Fonar Stock Price, News & Analysis

Fonar Corporation (NASDAQ: FONR) is an electromechanical and electrotherapeutic apparatus manufacturer focused on magnetic resonance imaging (MRI) technology for medical diagnostics. According to company disclosures, Fonar designs, manufactures, sells and services MRI scanners that use MRI technology for the detection and diagnosis of human disease, abnormalities, medical conditions and injuries. The company also manages diagnostic imaging centers, and its primary source of income and growth is attributable to its wholly owned diagnostic imaging management subsidiary, Health Management Company of America (HMCA).

Fonar, which describes itself as "The Inventor of MR Scanning™," was incorporated in 1978 and is located in Melville, New York. The company reports that it went public in 1981 and trades on the Nasdaq Capital Market under the symbol FONR. Fonar states that it is the first, oldest and most experienced MRI company in the industry. It sold what it describes as the world's first commercial MRI to a physician in Cleveland, Ohio, with installation in 1980, and reports that the world's first clinical MRI trials began in January 1981 using its technology.

Business segments and revenue sources

Fonar reports two main operating segments. One segment is the manufacturing and servicing of medical equipment, which includes product sales, upgrades, and service and repair fees for related and non-related medical parties. The other segment is the management of diagnostic imaging centers through HMCA. Company releases state that the management of diagnostic imaging centers, including patient fee revenue (net of contractual allowances and discounts) and management and other fees for related and non-related medical practices, generates the vast majority of Fonar's revenue.

HMCA manages MRI scanners at centers in New York and Florida. Company news releases describe HMCA as Fonar's primary source of income and growth and note that the number of MRI scanners managed by HMCA has increased over time from single digits in 2009 to several dozen scanners. These centers use MRI systems that include Fonar's own scanners as well as other MRI systems, and HMCA's activities include managing scan volume and adding scanners at selected locations.

Core MRI technology and signature product

Fonar identifies its signature product as the FONAR UPRIGHT® Multi-Position™ MRI, also referred to as the STAND-UP® MRI. Company descriptions state that this is the only whole-body MRI that performs Position™ Imaging (pMRI™) and scans patients in numerous weight-bearing positions, including standing, sitting, flexion, extension and the conventional lie-down position. Fonar reports that this system can often detect patient problems that other MRI scanners cannot, because conventional scanners are described as lie-down, "weightless-only" systems.

According to Fonar, the UPRIGHT® MRI is a patient-friendly scanner with a near-zero patient claustrophobic rejection rate. Company materials include a customer quotation stating that if a patient is claustrophobic in this scanner, they would be claustrophobic in the parking lot, and note that approximately 85% of patients are scanned sitting while watching television. Fonar also states that STAND-UP® MRI systems are the only MRIs that can scan patients in weight-bearing positions and the only MRIs that can scan the cervical and lumbar spine in flexion and extension.

Diagnostic imaging management through HMCA

Fonar's HMCA subsidiary manages MRI centers that use both STAND-UP® MRI scanners and high-field MRI scanners. Company commentary explains that additional scanners are often installed at busy centers to reduce scheduling backlogs and that high-field MRIs are used where high-resolution imaging or certain advanced applications are required. Fonar states that centers equipped with both a STAND-UP® MRI and a high-field MRI can address a broad range of MRI needs and that this combination is attractive to referring physicians and patients.

HMCA-managed centers in New York and Florida generate patient fee revenue and management and other fees, and Fonar's releases describe scan volumes at these centers in terms of tens of thousands of scans per quarter and hundreds of thousands of scans per year. The company notes that it adds scanners or new centers where it believes its technology and services would enhance its existing regional networks.

Research, development and works-in-progress technology

Fonar reports that it has works-in-progress technology for visualizing and quantifying the cerebral hydraulics of the central nervous system, specifically the flow of cerebrospinal fluid (CSF), which it states circulates throughout the brain and vertebral column at a rate of 32 quarts per day. According to the company, this imaging and quantification of CSF dynamics has been made possible by its introduction of MRI and by a method for quantifying CSF in normal body positions, particularly in upright flow against gravity. Fonar notes that patients with whiplash or other neck injuries are among those who may benefit from this understanding.

Company materials also describe research use of the UPRIGHT® MRI for studying posture-dependent spinal changes and CSF flow, and refer to works-in-progress methods for measuring upright cerebral hydraulics using its scanners. Fonar emphasizes that its UPRIGHT® Multi-Position™ MRI is the only scanner licensed under its patents related to full weight-bearing MRI imaging of gravity-sensitive regions of the human anatomy and measurement of upright CSF hydraulics.

Patents and intellectual property

Fonar highlights what it calls a substantial list of patents. These include patents for technology enabling full weight-bearing MRI imaging of gravity-sensitive regions such as the brain, extremities and spine, and patents for measuring the upright cerebral hydraulics of CSF in the central nervous system. The company states that the FONAR UPRIGHT® Multi-Position™ MRI is the only scanner licensed under these patents.

Company historical materials also describe the legacy of its founder, including the discovery in 1970 of differences in nuclear magnetic resonance relaxation times between normal and abnormal tissues, the publication of a 1971 paper in the journal Science, and a U.S. patent often referred to as "The Cancer Detection Patent." Fonar reports that this patent and subsequent litigation played a role in the development of the MRI industry and in the company's history, including a court award related to MRI patents.

Corporate history and legacy

Fonar states that it sold and installed the first commercial MRI in 1980 using a scanning method called Field fOcused Nuclear mAgnetic Resonance (FONAR). It reports that early clinical MRI trials using its scanner began in 1981 and that the results were published in medical journals. The company emphasizes its role in the origin of MRI scanning and notes that its founder was inducted into the National Inventors Hall of Fame in connection with the invention of MRI scanning.

Company communications also describe a museum at its Melville, New York location that presents historical artifacts related to the world's first MRI scan and the development of MRI technology. Fonar uses trademarks such as UPRIGHT®, STAND-UP®, The Inventor of MR Scanning™, Multi-Position™, UPRIGHT RADIOLOGY™, pMRI™, CFS Videography™, Dynamic™ and The Proof is in the Picture™ in connection with its products and history.

Capital markets and going-private transaction

Fonar's common stock trades on the Nasdaq Capital Market under the symbol FONR. In a press release dated December 29, 2025, the company announced that it had entered into a definitive merger agreement with an acquisition group led by its chief executive officer and including certain members of management, directors and third parties. Under the agreement, subject to specified conditions, the buyer would acquire all issued and outstanding shares of the company not already owned by the acquisition group or held in treasury, in an all-cash transaction at stated per-share amounts for the company's various classes of stock. The company stated that the transaction is expected to close in the third fiscal quarter of 2026, subject to stockholder approval and other customary closing conditions, and that upon completion of the transaction the company's common stock will no longer be listed on the Nasdaq Stock Market.

Earlier in 2025, Fonar disclosed that its board of directors had received a preliminary non-binding proposal and a supplemental proposal from a proposed acquisition group led by its chief executive officer to acquire all outstanding capital stock not owned by the group. These proposals and the later definitive agreement were reviewed by a special committee of independent and disinterested directors, which retained independent financial and legal advisors. The company has indicated that detailed information about the proposed transaction will be provided in proxy materials and a Schedule 13E-3 transaction statement to be filed with the U.S. Securities and Exchange Commission.

Regulatory reporting and financial information

Fonar files periodic reports and current reports with the U.S. Securities and Exchange Commission (SEC), including Form 10-K annual reports, Form 10-Q quarterly reports and Form 8-K current reports. In an 8-K dated November 12, 2025, the company reported that it had issued a press release describing its results of operations and financial condition for the first quarter of fiscal 2026. Company press releases summarize metrics such as total revenues, income from operations, net income, cash and cash equivalents, total assets, total liabilities, working capital, current ratio and net book value per common share, as well as scan volumes and the number of MRI scanners managed by HMCA.

Fonar has also disclosed a stock repurchase plan adopted on September 13, 2022, under which it may repurchase shares of its common stock subject to restrictions under SEC rules. Company releases describe the number of shares repurchased and the total cost under this plan as of various dates, and note that repurchases have been suspended during periods when a potential going-private transaction is under consideration.

Board and governance developments

In 2025, Fonar reported changes to its board of directors in SEC filings and press releases. An 8-K dated June 23, 2025, disclosed the retirement of a director and company secretary, effective June 19, 2025, and stated that there was no disagreement with the company on matters relating to operations, policies or practices. An 8-K dated July 2, 2025, reported the appointment of an independent director to fill the resulting vacancy, noting that the new director is a certified public accountant and a partner at an accounting and business advisory firm.

Position within the medical device and imaging services sector

Based on its own descriptions, Fonar operates at the intersection of medical device manufacturing and diagnostic imaging services. It designs and services MRI scanners, particularly the UPRIGHT® Multi-Position™ MRI, and through HMCA manages MRI centers that use these scanners along with other MRI systems. The company emphasizes its historical role in the development of MRI technology, its portfolio of patents related to weight-bearing and upright MRI imaging, and its ongoing work on CSF flow visualization and quantification.