Reported Earnings • May 13
Third quarter 2026 earnings released: EPS: US$0.24 (vs US$0.38 in 3Q 2025) Third quarter 2026 results: EPS: US$0.24 (down from US$0.38 in 3Q 2025). Revenue: US$26.5m (down 2.6% from 3Q 2025). Net income: US$1.56m (down 35% from 3Q 2025). Profit margin: 5.9% (down from 8.8% in 3Q 2025). Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • May 06
FONAR Corporation, Annual General Meeting, Jun 17, 2026 FONAR Corporation, Annual General Meeting, Jun 17, 2026. Location: at the hilton long island huntington hotel, 598 broadholow road, melvile, new york 11747, United States Announcement • Feb 10
FONAR Corporation announced delayed 10-Q filing On 02/09/2026, FONAR Corporation announced that they will be unable to file their next 10-Q by the deadline required by the SEC. Buy Or Sell Opportunity • Jan 20
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 21% to US$18.73. The fair value is estimated to be US$15.59, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 2.6% over the last 3 years. Earnings per share has declined by 7.2%. Buy Or Sell Opportunity • Dec 30
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 14% to US$18.60. The fair value is estimated to be US$14.95, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 2.6% over the last 3 years. Earnings per share has declined by 7.2%. Valuation Update With 7 Day Price Move • Dec 30
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to US$18.60, the stock trades at a trailing P/E ratio of 17.2x. Average trailing P/E is 30x in the Medical Equipment industry in the US. Total returns to shareholders of 10% over the past three years. Announcement • Sep 13
FONAR Corporation announced delayed annual 10-K filing On 09/12/2025, FONAR Corporation announced that they will be unable to file their next 10-K by the deadline required by the SEC. Announcement • Jul 10
Timothy Damadian along with management team and Board of Directors of FONAR Corporation and third parties proposed to acquire remaining 94.99% stake in FONAR Corporation (NasdaqCM:FONR). Timothy Damadian along with management team and Board of Directors of FONAR Corporation and third parties proposed to acquire remaining 94.99% stake in FONAR Corporation (NasdaqCM:FONR) on July 7, 2025. The Proposed Acquisition Group currently beneficially owns approximately 5.01% of the outstanding FONAR Stock.
The Board of Directors of FONAR Corporation formed a special committee consisting of independent and disinterested directors of the Board, who will carefully review the proposal to determine the course of action that is in the best interests of FONAR Corporation and all shareholders. Announcement • Jul 03
FONAR Corporation Appoints Robert M. Carrino as an Independent Director FONAR Corporation announced that on July 2, 2025, its board of directors appointed Mr. Robert M. Carrino as an independent director of the company’s board of directors. This appointment fills a vacancy on the board left by Ms. Claudette J.V. Chan, who recently retired from her position. Mr. Carrino is a partner at CFGI, LLC in New York City, where he leads the firm’s SPAC practice. He provides complex accounting and consulting services to both public and private companies. Prior to joining CFGI, Mr. Carrino was an audit manager at KPMG, LLP’s Metro New York Long Island Office. Mr. Carrino, a Certified Public Accountant, earned the degree of Bachelor of Science in Business Administration with a concentration in accounting from Western New England University. Announcement • Jun 25
FONAR Corporation Announces Intention of Claudette J.V. Chan to Retire from the Board of Directors and Secretary, Effective June 19, 2025 On June 18, 2025, Claudette J.V. Chan, a member of the Board of Directors and the Secretary of FONAR Corporation, notified the Company of her intention to retire from the Company's Board of Directors, and to retire as Secretary of the Company, effective June 19, 2025. Ms. Chan did not advise the Company of any disagreement with the Company on any matter relating to its operations, policies or practices. Buy Or Sell Opportunity • Jun 16
Now 20% undervalued Over the last 90 days, the stock has risen 1.4% to US$14.21. The fair value is estimated to be US$17.77, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 4.7%. Buy Or Sell Opportunity • May 21
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 6.9% to US$13.70. The fair value is estimated to be US$17.34, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 4.7%. Reported Earnings • May 17
Third quarter 2025 earnings released: EPS: US$0.38 (vs US$0.28 in 3Q 2024) Third quarter 2025 results: EPS: US$0.38 (up from US$0.28 in 3Q 2024). Revenue: US$27.2m (up 5.6% from 3Q 2024). Net income: US$2.51m (up 40% from 3Q 2024). Profit margin: 9.2% (up from 6.9% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 5% per year whereas the company’s share price has fallen by 6% per year. Announcement • Apr 23
FONAR Corporation, Annual General Meeting, May 19, 2025 FONAR Corporation, Annual General Meeting, May 19, 2025. Location: hilton long island huntington hotel, 598 broadhollow road, melville, new york 11747, United States Announcement • Feb 15
FONAR Corporation announced delayed 10-Q filing On 02/14/2025, FONAR Corporation announced that they will be unable to file their next 10-Q by the deadline required by the SEC. Reported Earnings • Nov 15
First quarter 2025 earnings released First quarter 2025 results: Revenue: US$25.0m (down 3.4% from 1Q 2024). Net income: US$3.14m (down 20% from 1Q 2024). Profit margin: 13% (down from 15% in 1Q 2024). Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has fallen by 3% per year. New Risk • Oct 13
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: US$98.1m This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 3.5% per year over the past 5 years. Minor Risk Market cap is less than US$100m (US$98.1m market cap). New Risk • Oct 01
New major risk - Revenue and earnings growth Earnings have declined by 3.5% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Reported Earnings • Sep 29
Full year 2024 earnings released: EPS: US$1,637 (vs US$1,425 in FY 2023) Full year 2024 results: EPS: US$1,637 (up from US$1,425 in FY 2023). Revenue: US$102.9b (up 4.3% from FY 2023). Net income: US$10.6b (up 13% from FY 2023). Profit margin: 10% (in line with FY 2023). Over the last 3 years on average, earnings per share has increased by 117% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Sep 28
FONAR Corporation to Report Fiscal Year 2024 Results on Sep 27, 2024 FONAR Corporation announced that they will report fiscal year 2024 results on Sep 27, 2024 Reported Earnings • May 17
Third quarter 2024 earnings released: EPS: US$0.28 (vs US$0.55 in 3Q 2023) Third quarter 2024 results: EPS: US$0.28 (down from US$0.55 in 3Q 2023). Revenue: US$25.7m (up 1.2% from 3Q 2023). Net income: US$1.87m (down 49% from 3Q 2023). Profit margin: 7.3% (down from 14% in 3Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Announcement • Apr 09
FONAR Corporation, Annual General Meeting, May 20, 2024 FONAR Corporation, Annual General Meeting, May 20, 2024, at 10:00 US Eastern Standard Time. Location: The Hilton Long Island Huntington Hotel, 598 Broadhollow Road, Melville New York United States Agenda: To elect five Directors to the Board of Directors; to approve, on an advisory basis, the compensation of the Company’s named executive officers; to recommend, on an advisory basis, whether the advisory stockholder vote to approve the compensation of the Company’s named executive officers be taken every year, every two years, or every three years; to ratify the selection of Marcum LLP as the Company’s auditors for the fiscal year ending June 30, 2024; and to transact such other business as may properly come before the meeting. Reported Earnings • Feb 16
Second quarter 2024 earnings released: EPS: US$0.59 (vs US$0.32 in 2Q 2023) Second quarter 2024 results: EPS: US$0.59 (up from US$0.32 in 2Q 2023). Revenue: US$25.4m (up 4.7% from 2Q 2023). Net income: US$3.76m (up 76% from 2Q 2023). Profit margin: 15% (up from 8.8% in 2Q 2023). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 6% per year. Reported Earnings • Nov 17
First quarter 2024 earnings released First quarter 2024 results: Revenue: US$25.8m (up 11% from 1Q 2023). Net income: US$4.11m (up 110% from 1Q 2023). Profit margin: 16% (up from 8.4% in 1Q 2023). The increase in margin was driven by higher revenue. Valuation Update With 7 Day Price Move • Nov 15
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to US$16.31, the stock trades at a trailing P/E ratio of 12x. Average trailing P/E is 35x in the Medical Equipment industry in the US. Total loss to shareholders of 16% over the past three years. New Risk • Oct 03
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: US$100.0m This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 17% per year over the past 5 years. Minor Risk Market cap is less than US$100m (US$100.0m market cap). Reported Earnings • Sep 29
Full year 2023 earnings released: EPS: US$1.36 (vs US$1.78 in FY 2022) Full year 2023 results: EPS: US$1.36 (down from US$1.78 in FY 2022). Revenue: US$98.6m (up 1.1% from FY 2022). Net income: US$8.95m (down 25% from FY 2022). Profit margin: 9.1% (down from 12% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Buying Opportunity • Jul 20
Now 20% undervalued Over the last 90 days, the stock is up 7.7%. The fair value is estimated to be US$21.73, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.6% over the last 3 years. Earnings per share has grown by 4.6%. Buying Opportunity • Jun 15
Now 20% undervalued Over the last 90 days, the stock is up 11%. The fair value is estimated to be US$22.09, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.6% over the last 3 years. Earnings per share has grown by 4.6%. Reported Earnings • May 16
Third quarter 2023 earnings released Third quarter 2023 results: Revenue: US$25.4m (up 3.5% from 3Q 2022). Net income: US$3.69m (up 69% from 3Q 2022). Profit margin: 14% (up from 8.9% in 3Q 2022). The increase in margin was primarily driven by higher revenue. Reported Earnings • Feb 16
Second quarter 2023 earnings released: EPS: US$0.32 (vs US$0.57 in 2Q 2022) Second quarter 2023 results: EPS: US$0.32 (down from US$0.57 in 2Q 2022). Revenue: US$24.3m (flat on 2Q 2022). Net income: US$2.13m (down 45% from 2Q 2022). Profit margin: 8.8% (down from 16% in 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has fallen by 5% per year. Reported Earnings • Nov 16
First quarter 2023 earnings released First quarter 2023 results: Revenue: US$23.2m (down 2.3% from 1Q 2022). Net income: US$2.05m (down 45% from 1Q 2022). Profit margin: 8.8% (down from 16% in 1Q 2022). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 5% per year and the company’s share price has also fallen by 5% per year. Recent Insider Transactions • Oct 05
Key Executive recently bought US$66k worth of stock On the 30th of September, Luciano Bonanni bought around 5k shares on-market at roughly US$14.07 per share. This transaction amounted to 9.5% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Luciano's only on-market trade for the last 12 months. Reported Earnings • Sep 29
Full year 2022 earnings released Full year 2022 results: Revenue: US$97.6m (up 8.5% from FY 2021). Net income: US$11.9m (up 22% from FY 2021). Profit margin: 12% (up from 11% in FY 2021). The increase in margin was driven by higher revenue. Seeking Alpha • Aug 31
FONAR: Balance Sheet Trends Point To A Firm Bottom Shortly Summary
FONAR stock is trading well below book value and remains profitable which is key.
Cash, liquidity and equity all continue to grow on the balance sheet.
We await the technicals to start leading the strong fundamentals in this play.
Intro
We wrote about FONAR Corporation (FONR) (Medical Device Player) in October of last year when we stated that the company was closing in on a multi-year bottom. We have been following Fonar for quite some time now as its valuation, profitability, and balance sheet have the types of trends we like to see in our setups. Since we penned that piece close to 11 months ago, shares are down close to 12% so obviously we were wrong in our timing. Suffice it to say, if we had gone long at that juncture, this simply would not be good enough especially when one takes into account that the S&P did not fall to this magnitude over the stated timeframe. (Opportunity Cost)
Not waiting for a convincing bottom is probably the biggest mistake value investors make when initiating long positions in out-of-favor stocks. This mistake tends to happen a lot because many fundamental derived investors normally investigate the cause of market movement instead of studying the resulting effect. Suffice it to say, we have come to believe that share price action on the technical chart actually leads the known fundamentals, period. This means, that if share-price action is bearish (Sustained pattern of lower lows have been the norm in FONR for quite some time now), then the fundamentals are indeed bearish irrespective of how compelling the stock may look as an investment at this point in time.
Fonar Technical Chart (Stockcharts.com)
This in itself is not a problem because we can play the waiting game. What is of more importance is how the company's financials for example have been faring out during this sustained downturn. Remember, price is what one pays, and value is what one gets. Therefore, by studying some of the key trends in Fonar's balance sheet, we can see if the company is getting more attractive by the day or is finally succumbing to bearish market forces in recent times.
Cash & Equivalents
Over the past 10 quarters, cash & ST investments have risen from $29 million to $46 million in FONAR. Generally, the more cash a company has the better as this cash can be used to reinvest in the business, reward shareholders, or pay down debt. From a valuation standpoint, FONAR shares are now trading for approximately two times their liquid cash position.
Current Ratio
Fonar's current ratio came in at 8.05 at the end of its most recent reported quarter. Again, we see a favorable trend here as the company's current ratio came in at 6.26, ten quarters ago. Suffice it to say, the lack of any real level of liabilities on the balance sheet ensures the company would continue to have the wherewithal to keep paying its bills if indeed operations were to come to a halt for whatever reason.
Non-Current Assets Reported Earnings • May 17
Third quarter 2022 earnings released: EPS: US$0.33 (vs US$0.55 in 3Q 2021) Third quarter 2022 results: EPS: US$0.33 (down from US$0.55 in 3Q 2021). Revenue: US$24.6m (up 6.4% from 3Q 2021). Net income: US$2.19m (down 41% from 3Q 2021). Profit margin: 8.9% (down from 16% in 3Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Buying Opportunity • May 09
Now 21% undervalued Over the last 90 days, the stock is up 6.5%. The fair value is estimated to be US$21.08, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 27%. Reported Earnings • Feb 16
Second quarter 2022 earnings: Revenues in line with analyst expectations Second quarter 2022 results: Revenue: US$24.5m (up 16% from 2Q 2021). Net income: US$3.84m (up 29% from 2Q 2021). Profit margin: 16% (up from 14% in 2Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Reported Earnings • Sep 29
Full year 2021 earnings released: EPS US$1.51 (vs US$1.20 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: US$89.9m (up 4.9% from FY 2020). Net income: US$10.2m (up 30% from FY 2020). Profit margin: 11% (up from 9.2% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Reported Earnings • May 15
Third quarter 2021 earnings released: EPS US$0.53 (vs US$0.18 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: US$23.1m (up 6.5% from 3Q 2020). Net income: US$3.69m (up 207% from 3Q 2020). Profit margin: 16% (up from 5.6% in 3Q 2020). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 24
New 90-day high: US$19.74 The company is up 1.0% from its price of US$19.52 on 25 November 2020. The American market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Medical Equipment industry, which is up 9.0% over the same period. Reported Earnings • Feb 18
Second quarter 2021 earnings released The company reported a soft second quarter result with weaker revenues, although earnings and profit margins were flat. Second quarter 2021 results: Revenue: US$21.2m (down 1.3% from 2Q 2020). Net income: US$2.97m (flat on 2Q 2020). Profit margin: 14% (in line with 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Reported Earnings • Sep 30
Full year earnings released - EPS US$1.20 Over the last 12 months the company has reported total profits of US$7.86m, down 46% from the prior year. Total revenue was US$85.7m over the last 12 months, down 1.7% from the prior year. Profit margins were 9.2%, which is lower than the 17% margin from last year. The decrease in margin was primarily driven by higher expenses.