FONAR Corporation (NASDAQ-FONR), The Inventor of MR Scanning™,
reported today it is holding its annual shareholder meeting on May
20, 2019, in Wilmington, DE. The proxy statement, filed on Friday,
April 5, 2019, contains the annual FONAR CHAIRMAN’S LETTER TO
SHAREHOLDERS.
FONAR CHAIRMAN’S LETTER TO
SHAREHOLDERS
May 2019
Dear Shareholders:
I am pleased to report that as of December 31,
2018, FONAR posted 35 consecutive quarters of positive net income
and positive income from operations.
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Fiscal YearEnded June 30, |
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TotalFONAR Revenue |
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Total FONAR Net(Loss) Income |
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Diluted Net (Loss)Income PerCommon Share |
2010 |
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$31,815,555 |
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$(3,012,742) |
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$(0.61) |
2011 |
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$33,136,395 |
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$3,309,019 |
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$0.55 |
2012 |
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$39,444,419 |
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$6,875,073 |
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$0.91 |
2013 |
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$49,141,814 |
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$10,256,362 |
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$1.34 |
2014 |
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$68,505,477 |
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$13,396,769 |
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$1.58 |
2015 |
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$69,050,996 |
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$15,430,383 |
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$1.95 |
2016 |
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$73,368,210 |
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$18,795,517 |
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$2.38 |
2017 |
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$78,036,586 |
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$23,678,798 |
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$2.92 |
2018 |
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$81,515,994 |
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$25,452,185 |
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$3.10 |
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FONAR’s primary source of income and growth has
been attributable to Health Management Company of America (HMCA),
the company’s diagnostic imaging management subsidiary. In calendar
2009, the facilities under management by HMCA completed 29,000 MRI
scans. Since then, my son Timothy (president and CEO of FONAR) and
his hand-picked management have grown HMCA significantly. At
present, HMCA manages diagnostic imaging centers that in 2018
completed 180,000 MRI scans, compared to 170,000 in 2017.
About HMCA
In response to the financial uncertainties
caused by erratic MRI equipment sales in the 1990’s, FONAR sought a
steady and reliable source of revenue. At that point, not only was
FONAR, as the inventor of MR scanning, the master of MRI
technology, but FONAR, having worked with its customers for nearly
20 years, had also become very familiar with the day-to-day
management of independent MRI scanning centers. Ideally positioned
to expand into the MRI practice management business, FONAR formed
the HMCA subsidiary in 1997. Since then, HMCA has become the
leading source of revenue and profit.
HMCA’s continuing success is fundamentally
attributable to the ever-growing appeal of FONAR MRI technology
among patients and physicians. Patients strongly prefer the FONAR
Multi-Position™ UPRIGHT® MRI, also known as the Stand-Up® MRI, for
its comfort and openness, unlike the more conventional “tunnel”
MRIs. Physicians are drawn to the UPRIGHT® MRI as well, for two
reasons: They can accommodate their patients’ preferences without
compromising on diagnostic image quality, and for the many
instances where the anatomy of interest needs to be viewed in a
weight-bearing position, such as the lower back and cervical spine
with the patient either standing or sitting, the UPRIGHT® is the
only MRI that can do it. But outstanding technology is no guarantee
of success. It has to be properly marketed, and the patients and
their physicians have to be pleased with the service they receive
at the scanning centers. Accordingly, marketing and service to both
patients and referring doctors are top priorities at HMCA-managed
centers.
Regarding the future, HMCA continues to conduct
demographic studies in search of de novo locations and/or
acquisition opportunities in New York and Florida that are
compatible with our business plan and would add quickly and
significantly to net revenues and profit.
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. The
Company, which has installed over 400 MRIs all over the world,
continues to manufacture, sell, service and upgrade FONAR
scanners.
FONAR's signature product is its fully patented
FONAR UPRIGHT® Multi-Position™ MRI (also known as the Stand-Up®
MRI), the only whole-body MRI that can perform Position™ imaging
(pMRI™), which means patients can be scanned in numerous
weight-bearing positions, i.e. standing, sitting, in flexion and
extension, as well as in the conventional lie-down position. The
FONAR UPRIGHT® MRI often detects patient problems that other MRI
scanners cannot because they are “lie-down-only”, or
"weightless-only" scanners. Weight-bearing MRI enables more
complete diagnoses in comparison to “weightless” MRIs. In fact, the
FONAR UPRIGHT® Multi-Position™ MRI has detected problems that were
underestimated or missed entirely on “weightless-only” MRI
scanners, particularly scans of the spine. This is very important
because most MRI scans performed are of the spine. With the
UPRIGHT® MRI’s power to “see it all,” the benefits of this unique
scanner continue to gain traction in the medical community because
the UPRIGHT® provides referring physicians the means to achieve
better outcomes for their patients.
There is another very important feature of the
UPRIGHT® MRI. It is the Patient-Friendly™ MRI, a claim strongly
supported by the near-zero claustrophobic rejection rate by
patients. In fact, approximately 85% of patients are scanned
sitting while watching TV. The unique diagnostic benefits of the
FONAR UPRIGHT® Multi-Position™ MRI, along with its enormous
popularity among patients, contribute significantly to the success
enjoyed by FONAR users everywhere.
MRI is “The Single Most Important Diagnostic
Discovery in the History of All of Medicine” - Professor Donlin
Long, M.D., former Chairman of Neurosurgery, Johns Hopkins
University
Professor Long made this statement on November
10, 2018, when I was awarded the Excellence in Medicine Medal of
Honor from the Chiari & Syringomyelia Foundation at Brooks’ in
London, England. He was joined by Fraser Henderson, M.D., a
neurosurgeon and member of the steering committee for the Chiari
& Syringomyelia Foundation, who said, “Raymond Damadian
revolutionized medicine with the discovery and development of
MRI.”
The award citation included: “In 1970, Raymond
Damadian made the discovery that is the basis for MR
scanning – that there is a marked difference in relaxation
times between normal and abnormal tissues of the same type, as well
as between different types of normal tissues. This seminal
discovery, which remains the basis for the making of every MRI
image ever produced, is the foundation of the MRI industry.”
While this award was very gratifying to me
personally, I gratefully acknowledge the support and contributions
of family, friends, FONAR employees and FONAR stockholders for
their support in creating an industry that has helped millions all
over the world.
FONAR Technology Credited
A peer-reviewed research chapter found on-line
at IntechOpen.com states that the “FONAR upright weight-bearing MRI
has been shown to be most sensitive in detecting cerebellar
tonsillar ectopia since the weight-bearing posture presents the
cerebellar tonsils further distended into the foramen magnum.”
Later in the chapter, it states, “Upright Cine MRI of the
cranio-cervical junction demonstrates CSF flow dynamics.” These
give significant credit to the FONAR UPRIGHT® Multi-Position™
MRI.
Essentially, this chapter reports on the latest
FONAR UPRIGHT® (fully weight-loaded) evidence regarding the
craniocervical junction syndrome (CCS). My own research, using the
FONAR UPRIGHT® Multi-Position™ MRI, indicates that the CCS is a
major cause of many neurodegenerative diseases. Continued
understanding of the CCS may plausibly have a significant impact on
the genesis and treatments of the many neurodegenerative diseases
that plague mankind. These include Multiple Sclerosis, Amyotrophic
Lateral Sclerosis (Lou Gehrig’s Disease), Alzheimer’s, Parkinson’s
and additionally the non-neurodegenerative diseases Childhood
Autism and birth injury Cerebral Palsy.
Ongoing Research
FONAR continues its work on visualizing and
quantifying the cerebral hydraulics of the central nervous system,
the flow of cerebrospinal fluid (CSF), which circulates from the
brain to the sacrum of the 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 this latest works-in-progress method for quantifying
CSF flow 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.
Conclusion
I believe that the combination of FONAR’s unique
technology and the ongoing success of our diagnostic imaging
management subsidiary, HMCA, will keep FONAR on the path of steady
growth and profitability for years to come.
As always, I remain grateful to our
stockholders, customers and employees for their loyal support.
Sincerely,
Raymond V. Damadian, Chairman
About FONAR
FONAR, The Inventor of MR Scanning™, 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’s first commercial MRI in 1980, and went public in
1981.
The Company’s two industry segments are:
development, manufacturing and servicing of the FONAR UPRIGHT®
Multi-Position™ MRI, aka Stand-Up® MRI, and management of 26 MRI
centers through its subsidiary, Health Management Company of
America (HMCA).
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, extension, and spinal rotation, as well as the
conventional lie-down only position. The FONAR UPRIGHT® MRI often
detects patient problems that other MRI scanners cannot because
they are lie-down only and “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 this 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 substantial list of patents includes
recent patents for its technology enabling full 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
central nervous system. FONAR’s UPRIGHT® Multi-Position™ MRI is the
only scanner licensed under these patents.
UPRIGHT® and STAND-UP® are registered trademarks
and The Inventor of MR Scanning™, Full Range of Motion™,
Multi-Position™, Upright Radiology™, The Proof is in the Picture™,
True Flow™, pMRI™, Spondylography™, Dynamic™, Spondylometry™, CSP™,
and Landscape™, 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.
For Immediate
Release |
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The Inventor of MR
Scanning™ |
Contact: Daniel Culver |
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An ISO 9001 Company |
Director of Communications |
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Melville, New York 11747 |
E-mail: investor@fonar.com |
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Phone: (631) 694-2929 |
www.fonar.com |
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Fax: (631) 390-1772 |
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