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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended
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Dec. 31, 2023
Accounting Policies [Abstract] |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of FONAR Corporation, its majority and wholly-owned subsidiaries and partnerships (collectively the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. Revenues The revenue recognition standard in ASC 606 outlines a single comprehensive model for recognizing revenue as performance obligations, defined in a contract with a customer as goods or services transferred to the customer in exchange for consideration, are satisfied. The standard also requires expanded disclosures regarding the Company’s revenue recognition policies and significant judgements employed in the determination of revenue. Our revenues generally relate to net patient fees received from various payers and patients themselves under contracts in which our performance obligations are to provide diagnostic services to the patients. Revenues are recorded during the period our obligations to provide diagnostic services are satisfied. Our performance obligations for diagnostic services are generally satisfied over a period of less than one day. The contractual relationships with patients, in most cases, also involve a third-party payer (Medicare, Medicaid, managed care health plans and commercial insurance companies, including plans offered through the health insurance exchanges) and the transaction prices for the services provided are dependent upon the terms provided by (Medicare and Medicaid) or negotiated with (managed care health plans and commercial insurance companies) the third-party payers. The payment arrangements with third-party payers for the services we provide to the related patients typically specify payments at amounts less than our standard charges and generally provide for payments based upon predetermined rates per diagnostic services or discounted fee-for-service rates. Management continually reviews the contractual estimation process to consider and incorporate updates to laws and regulations and the frequent changes in managed care contractual terms resulting from contract renegotiations and renewals. BUSINESS COMBINATION When the qualifications for business combination accounting treatment are met, it requires us to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period of final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of income. Earnings Per Share Basic earnings per share (“EPS”) is computed based upon the weighted average number of shares of common stock and stock equivalents outstanding, net of common stock. In accordance with ASC topic 260-10, “Participating Securities and the Two-Class method”, the Company used the Two-Class method for calculating basic income per share and applied the if converted method in calculating diluted income per share for the three and six months ended December 31, 2023 and 2022. Diluted EPS reflects the potential dilution from the exercise or conversion of all dilutive securities into common stock based on the average market price of common shares outstanding during the period. For the three and six months ended December 31, 2023 and 2022, diluted EPS for common shareholders includes 128 shares upon conversion of Class C Common.
Schedule of earning per share |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three months ended December 31, 2023 |  | Three months ended December 31, 2022
|  | Total |  | Common Stock |  | Class C Common Stock |  | Total |  | Common Stock |  | Class C Common Stock
Basic |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Numerator: Net income available to common stockholders |  | $ | 3,759 |  |  | $ | 3,525 |  |  | $ | 59 |  |  | $ | 2,232 |  |  | $ | 2,097 |  |  | $ | 34 |
Denominator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted average shares outstanding |  |  | 6,437 |  |  |  | 6,437 |  |  |  | 383 |  |  |  | 6,527 |  |  |  | 6,527 |  |  |  | 383 |
Basic income per common share |  | $ | 0.58 |  |  | $ | 0.55 |  |  | $ | 0.16 |  |  | $ | 0.34 |  |  | $ | 0.32 |  |  | $ | 0.09 |
Diluted |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Denominator: Weighted average shares outstanding |  |  |  |  |  |  | 6,437 |  |  |  | 383 |  |  |  |  |  |  |  | 6,527 |  |  |  | 383 |
Convertible Class C Stock |  |  |  |  |  |  | 128 |  |  |  | — |  |  |  |  |  |  |  | 128 |  |  |  | — |
Total Denominator for diluted earnings per share |  |  |  |  |  |  | 6,565 |  |  |  | 383 |  |  |  |  |  |  |  | 6,655 |  |  |  | 383 |
Diluted income per common share |  |  |  |  |  | $ | 0.54 |  |  | $ | 0.16 |  |  |  |  |  |  | $ | 0.32 |  |  | $ | 0.09 |
|  | Six months ended December 31, 2023 |  | Six months ended December 31, 2022
|  | Total |  | Common Stock |  | Class C Common Stock |  | Total |  | Common Stock |  | Class C Common Stock
Basic |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Numerator: Net income available to common stockholders |  | $ | 7,865 |  |  | $ | 7,375 |  |  | $ | 125 |  |  | $ | 4,279 |  |  | $ | 4,020 |  |  | $ | 66 |
Denominator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted average shares outstanding |  |  | 6,448 |  |  |  | 6,448 |  |  |  | 383 |  |  |  | 6,534 |  |  |  | 6,534 |  |  |  | 383 |
Basic income per common share |  | $ | 1.22 |  |  | $ | 1.14 |  |  | $ | 0.33 |  |  | $ | 0.65 |  |  | $ | 0.62 |  |  | $ | 0.17 |
Diluted |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Denominator: Weighted average shares outstanding |  |  |  |  |  |  | 6,448 |  |  |  | 383 |  |  |  |  |  |  |  | 6,534 |  |  |  | 383 |
Convertible Class C Stock |  |  |  |  |  |  | 128 |  |  |  | — |  |  |  |  |  |  |  | 128 |  |  |  | — |
Total Denominator for diluted earnings per share |  |  |  |  |  |  | 6,576 |  |  |  | 383 |  |  |  |  |  |  |  | 6,662 |  |  |  | 383 |
Diluted income per common share |  |  |  |  |  | $ | 1.12 |  |  | $ | 0.33 |  |  |  |  |  |  | $ | 0.60 |  |  | $ | 0.17 |
Recent Accounting Standards In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, “Income Taxes (740) “Improvements to Income Tax Disclosures”, which requires the annual financial statements to include consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for the Company’s annual reporting beginning after December 15, 2024, with early adoption permitted, and should be applied on a prospective basis, with a retrospective option. We are currently evaluating the effect that adoption of ASU 2023-09 will have on our disclosures. In November 2023, FASB issued ASU 2023-07, “Segment Reporting (Topic 280)”, which is intended to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. The amendments require disclosure of significant segment expenses regularly provided to the chief operating decision maker (CODM) as well as other segment items, extended certain annual disclosures to interim periods, clarify the applicability to single reportable segment entities, permit, more than one measure of profit or loss to be reported under certain conditions, and require disclosure of the title and position of the CODM. The effective date for public entities is beginning after December 15, 2023 and interim periods with fiscal years beginning after December 15, 2024. We expect to adopt the new disclosures as required and are currently evaluating the impact on the related disclosures. In June 2016, FASB issued ASU 2016-13, “Financial Instruments – Credit Loses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to assess credit loss estimates. This ASU is effective for fiscal years beginning after December 15, 2022. The Company adopted this standard on July 1, 2023 using the modified retrospective approach and it did not have a material impact of the Company’s financial statements, resulting in no adjustment to prior year earnings. FASB, the Emerging Issues Task Force and the SEC have issued certain other accounting standards, updates, and regulations as of December 31, 2023 that will become effective in subsequent periods; however, management does not believe that any of those updates would have significantly affected the Company’s financial accounting measures or disclosures had they been in effect during 2023 or 2022, and it does not believe that any of those standards will have a significant impact on our consolidated condensed financial statements at the time they become effective.

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