVENUES</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">(a)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">(b)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20; width: 41%">&nbsp;&nbsp;&nbsp;Product sales - net</TD><TD STYLE="width: 1%; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="width: 10%; font-weight: normal; font-style: normal; text-align: right">1,040,450</TD><TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="width: 10%; font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="width: 11%; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="width: 3%; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="width: 10%; font-weight: normal; font-style: normal; text-align: right">1,040,450</TD><TD STYLE="width: 1%; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Service and repair fees - net</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">2,708,583</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(292,500</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(c)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">2,416,083</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Service and repair fees - related parties - net</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">27,500</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">27,500</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Management and other fees - related medical practices - net</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">1,964,986</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">1,964,986</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Management and other fees - net</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">3,769,364</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">7,070,703</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(37,500</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(c)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">10,338,436</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(464,131</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(c)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Patient fee income</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">3,406,574</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">3,406,574</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 5.4pt">TOTAL REVENUES - NET</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">9,510,883</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">10,477,277</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(794,131</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">19,194,029</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 5.4pt">COST AND EXPENSES</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Costs related to product sales</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">1,055,785</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">1,055,785</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Costs related to service and repair</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">865,501</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(292,500</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(c)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">573,001</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Costs related to service and repair - related parties</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">8,787</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">8,787</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Costs related to management and other fees - related medical practices</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">816,930</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">816,930</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Costs related to management and other fees</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">2,171,207</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">3,531,445</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(37,500</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(c)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">5,374,879</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(290,273</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(e)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Costs related to patient fees</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">2,480,552</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">2,480,552</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Research and development expenses</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">329,628</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">329,628</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Selling, general and administrative expenses</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">2,211,748</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">2,665,510</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(464,131</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(c)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">4,652,894</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">40,942</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">(e)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">198,825</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">(f)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 40; text-indent: -20">Goodwill impairment</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">16,809,844</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">16,809,844&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Provision for bad debts</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">175,000</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">175,000</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">TOTAL COST AND EXPENSES</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">7,634,586</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">25,487,351</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(844,637</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">32,227,300</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 5.4pt">INCOME/(LOSS) FROM OPERATIONS</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">1,876,297</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(15,010,074</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">50,506</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(13,083,271</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 5.4pt">OTHER INCOME AND (EXPENSES)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;&nbsp;Gain from legal settlement</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">21,952,581</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">21,952,581</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;&nbsp;Other income (expense)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(9,290</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(221,669</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(230,959</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;&nbsp;Interest income</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">59,174</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">18,807</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">77,981</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;&nbsp;Interest expense</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(76,447</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(12,631</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(160,625</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)(d)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(249,703</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 5.4pt">INCOME BEFORE PROVISION FOR INCOME TAXES</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">1,849,734</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">6,727,014</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(110,119</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">8,466,629</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 30; text-indent: -20">&nbsp;&nbsp;&nbsp;Provision for Income Taxes</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">71,500</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">0</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">71,500</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-left: 5.4pt">NET INCOME</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">1,778,234</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">6,727,014</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(110,119</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">8,395,129</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">NET INCOME - Non Controlling Interests</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(326,290</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(81,798</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(3,289,382</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">)(g)</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(3,697,470</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">NET INCOME - Controlling Interests</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">1,451,944</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">6,645,216</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">(3,399,501</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; font-style: normal; text-align: right">4,697,659</TD><TD STYLE="padding-bottom: 1pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">See
    accompanying notes to pro forma unaudited condensed financial statements</FONT></FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"></P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;<FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 3pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">Fonar
Corporation</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 3pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">Pro
Forma Condensed Consolidated Statement of Operations</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 3pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">(Unaudited)</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 12pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">For
the three months ended September 30, 2012</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 12pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">(Continued)&nbsp;</FONT></P>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: White; height: 25">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center; padding-bottom: 2.5pt; padding-left: 5.4pt; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">FONAR</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">HD</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">PRO FORMA ADJUSTMENTS</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">PRO FORMA TOTAL</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; height: 10">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center; padding-bottom: 2.5pt; padding-left: 5.4pt; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">(a)</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid"></TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; text-align: center; vertical-align: bottom; text-indent: 20; height: 20">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">(b)</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); height: 25">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt; width: 40%">Net Income Available to Common Stockholders</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; width: 3%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left; width: 1%">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right; width: 10%">1,355,359</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; width: 3%">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right; width: 9%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; width: 3%">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right; width: 9%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; width: 3%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left; width: 1%">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right; width: 12%">4,385,166</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left; width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Net Income Available to Class A Non Voting Preferred Stockholders</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">71,987</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">232,907</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Net Income Available to Class C Common Stockholders</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">24,598</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">79,586</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Basic Net Income Per Common Share Available to Common Stockholders</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">0.23</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">0.74</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Diluted Net Income Per Common Share Available to Common Stockholders</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">0.22</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">0.73</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; height: 25">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Basic and Diluted Income Per Share - Common C</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">0.06</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">0.21</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; padding-left: 5.4pt">Weighted Average Basic Shares Outstanding - Common Stockholder</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">5,901,262</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">5,901,262</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt; padding-left: 5.4pt">Weighted Average Diluted Shares Outstanding - Common Stockholder</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">6,028,766</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">6,028,766</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Weighted Average Basic Shares Outstanding - Class C Common</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">382,513</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">382,513</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Weighted Average Diluted Shares Outstanding - Class C Common</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">382,513</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: normal; font-style: normal; text-align: right">382,513</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
    accompanying notes to pro forma unaudited condensed financial statements</FONT></P>




<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 22.5pt; text-indent: -22.5pt"></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>FONAR
CORPORATION AND SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>NOTES
TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 9pt 0 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>NOTE
1 &ndash; ACQUISITION</B></FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">On
February 13, 2013 the Company entered into an agreement with outside investors to acquire a 50.5% controlling interest in a newly
formed limited liability company, Health Diagnostics Management LLC (HDM). During March 2013 the Company contributed $20,200,000
to HDM and the group of outside investors contributed $19,800,000 for its non-controlling membership interest.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">To
fund the greater portion of HMCA&rsquo;s capital contribution Fonar borrowed a total of $14 million from a bank in the form of
a term loan aggregating $11 million and a revolving credit loan aggregating $3 million. Fonar lent the proceeds from the loan
to HMCA, together with additional cash, which HMCA used to make its capital contributions to HDM. The bank term loan is payable
in 60 consecutive monthly installments, commencing September 1, 2013. The term loan bears interest at 4.75% per annum and is payable
monthly. The revolving credit loan is due March 5, 2016. The Company can prepay the loan in whole or in part in multiples of $100,000
at any time without penalty. The revolving credit note bears interest at a rate of 4% per annum and is payable monthly. All borrowings
under the loan agreements are collateralized by substantially all of the Company&rsquo;s assets. The loan agreements also contain
certain financial covenants that must be met on a periodic basis.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 9pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">On
March 5, 2013 HDM purchased from Health Diagnostics, LLC and certain of its subsidiaries (&ldquo;HD&rdquo;), and outside investors
a business managing twelve (12) Stand-Up&reg; MRI Centers and two (2) other scanning centers located in the States of New York
and Florida. In connection with the consummation of the acquisition, HDM entered into other agreements, including consulting and
non-competition agreements.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 13.5pt 0 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>NOTE
2 - PRO FORMA ADJUSTMENTS</B></FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 4.5pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
pro forma adjustments to the condensed combined balance sheet give effect to the acquisition of HD as if the transactions had
occurred on June&nbsp;30, 2012. The pro forma adjustments to the condensed consolidated statements of operations for the year
ended June 30, 2012 and the three months ended September 30, 2012 give effect to the acquisition of HD as if the transactions
had occurred on June&nbsp;30, 2011.</FONT></P>

<P STYLE="font: 11pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><U>Balance
Sheet &ndash; September 30, 2012</U></FONT></P>

<P STYLE="font: 11pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">a.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Derived
                                                                                                                          from
                                                                                                                          the
                                                                                                                          unaudited
                                                                                                                          balance
                                                                                                                          sheet
                                                                                                                          of Fonar
                                                                                                                          as of
                                                                                                                          September
                                                                                                                          30,
                                                                                                                          2012.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">b.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Derived
                                                                                                                          from
                                                                                                                          the
                                                                                                                          unaudited
                                                                                                                          balance
                                                                                                                          sheet
                                                                                                                          of HD
                                                                                                                          as of
                                                                                                                          September
                                                                                                                          30,
                                                                                                                          2012.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">c.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Represents
                                                                                                                          certain
                                                                                                                          assets
                                                                                                                          and
                                                                                                                          liabilities
                                                                                                                          excluded
                                                                                                                          from
                                                                                                                          acquisition.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">d.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Represents
                                                                                                                          proceeds
                                                                                                                          from
                                                                                                                          bank
                                                                                                                          borrowing
                                                                                                                          aggregating
                                                                                                                          $14
                                                                                                                          million.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">e.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Represents
                                                                                                                          capital
                                                                                                                          contributions
                                                                                                                          by outside
                                                                                                                          investors
                                                                                                                          of its
                                                                                                                          non-controlling
                                                                                                                          membership
                                                                                                                          interest
                                                                                                                          in HDM.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">f.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Represents
                                                                                                                          cash
                                                                                                                          aggregating
                                                                                                                          $6,200,000
                                                                                                                          utilized
                                                                                                                          by Fonar
                                                                                                                          in connection
                                                                                                                          with
                                                                                                                          the
                                                                                                                          acquisition.
                                                                                                                          </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">g.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Reflects
                                                                                                                          the
                                                                                                                          acquisition
                                                                                                                          of certain
                                                                                                                          assets
                                                                                                                          of HD
                                                                                                                          including
                                                                                                                          the
                                                                                                                          interest
                                                                                                                          of outside
                                                                                                                          investors
                                                                                                                          and
                                                                                                                          agreements
                                                                                                                          related
                                                                                                                          to the
                                                                                                                          acquisition.
                                                                                                                           </FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Courier New, Courier, Monospace; margin: 0 0 0 0.75in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 0.75in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
following table summarizes the estimated fair values of the assets and liabilities assumed.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 0.75in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 70%; text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Management
    fee and medical receivables</FONT></TD><TD STYLE="width: 10%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 18%; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">14,073,847</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Prepaid expenses
    and other current assets</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">282,484</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Property and equipment</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">9,400,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Intangible assets</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">575,750</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Goodwill</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">14,912,650</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Other assets</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1,231,529</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Long term debt</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(476,260</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Net assets acquired</FONT></TD><TD><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2pt double"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT>$</TD><TD STYLE="text-align: right; border-bottom: Black 2pt double"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">40,000,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>



<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 0.75in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
cost of the transaction was allocated to the tangible and intangible assets and liabilities assumed based on estimates of their
respective fair values at the date of acquisition with the remaining unallocated purchase price recorded as goodwill. Management
is responsible for the valuation of net assets and Management fee and medical receivables considered acquired and considered a
number of factors when estimating the fair values and estimated useful lives of acquired assets and liabilities. The intangible
assets, including customer relations, developed software and certain related agreements, but excluding goodwill, are being amortized
on a straight-line basis over their weighted average lives for periods ranging from five to twenty years.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><U>Statement
of Operations &ndash; For the Three Months Ended September 30, 2012</U></FONT></P>

<P STYLE="font: 11pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<OL START="1" STYLE="margin-top: 0in; list-style-type: lower-alpha">

<LI STYLE="text-align: justify; margin: 0; font: 11pt Courier New, Courier, Monospace"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Derived
from the unaudited statement of operations of Fonar for the three months September 30, 2012.</FONT></LI>

<LI STYLE="text-align: justify; margin: 0; font: 11pt Courier New, Courier, Monospace"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Derived
from the unaudited statement of operations of HD for the three months September 30, 2012.</FONT></LI>

<LI STYLE="text-align: justify; margin: 0; font: 11pt Courier New, Courier, Monospace"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Reflects
the elimination of intercompany transactions between Fonar and HD. Included in these amounts are intercompany charges of $292,500
for service contracts on certain MRI equipment, billing and collections fees of $464,131 and certain marketing charges of $37,500.</FONT></LI>

<LI STYLE="text-align: justify; margin: 0; font: 11pt Courier New, Courier, Monospace"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Represents
the interest on the term loan of $11,000,000 and the revolving line of credit of $3,000,000 which was borrowed as part of the
purchase price.</FONT></LI>

<LI STYLE="text-align: justify; margin: 0; font: 11pt Courier New, Courier, Monospace"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Represents
the adjustment for depreciation on property and equipment acquired. Property and equipment acquired recorded at fair market value
included the following &ndash; Diagnostic equipment valued at $13.4 million, Furniture and fixtures valued at $239,000, Computer
hardware valued at $488,000 and Leasehold improvements valued at $762,000.</FONT></LI>

<LI STYLE="text-align: justify; margin: 0; font: 11pt Courier New, Courier, Monospace"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">To
record amortization on intangible assets acquired.</FONT></LI>

<LI STYLE="text-align: justify; margin: 0; font: 11pt Courier New, Courier, Monospace"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">To
record share of income allocated to non-controlling interest.</FONT></LI>

</OL>

<P STYLE="font: 11pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Courier New, Courier, Monospace; margin: 0 0 0 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><U>Statement
of Operations &ndash; Year Ended June 30, 2012</U></FONT></P>

<P STYLE="font: 11pt Courier New, Courier, Monospace; margin: 0 0 0 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<OL START="1" STYLE="margin-top: 0in; list-style-type: lower-alpha">

<LI STYLE="text-align: justify; margin: 0; font: 11pt Courier New, Courier, Monospace"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Derived
from the audited statement of operations of Fonar for the year ended June 30, 2012</FONT></LI>

<LI STYLE="text-align: justify; margin: 0; font: 11pt Courier New, Courier, Monospace"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Derived
from the unaudited statement of operations of HD for the year ended June 30, 2012.</FONT></LI>

<LI STYLE="text-align: justify; margin: 0; font: 11pt Courier New, Courier, Monospace"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Reflects
the elimination of intercompany transactions between Fonar and HD financial results. Included in these amounts are intercompany
charges of $1,170,000 for service contracts on certain MRI equipment, billing and collections fees of $1,824,802 and certain marketing
charges of $105,000.</FONT></LI>

<LI STYLE="text-align: justify; margin: 0; font: 11pt Courier New, Courier, Monospace"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Represents
the interest on the term loan of $11,000,000 and the revolving line of credit of $3,000,000 which was borrowed as part of the
purchase price.</FONT></LI>

<LI STYLE="text-align: justify; margin: 0; font: 11pt Courier New, Courier, Monospace"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Represents
the adjustment for depreciation on property and equipment acquired. Property and equipment acquired, recorded at fair market value
includes the following &ndash; Diagnostic equipment valued at $13.4 million, Furniture and fixtures valued at $239,000, Computer
hardware valued at $488,000 and Leasehold improvements valued at $762,000.</FONT></LI>

<LI STYLE="text-align: justify; margin: 0; font: 11pt Courier New, Courier, Monospace"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">f.
To record amortization on intangible assets acquired.</FONT></LI>

<LI STYLE="text-align: justify; margin: 0; font: 11pt Courier New, Courier, Monospace"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">To
record share of income allocated to non-controlling interest.</FONT></LI>

</OL>

<P STYLE="font: 11pt Courier New, Courier, Monospace; margin: 0; text-indent: 27pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: 11pt Courier New, Courier, Monospace; margin: 0; text-indent: 27pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">SIGNATURES</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Pursuant
to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">FONAR
CORPORATION</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(Registrant)</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">By:
/s/ Raymond Damadian</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Raymond
Damadian</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">President
and Chairman</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Dated:
May 20, 2013</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;Page 87</FONT></P>

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