エドガーで原本を確認する
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Act of 1934
Date of Report (Date of earliest event reported): March 31, 2023
FONAR CORPORATION
______________________________________________________
(Exact name of registrant as specified in its charter)
| Delaware | 0-10248 | 11-2464137 | ||
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
| 110
Marcus Drive,
Melville,
New York 11747
(631) 694-2929 |
||||
| (Address, including zip code, and telephone number of registrant's principal executive office) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act 17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)
Securities registered pursuant to Section 12(b) of the Act.
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||
| Common Stock, $.0001 par value | FONR | Nasdaq Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02(a) Results of Operations and Financial Condition.
We reported the results of operations and financial condition of the Company for the third Fiscal Quarter of Fiscal 2023 which ended March 31, 2023 in a press release dated May 15, 2023.
Exhibits:
99.1 Press Release dated May 15, 2023.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
FONAR CORPORATION
(Registrant)
-------------------------------------------
By /s/ Timothy R. Damadian
Timothy R. Damadian
President and CEO
Dated: May 15, 2023
| NEWS | Fonar Corporation | |
| For Immediate Release | The Inventor of MR Scanning™ | |
| Contact: Daniel Culver | An ISO 9001 Company | |
| Director of Communications | Melville, New York 11747 | |
| E-mail: investor@fonar.com | Phone: (631) 694-2929 | |
| www.fonar.com | Fax: (631) 390-1772 |
FONAR ANNOUNCES FINANCIAL RESULTS FOR FISCAL 2023 3RD QUARTER AND NINE-MONTH PERIOD
| · | Total MRI scan volume at the HMCA-managed sites increased 7% to 49,451 scans for the quarter ended March 31, 2023 versus the corresponding quarter one year earlier. For the nine-month period ended March 31, 2023, 139,339 scans were performed as compared to 140,650 for the corresponding nine-month period one year ago. |
| · | Net Income increased 37% to $4.5 million for the quarter ended March 31, 2023 and decreased 27% to $9.9 million for the nine-month period ended March 31, 2023. |
| · | Diluted Net Income Per Common Share Available to Common Stockholders increased 72% to $0.55 for the third fiscal quarter ended March 31, 2023 and decreased 19% to $1.16 for the nine-month period ended March 31, 2023. |
| · | Total Revenues-Net increased 3% to $25.4 million for the quarter ended March 31, 2023 as compared to the corresponding quarter one year ago. Total Revenues-Net were $72.9 million for the nine-month period ended March 31, 2023, approximately the same as the corresponding nine-month period one year ago. |
| · | Total Cash, Cash Equivalents and Short Term Investments increased 2% to $49.7 million at March 31, 2023 as compared to $48.8 million at June 30, 2022. |
| · | Net Book Value per Common Share increased 6% to $22.79 at March 31, 2023 as compared to $21.59 at March 31, 2022, one year ago. |
MELVILLE, NEW YORK, May 15, 2023 - FONAR Corporation (NASDAQ-FONR), The Inventor of MR Scanning™, reported today its financial results for the 3rd fiscal 2023 quarter and nine-month period ended March 31, 2023. FONAR’s primary source of income and growth is attributable to its diagnostic imaging management subsidiary, Health Management Company of America (HMCA). In 2009, HMCA managed 9 MRI scanners. Currently, HMCA manages 41 MRI scanners.
Operating Results
Total Revenues-Net for the third fiscal quarter ended March 31, 2023 increased 3% to $25.4 million as compared to $24.6 million for the third fiscal quarter ended March 31, 2022. Total Revenues-Net for the nine-month period ended March 31, 2023 was $72.9 million as compared to $72.8 million for the nine-month period ended March 31, 2022.
Income From Operations for the third fiscal quarter ended March 31, 2023 decreased 26% to $4.2 million as compared to $5.6 million for the third fiscal quarter ended March 31, 2022. Income From Operations for the nine-month period ended March 31, 2023 decreased 31% to $12.3 million as compared to $17.9 million for the nine-month period ended March 31, 2022.
Net Income for the third fiscal quarter ended March 31, 2023 decreased 37% to $4.5 million as compared to $3.3 million for the quarter ended March 31, 2022. Net Income for the nine-month period ended March 31, 2023 decreased 27% to $9.9 million as compared to $13.6 million for the nine-month period ended March 31, 2022.
Diluted Net Income Per Common Share Available to Common Stockholders increased 72% to $0.55 for the third fiscal quarter ended March 31, 2023 as compared to $0.32 for the third fiscal quarter ended March 31, 2022. Diluted Net Income Per Common Share Available to Common Stockholders for the nine-month period ended March 31, 2023 decreased 19% to $1.16 as compared to $1.43 for the nine-month period ended March 31, 2022.
Total Costs and Expenses were $21.3 million for the third fiscal quarter ended March 31, 2023 and were $18.9 million for the third fiscal quarter ended March 31, 2022. Total Costs and Expenses for the nine-month period ended March 31, 2023 were $60.6 million and for the nine-month period ended March 31, 2022 were $54.9 million.
Balance Sheet Items
Total Cash and Cash Equivalents and Short Term Investments at March 31, 2023 were $49.7 million as compared to the $48.8 million at June 30, 2022.
Total Assets at March 31, 2023 and June 30, 2022 were $199.3 million.
Total Liabilities at March 31, 2023 were $48.7 million as compared to $53.1 million at June 30, 2022.
The ratio of Total Assets / Total Liabilities increased 9% to 4.1 at March 31, 2023 as compared to 3.8 at June 30, 2022.
Total Current Assets at March 31, 2023 were $122.0 million as compared to $118.7 million at June 30, 2022.
Total Current Liabilities at March 31, 2023 were $13.9 million as compared to $16.7 million at June 30, 2022.
Total Stockholders Equity at March 31, 2023 was $150.6 million as compared to $146.2 million at June 30, 2022.
The Current Ratio (Current Assets / Current Liabilities) increased 24% to 8.8 as compared to 7.1 at June 30, 2022.
Working Capital increased 6% to $108.1 million at March 31, 2023 as compared to $101.9 million at June 30, 2022.
Net Book Value per Common Share increased 6% to $22.79 at March 31, 2023 as compared to $21.59 at March 31, 2022, one year ago.
Cash Flow Statement Item
Net Cash Provided by Operating Activities was $10.1 million for the nine-month periods ended March 31, 2023 and March 31, 2022.
| Page |
Management Discussion
Timothy Damadian, Chairman, President and CEO of FONAR, said: “Scan volume at HMCA-managed sites for the nine-month period ending on March 31, 2023 was 139,339, which was down 1% in comparison to 140,650 scans in the corresponding period of the previous year. This was largely due to initial and then lingering COVID-related staffing shortages felt throughout the healthcare industry. In our case, the shortage has been especially acute among MRI technologists.”
“Thanks to innovative recruitment efforts, I’m pleased to report that we have been successful in filling many of the technologist vacancies, enabling most sites to return to their usual business hours, which is clearly reflected in the third quarter: Scan volume for the 3-month period ending on March 31, 2023 was 49,451, setting a new record number for the number of scans completed in any 3-month period in the history of the Company. The third quarter scan volume was 8.9% higher than that of the previous quarter (45,412) and 7.1% higher than the scan volume of the corresponding period of the previous fiscal year (46,190).”
Mr. Damadian continued, “The COVID pandemic was certainly the most destructive business disruption in HMCA’s history. We felt the worst of it in the last quarter of Fiscal 2020 and have been dealing with it ever since. So we are grateful that in spite of the pandemic, the Company has been able to maintain positive trends in both revenue and profit. SG&A and net income continue to be affected by management fee reserves, as well as tax adjustments resulting from a very detailed analysis of FONAR’s tax loss carry-forwards.”
“I would also like to report that pursuant to our September 13, 2022 announcement of a FONAR stock repurchase plan of up to $9 million, we have to date repurchased 79,540 shares at a cost of approximately $1.35 million.”
“As of March 31, 2023, HMCA was managing 41 MRI scanners, 24 in New York and 17 in Florida. In the fourth quarter of Fiscal 2023, we expect to be managing a brand new facility in the southern part of the Bronx, New York, which will be an ideal extension of the existing site located in the central part of that borough.”
“I am grateful to our management team and all the HMCA employees who have been working diligently to get our COVID-impaired sites back on track, planning, preparing and working towards growth, and keeping the Company profitable.”
| Page |
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. 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 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 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 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®, STAND-UP® and Open Sky MRI® are registered trademarks and Multi-Position™, Upright Radiology™, The Inventor of MR Scanning™, The Proof is in the Picture™, True Flow™, pMRI™, Full Range of Motion™, Spondylography™, Dynamic™, Spondylometry™, FONAR 3600™, 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.
| Page |
FONAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts and shares in thousands, except per share amounts)
(UNAUDITED)
ASSETS
| March
31, 2023 |
June
30, 2022 |
|||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 49,640 | $ | 48,723 | ||||
| Short term investments | 32 | 32 | ||||||
| Accounts receivable – net | 3,720 | 4,336 | ||||||
| Accounts receivable - related party | 30 | — | ||||||
| Medical receivable – net | 20,460 | 20,109 | ||||||
| Management and other fees receivable – net | 35,201 | 33,419 | ||||||
| Management and other fees receivable – related medical practices – net | 9,088 | 8,603 | ||||||
| Inventories | 2,661 | 2,360 | ||||||
| Prepaid expenses and other current assets | 1,166 | 1,104 | ||||||
| Total Current Assets | 121,998 | 118,686 | ||||||
| Accounts receivable – long term | 1,003 | 1,872 | ||||||
| Deferred income tax asset - net | 10,911 | 12,843 | ||||||
| Property and equipment – net | 22,775 | 22,282 | ||||||
| Right-of-use Asset – operating lease | 33,581 | 34,232 | ||||||
| Right-of-use Asset – financing lease | 779 | 928 | ||||||
| Goodwill | 4,269 | 4,269 | ||||||
| Other intangible assets – net | 3,494 | 3,704 | ||||||
| Other assets | 526 | 526 | ||||||
| Total Assets | $ | 199,336 | $ | 199,342 | ||||
| Page |
FONAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts and shares in thousands, except per share amounts)
(UNAUDITED)
LIABILITIES AND STOCKHOLDERS’ EQUITY
| March
31, 2023 |
June
30, 2022 |
|||||||
| Current Liabilities: | ||||||||
| Current portion of long-term debt | $ | 43 | $ | 40 | ||||
| Accounts payable | 1,719 | 1,552 | ||||||
| Other current liabilities | 3,496 | 6,417 | ||||||
| Unearned revenue on service contracts | 3,615 | 4,289 | ||||||
| Unearned revenue on service contracts – related party | 28 | — | ||||||
| Operating lease liability - current portion | 3,981 | 3,880 | ||||||
| Financing lease liability - current portion | 217 | 210 | ||||||
| Customer deposits | 826 | 361 | ||||||
| Total Current Liabilities | 13,925 | 16,749 | ||||||
| Long-Term Liabilities: | ||||||||
| Unearned revenue on service contracts | 1,015 | 1,857 | ||||||
| Deferred income tax liability | 216 | 216 | ||||||
| Due to related medical practices | 93 | 93 | ||||||
| Operating lease liability – net of current portion | 32,630 | 33,091 | ||||||
| Financing lease liability – net of current portion | 657 | 838 | ||||||
| Long-term debt less current portion | 126 | 155 | ||||||
| Other liabilities | 57 | 107 | ||||||
| Total Long-Term Liabilities | 34,794 | 36,357 | ||||||
| Total Liabilities | 48,719 | 53,106 | ||||||
| Page |
FONAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts and shares in thousands, except per share amounts)
(UNAUDITED)
LIABILITIES AND STOCKHOLDERS’ EQUITY (Continued)
| STOCKHOLDERS' EQUITY: | March 31, 2023 | June
30, 2022 |
||||||
| Class A non-voting preferred stock $.0001 par value; 453 shares authorized at March 31, 2023 and June 30, 2022, 313 issued and outstanding at March 31, 2023 and June 30, 2022 | $ | — | $ | — | ||||
| Preferred stock $.001 par value; 567 shares authorized at March 31, 2023 and June 30, 2022, issued and outstanding – none | — | — | ||||||
| Common Stock $.0001 par value; 8,500 shares authorized at March 31, 2023 and June 30, 2022, 6,607 and 6,566 issued at March 31, 2023 and June 30, 2022, respectively 6,538 and 6,554 outstanding at March 31, 2023 and June 30, 2022, respectively | 1 | 1 | ||||||
| Class B Common Stock (10 votes per share) $.0001 par value; 227 shares authorized at March 31, 2023 and June 30, 2022,146 issued and outstanding at March 31, 2023 and June 30, 2022 | — | — | ||||||
| Class C Common Stock (25 votes per share) $.0001 par value; 567 shares authorized at March 31, 2023 and June 30, 2022, 383 issued and outstanding at March 31, 2023 and June 30, 2022 | — | — | ||||||
| Paid-in capital in excess of par value | 184,130 | 184,531 | ||||||
| Accumulated deficit | (25,428 | ) | (33,567 | ) | ||||
| Treasury stock, at cost - 69 shares of common stock at March 31, 2023 and 12 shares of common stock at June 30, 2022 | (1,522 | ) | (675 | ) | ||||
| Total Fonar Corporation’s Stockholders’ Equity | 157,181 | 150,290 | ||||||
| Noncontrolling interests | (6,564 | ) | (4,054 | ) | ||||
| Total Stockholders' Equity | 150,617 | 146,236 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 199,336 | $ | 199,342 | ||||
| Page |
FONAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts and shares in thousands, except per share amounts)
(UNAUDITED)
|
FOR THE THREE MONTHS ENDED MARCH 31, |
||||||||
| REVENUES | 2023 | 2022 | ||||||
| Patient fee revenue – net of contractual allowances and discounts | $ | 8,188 | $ | 7,641 | ||||
| Product sales – net | 25 | 135 | ||||||
| Service and repair fees – net | 1,831 | 1,876 | ||||||
| Service and repair fees - related parties – net | 28 | 28 | ||||||
| Management and other fees – net | 12,375 | 11,904 | ||||||
| Management and other fees - related medical practices – net | 2,975 | 2,987 | ||||||
| Total Revenues – Net | 25,422 | 24,571 | ||||||
| COSTS AND EXPENSES | ||||||||
| Costs related to patient fee revenue | 4,056 | 3,306 | ||||||
| Costs related to product sales | 196 | 53 | ||||||
| Costs related to service and repair fees | 801 | 747 | ||||||
| Costs related to service and repair fees - related parties | 12 | 11 | ||||||
| Costs related to management and other fees | 7,157 | 6,696 | ||||||
| Costs related to management and other fees – related medical practices | 1,455 | 1,698 | ||||||
| Research and development | 435 | 354 | ||||||
| Selling, general and administrative | 7,143 | 6,068 | ||||||
| Total Costs and Expenses | 21,255 | 18,933 | ||||||
| Income From Operations | 4,167 | 5,638 | ||||||
| Other Expense | (6 | ) | — | |||||
| Interest (Expense) Income | (15 | ) | 31 | |||||
| Investment Income | 356 | 58 | ||||||
| Income Before Provision for Income Taxes and Noncontrolling Interests | 4,502 | 5,727 | ||||||
| Provision for Income Taxes | (17 | ) | (2,465 | ) | ||||
| Net Income | 4,485 | 3,262 | ||||||
| Net Income - Noncontrolling Interests | (625 | ) | (971 | ) | ||||
| Net Income – Attributable to FONAR | $ | 3,860 | $ | 2,291 | ||||
| Net Income Available to Common Stockholders | $ | 3,627 | $ | 2,153 | ||||
| Net Income Available to Class A Non-Voting Preferred Stockholders | $ | 174 | $ | 103 | ||||
| Net Income Available to Class C Common Stockholders | $ | 59 | $ | 35 | ||||
| Basic Net Income Per Common Share Available to Common Stockholders | $ | 0.56 | $ | 0.33 | ||||
| Diluted Net Income Per Common Share Available to Common Stockholders | $ | 0.55 | $ | 0.32 | ||||
| Basic and Diluted Income Per Share – Class C Common | $ | 0.16 | $ | 0.09 | ||||
| Weighted Average Basic Shares Outstanding – Common Stockholders | 6,481 | 6,554 | ||||||
| Weighted Average Diluted Shares Outstanding - Common Stockholders | 6,609 | 6,682 | ||||||
| Weighted Average Basic and Diluted Shares Outstanding – Class C Common | 383 | 383 | ||||||
| Page |
FONAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts and shares in thousands, except per share amounts)
(UNAUDITED)
|
FOR THE NINE MONTHS ENDED MARCH 31, |
||||||||
| REVENUES | 2023 | 2022 | ||||||
| Patient fee revenue – net of contractual allowances and discounts | $ | 21,393 | $ | 21,935 | ||||
| Product sales – net | 225 | 481 | ||||||
| Service and repair fees – net | 5,489 | 5,720 | ||||||
| Service and repair fees - related parties – net | 83 | 83 | ||||||
| Management and other fees – net | 36,717 | 35,985 | ||||||
| Management and other fees - related medical practices – net | 8,962 | 8,576 | ||||||
| Total Revenues – Net | 72,869 | 72,780 | ||||||
| COSTS AND EXPENSES | ||||||||
| Costs related to patient fee revenue | 11,879 | 9,785 | ||||||
| Costs related to product sales | 580 | 352 | ||||||
| Costs related to service and repair fees | 2,241 | 2,190 | ||||||
| Costs related to service and repair fees - related parties | 34 | 32 | ||||||
| Costs related to management and other fees | 20,281 | 20,497 | ||||||
| Costs related to management and other fees – related medical practices | 4,345 | 5,024 | ||||||
| Research and development | 1,126 | 1,109 | ||||||
| Selling, general and administrative | 20,074 | 15,928 | ||||||
| Total Costs and Expenses | 60,560 | 54,917 | ||||||
| Income From Operations | 12,309 | 17,863 | ||||||
| Other (Expense) Income | (203 | ) | 858 | |||||
| Interest Expense | (41 | ) | (9 | ) | ||||
| Investment Income | 770 | 180 | ||||||
| Income Before Provision for Income Taxes and Noncontrolling Interests | 12,835 | 18,892 | ||||||
| Provision for Income Taxes | (2,889 | ) | (5,311 | ) | ||||
| Net Income | 9,946 | 13,581 | ||||||
| Net Income - Noncontrolling Interests | (1,807 | ) | (3,383 | ) | ||||
| Net Income – Attributable to FONAR | $ | 8,139 | $ | 10,198 | ||||
| Net Income Available to Common Stockholders | $ | 7,647 | $ | 9,583 | ||||
| Net Income Available to Class A Non-Voting Preferred Stockholders | $ | 367 | $ | 458 | ||||
| Net Income Available to Class C Common Stockholders | $ | 125 | $ | 157 | ||||
| Basic Net Income Per Common Share Available to Common Stockholders | $ | 1.18 | $ | 1.46 | ||||
| Diluted Net Income Per Common Share Available to Common Stockholders | $ | 1.16 | $ | 1.43 | ||||
| Basic and Diluted Income Per Share – Class C Common | $ | 0.33 | $ | 0.41 | ||||
| Weighted Average Basic Shares Outstanding – Common Stockholders | 6,487 | 6,554 | ||||||
| Weighted Average Diluted Shares Outstanding - Common Stockholders | 6,615 | 6,682 | ||||||
| Weighted Average Basic and Diluted Shares Outstanding – Class C Common | 383 | 383 | ||||||
| Page |
FONAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts and shares in thousands, except per share amounts)
(UNAUDITED)
| FOR
THE NINE MONTHS ENDED MARCH 31, |
||||||||
| 2023 | 2022 | |||||||
| Cash Flows from Operating Activities: | ||||||||
| Net income | $ | 9,946 | $ | 13,581 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 3,357 | 3,543 | ||||||
| Amortization on right-of-use assets | 3,306 | 2,953 | ||||||
| Provision for bad debts | 4,441 | 2,150 | ||||||
| Deferred income tax – net | 1,931 | 3,484 | ||||||
| Gain on forgiveness of PPP loan | — | (701 | ) | |||||
| (Increase) decrease in operating assets, net: | ||||||||
| Accounts, medical and management fee receivable(s) | (5,604 | ) | (4,950 | ) | ||||
| Notes receivable | 11 | 32 | ||||||
| Contract assets | — | (15 | ) | |||||
| Inventories | (301 | ) | (705 | ) | ||||
| Prepaid expenses and other current assets | (73 | ) | 112 | |||||
| Other assets | — | 132 | ||||||
| Increase (decrease) in operating liabilities, net: | ||||||||
| Accounts payable | 168 | (855 | ) | |||||
| Other current liabilities | (4,409 | ) | (5,480 | ) | ||||
| Operating lease liabilities | (2,865 | ) | (2,579 | ) | ||||
| Financing lease liabilities | (175 | ) | (151 | ) | ||||
| Customer deposits | 465 | (370 | ) | |||||
| Contract liabilities | — | (15 | ) | |||||
| Other liabilities | (49 | ) | (49 | ) | ||||
| Net cash provided by operating activities | 10,149 | 10,117 | ||||||
| Cash Flows from Investing Activities: | ||||||||
| Purchases of property and equipment | (3,553 | ) | (3,807 | ) | ||||
| Purchase of noncontrolling interests | — | (546 | ) | |||||
| Cost of patents | (87 | ) | (60 | ) | ||||
| Net cash used in investing activities | (3,640 | ) | (4,413 | ) | ||||
| Cash Flows from Financing Activities: | ||||||||
| Repayment of borrowings and capital lease obligations | (26 | ) | (23 | ) | ||||
| Purchase of treasury stock | (1,249 | ) | — | |||||
| Distributions to noncontrolling interests | (4,317 | ) | (4,131 | ) | ||||
| Net cash used in financing activities | (5,592 | ) | (4,154 | ) | ||||
| Net Increase in Cash and Cash Equivalents | 917 | 1,550 | ||||||
| Cash and Cash Equivalents - Beginning of Period | 48,723 | 44,460 | ||||||
| Cash and Cash Equivalents - End of Period | $ | 49,640 | $ | 46,010 | ||||
| Page |