<SEC-DOCUMENT>0000355019-13-000034.txt : 20131115
<SEC-HEADER>0000355019-13-000034.hdr.sgml : 20131115
<ACCEPTANCE-DATETIME>20131115145114
ACCESSION NUMBER:		0000355019-13-000034
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20130930
ITEM INFORMATION:		Results of Operations and Financial Condition
FILED AS OF DATE:		20131115
DATE AS OF CHANGE:		20131115

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
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-10248
		FILM NUMBER:		131223635

	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
<SEQUENCE>1
<FILENAME>fonar_8-k.htm
<DESCRIPTION>FONAR 8-K
<TEXT>
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<P STYLE="margin: 0"></P>

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

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

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

<P STYLE="font: 12pt Courier New, Courier, Monospace; margin: 0; text-align: center"><B>FORM 8-K</B></P>

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

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

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

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

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

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">Date of Report (Date of earliest event reported):
May 15, 2013</P>

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

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

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

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center; text-indent: 0.5in">(Exact name of registrant
as specified in its charter)</P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 21%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Courier New, Courier, Monospace">Delaware</FONT></TD>
    <TD STYLE="vertical-align: top; width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 50%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Courier New, Courier, Monospace">0-10248</FONT></TD>
    <TD STYLE="vertical-align: top; width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 25%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Courier New, Courier, Monospace">11-2464137</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">(State or other jurisdiction of incorporation)</P>
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">&nbsp;</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Courier New, Courier, Monospace">(Commission File Number)</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Courier New, Courier, Monospace">(I.R.S. Employer Identification No.)</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">110 Marcus Drive</P>
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">Melville, New York 11747</P>
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">(631) 694-2929</P></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">(Address, including zip code, and telephone
        number of registrant's principal executive office)</P>
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: center">&nbsp;</P></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

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

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

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify">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
(see General Instruction A.2. below):</P>

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

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 9pt 0 0.5in; text-indent: -0.5in">[ ] Written communications pursuant
to Rule 425 under the Securities Act 17 CFR 230.425)</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 9pt 0 0.5in; text-indent: -0.5in">[ ] Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 9pt 0 0.5in; text-indent: -0.5in">[ ] Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 9pt 0 0.5in; text-indent: -0.5in">[ ] Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)</P>

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

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

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">Item 2.02(a) Results of Operations and Financial Condition.</P>

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

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify">We reported the results of operations
and financial condition of the Company for the fiscal quarter ended September 30, 2013 in a press release dated November 15,
2013.</P>

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

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">Exhibits</P>

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

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-indent: 0.5in">99.1 Press Release dated November 15, 2013</P>

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

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

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

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

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-indent: 0.5in">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.</P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 61%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 39%; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Courier New, Courier, Monospace">FONAR CORPORATION</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Courier New, Courier, Monospace">(Registrant)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">By: /s/ Raymond Damadian</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 17.1pt"><FONT STYLE="font-family: Courier New, Courier, Monospace">Raymond Damadian</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 17.1pt"><FONT STYLE="font-family: Courier New, Courier, Monospace">President and Chairman</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">Dated: November 15, 2013</P>
        <P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

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



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

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>fonar_exhibit-99.htm
<DESCRIPTION>FONAR PRESS RELEASE
<TEXT>
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<P STYLE="margin: 0"></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Arial, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 30%; border-top: windowtext 2.25pt solid; padding-right: 0.05in; padding-left: 5.4pt; font-size: 14pt"><font style="font-size: 14pt"><b><i>NEWS</i></b></font></td>
    <td style="width: 29%; border-top: windowtext 2.25pt solid; padding-right: 0.05in; padding-left: 5.4pt">&nbsp;</td>
    <td style="width: 41%; border-top: windowtext 2.25pt solid; padding-right: 0.05in; padding-left: 5.4pt; font-size: 16pt; text-align: right"><font style="font-size: 16pt"><b>FONAR Corporation</b></font></td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 0.05in; padding-left: 5.4pt"><font style="font-size: 12pt">For Immediate Release</font></td>
    <td style="padding-right: 0.05in; padding-left: 5.4pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-left: 5.4pt; text-align: right"><font style="font-size: 12pt">The Inventor of MR Scanning&trade;</font></td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 0.05in; padding-left: 5.4pt"><font style="font-size: 12pt">Contact: Daniel Culver</font></td>
    <td style="padding-right: 0.05in; padding-left: 5.4pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-left: 5.4pt; text-align: right"><font style="font-size: 12pt">An ISO 9001 Company</font></td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 0.05in; padding-left: 5.4pt"><font style="font-size: 12pt">Director of Communications</font></td>
    <td style="padding-right: 0.05in; padding-left: 5.4pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-left: 5.4pt; text-align: right"><font style="font-size: 12pt">Melville, New York 11747</font></td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 0.05in; padding-left: 5.4pt"><font style="font-size: 12pt">E-mail: <font style="font-family: Arial, Helvetica, Sans-Serif; text-underline-style: none; color: windowtext">investor@fonar.com</font></font></td>
    <td style="padding-right: 0.05in; padding-left: 5.4pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-left: 5.4pt; text-align: right"><font style="font-size: 12pt">Phone: (631) 694-2929</font></td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 0.05in; padding-left: 5.4pt"><font style="font-size: 12pt">www.fonar.com</font></td>
    <td style="padding-right: 0.05in; padding-left: 5.4pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-left: 5.4pt; text-align: right"><font style="font-size: 12pt">Fax: (631) 390-1709</font></td></tr>
</table>
<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 81pt"><B>FONAR Announces First Fiscal 2014 Quarter Earnings
Results</B></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 81pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 54pt"></TD><TD STYLE="width: 31.5pt"><FONT STYLE="font: 12pt Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 0.05in"><FONT STYLE="font-size: 12pt"><I>First Fiscal 2014 Quarter net revenues increase 77% over First
Fiscal Quarter 2013 to $16.8 million</I></FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 54pt"></TD><TD STYLE="width: 31.5pt"><FONT STYLE="font: 12pt Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 0.05in"><FONT STYLE="font-size: 12pt"><I>First Fiscal 2014 Quarter net income increases 104% over First
Fiscal Quarter 2013 to $3.6 million</I></FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 54pt"></TD><TD STYLE="width: 31.5pt"><FONT STYLE="font: 12pt Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 0.05in"><FONT STYLE="font-size: 12pt"><I>Diluted Net Income Available to Common Stockholders for the
First Fiscal 2014 Quarter was $0.37 , an increase of 68% over First Fiscal Quarter 2013</I></FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 54pt"></TD><TD STYLE="width: 31.5pt"><FONT STYLE="font: 12pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify; padding-right: 0.05in"><FONT STYLE="font-size: 12pt"><I>FONAR records fifteenth straight quarter
of positive net income and income from operations </I></FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 85.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">MELVILLE, NEW YORK, November 15,
2013 &ndash; FONAR Corporation (NASDAQ-FONR), The Inventor of MR Scanning&trade;, reported its first quarter fiscal 2014 results
for the quarter ended September 30, 2013. The Company&rsquo;s two industry segments are: development, manufacturing and servicing
of the UPRIGHT&reg; Multi-Position&trade; MRI, and management of Stand-Up&reg; MRI (UPRIGHT&reg; MRI) centers. The Company is known
as the first Company to invent and manufacture an MRI (Magnetic Resonance) scanner. Leading the list of FONAR&rsquo;s most recent
patented inventions is its technology enabling <I>full weight-bearing MRI imaging, </I>in contrast to the conventional weightless
recumbent MRI,<I> </I>for the first time on all the gravity sensitive regions of the human anatomy, e.g. the spine, brain, hip,
knee, ankle, foot, shoulder, and pelvis. The FONAR UPRIGHT&reg; Multi-Position&trade; MRI scanner is the world&rsquo;s only MRI
scanner licensed under FONAR&rsquo;s multiple UPRIGHT&reg; MRI patents to scan all the patient&rsquo;s body parts in their normal
fully <I>weight-bearing</I> UPRIGHT&reg; position.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">Financial Highlights</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">The management of diagnostic imaging
center segment consisting of Patient and Management fee revenues, increased 149% to $14.3 million for the quarter ended September
30, 2013, over the comparable quarter one year earlier ended September 30, 2012.The Company&rsquo;s total revenues were $16.8 million
for the quarter ended September 30, 2013 an increase of 77% one year earlier when total revenues were $9.5 million.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">The increase in revenues resulted
in a 104% increase in net income to $3.6 million for the quarter ended September 30, 2013, as compared to $1.8 million for the
quarter ended September 30, 2012.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">Income from operations for the quarter
ended September 30, 2013 was $4.0 million as compared to $1.9 million for the quarter ended September 30, 2012.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">Page 1</P>


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<P STYLE="font: 16pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>FONAR
Corporation</B></FONT></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">Basic net income per common share
available to Common Stockholders for the quarter ended September 30, 2013 was $0.38, as compared to $0.23 for the quarter ended
September 30, 2012. Diluted income per common share available to Common Stockholders for the quarter ended September 30, 2013 was
$0.37, as compared to $0.22 for the quarter ended September 30, 2012.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">Total assets were $75.6 million at
September 30, 2013 as compared to $73.2 million at June 30, 2013.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">Total liabilities were $35.3 million
at September 30, 2013 as compared to $35.4 at June 30, 2013.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">Total current liabilities were $22.4
million at September 30, 2013 as compared to $21.1 million at June 30, 2013.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">At September 30, 2013, total cash
and cash equivalents increased 17% to $9.2 million, as compared to $7.9 million at June 30, 2013.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify"><B><U>Management Commentary</U></B></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">Raymond V. Damadian, M.D., president
and chairman of Fonar Corporation, said: &ldquo;We had understood that the acquisition of HDM would be a significant source of
profitability. This has been the case and the Company&rsquo;s diluted earnings per share available for the common stockholder for
the 1st quarter of Fiscal 2014 increased <B>68%</B> to <B>$0.37 </B>when compared to one year earlier.<B> </B></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&ldquo;There are more reasons why
this acquisition makes a lot of sense,&rdquo; continued Dr. Damadian. &ldquo;By combining the resources of HMCA and HDM, we will
enjoy the benefits of economies of scale, shared administrative and technical expertise and capabilities, and joint marketing strategies.
HMCA&rsquo;s 11 STAND-UP&reg; MRIs together with HDM&rsquo;s 12 form a network of 23 FONAR <I>weight-bearing</I> MRI scanners,
the largest in the world as compared to the conventional essentially<I> weightless</I> MRI.* Of course, we&rsquo;re not finished
growing,&rdquo; said Dr. Damadian. &ldquo;We will continue to pursue additional management contracts, primarily in New York and
Florida.&rdquo;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&ldquo;Our successful business model
is made possible by the success of our current MRI scanner, the UPRIGHT&reg; Multi-Position&trade; MRI,&rdquo; continued Dr. Damadian.
&ldquo;This scanner is extremely popular with patients who experience claustrophobia or can&rsquo;t lie down for long periods.
However, patient comfort is only one side of this product. The much more compelling reason a patient would want to be scanned is
to get the<I> right diagnosis</I>. This is the world&rsquo;s only scanner that can scan all body parts in their normal <I>weight-bearing</I>
posture. It is essential to visualize the body in its normal <I>weight-bearing</I> positions in order to accurately diagnose the
source of the patient&rsquo;s pain, so that the optimum treatment for the patient can be prescribed. In the <I>weightless</I> posture
of the conventional recumbent MRI, it is impossible to accurately assess the patients&rsquo; <I>weight-bearing</I> anatomic pathologies
so they can be correctly treated. It is self-evident that if you can&rsquo;t see them you can&rsquo;t treat them. It is very common
with the UPRIGHT&reg; <I>weight-bearing</I> MRI to encounter disc herniations and spinal dislocations that were not visible in
the conventional &ldquo;<I>weightless</I>&rdquo; recumbent MRI position.*&rdquo;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">Page 2</P>


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<P STYLE="font: 16pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>FONAR
Corporation</B></FONT></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0.25in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0.25in; text-align: justify">*The calculated weight load
of a 180 lb. upright patient on the L3/4 lumbar vertebral disc is <B>45.5 lbs. per square inch</B> as compared to a weight-load
of <B>4.5 lbs per square</B> inch in a conventional recumbent &ldquo;<I>weightless</I>&rdquo; MRI which is only bearing 1/10<SUP>th</SUP>
the weight the disc is bearing throughout the course of its common <U>upright</U> every day activities.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&ldquo;This past April 6<SUP>th</SUP>
we held &lsquo;<FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; text-underline-style: none; color: windowtext">Symposium
2013</FONT>&rsquo; in New York City. The symposium was called &lsquo;The Cranio-Cervical Syndrome (CCS): <B>The Vulnerability of
the Human Neck</B> and Its Impact on Cerebrospinal Fluid (CSF) Flow&rsquo;,&rdquo; said Dr. Damadian. &ldquo;There is a pandemic
degree of injuries to the neck and head, resulting from the 1.2 million automobile whiplash injuries occurring each year in the
United States that are currently going unrecognized. The principal purpose of Symposium 2013 was to bring the existence of this
Cranio-Cervical Syndrome to the attention of the medical community and to the general populace. We will publish early next year,
a monograph containing the presentation of the faculty who presented at the conference. I urge all interested parties to see the
presentations which are found on line at: www.youtube.com/user/FonarMRIimaging.&rdquo;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&ldquo;Our understanding of the <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; text-underline-style: none; color: windowtext">Cranio-Cervical
Syndrome (CCS)</FONT> and <B>the vulnerability of the human neck </B>and its impact on cerebrospinal fluid (CSF) flow began with
our UPRIGHT&reg; MRI research and findings on multiple sclerosis,&rdquo; said Dr. Damadian. &ldquo;On September 20, 2011, I and
co-author, FONAR scientist David Chu, PhD., published a paper titled &ldquo;<FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; text-underline-style: none; color: windowtext">The
Possible Role of Cranio-Cervical Trauma and Abnormal CSF Hydrodynamics in the Genesis of Multiple Sclerosis,</FONT>&quot; in the
journal <I>Physiological Chemistry and Physics and Medical NMR</I> (Sept. 20, 2011, 41: 1-17), found at <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; text-underline-style: none; color: windowtext">http://www.fonar.com/</FONT>.
With this new understanding of the role that cervical trauma plays in the etiology of disease, it is imperative to certify that
the sustained neck or head injuries of professional athletes such as NFL football players, whiplash patients and others with severe
neck trauma, have not resulted in any obstructions of CSF flow, which would eventually lead to the symptomatology of the Cranio-Cervical
Syndrome.&rdquo;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&ldquo;The Company is fortunate to
have as its flagship product the FONAR UPRIGHT&reg; Multi-Position&trade; MRI,&rdquo; continued Dr. Damadian. &ldquo;This is truly
a unique technology producing exquisite images in all positions of the body. It not only yields a whole new treasure of new medical
applications in such calamitous medical categories as multiple sclerosis, and other dementia, but it also possesses the strong
potential to provide fresh new insights into the debilitating chronic consequences of sports injuries, the current epidemic of
automobile whiplash injuries, all spine injuries, and more diseases yet to be unearthed.&rdquo;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">Page 3</P>


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<P STYLE="font: 16pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>FONAR
Corporation</B></FONT></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify"><B>About FONAR</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: justify">FONAR (<FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; text-underline-style: none; color: windowtext">NASDAQ:FONR</FONT>),
Melville, NY, <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; text-underline-style: none; color: windowtext">The Inventor
of MR Scanning&trade;</FONT>, was incorporated in 1978, and is the first, oldest and most experienced MRI company in the industry.
FONAR introduced the world&rsquo;s first commercial MRI in 1980, and went public in 1981. Since its inception, nearly 300 recumbent-OPEN
MRIs and 157 UPRIGHT&reg; Multi-Position&trade; MRI scanners have been installed worldwide. FONAR&rsquo;s stellar product is the
UPRIGHT&reg; MRI (also known as the Stand-Up&reg; MRI), the only whole-body MRI that performs Position&trade; imaging (<I>p</I>MRI&trade;)
and scans patients in numerous <I>weight-bearing</I> positions, i.e. standing, sitting, in flexion and extension, as well as the
conventional lie-down position. The FONAR UPRIGHT&reg; MRI often sees the patient&rsquo;s problem that other scanners cannot because
they are lie-down and &rdquo;<I>weightless</I>&rdquo; only scanners. The patient-friendly UPRIGHT&reg; MRI has a near-zero claustrophobic
rejection rate by patients. As a FONAR customer states, &ldquo;If the patient is claustrophobic in this scanner, they&rsquo;ll
be claustrophobic in my parking lot.&rdquo; Approximately 85% of patients are scanned sitting while they watch a 42&rdquo; flat
screen TV. FONAR is headquartered on Long Island, New York.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">#</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; text-underline-style: none; color: windowtext">UPRIGHT&reg;</FONT>
and <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; text-underline-style: none; color: windowtext">STAND-UP&reg;</FONT>
are registered trademarks and <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; text-underline-style: none; color: windowtext">The
Inventor of MR Scanning&trade;,</FONT> Full Range of Motion&trade;, <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; text-underline-style: none; color: windowtext">Multi-Position&trade;</FONT>,
Upright Radiology&trade;, <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; text-underline-style: none; color: windowtext">The
Proof is in the Picture&trade;</FONT>, True Flow&trade;, <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; text-underline-style: none; color: windowtext">pMRI&trade;</FONT>,
Spondylography&trade;, <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; text-underline-style: none; color: windowtext">Dynamic&trade;</FONT>,Spondylometry&trade;,
<FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; text-underline-style: none; color: windowtext">CSP&trade;</FONT>, and Landscape&trade;,
are trademarks of FONAR Corporation.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0">This release may include forward-looking statements from
the company that may or may not materialize. Additional information on factors that could potentially affect the company's financial
results may be found in the company's filings with the Securities and Exchange Commission.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">Page 4</P>


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<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center"><B>FONAR CORPORATION AND SUBSIDIARIES</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">CONDENSED CONSOLIDATED BALANCE SHEETS</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">(AMOUNTS AND SHARES IN THOUSANDS,EXCEPT
PER SHARE AMOUNTS)</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">(UNAUDITED)</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">ASSETS</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 11pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr>
    <td colspan="2" style="vertical-align: bottom; padding-right: 0.05in; font-size: 12pt">&nbsp;</td>
    <td colspan="3" style="vertical-align: bottom; border-bottom: black 1pt solid; padding-right: 0.05in; font-size: 12pt; text-align: center"><font style="font: 12pt Arial, Helvetica, Sans-Serif">September 30, 2013</font></td>
    <td style="vertical-align: bottom; padding-right: 0.05in; padding-bottom: 1pt; font-size: 12pt; text-align: center">&nbsp;</td>
    <td colspan="2" style="vertical-align: bottom; border-bottom: black 1pt solid; padding-right: 0.05in; font-size: 12pt; text-align: center"><font style="font: 12pt Arial, Helvetica, Sans-Serif">June 30, 2013 *</font></td>
    <td style="font-size: 10pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td colspan="2" style="padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif">Current Assets:</font></td>
    <td>&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td colspan="2" style="padding-right: 0.05in; padding-left: 15pt; font-size: 12pt; text-indent: -10pt"><font style="font: 12pt Arial, Helvetica, Sans-Serif">Cash and cash equivalents</font></td>
    <td style="padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif">$</font></td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">9,238</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif">$</font></td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">7,871</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td colspan="2" style="padding-right: 0.05in; padding-left: 15pt; font-size: 12pt; text-indent: -10pt"><font style="font: 12pt Arial, Helvetica, Sans-Serif">Accounts receivable &ndash; net</font></td>
    <td>&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">5,026</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">4,444</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td colspan="2" style="padding-right: 0.05in; padding-left: 15pt; font-size: 12pt; text-indent: -10pt"><font style="font: 12pt Arial, Helvetica, Sans-Serif">Accounts receivable - related party</font></td>
    <td>&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">90</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">&mdash;&nbsp;&nbsp;</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 15pt; font-size: 12pt; text-indent: -10pt"><font style="font: 12pt Arial, Helvetica, Sans-Serif">Medical receivable &ndash; net</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="padding-right: 0.05in; width: 13%; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">8,552</font></td>
    <td style="padding-right: 0.05in; width: 0%">&nbsp;</td>
    <td style="width: 4%; padding-right: 0.05in">&nbsp;</td>
    <td style="width: 1%; padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; width: 13%; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">8,126</font></td>
    <td style="width: 0%; padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 15pt; font-size: 12pt; text-indent: -10pt"><font style="font: 12pt Arial, Helvetica, Sans-Serif">Management and other fees receivable - net</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td>&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">12,075</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">11,466</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 15pt; font-size: 12pt; text-indent: -10pt"><font style="font: 12pt Arial, Helvetica, Sans-Serif">Management and other fees receivable &ndash; related medical practices - net</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td>&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">2,743</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">2,382</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 15pt; font-size: 12pt; text-indent: -10pt"><font style="font: 12pt Arial, Helvetica, Sans-Serif">Inventories</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td>&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">2,126</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">2,077</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 15pt; font-size: 12pt; text-indent: -10pt"><font style="font: 12pt Arial, Helvetica, Sans-Serif">Prepaid expenses and other current assets</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">1,292</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">1,500</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 41.25pt; font-size: 12pt"><font style="font: 12pt Arial, Helvetica, Sans-Serif">&nbsp;Total Current Assets</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">41,142</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">37,866</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 15pt; font-size: 12pt; text-indent: -10pt"><font style="font: 12pt Arial, Helvetica, Sans-Serif">Property and equipment &ndash; net</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td>&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">17,067</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">17,524</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 15pt; font-size: 12pt; text-indent: -10pt"><font style="font: 12pt Arial, Helvetica, Sans-Serif">Goodwill</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td>&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">1,767</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">1,767</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 15pt; font-size: 12pt; text-indent: -10pt"><font style="font: 12pt Arial, Helvetica, Sans-Serif">Other intangible assets &ndash; net</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td>&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">11,608</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">11,904</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 15pt; font-size: 12pt; text-indent: -10pt"><font style="font: 12pt Arial, Helvetica, Sans-Serif">Deferred income tax asset</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td>&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">2,936</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">2,936</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 15pt; font-size: 12pt; text-indent: -10pt"><font style="font: 12pt Arial, Helvetica, Sans-Serif">Other assets</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">1,078</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">1,154</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 41.25pt; font-size: 12pt"><font style="font: 12pt Arial, Helvetica, Sans-Serif">&nbsp;Total Assets</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">75,598</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif">73,151</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td></tr>
</table>
<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">Page 5</P>


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<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center"><B>FONAR CORPORATION AND SUBSIDIARIES</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">CONDENSED CONSOLIDATED BALANCE SHEETS</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">(AMOUNTS AND SHARES IN THOUSANDS,EXCEPT
PER SHARE AMOUNTS)</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">(UNAUDITED)</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">LIABILITIES AND STOCKHOLDERS&rsquo;
EQUITY</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 11pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: center"><font style="font: 11pt Arial, Helvetica, Sans-Serif">September 30, </font><br>
<font style="font: 11pt Arial, Helvetica, Sans-Serif">2013</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: center"><font style="font: 11pt Arial, Helvetica, Sans-Serif">June 30, </font><br>
<font style="font: 11pt Arial, Helvetica, Sans-Serif">2013</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="width: 65%; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Current Liabilities:</font></td>
    <td style="width: 1%; padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; width: 1%">&nbsp;</td>
    <td style="padding-right: 0.05in; width: 13%; text-align: right">&nbsp;</td>
    <td style="padding-right: 0.05in; width: 1%">&nbsp;</td>
    <td style="padding-right: 0.05in; width: 4%">&nbsp;</td>
    <td style="padding-right: 0.05in; width: 1%">&nbsp;</td>
    <td style="padding-right: 0.05in; width: 13%; text-align: right">&nbsp;</td>
    <td style="padding-right: 0.05in; width: 1%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif">Current portion of long-term debt and capital leases</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">3,154</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">2,886</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif">Accounts payable</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">2,695</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">2,752</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif">Other current liabilities</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">9,011</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">8,636</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif">Unearned revenue on service contracts</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">5,516</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">4,965</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif">Unearned revenue on service contracts - related party</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">83</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">&mdash;&nbsp;&nbsp;</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif">Customer advances</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">1,917</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">1,858</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif">&nbsp;Income tax payable</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">&mdash;&nbsp;&nbsp;</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">20</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-bottom: 1pt; padding-left: 50pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif">&nbsp;</font><br>
<font style="font: 11pt Arial, Helvetica, Sans-Serif">Total Current Liabilities</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">22,376</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">21,117</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif">Long-Term Liabilities:</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif">Due to related medical practices</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">230</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">231</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif">Long-term debt and capital leases, less current portion</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">11,649</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">12,887</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif">Deferred income tax liability</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">462</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">462</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif">Other liabilities</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">625</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">654</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 50pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif">Total Long-Term Liabilities</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">12,966</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">14,234</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 50pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif">Total Liabilities</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">35,342</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">35,351</font></td>
    <td style="padding-bottom: 1pt">
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-indent: 0.5in">&nbsp;&nbsp;</P>
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-indent: 0.5in">&nbsp;</P></td></tr>
</table>
<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">Page 6</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>
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<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center"><B>FONAR CORPORATION AND SUBSIDIARIES</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">CONDENSED CONSOLIDATED BALANCE SHEETS</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">(AMOUNTS AND SHARES IN THOUSANDS,EXCEPT
PER SHARE AMOUNTS)</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">(UNAUDITED)</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">LIABILITIES AND STOCKHOLDERS&rsquo;
EQUITY (Continued)</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 11pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">STOCKHOLDERS' EQUITY:</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif">September 30, </font><br>
<font style="font: 11pt Arial, Helvetica, Sans-Serif">2013</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: center"><font style="font: 11pt Arial, Helvetica, Sans-Serif">June 30, </font><br>
<font style="font: 11pt Arial, Helvetica, Sans-Serif">2013 </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Class A non-voting preferred stock $.0001 par value; 453 shares authorized at September 30, 2013 and June 30, 2013, 313 issued and outstanding at September 30, 2013 and June 30, 2013</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">&mdash;&nbsp;&nbsp;</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">&mdash;&nbsp;&nbsp;</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Preferred stock $.001 par value; 567 shares authorized at September 30, 2013 and June 30, 2013, issued and outstanding &ndash; none</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">&mdash;&nbsp;&nbsp;</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">&mdash;&nbsp;&nbsp;</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="width: 57%; padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Common Stock $.0001 par value; 8,500 shares authorized at September 30, 2013 and June 30, 2013, 5,999 and 5,981 issued at September 30, 2013 and June 30, 2013, respectively; 5,988 and 5,969 outstanding at September 30, 2013 and June 30, 2013, respectively</font></td>
    <td style="width: 2%; padding-right: 0.05in">&nbsp;</td>
    <td style="width: 1%; padding-right: 0.05in">&nbsp;</td>
    <td style="width: 16%; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">1</font></td>
    <td style="width: 1%; padding-right: 0.05in">&nbsp;</td>
    <td style="width: 5%; padding-right: 0.05in">&nbsp;</td>
    <td style="width: 1%; padding-right: 0.05in">&nbsp;</td>
    <td style="width: 16%; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">1</font></td>
    <td style="width: 1%; padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Class B Common Stock (10 votes per share) $.0001 par value; 227 shares authorized at September 30, 2013 and June 30, 2013; .146 issued and outstanding at September 30, 2013 and June 30, 2013</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">&mdash;&nbsp;&nbsp;</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">&mdash;&nbsp;&nbsp;</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Class C Common Stock (25 votes per share) $.0001 par value; 567 shares authorized at September 30, 2013 and June 30, 2013, 383 issued and outstanding at September 30, 2013 and June 30, 2013</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">&mdash;&nbsp;&nbsp;</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">&mdash;&nbsp;&nbsp;</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">&nbsp;Paid-in capital in excess of par value</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">174,628</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">174,499</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">&nbsp;Accumulated deficit</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(157,218</font></td>
    <td style="padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">)</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(159,655</font></td>
    <td style="padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Notes receivable from employee stockholders</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(53</font></td>
    <td style="padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">)</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(55</font></td>
    <td style="padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Treasury stock, at cost - 12 shares of common stock at September 30, 2013 and June 30, 2013</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(675</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">)</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(675</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Total Fonar Corporation Stockholder Equity</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">16,683</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">14,115</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Noncontrolling interests</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">23,573</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">23,685</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Total Stockholders' Equity</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">40,256</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">37,800</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 20pt; text-indent: -10pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Total Liabilities and Stockholders' Equity</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">$</font></td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">75,598</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">$</font></td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">73,151</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td></tr>
</table>
<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">&lsquo;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">Page 7</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>
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<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center"><B>FONAR CORPORATION AND SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">CONDENSED CONSOLIDATED STATEMENTS
OF INCOME</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">(AMOUNTS AND SHARES IN THOUSANDS,EXCEPT
PER SHARE AMOUNTS)</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0.05in 0 0; text-align: center">(UNAUDITED)</P>

<table cellspacing="0" cellpadding="0" style="font: 11pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td colspan="7" style="padding-right: 0.05in; font-size: 10pt; text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif; color: black">FOR THE THREE MONTHS ENDED SEPTEMBER 30,</font></td></tr>
<tr style="vertical-align: bottom">
    <td style="padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">REVENUES</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: center"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">2013</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: center"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="width: 70%; padding-right: 0.05in; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Product sales &ndash; net</font></td>
    <td style="width: 1%; padding-right: 0.05in">&nbsp;</td>
    <td style="width: 1%; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">$</font></td>
    <td style="width: 10%; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">28</font></td>
    <td style="width: 1%; padding-right: 0.05in">&nbsp;</td>
    <td style="width: 5%; padding-right: 0.05in">&nbsp;</td>
    <td style="width: 1%; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">$</font></td>
    <td style="width: 10%; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">1,041</font></td>
    <td style="width: 1%; padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Service and repair fees &ndash; net</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">2,512</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">2,709</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Service and repair fees &ndash; related parties &ndash; net</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">28</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">27</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Patient fee revenue, net of contractual allowances and discounts</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">5,827</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">&mdash;&nbsp;&nbsp;</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Provision for bad debts for patient fee</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(2,040</font></td>
    <td style="padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">)</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">&mdash;&nbsp;&nbsp;</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Management and other fees &ndash; net</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">8,143</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">3,769</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-bottom: 1pt; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Management and other fees &ndash; related medical practices &ndash; net</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">2,333</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">1,965</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-bottom: 1pt; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Total Revenues &ndash; Net</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">16,831</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">9,511</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 18.4pt; text-indent: -0.25in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">COSTS AND EXPENSES</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Costs related to product sales</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">48</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">1,056</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Costs related to service and repair fees</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">544</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">865</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Costs related to service and repair fees &ndash; related parties</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">6</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">9</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Costs related to patient fee revenue</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">1,848</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">&mdash;&nbsp;&nbsp;</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Costs related to management and other fees</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">5,075</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">2,171</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Costs related to management and other fees &ndash; related medical practices</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">1,219</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">817</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Research and development</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">395</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">330</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Selling, general and administrative</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">3,737</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">2,212</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-bottom: 1pt; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Provision for bad debts</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(94</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">)</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">175</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-bottom: 1pt; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Total Costs and Expenses</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">12,778</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">7,635</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Income From Operations</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">4,053</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">1,876</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Interest Expense</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(243</font></td>
    <td style="padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">)</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(76</font></td>
    <td style="padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Investment Income</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">61</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">59</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-bottom: 1pt; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Other Expense</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(151</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">)</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(9</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Income Before Provision for Income Taxes and&nbsp;&nbsp;Noncontrolling Interests</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">3,720</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in">&nbsp;</td>
    <td style="padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">1,850</font></td>
    <td style="padding-right: 0.05in">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-bottom: 1pt; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Provision for Income Taxes</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">100</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">72</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-bottom: 1pt; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Net Income</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">3,620</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">1,778</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-bottom: 1pt; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Net Income &ndash; Noncontrolling Interests</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(1,183</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">)</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(326</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 1pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Net Income &ndash; Controlling Interests</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">$</font></td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">2,437</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">$</font></td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">1,452</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Net Income Available to Common Stockholders</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">$</font></td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">2,277</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">$</font></td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">1,355</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Net Income Available to Class A Non-Voting Preferred Stockholders</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">$</font></td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">119</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">$</font></td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">72</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt; padding-left: 18.4pt; text-indent: -9pt"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Net Income Available to Class C Common Stockholders</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">$</font></td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">41</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">$</font></td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">25</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt; padding-left: 18.4pt; font-size: 10pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif; color: black">Basic Net Income Per Common Share Available to Common Stockholders</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">$</font></td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">0.38</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">$</font></td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">0.23</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt; padding-left: 18.4pt; font-size: 10pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif; color: black">Diluted Net Income Per Common Share Available to Common Stockholders</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">$</font></td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">0.37</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">$</font></td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">0.22</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt; padding-left: 18.4pt; font-size: 10pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif; color: black">Basic and Diluted Income Per Share &ndash; Common C</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">$</font></td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">0.11</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">$</font></td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">0.06</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt; padding-left: 18.4pt; font-size: 10pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif; color: black">Weighted Average Basic Shares Outstanding &ndash; Common Stockholders</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">5,978</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">5,901</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt; padding-left: 18.4pt; font-size: 10pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif; color: black">Weighted Average Diluted Shares Outstanding &ndash; Common Stockholders</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">6,106</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">6,029</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt; padding-left: 18.4pt; font-size: 10pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif; color: black">Weighted Average Basic Shares Outstanding &ndash; Class C Common</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">383</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">383</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt; padding-left: 18.4pt; font-size: 10pt; text-indent: -9pt"><font style="font-family: Arial, Helvetica, Sans-Serif; color: black">Weighted Average Diluted Shares Outstanding &ndash; Class C Common</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">383</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; padding-right: 0.05in; text-align: right"><font style="font: 11pt Arial, Helvetica, Sans-Serif; color: black">383</font></td>
    <td style="padding-right: 0.05in; padding-bottom: 2.5pt">&nbsp;</td></tr>
</table>
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