Fonar Corp (NASDAQ: FONR) is a medical equipment and diagnostic services company that designs, manufactures, sells, and services magnetic resonance imaging scanners. Revenue comes from two segments: direct MRI scanner sales and servicing, and management fees earned by subsidiary Health Management Corporation of America (HMCA) for providing administrative, billing, and operational services to diagnostic imaging practices, plus direct patient billing at six Florida-owned imaging facilities. Fonar built the first MRI scanner in 1977 and introduced the first commercial MRI scanner in 1980, giving it a long-standing position in the open and upright MRI niche. Its Upright MRI operates at 0.6 Tesla, a mid-field strength, and competes against high-field scanner makers including Siemens, General Electric, Philips, Fujifilm, Canon, and United Imaging. As of June 30, 2025, Fonar held 245 issued patents, with four new patents obtained in fiscal year 2025. HMCA holds a 70.6% direct ownership interest in Health Diagnostics Management, LLC as of the fiscal year ended June 30, 2025.

Revenue model

Two segments: (1) medical equipment segment generating revenue from MRI scanner sales and service contracts; (2) physician management and diagnostic services segment where HMCA earns contractual management fees from client medical practices and bills patients and insurers directly at six owned Florida diagnostic imaging facilities.

Products and services

Upright MRI scanner (0.6 Tesla, open design, weight-bearing and positional imaging); iron-core non-superconductive and permanent magnet MRI technology; MRI scanner servicing; HMCA management services including administration, billing and collection, credentialing, compliance consulting, IT services, personnel management, and medical records storage.

Customers and end markets

Diagnostic imaging medical practices and providers (management services clients); patients and third-party insurers including private managed care and government payors such as Medicaid (direct billing at Florida facilities); hospitals and physician groups purchasing or leasing MRI equipment.

Value-chain role

Vertically integrated: manufactures and sells MRI hardware, services installed equipment, and operates a downstream management services subsidiary that administers imaging center operations and owns imaging facilities.

Geographic exposure

United States. Six directly owned diagnostic imaging facilities are located in Florida. Filing does not disclose international revenue breakdown.

Competitors

Siemens, General Electric, Philips, Fujifilm, Canon, United Imaging

Source: SEC 10-K, filed 2025-09-22

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