<SEC-DOCUMENT>0000355019-16-000050.txt : 20160510
<SEC-HEADER>0000355019-16-000050.hdr.sgml : 20160510
<ACCEPTANCE-DATETIME>20160510160643
ACCESSION NUMBER:		0000355019-16-000050
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20160331
ITEM INFORMATION:		Results of Operations and Financial Condition
FILED AS OF DATE:		20160510
DATE AS OF CHANGE:		20160510

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:		161635788

	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 CORPORATION 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  10, 2016</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;&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"></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"></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"></P>

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

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

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; 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"></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 March 31, 2016 in a press release dated May 10,
2016.</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 May 10,
2016</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/ Timothy 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">Timothy 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 Principal Executive Officer</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: May 10, 2016</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>



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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>fonar_exhibit-99.htm
<DESCRIPTION>FONAR CORPORATION PRESS RELEASE
<TEXT>
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<P STYLE="margin: 0; font-size: 11pt"></P>

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

<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Arial, Helvetica, Sans-Serif; border-collapse: collapse">
<tr style="vertical-align: top">
    <TD STYLE="width: 35%; border-top: Black 2.25pt solid; padding-right: -4.5pt; padding-left: 5.4pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 12pt"><I>NEWS</I></FONT></td>
    <TD STYLE="width: 32%; border-top: Black 2.25pt solid; padding-right: -4.5pt; padding-left: 5.4pt"><FONT STYLE="font-size: 12pt"><B>FONAR
    CORPORATION</B></FONT></td>
    <TD STYLE="width: 33%; border-top: Black 2.25pt solid; padding-right: -4.5pt; padding-left: 5.4pt">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding-right: -4.5pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif; font-size: 12pt">For Immediate Release</font></td>
    <TD STYLE="padding-right: -4.5pt; padding-left: 5.4pt">&nbsp;</td>
    <TD STYLE="padding-right: -4.5pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif; font-size: 12pt">The Inventor of MR Scanning&trade;</font></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding-right: -4.5pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif; font-size: 12pt">Contact: Daniel Culver</font></td>
    <TD STYLE="padding-right: -4.5pt; padding-left: 5.4pt">&nbsp;</td>
    <TD STYLE="padding-right: -4.5pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif; font-size: 12pt">An ISO 9001 Company</font></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding-right: -4.5pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif; font-size: 12pt">Director of Communications</font></td>
    <TD STYLE="padding-right: -4.5pt; padding-left: 5.4pt">&nbsp;</td>
    <TD STYLE="padding-right: -4.5pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif; font-size: 12pt">Melville, New York 11747</font></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding-right: -4.5pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif; font-size: 12pt">E-mail: investor@fonar.com</font></td>
    <TD STYLE="padding-right: -4.5pt; padding-left: 5.4pt">&nbsp;</td>
    <TD STYLE="padding-right: -4.5pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif; font-size: 12pt">Phone: (631) 694-2929</font></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding-right: -4.5pt; padding-left: 5.4pt"><font style="font-family: Arial, Helvetica, Sans-Serif; font-size: 12pt">www.fonar.com</font></td>
    <TD STYLE="padding-right: -4.5pt; padding-left: 5.4pt">&nbsp;</td>
    <TD STYLE="padding-right: -4.5pt; padding-left: 5.4pt; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif; font-size: 12pt">Fax: (631) 390-1709</font></td></tr>
</table>
<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"></P>

<P STYLE="font: 14pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: -9pt">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: center; background-color: white"><B><I>FONAR Announces
3rd Quarter and Nine Months Financial Results for Fiscal 2016</I></B></P>

<UL STYLE="margin-top: 0in; list-style-type: disc; font-family: Arial, Helvetica, Sans-Serif">

<LI STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; background-color: white"><I>Third Quarter Fiscal 2016 Net
Revenues increased 9% to $18.6 million versus the same period a year earlier.</I></LI>

<LI STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; background-color: white"><I>Third Quarter Fiscal 2016 Diluted
Net Income Per Common Share Available to Common Stockholders increased 45% to $0.45 per share versus the same period a year earlier.</I></LI>

<LI STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; background-color: white"><I>At March 31, 2016 Cash and Cash
Equivalents increased 39% to $13.1 million from $9.4 million at June 30, 2015.</I></LI>

<LI STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; background-color: white"><I>Third Quarter Fiscal 2016 Income
from Operations increased 54% to $4.1 million versus the same period a year earlier.</I></LI>

<LI STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; background-color: white"><I>Third Quarter Fiscal 2016 Net
Income increased 54% to $3.9 million versus the same period a year earlier.</I></LI>

<LI STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; background-color: white"><I>Company appoints Timothy R. Damadian
as President and CEO of FONAR.</I></LI>

<LI STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; background-color: white"><I>Company announces date of annual
shareholder&rsquo;s meeting: June 13, 2016.</I></LI>

</UL STYLE="font-family: Arial, Helvetica, Sans-Serif">

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">MELVILLE, NEW
YORK, May 10, 2016 - FONAR Corporation (NASDAQ-FONR), The Inventor of MR Scanning&trade;, reported its fiscal 2016 third quarter
and nine-months results for the period ended March 31, 2016. FONAR, a leader in the MRI industry, is the first to manufacture an
MRI (Magnetic Resonance Imaging) scanner. FONAR&rsquo;s substantial list of patents include recent patents for its technology enabling
full weight-bearing MRI imaging in all the gravity-sensitive regions of the human anatomy, especially the brain, extremities, and
spine.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">The Company&rsquo;s
two industry segments: HMCA, which manages 25 FONAR-equipped centers (all but one are equipped with UPRIGHT&reg; Multi-Position&trade;
MRIs); and the development, manufacturing and servicing of the FONAR scanners. Its premier MRI product, 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; Multi-Position&trade;
MRI patents to scan all the patient&rsquo;s body parts in their normal fully weight-bearing UPRIGHT&reg; positions.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white"><U>Statement
of operation items</U></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">Net Revenues
for the quarter ended March 31, 2016 increased 9% to $18.6 million as compared to $17.1 million for the corresponding quarter one
year earlier.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">Net Revenues
for the nine-month period ended March 31, 2016 increased 5% to $54.6 million as compared to $52.2 million for the corresponding
nine-month period one year earlier.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">Net Income for
the quarter ended March 31, 2016 increased 54% to $3.9 million as compared to $2.5 million for the corresponding quarter one year
earlier.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white"></P>

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<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">Net Income for
the nine-month period ended March 31, 2016 increased 24% to $11.5 million as compared to $9.2 million for the corresponding nine-month
period one year earlier.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">Income from Operations
for the quarter ended March 31, 2016 increased 54% to $4.1 million as compared to $2.7 million for the corresponding quarter one
year earlier.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">Income from Operations
for the nine-month period ended March 31, 2016 increased 23% to $11.9 million as compared to $9.7 million for the corresponding
nine-month period one year earlier.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">Diluted net income
per common share available to common shareholders for the quarter ended March 31, 2016 increased 45% to $0.45 as compared to $0.31
for the corresponding quarter one year earlier.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">Diluted net income
per common share available to common shareholders for the nine-month period ended March 31, 2016 increased 30% to $1.42 as compared
to $1.09 for the corresponding nine-month period one year earlier.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white"><U>Balance sheet
items</U></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">Cash and cash
equivalents increased 39% to $13.1 million at March 31, 2016, from $9.4 million at June 30, 2015.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">Total current
assets at March 31, 2016 were $50.9 million, as compared to $43.6 million at June 30, 2015.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">Total assets
at March 31, 2016 were $82.0 million, as compared to $76.5 million at June 30, 2015.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">Total current
liabilities at March 31, 2016 were $18.6 million, as compared to $18.8 million at June 30, 2015.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">Total liabilities
at March 31, 2016 were $23.9 million, as compared to $25.7 million at June 30, 2015.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">Total stockholder&rsquo;s
equity at March 31, 2016 was $58.1 million, as compared to $50.8 million at June 30, 2015.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white"><U>Significant
Events </U></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">On February 8,
2016, The Company announced that Timothy R. Damadian was named President and Chief Executive Officer of FONAR Corporation.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; background-color: white">Tim Damadian joined
FONAR as a consultant in 2010, at which point FONAR embraced his vision and plan for improving the performance of FONAR&rsquo;s
management subsidiary, HMCA. Over the next five years FONAR&rsquo;s revenue more than doubled (from $31.8 million for the year
ending June 30, 2010 to $69.1 million for the year ending June 30, 2015) - an achievement primarily attributable to the success
of HMCA. Over the same period Net (Loss) Income per Common Share went from ($0.61) to $2.00. (For more details visit: www.fonar.com/news/020816.htm)</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">&nbsp;</P>

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<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white"></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">Raymond V. Damadian,
the founder of FONAR Corporation continues his role as Chairman of the Board. Dr. Damadian founded FONAR in 1978 after making the
key discovery that ushered in the MRI industry. Since then, the Company made many of the inventions used today on MRI scanners
as well as manufacturing approximately 400 MRI scanners.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white"><FONT STYLE="background-color: white">The
Company will hold its annual meeting on June 13, 2016. Dr. Damadian has issued his annual shareholder letter which can be seen
on the Company&rsquo;s Web site at www.fonar.com/shareholder-letter.htm.</FONT></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; background-color: white">&nbsp;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; background-color: white"><U>Management Discussion</U></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">Timothy R. Damadian,
president and CEO of Fonar Corporation, said, &ldquo;I am humbled by my appointment as president and CEO, and I look forward to
serving the Company and its shareholders to the best of my ability.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">&ldquo;The financial
results of this quarter are very good. Year-over-year comparisons show a 54% increase in Net Income. Also, our revenues and Net
Income from our MRI management subsidiary, HMCA, show consistent, gradual growth.&rdquo;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">Mr. Damadian
continued, &ldquo;Although many MRI centers across the country are having a very difficult time dealing with ever-declining reimbursement
rates, our centers have endured, even thrived, by increasing scan volume, which is largely attributable to the enormous appeal
of the FONAR STAND-UP&reg; MRI.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">&ldquo;Our goal
for the future is to continue to increase profitability while maintaining a strong cash position. This can be achieved not only
by improving profitability at existing centers but also by establishing new sites and through strategic acquisitions.&rdquo;</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">Raymond V. Damadian,
M.D., Chairman of FONAR Corporation, said, &ldquo;I am very pleased with the seamless transition that has occurred for Timothy
as he assumed the office of president and CEO. I am confident that he will guide FONAR to a sustained profitable future.</P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; background-color: white">&ldquo;A wonderful
advantage of Timothy assuming primary management duties is my being able to focus on research into the important area of neck injury
and its impact on brain health. The UPRIGHT&reg; Multi-Position MRI is a marvelous scanner that is able to see the neck in its
weight-bearing position. We often see patients&rsquo; neck problems missed by the recumbent-only MRI scanners. In addition, we
have developed new technology for viewing the flow of cerebral spinal fluid (CSF) as it circulates in and around the brain. We
are able to see CSF leakage and CSF pooling, and can often trace these problems to neck injuries. We can do all of this on our
UPRIGHT&reg; Multi-Position&trade; MRI (aka STAND-UP&reg; MRI).</P>

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

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white"><U>About FONAR</U></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">FONAR, The Inventor
of MR Scanning&trade;, is located in Melville, NY, 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. FONAR&rsquo;s
stellar product is the FONAR UPRIGHT&reg; MRI (also known as the Stand-Up&reg; MRI), the only whole-body MRI that performs Position&trade;
imaging (pMRI&trade;) and scans patients in numerous weight-bearing 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;weightless&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.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">FONAR has new
works-in-progress technology for visualizing and quantifying the flow of cerebrospinal fluid (CSF) which circulates throughout
the brain and vertebral column at the rate of 32 quarts per day. This imaging and quantifying of the dynamics of this vital life-sustaining
physiology of the body&rsquo;s neurologic system has been made possible first by FONAR&rsquo;s introduction of the MRI and now
due to this latest works-in-progress for quantifying CSF in all the normal positions of the body, particularly in its upright flow
against gravity. The type of patient that will benefit from this technology includes those with various types of dementia such
as former NFL quarterback Jim McMahon.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">FONAR&rsquo;s
substantial list of patents includes recent patents for its technology enabling full weight-bearing MRI imaging on all the gravity
sensitive regions of the human anatomy, especially the brain, extremities and spine. FONAR&rsquo;s UPRIGHT&reg; Multi-Position&trade;
MRI is the only scanner licensed under these patents.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 5pt 0 5pt 9pt; text-align: justify; background-color: white"><FONT STYLE="color: #365F91">UPRIGHT&reg;</FONT>
and <FONT STYLE="color: #365F91">STAND-UP&reg;</FONT> are registered trademarks and <FONT STYLE="color: #365F91">The Inventor of
MR Scanning&trade;</FONT>, Full Range of Motion&trade;, <FONT STYLE="color: #365F91">Multi-Position&trade;</FONT>, Upright Radiology&trade;,
The Proof is in the Picture&trade;, True Flow&trade;, <FONT STYLE="color: #365F91">pMRI&trade;</FONT>, Spondylography&trade;, <FONT STYLE="color: #365F91">Dynamic&trade;</FONT>,
Spondylometry&trade;, <FONT STYLE="color: #365F91">CSP&trade;</FONT>, and Landscape&trade;, are trademarks of FONAR Corporation.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 13.5pt 6pt 0.25in; text-align: justify">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: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">#</P>


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<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0; text-align: center">FONAR CORPORATION AND SUBSIDIARIES</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0; text-align: center">CONDENSED CONSOLIDATED BALANCE SHEETS</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 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 21.1pt 0 0; text-align: center">(UNAUDITED)</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0; text-align: center"></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0; text-align: center"></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0; text-align: center">ASSETS</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 11pt Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom; font-size: 11pt">
    <TD STYLE="font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt"><P STYLE="margin-top: 0; margin-bottom: 0; font-size: 11pt">March
31,<BR>2016</P></TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt"><P STYLE="margin-top: 0; margin-bottom: 0; font-size: 11pt">June
30,&nbsp;<BR>2015 *</P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9.6pt; padding-left: 9.6pt; width: 64%; font-size: 11pt">Cash and cash equivalents</TD><TD STYLE="width: 4%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; font-size: 11pt">$</TD><TD STYLE="width: 12%; text-align: right; font-size: 11pt">13,147</TD><TD STYLE="width: 1%; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="width: 4%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; font-size: 11pt">$</TD><TD STYLE="width: 12%; text-align: right; font-size: 11pt">9,449</TD><TD STYLE="width: 1%; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9.6pt; padding-left: 9.6pt; font-size: 11pt">Accounts receivable &ndash; net</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">4,326</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">3,791</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9.6pt; padding-left: 9.6pt; font-size: 11pt">Accounts receivable - related party</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">30</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9.6pt; padding-left: 9.6pt; font-size: 11pt">Medical receivable &ndash; net</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">10,097</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">9,082</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9.6pt; padding-left: 9.6pt; font-size: 11pt">Management and other fees receivable &ndash; net</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">15,901</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">14,058</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9.6pt; padding-left: 9.6pt; font-size: 11pt">Management and other fees receivable &ndash; related medical practices &ndash; net</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">4,059</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">3,507</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9.6pt; padding-left: 9.6pt; font-size: 11pt">Costs and estimated earnings in excess of billing on uncompleted contracts</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">279</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">682</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9.6pt; padding-left: 9.6pt; font-size: 11pt">Inventories</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">2,234</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">2,192</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9.6pt; padding-left: 9.6pt; font-size: 11pt">Prepaid expenses and other current assets</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">834</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">860</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9.6pt; padding-left: 9.6pt; font-size: 11pt">Total Current Assets</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">50,907</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">43,621</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9.6pt; padding-left: 9.6pt; font-size: 11pt">Deferred income tax asset</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">8,423</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">8,423</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9.6pt; padding-left: 9.6pt; font-size: 11pt">Property and equipment &ndash; net</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">11,877</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">12,901</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9.6pt; padding-left: 9.6pt; font-size: 11pt">Goodwill</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">1,767</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">1,767</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9.6pt; padding-left: 9.6pt; font-size: 11pt">Other intangible assets &ndash; net</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">8,066</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">8,950</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9.6pt; padding-left: 9.6pt; font-size: 11pt">Other assets</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">972</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">830</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9.6pt; padding-left: 9.6pt; font-size: 11pt">Total Assets</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">82,012</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">76,492</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">*Condensed from audited financial statements.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt">&nbsp;</DIV>
    <!-- Field: /Page -->

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0; text-align: center"></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0; text-align: center">FONAR CORPORATION AND SUBSIDIARIES</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0; text-align: center">CONDENSED CONSOLIDATED BALANCE SHEETS</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 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 21.1pt 0 0; text-align: center">(UNAUDITED)</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0; text-align: center">LIABILITIES AND STOCKHOLDERS' EQUITY</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 11pt Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom; font-size: 11pt">
    <TD STYLE="text-align: right; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt"><P STYLE="margin-top: 0; margin-bottom: 0; font-size: 11pt">March
31,<BR>2016</P></TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">June 30, <BR>2015 *</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Current Liabilities:</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="width: 64%; text-align: left; text-indent: -9pt; padding-left: 18.6pt; font-size: 11pt">Current portion of long-term debt and capital leases</TD><TD STYLE="width: 4%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; font-size: 11pt">$</TD><TD STYLE="width: 12%; text-align: right; font-size: 11pt">2,455</TD><TD STYLE="width: 1%; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="width: 4%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; font-size: 11pt">$</TD><TD STYLE="width: 12%; text-align: right; font-size: 11pt">2,490</TD><TD STYLE="width: 1%; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt; font-size: 11pt">Accounts payable</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">1,345</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">1,783</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt; font-size: 11pt">Other current liabilities</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">8,638</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">8,253</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt; font-size: 11pt">Unearned revenue on service contracts</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">4,350</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">4,187</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt; font-size: 11pt">Unearned revenue on service contracts - related party</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">28</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt; font-size: 11pt">Customer advances</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">1,511</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">1,938</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 18.6pt; font-size: 11pt">Billings in excess of costs and estimated earnings on uncompleted contracts</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">255</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">142</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: 27pt; padding-left: 18.6pt; font-size: 11pt">Total Current Liabilities</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">18,582</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">18,793</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 18.6pt; font-size: 11pt">Long-Term Liabilities:</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt; font-size: 11pt">Deferred income tax liability</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">510</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">510</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt; font-size: 11pt">Due to related medical practices</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">237</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">237</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 18.6pt; font-size: 11pt">Long-term debt and capital leases, less current <BR>portion</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">3,863</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">5,699</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 18.6pt; font-size: 11pt">Other liabilities</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">718</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">469</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: 27pt; padding-left: 18.6pt; font-size: 11pt">Total Long-Term Liabilities</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">5,328</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">6,915</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: 27pt; padding-left: 18.6pt; font-size: 11pt">Total Liabilities</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">23,910</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">25,708</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">*Condensed from audited financial statements.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0"></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>


<!-- Field: Page; Sequence: 6 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt">&nbsp;</DIV>
    <!-- Field: /Page -->

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0; text-align: center"></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0; text-align: center">FONAR CORPORATION AND SUBSIDIARIES</P>



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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 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 21.1pt 0 0; text-align: center; text-indent: 0.5in">(UNAUDITED)</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">LIABILITIES AND STOCKHOLDERS' EQUITY (Continued)</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 11pt Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom; font-size: 11pt">
    <TD STYLE="font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; font-size: 11pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0; font-size: 11pt">March 31,</P>
                                               <P STYLE="margin-top: 0; margin-bottom: 0; font-size: 11pt">2016</P></TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; font-size: 11pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0; font-size: 11pt">June 30,</P>
                                               <P STYLE="margin-top: 0; margin-bottom: 0; font-size: 11pt">2015 *</P></TD></TR>
<TR STYLE="vertical-align: bottom; font-size: 11pt">
    <TD STYLE="font-size: 11pt">STOCKHOLDERS' EQUITY:</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: right; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: right; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9.6pt; font-size: 11pt">Class A non-voting preferred stock $.0001 par value; 453 shares authorized at March 31, 2016 and June 30, 2015, 313 issued and outstanding at March 31, 2016 and June 30, 2015</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">$</TD><TD STYLE="text-align: right; font-size: 11pt">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">$</TD><TD STYLE="text-align: right; font-size: 11pt">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9.6pt; font-size: 11pt">Preferred stock $.001 par value; 567 shares authorized at March 31, 2016 and June 30, 2015, issued and outstanding &ndash; none</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="width: 64%; text-indent: -9pt; padding-left: 9.6pt; font-size: 11pt">Common Stock $.0001 par value; 8,500 shares authorized at March 31, 2016 and June 30, 2015, 6,062 issued at March 31, 2016 and June 30, 2015; 6,051 outstanding at March 31, 2016 and June 30, 2015</TD><TD STYLE="width: 4%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="width: 12%; text-align: right; font-size: 11pt">1</TD><TD STYLE="width: 1%; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="width: 4%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="width: 12%; text-align: right; font-size: 11pt">1</TD><TD STYLE="width: 1%; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-indent: -9pt; padding-left: 9.6pt; font-size: 11pt">Class B Common Stock (10 votes per share) $ .0001 par value; 227 shares authorized at March 31, 2016 and June 30, 2015, .146 issued and outstanding at March 31, 2016 and June 30, 2015</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-indent: -9pt; padding-left: 9.6pt; font-size: 11pt">Class C Common Stock (25 votes per share) $.0001 par value; 567 shares authorized at March 31, 2016 and June 30, 2015, 383 issued and outstanding at March 31, 2016 and June 30, 2015</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-indent: -9pt; padding-left: 9.6pt; font-size: 11pt">Paid-in capital in excess of par value</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">175,448</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">175,448</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9.6pt; font-size: 11pt">Accumulated deficit</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">(126,989</TD><TD STYLE="text-align: left; font-size: 11pt">)</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">(136,349</TD><TD STYLE="text-align: left; font-size: 11pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9.6pt; font-size: 11pt">Notes receivable from employee stockholders</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">(26</TD><TD STYLE="text-align: left; font-size: 11pt">)</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">(32</TD><TD STYLE="text-align: left; font-size: 11pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9.6pt; font-size: 11pt">Treasury stock, at cost - 12 shares of common stock at March 31, 2016 and June 30, 2015</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">(675</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">)</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">(675</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9.6pt; font-size: 11pt">Total Fonar Corporation Stockholder Equity</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">47,759</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">38,393</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9.6pt; font-size: 11pt">Noncontrolling interests</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">10,343</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">12,391</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9.6pt; font-size: 11pt">Total Stockholders' Equity</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">58,102</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">50,784</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9.6pt; font-size: 11pt">Total Liabilities and Stockholders' Equity</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">82,012</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">76,492</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">*Condensed from audited financial statements.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0"></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0"></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0; text-align: center"></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.9pt 0 0; text-align: center">&nbsp;</P>


<!-- Field: Page; Sequence: 7 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt">&nbsp;</DIV>
    <!-- Field: /Page -->

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0; text-align: center">FONAR CORPORATION AND SUBSIDIARIES</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0; text-align: center">CONDENSED CONSOLIDATED STATEMENTS
OF INCOME</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 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 21.1pt 0 0; text-align: center">&nbsp;(UNAUDITED)</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 11pt Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom; font-size: 11pt">
    <TD STYLE="font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt"><P STYLE="margin-top: 0; margin-bottom: 0; font-size: 11pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">FOR THE THREE MONTHS</FONT></P>
                                                                               <P STYLE="margin-top: 0; margin-bottom: 0; font-size: 11pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"></FONT></P> <P STYLE="margin-top: 0; margin-bottom: 0; font-size: 11pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"> ENDED MARCH 31</FONT></P></TD></TR>
<TR STYLE="vertical-align: bottom; font-size: 11pt">
    <TD STYLE="font-size: 11pt">REVENUES</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">2016</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">2015</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="width: 72%; text-align: left; text-indent: -13.5pt; padding-left: 27.6pt; font-size: 11pt">Product sales &ndash; net</TD><TD STYLE="width: 2%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; font-size: 11pt">$</TD><TD STYLE="width: 10%; text-align: right; font-size: 11pt">20</TD><TD STYLE="width: 1%; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="width: 2%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; font-size: 11pt">$</TD><TD STYLE="width: 10%; text-align: right; font-size: 11pt">160</TD><TD STYLE="width: 1%; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-left: 27.6pt; font-size: 11pt">Service and repair fees &ndash; net</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">2,406</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">2,299</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-left: 27.6pt; font-size: 11pt">Service and repair fees &ndash; related parties - net</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">27</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">27</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-left: 27.6pt; font-size: 11pt">Patient fee revenue, net of contractual allowances and discounts</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">8,695</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">7,284</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-left: 27.6pt; font-size: 11pt">Provision for bad debts for patient fee</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">(3,830</TD><TD STYLE="text-align: left; font-size: 11pt">)</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">(3,201</TD><TD STYLE="text-align: left; font-size: 11pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-left: 27.6pt; font-size: 11pt">Management and other fees &ndash; net</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">9,394</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">8,653</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -13.5pt; padding-left: 27.6pt; font-size: 11pt">Management and other fees &ndash; related medical practices &ndash; net</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">1,907</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">1,874</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: 36.6pt; padding-left: 5.4pt; font-size: 11pt">Total Revenues &ndash; Net</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">18,619</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">17,096</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; padding-left: 5.4pt; font-size: 11pt">COSTS AND EXPENSES</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-left: 27.6pt; font-size: 11pt">Costs related to product sales</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">263</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">352</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-left: 27.6pt; font-size: 11pt">Costs related to service and repair fees</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">552</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">630</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-left: 27.6pt; font-size: 11pt">Costs related to service and repair fees &ndash; related parties</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">6</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">7</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-left: 27.6pt; font-size: 11pt">Costs related to patient fee revenue</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">2,549</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">2,044</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-left: 27.6pt; font-size: 11pt">Costs related to management and other fees</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">5,649</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">5,285</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-left: 27.6pt; font-size: 11pt">Costs related to management and other fees &ndash; related medical practices</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">1,045</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">1,284</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-left: 27.6pt; font-size: 11pt">Research and development</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">395</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">360</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-left: 27.6pt; font-size: 11pt">Selling, general and administrative</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">4,533</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">3,706</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -13.5pt; padding-left: 27.6pt; font-size: 11pt">Provision for bad debts</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">(470</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">)</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">762</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: 36.6pt; padding-left: 5.4pt; font-size: 11pt">Total Costs and Expenses</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">14,522</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">14,430</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Income From Operations</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">4,097</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">2,666</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Interest Expense</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">(127</TD><TD STYLE="text-align: left; font-size: 11pt">)</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">(169</TD><TD STYLE="text-align: left; font-size: 11pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Investment Income</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">56</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">52</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Income Before Provision for Income Taxes and Noncontrolling Interests</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">4,026</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">2,549</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Provision for Income Taxes</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">145</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">30</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Net Income</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">3,881</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">2,519</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Net Income - Noncontrolling Interests</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">(876</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">)</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">(500</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Net Income - Controlling Interests</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">3,005</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">2,019</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Net Income Available to Common Stockholders</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">2,810</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1,888</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Net Income Available to Class A Non-Voting Preferred Stockholders</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">145</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">98</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Net Income Available to Class C Common Stockholders</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">50</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">33</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Basic Net Income Per Common Share Available to Common Stockholders</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.46</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.31</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Diluted Net Income Per Common Share Available to Common Stockholders</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.45</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.31</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Basic and Diluted Income Per Share-Class C Common</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.13</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.09</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Weighted Average Basic Shares Outstanding-Common Stockholders</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Weighted Average Diluted Shares Outstanding &ndash; Common Stockholders</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,178</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,178</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Weighted Average Basic Shares Outstanding &ndash; Class C Common</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Weighted Average Diluted Shares Outstanding &ndash; Class C Common</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0">See accompanying notes to condensed consolidated financial
statements.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0; text-align: center">&nbsp;&nbsp;</P>


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<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0; text-align: center">FONAR CORPORATION AND SUBSIDIARIES</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 0 0; text-align: center">CONDENSED CONSOLIDATED STATEMENTS
OF INCOME</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 21.1pt 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 21.1pt 0 0; text-align: center; text-indent: 0.5in">(UNAUDITED)</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 11pt Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom; font-size: 11pt">
    <TD STYLE="text-align: right; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt"><P STYLE="margin-top: 0; margin-bottom: 0; font-size: 11pt">FOR THE NINE MONTHS</P>
                                                                               <P STYLE="margin-top: 0; margin-bottom: 0; font-size: 11pt">ENDED MARCH 31,</P></TD></TR>
<TR STYLE="vertical-align: bottom; font-size: 11pt">
    <TD STYLE="font-size: 11pt">REVENUES</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">2016</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; font-size: 11pt">2015</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="width: 72%; text-align: left; text-indent: -0.25in; padding-left: 27.6pt; font-size: 11pt">Product sales &ndash; net</TD><TD STYLE="width: 2%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; font-size: 11pt">$</TD><TD STYLE="width: 10%; text-align: right; font-size: 11pt">780</TD><TD STYLE="width: 1%; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="width: 2%; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; font-size: 11pt">$</TD><TD STYLE="width: 10%; text-align: right; font-size: 11pt">1,806</TD><TD STYLE="width: 1%; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 27.6pt; font-size: 11pt">Service and repair fees &ndash; net</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">6,970</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">7,288</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 27.6pt; font-size: 11pt">Service and repair fees &ndash; related parties - net</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">83</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">83</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 27.6pt; font-size: 11pt">Patient fee revenue, net of contractual allowances and discounts</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">24,596</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">20,700</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 27.6pt; font-size: 11pt">Provision for bad debts for patient fee</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">(10,608</TD><TD STYLE="text-align: left; font-size: 11pt">)</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">(9,244</TD><TD STYLE="text-align: left; font-size: 11pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 27.6pt; font-size: 11pt">Management and other fees &ndash; net</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">27,180</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">26,004</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -0.25in; padding-left: 27.6pt; font-size: 11pt">Management and other fees &ndash; related medical practices &ndash; net</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">5,598</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">5,536</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: 36.6pt; padding-left: 5.4pt; font-size: 11pt">Total Revenues &ndash; Net</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">54,599</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">52,173</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; padding-left: 5.4pt; font-size: 11pt">&nbsp;COSTS AND EXPENSES</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 27.6pt; font-size: 11pt">Costs related to product sales</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">939</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">1,674</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 27.6pt; font-size: 11pt">Costs related to service and repair fees</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">1,542</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">1,611</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 27.6pt; font-size: 11pt">Costs related to service and repair fees - related parties</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">18</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">18</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 27.6pt; font-size: 11pt">Costs related to patient fee revenue</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">7,015</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">5,845</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 27.6pt; font-size: 11pt">Costs related to management and other fees</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">16,664</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">15,665</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 27.6pt; font-size: 11pt">Costs related to management and other fees &ndash;&nbsp;&nbsp;related medical practices</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">3,116</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">3,893</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 27.6pt; font-size: 11pt">Research and development</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">1,243</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">1,116</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 27.6pt; font-size: 11pt">Selling, general and administrative</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">12,425</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">11,108</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -0.25in; padding-left: 27.6pt; font-size: 11pt">Provision for bad debts</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">(300</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">)</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">1,540</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: 36.6pt; padding-left: 5.4pt; font-size: 11pt">Total Costs and Expenses</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">42,662</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">42,470</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Income From Operations</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">11,937</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">9,703</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Interest Expense</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">(416</TD><TD STYLE="text-align: left; font-size: 11pt">)</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">(545</TD><TD STYLE="text-align: left; font-size: 11pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Investment Income</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">164</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">173</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Other Income (Expense)</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">1</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">(2</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Income Before Provision for Income Taxes and Noncontrolling Interests</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">11,686</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">9,329</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Provision for Income Taxes</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">235</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">99</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Net Income</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">11,451</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="text-align: right; font-size: 11pt">9,230</TD><TD STYLE="text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Net Income - Noncontrolling Interests</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">(2,091</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">)</TD><TD STYLE="padding-bottom: 1pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt">(2,018</TD><TD STYLE="padding-bottom: 1pt; text-align: left; font-size: 11pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Net Income - Controlling Interests</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">9,360</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">7,212</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Net Income Available to Common Stockholders</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">8,752</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,743</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Net Income Available to Class A Non-voting Preferred Stockholders</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">453</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">350</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Net Income Available to Class C Common Stockholders</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">155</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">119</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Basic Net Income Per Common Share Available to Common Stockholders</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1.45</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1.11</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Diluted Net Income Per Common Share Available to Common Stockholders</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1.42</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">1.09</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Basic and Diluted Income Per Share-Class C Common</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.40</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">0.31</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Weighted Average Basic Shares Outstanding &ndash; Common Stockholders</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,050</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Weighted Average Diluted Shares Outstanding &ndash; Common Stockholders</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,178</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">6,178</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Weighted Average Basic Shares Outstanding &ndash; Class C Common</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-size: 11pt">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -18.6pt; padding-left: 18.6pt; font-size: 11pt">Weighted Average Diluted Shares Outstanding &ndash; Class C Common</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; font-size: 11pt">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; font-size: 11pt">383</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; font-size: 11pt">&nbsp;</TD></TR>
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