Fonar Announces 3rd Quarter and Nine Months Results for Fiscal 2021; Income Increases 125%

  • Net Income increased 125% to $4.3 million for the quarter ended March 31, 2021 as compared to the corresponding quarter one year ago.
  • Income from Operations increased 58% to $4.1 million for the quarter ended March 31, 2021, as compared to the corresponding quarter one year ago.
  • Diluted Net Income per Common Share Available to Common Stockholders increased 200% to $0.54 for the quarter ended March 31, 2021 as compared to the corresponding quarter one year ago.
  • Cash and Cash Equivalents increased 11% to $40.8 million at March 31, 2021 as compared to the year-end, June 30, 2020.
  • Total Revenues-Net increased 6% to $23.1 million for the quarter ended March 31, 2021, versus the corresponding quarter one year earlier.
  • COVID-19 drastically affected imaging center scan volumes during this past year. However, total scan volume for quarter ended March 31, 2021 was 44,515, about the same as is was in the corresponding quarter one year ago.
  • FONAR's subsidiary HMCA now has 39 MRI scanners under its management as compared to 36 scanners one year ago.
  • Net Book Value per common share increased 7% to $20.37 at March 31, 2021 as compared to the corresponding quarter one year ago.

Melville, New York--(Newsfile Corp. - May 13, 2021) - FONAR Corporation (NASDAQ: FONR), The Inventor of MR Scanning™, reported today its financial results for the 3rd Fiscal Quarter and Nine Months period ended March 31, 2021. FONAR's primary source of income and growth is attributable to its diagnostic imaging management subsidiary, Health Management Company of America (HMCA).

Operating Results

Total Revenues-Net increased 6% to $23.1 million for the third fiscal quarter ended March 31, 2021 as compared to $21.7 million for the third fiscal quarter ended March 31, 2020. Total Revenues-Net for the nine-month period ended March 31, 2021 were $65.2 million as compared to $64.9 million for the nine-month period ended March 31, 2020.

Income from Operations increased 58% to $4.1 million for the third fiscal quarter ended March 31, 2021 as compared to $2.6 million for the third fiscal quarter ended March 31, 2020. Income from Operations for the nine-month period ended March 31, 2021 was $13.3 million as compared to $13.1 million for the nine-month period ended March 31, 2020.

Net Income increased 125% to $4.3 million for the third fiscal quarter ended March 31, 2021 as compared to $1.9 million for the third fiscal quarter ended March 31, 2020. Net Income for the nine-month period ended March 31, 2021 was $11.5 million as compared to $10.6 million for the nine-month period ended March 31, 2020.

Diluted Net Income Per Common Share Available to Common Shareholders increased 200% to $0.54 for the third fiscal quarter ended March 31, 2021 as compared to $0.18 for the third fiscal quarter ended March 31, 2020. Diluted Net Income Per Common Share Available to Common Shareholders, for the nine-month period ended March 31, 2021 increased 23% to $1.35 as compared to $1.10 for the nine-month period ended March 31, 2020.

Total Costs and Expenses were $19.0 million for the third fiscal quarter ended March 31, 2021 and March 31, 2020. Total Costs and Expenses for the nine-month period ended March 31, 2021 was $52.0 million and were $51.8 million for the nine-month period ended March 31, 2020.

Selling, general & administrative expenses (SG&A) decreased 15% to $6.1 million for the quarter ended March 31, 2021 as compared to $7.2 million for the quarter ended March 31, 2020. SG&A increased 7% to $16.8 million for the nine month period ended March 31, 2021 as compared to $15.7 million for the nine period ended March 31, 2020.

Balance Sheet Items

Total Cash and Cash Equivalents and Short Term Investments at March 31, 2021 increased 11% to $40.8 million as compared to the $36.8 million at June 30, 2020.

Total Assets at March 31, 2021 were $185.3 million as compared to $180.3 million at June 30, 2020.

Total Liabilities at March 31, 2021 were $50.5 million as compared to $54.0 million at June 30, 2020.

The ratio of Total Assets / Total Liabilities increased 10% to 3.7 at March 31, 2021 as compared to 3.3 at June 30, 2020.

Total Current Assets at March 31, 2021 were $103.6 million as compared to $95.9 million at June 30, 2020.

Total Current Liabilities at March 31, 2021 were $17.1 million as compared to $18.7 million at June 30, 2020.

Working Capital increased 12% to $86.5 million at March 31, 2021 as compared to $77.2 million at June 30, 2020.

Net Book Value per Common Share increased 7% to $20.37 at March 31, 2021 as compared to $19.10 at March 31, 2020, one year ago.

Cash Flow Item

Operating Cash Flow decreased 6% to $13.1 million for the nine month period ended March 31, 2021 as compared to $13.9 million for the nine month period ended March 31, 2020.

Significant Event

On March 9, 2021, FONAR rang the Nasdaq Stock Market Closing Bell, to celebrate the 50th birthday of MRI. Fifty years ago, in March 1971, the widely-read journal Science published "Tumor Detection by Nuclear Magnetic Resonance" by FONAR founder and chairman Dr. Raymond V. Damadian. This journal article explained Dr. Damadian's discovery that there is a marked difference in the relaxation time of the NMR (MRI) signals between normal and cancerous tissues of the same type, as well as between different types of normal tissues.

Soon scientists around the world began repeating his experiment to learn for themselves about his discovery. They often cited his works in their own peer reviewed publications and Dr. Damadian's publication in Science is often referred to as the beginning of MRI.

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Dr. Damadian said, "I got my first idea for MRI in 1969, and in 1970 made the discovery that is the basis for the making of every MRI image ever produced and the foundation of the MRI industry. The discovery resulted in the generation of the pronounced pixel contrast that was deficient in traditional medical imaging technology (X-ray, CT, 4%) and was needed for adequate visualization of the body's vital organs and assessment of their well-being. The discovery raised the pixel contrast of medical imaging, and the pronounced elaboration of image detail it generates to 131%."

As reported in edubilla.com: "But without this discovery of the profound sensitivity of the relaxation time to different tissue types and malignant tissue THERE WOULD BE NO PICTURE AT ALL."

Dr. Damadian's discovery, as reported in Science 1971, soon led to the first patent application in MRI in 1972.

On July 3, 1977 Dr. Damadian, with his two post doctorate students, Lawrence Minkoff, Ph.D., and Michael Goldsmith. Ph.D., made the world's first MRI scan on the first ever MRI scanner they built and named 'Indomitable.'

Dr. Damadian began FONAR, the world's first dedicated MRI Company in 1978, and the Company installed the world's first commercial MRI in 1980.

In 1981 FONAR became a NASDAQ-listed company and 40 years later has delightedly marked the 50th anniversary of the birth of MRI by ringing the Nasdaq Stock Market Closing Bell.

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Management Discussion

President and CEO Timothy R. Damadian commented on the performance of the Company's management subsidiary over the past year. "As of March 31, 2021, we completed twelve full months of operation under the cloud of the COVID-19 pandemic. In the first three of those twelve months, ending June 30, 2020, total scan volume at HMCA-managed sites was down by 42% compared to what is was in the corresponding period one year earlier. In the next three months, ending September 30, 2020, we were down by 12%. In the next three months, ending December 2020, we were down by 5%. Finally, in the last three months, ending March 31, 2021, we were down only 1%. It's been a remarkable recovery, thanks to the hard work of our management team, our site employees, and our headquarters' staff.

"At the very end of March, we acquired a Stand-Up® MRI facility in Yonkers, New York, bringing the total number of HMCA-managed MRIs to 39. Physicians had been referring patients to this location for years, so we've been focused on preserving the existing business by continuing to provide the high quality service that they were accustomed to. By employing the marketing techniques and enhanced services that have made other HMCA-managed facilities successful, we expect to see substantial growth at this new location."

Mr. Damadian concluded, "We have a very strong balance sheet. With Cash and Cash Equivalents at $40.8 million and relatively little debt, the Company's liquidity puts us in an excellent position to expand our network of HMCA-managed facilities through acquisitions or establishing de novo sites."

Chairman of the Board, Raymond V. Damadian, M.D., said, "It's pleasing to see the Company continue to be profitable. Timothy has put together a highly competent management team that is doing a wonderful job. Since they took the reins in 2010, Total Revenues-Net have increased from $31.8 million in Fiscal Year 2010 to $85.6 million in Fiscal Year 2020, representing an effective annual growth rate of 10%.

Dr. Damadian remarked, "The FONAR UPRIGHT® Multi-Position™ MRI continues to be a favorite scanner among patients and physicians. This is especially true when it comes to the spine and it is our experience that the FONAR UPRIGHT® Multi-Position™ MRI will often see pathology that is missed by recumbent-only MRI scanners. On the other hand, we have not heard of a recumbent scanner that has seen pathology in the spine that is missed by the FONAR UPRIGHT® Multi-Position™ MRI. The reason for this is simple. The UPRIGHT® MRI images patients in their full weight-bearing position that enables visualization of the spine subjected to its full normal weight load. The impact of the body's weight load on the spine's anatomy and existing pathology is not visualized in the recumbent-only position provided by the conventional MRI.

"Unfortunately, COVID-19 has delayed our R&D progress on MRI imaging of cerebrospinal fluid (CSF) flow and its impact on neurodegenerative diseases. Our research is focused on quantifying CSF flow and the velocity at which it navigates through the head, neck and spine. We've been able to quantify CSF flow from asymptomatic patients to assess quantitative degree to which CSF flow impairment is responsible for his (her) symptoms and the degree to which the patient's surgical or non-surgical CCJ treatment has restored the patient's critical brain and central nervous system's physiology to normal. We use the UPRIGHT® MRI to make cines (movies) of the fluid (CSF) as it flows up and down the neck, around the brain and up and down the spine. We are also hopeful that our research may lead to a new understanding of the role of CSF on neurodegenerative diseases, such as MS and Parkinson's disease."

Dr. Damadian concluded, "Once the COVID-19 crisis is over and the economy returns to normal, there is every reason to believe that FONAR will significantly grow and prosper."

About FONAR

FONAR, the Inventor of MR Scanning™, 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's first commercial MRI in 1980, and went public in 1981. FONAR's signature product is the FONAR UPRIGHT® Multi-Position™ MRI (also known as the STAND-UP® MRI), the only whole-body MRI that performs Position™ Imaging (pMRI™) 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® MRI often detects patient problems that other MRI scanners cannot because they are lie-down, "weightless-only" scanners. The patient-friendly UPRIGHT® MRI has a near-zero patient claustrophobic rejection rate. As a FONAR customer states, "If the patient is claustrophobic in this scanner, they'll be claustrophobic in my parking lot." Approximately 85% of patients are scanned sitting while watching TV.

FONAR has new works-in-progress technology for visualizing and quantifying the cerebral hydraulics of the central nervous system, 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's neurologic system has been made possible first by FONAR's introduction of the MRI and now by its latest works-in-progress method for quantifying CSF in all the normal positions of the body, particularly in its upright flow against gravity. Patients with whiplash or other neck injuries are among those who will benefit from this new understanding.

FONAR's primary source of income and growth is attributable to its wholly-owned diagnostic imaging management subsidiary, Health Management Company of America (HMCA) www.hmca.com.

FONAR's substantial list of patents includes recent patents for its technology enabling full upright weight-bearing MRI imaging of all the gravity sensitive regions of the human anatomy, especially the brain, extremities and spine. It includes its newest technology for measuring the Upright cerebral hydraulics of the cerebrospinal fluid (CSF) of the central nervous system. FONAR's UPRIGHT® Multi-Position™ MRI is the only scaner licensed under these patents.

UPRIGHT® and STAND-UP® are registered trademarks. The Inventor of MR Scanning™, CSP™, Multi-Position™, UPRIGHT RADIOLOGY™, The Proof is in the Picture™, pMRI™, CSF Videography™ and Dynamic™, are trademarks of FONAR Corporation.

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.

Director of Communications
E-mail: investor@fonar.com
www.fonar.com

The Inventor of MR Scanning™
An ISO 9001 Company
Melville, New York 11747
Phone: (631) 694-2929
Fax: (631) 390-1772

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts and shares in thousands, except per share amounts)

(UNAUDITED)

ASSETS

 

 

March 31,
2021

 

June 30,
2020

Current Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

40,809

 

 

$

36,802

 

Short term investments

 

 

32

 

 

 

32

 

Accounts receivable - net

 

 

4,308

 

 

 

4,313

 

Accounts receivable - related party

 

 

42

 

 

 

6

 

Medical receivable - net

 

 

17,021

 

 

 

16,172

 

Management and other fees receivable - net

 

 

30,313

 

 

 

27,438

 

Management and other fees receivable - related medical practices - net

 

 

7,530

 

 

 

6,896

 

Inventories

 

 

1,971

 

 

 

1,649

 

Contract assets

 

 

218

 

 

 

153

 

Income tax receivable

 

 

 

 

 

671

 

Prepaid expenses and other current assets

 

 

1,330

 

 

 

1,758

 

Total Current Assets

 

 

103,574

 

 

 

95,890

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

2,790

 

 

 

2,730

 

Deferred income tax asset

 

 

17,098

 

 

 

18,810

 

Property and equipment - net

 

 

22,133

 

 

 

21,364

 

Right-of-use Asset - operating lease

 

 

29,462

 

 

 

31,392

 

Right-of-use Asset - financing lease

 

 

1,177

 

 

 

1,326

 

Goodwill

 

 

4,269

 

 

 

3,985

 

Other intangible assets - net

 

 

4,090

 

 

 

4,109

 

Other assets

 

 

659

 

 

 

653

 

Total Assets

 

$

185,252

 

 

$

180,259

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts and shares in thousands, except per share amounts)

(UNAUDITED)

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

March 31,
2021

 

June 30,
2020

Current Liabilities:

 

 

 

 

 

 

 

 

Current portion of long-term debt and capital leases

 

$

193

 

 

$

108

 

Accounts payable

 

 

1,776

 

 

 

1,965

 

Other current liabilities

 

 

6,252

 

 

 

8,185

 

Unearned revenue on service contracts

 

 

4,121

 

 

 

4,105

 

Unearned revenue on service contracts - related party

 

 

28

 

 

 

 

Operating lease liability - current portion

 

 

3,482

 

 

 

3,370

 

Financing lease liability - current portion

 

 

201

 

 

 

75

 

Customer deposits

 

 

1,038

 

 

 

855

 

 

 

 

 

 

 

 

 

 

Total Current Liabilities

 

 

17,091

 

 

 

18,663

 

 

 

 

 

 

 

 

 

 

Long-Term Liabilities:

 

 

 

 

 

 

 

 

Unearned revenue on service contracts

 

 

2,718

 

 

 

2,656

 

Deferred income tax liability

 

 

234

 

 

 

234

 

Due to related medical practices

 

 

93

 

 

 

93

 

Operating lease liability - net of current portion

 

 

28,288

 

 

 

30,105

 

Financing lease liability - net of current portion

 

 

1,099

 

 

 

1,251

 

Long-term debt and capital leases, less current portion

 

 

770

 

 

 

865

 

Other liabilities

 

 

164

 

 

 

150

 

 

 

 

 

 

 

 

 

 

Total Long-Term Liabilities

 

 

33,366

 

 

 

35,354

 

 

Total Liabilities

 

 

50,457

 

 

 

54,017

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts and shares in thousands, except per share amounts)

(UNAUDITED)

LIABILITIES AND STOCKHOLDERS' EQUITY (Continued)

STOCKHOLDERS' EQUITY:

 

March 31,
2021

 

June 30,
2020

 

Class A non-voting preferred stock $.0001 par value; 453 shares authorized at March 31, 2021 and June 30, 2020, 313 issued and outstanding at March 31, 2021 and June 30, 2020

 

$

 

 

$

 

Preferred stock $.001 par value; 567 shares authorized at March 31, 2021 and June 30, 2020, issued and outstanding - none

 

 

 

 

 

 

Common Stock $.0001 par value; 8,500 shares authorized at March 31, 2021 and June 30, 2020, 6,566 and 6,459 issued at March 31, 2021 and June 30, 2020, 6,554 and 6,447 outstanding at March 31, 2021 and June 30, 2020

 

 

1

 

 

 

1

 

Class B Common Stock (10 votes per share) $.0001 par value; 227 shares authorized at March 31, 2021 and June 30, 2020; .146 issued and outstanding at March 31, 2021 and June 30, 2020

 

 

 

 

 

 

Class C Common Stock (25 votes per share) $.0001 par value; 567 shares authorized at March 31, 2021 and June 30, 2020, 383 issued and outstanding at March 31, 2021 and June 30, 2020

 

 

 

 

 

 

Paid-in capital in excess of par value

 

 

185,101

 

 

 

183,076

 

Accumulated deficit

 

 

(46,728

)

 

 

(56,215

)

Treasury stock, at cost - 12 shares of common stock at March 31, 2021 and June 30, 2020

 

 

(675

)

 

 

(675

)

Total Fonar Corporation's Stockholders' Equity

 

 

137,699

 

 

 

126,187

 

Noncontrolling interests

 

 

(2,904

)

 

 

55

 

Total Stockholders' Equity

 

 

134,795

 

 

 

126,242

 

Total Liabilities and Stockholders' Equity

 

$

185,252

 

 

$

180,259

 

                     

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts and shares in thousands, except per share amounts)

(UNAUDITED)

 

 

FOR THE THREE MONTHS ENDED
MARCH 31,

REVENUES

 

2021

 

2020

Patient fee revenue - net of contractual allowances and discounts

 

$

6,043

 

 

$

5,713

 

Product sales - net

 

 

503

 

 

 

92

 

Service and repair fees - net

 

 

1,914

 

 

 

1,942

 

Service and repair fees - related parties - net

 

 

28

 

 

 

28

 

Management and other fees - net

 

 

11,808

 

 

 

11,218

 

Management and other fees - related medical practices - net

 

 

2,794

 

 

 

2,693

 

Total Revenues - Net

 

 

23,090

 

 

 

21,686

 

COSTS AND EXPENSES

 

 

 

 

 

 

 

 

Costs related to patient fee revenue

 

 

2,828

 

 

 

2,840

 

Costs related to product sales

 

 

152

 

 

 

235

 

Costs related to service and repair fees

 

 

627

 

 

 

674

 

Costs related to service and repair fees - related parties

 

 

9

 

 

 

9

 

Costs related to management and other fees

 

 

7,073

 

 

 

6,004

 

Costs related to management and other fees - related medical practices

 

 

1,746

 

 

 

1,550

 

Research and development

 

 

419

 

 

 

535

 

Selling, general and administrative

 

 

6,114

 

 

 

7,224

 

Total Costs and Expenses

 

 

18,968

 

 

 

19,071

 

Income From Operations

 

 

4,122

 

 

 

2,615

 

Other Income/(Expense)

 

 

144

 

 

 

 

Interest Expense

 

 

(19

)

 

 

(17

)

Investment Income

 

 

64

 

 

 

126

 

Income Before Provision for Income Taxes and Noncontrolling Interests

 

 

4,311

 

 

 

2,724

 

Provision for Income Taxes

 

 

(12

)

 

 

(810

)

Net Income

 

 

4,299

 

 

 

1,914

 

Net Income - Noncontrolling Interests

 

 

(431

)

 

 

(653

)

Net Income - Attributable to FONAR

 

$

3,868

 

 

$

1,261

 

Net Income Available to Common Stockholders

 

$

3,634

 

 

$

1,184

 

Net Income Available to Class A Non-Voting Preferred Stockholders

 

$

174

 

 

$

57

 

Net Income Available to Class C Common Stockholders

 

$

60

 

 

$

20

 

Basic Net Income Per Common Share Available to Common Stockholders

 

$

0.55

 

 

$

0.18

 

Diluted Net Income Per Common Share Available to Common Stockholders

 

$

0.54

 

 

$

0.18

 

Basic and Diluted Income Per Share - Class C Common

 

$

0.16

 

 

$

0.05

 

Weighted Average Basic Shares Outstanding - Common Stockholders

 

 

6,554

 

 

 

6,447

 

Weighted Average Diluted Shares Outstanding - Common Stockholders

 

 

6,682

 

 

 

6,575

 

Weighted Average Basic and Diluted Shares Outstanding - Class C Common

 

 

383

 

 

 

383

 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts and shares in thousands, except per share amounts)

(UNAUDITED)

 

 

FOR THE NINE MONTHS
ENDED MARCH 31,

REVENUES

 

2021

 

2020

Patient fee revenue - net of contractual allowances and discounts

 

$

16,372

 

 

$

17,754

 

Product sales - net

 

 

534

 

 

 

288

 

Service and repair fees - net

 

 

5,702

 

 

 

6,044

 

Service and repair fees - related parties - net

 

 

83

 

 

 

83

 

Management and other fees - net

 

 

34,362

 

 

 

33,242

 

Management and other fees - related medical practices - net

 

 

8,181

 

 

 

7,473

 

Total Revenues - Net

 

 

65,234

 

 

 

64,884

 

COSTS AND EXPENSES

 

 

 

 

 

 

 

 

Costs related to patient fee revenue

 

 

7,997

 

 

 

8,660

 

Costs related to product sales

 

 

477

 

 

 

685

 

Costs related to service and repair fees

 

 

1,861

 

 

 

2,196

 

Costs related to service and repair fees - related parties

 

 

27

 

 

 

30

 

Costs related to management and other fees

 

 

18,861

 

 

 

18,203

 

Costs related to management and other fees - related medical practices

 

 

4,696

 

 

 

4,707

 

Research and development

 

 

1,243

 

 

 

1,590

 

Selling, general and administrative

 

 

16,818

 

 

 

15,691

 

Total Costs and Expenses

 

 

51,980

 

 

 

51,762

 

Income From Operations

 

 

13,254

 

 

 

13,122

 

Other Income/(Expense)

 

 

4

 

 

 

1

 

Interest Expense

 

 

(57

)

 

 

(57

)

Investment Income

 

 

251

 

 

 

413

 

Income Before Provision for Income Taxes and Noncontrolling Interests

 

 

13,452

 

 

 

13,479

 

Provision for Income Taxes

 

 

(1,974

)

 

 

(2,849

)

Net Income

 

 

11,478

 

 

 

10,630

 

Net Income - Noncontrolling Interests

 

 

(1,991

)

 

 

(2,966

)

Net Income - Attributable to FONAR

 

$

9,487

 

 

$

7,664

 

Net Income Available to Common Stockholders

 

$

8,915

 

 

$

7,194

 

Net Income Available to Class A Non-Voting Preferred Stockholders

 

$

426

 

 

$

350

 

Net Income Available to Class C Common Stockholders

 

$

146

 

 

$

120

 

Basic Net Income Per Common Share Available to Common Stockholders

 

$

1.37

 

 

$

1.12

 

Diluted Net Income Per Common Share Available to Common Stockholders

 

$

1.35

 

 

$

1.10

 

Basic and Diluted Income Per Share - Class C Common

 

$

0.38

 

 

$

0.31

 

Weighted Average Basic Shares Outstanding - Common Stockholders

 

 

6,489

 

 

 

6,442

 

Weighted Average Diluted Shares Outstanding - Common Stockholders

 

 

6,617

 

 

 

6,570

 

Weighted Average Basic and Diluted  Shares Outstanding - Class C Common

 

 

383

 

 

 

383

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts and shares in thousands, except per share amounts)

(UNAUDITED)

 

 

FOR THE NINE MONTHS

ENDED MARCH 31,

 

 

2021

 

2020

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

 

Net income

 

$

11,478

 

 

$

10,630

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

3,100

 

 

 

3,001

 

Amortization on right-of-use assets

 

 

1,543

 

 

 

2,505

 

Provision(Recovery) for bad debts

 

 

5,103

 

 

 

1,711

 

Deferred income tax - net

 

 

1,712

 

 

 

2,481

 

Compensatory element of stock issuances

 

 

83

 

 

 

 

Stock issued for costs and expenses

 

 

1,941

 

 

 

1,990

 

Abandoned patents

 

 

1

 

 

 

 

(Increase) decrease in operating assets, net:

 

 

 

 

 

 

 

 

Accounts, medical and management fee receivables

 

 

(9,551

)

 

 

(6,808

)

Notes receivable

 

 

36

 

 

 

22

 

Contract assets

 

 

(65

)

 

 

372

 

Inventories

 

 

(323

)

 

 

23

 

Income tax receivable

 

 

671

 

 

 

 

Prepaid expenses and other current assets

 

 

424

 

 

 

570

 

Other assets

 

 

(1

)

 

 

(142

)

Increase (decrease) in operating liabilities, net:

 

 

 

 

 

 

 

 

Accounts payable

 

 

(189

)

 

 

(175

)

Other current liabilities

 

 

(1,827

)

 

 

(193

)

Operating lease liabilities

 

 

(1,168

)

 

 

(2,216

)

Financing lease liabilities

 

 

(25

)

 

 

 

Customer deposits

 

 

183

 

 

 

56

 

Other liabilities

 

 

14

 

 

 

105

 

Net cash provided by operating activities

 

 

13,140

 

 

 

13,932

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(2,942

)

 

 

(6,601

)

Purchase of imaging facility

 

 

(1,123

)

 

 

 

Proceeds of short term investment

 

 

 

 

 

15,063

 

Cost of patents

 

 

(108

)

 

 

(79

)

Net cash (used)/provided by in investing activities

 

 

(4,173

)

 

 

8,383

 

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

Repayment of borrowings and capital lease obligations

 

 

(73

)

 

 

(33

)

Proceeds from debt

 

 

63

 

 

 

 

Distributions to noncontrolling interests

 

 

(4,950

)

 

 

(5,145

)

Net cash used in financing activities

 

 

(4,960

)

 

 

(5,178

)

Net Increase in Cash and Cash Equivalents

 

 

4,007

 

 

 

17,137

 

Cash and Cash Equivalents - Beginning of Period

 

 

36,802

 

 

 

13,882

 

Cash and Cash Equivalents - End of Period

 

$

40,809

 

 

$

31,019

 

 

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/83831

info