FONAR CORP

FONAR designs, manufactures, sells, and services magnetic resonance imaging (MRI) scanners, which use MRI technology for detecting and diagnosing human diseases, abnormalities, medical conditions, and injuries. The company operates in two segments. The medical equipment segment is conducted directly through FONAR, focusing on MRI scanners. FONAR's founders built the first MRI scanner in 1977, and the company introduced the first commercial MRI scanner in 1980. FONAR originated iron-core non-superconductive and permanent magnet MRI technology, as well as "open" MRI scanners, introducing the first "open" MRI in 1980. The company has since focused on "open" MRI applications, including the Upright® Multi-Position™ MRI scanner (also known as the Upright® or Stand-Up® MRI scanner) and the FONAR 360™ MRI scanner. The FONAR 360™ MRI is not currently being marketed. The physician management and diagnostic services segment is conducted through its subsidiary, Health Management Corporation of America (HMCA). HMCA provides management, administrative, billing and collection, credentialing, contract negotiation, compliance consulting, purchasing, IT, hiring, interviewing, personnel management, medical record storage, office space, equipment, repair, maintenance, and clerical and other non-medical personnel services to medical providers engaged in diagnostic imaging. Additionally, HMCA owns and operates six diagnostic imaging facilities in Florida.