FONAR Corporation (FONR)

FONAR Corporation, based in Melville, New York, was a developer of magnetic resonance imaging (MRI) scanners and a manager of diagnostic imaging centers. It was founded in 1978 by Raymond Damadian, who is credited with early work showing that MRI could be used to distinguish tumor tissue from normal tissue, and who led the construction of the first MRI scanner for the human body. Dr. Damadian died in 2022, and his son Timothy Damadian led the company as chief executive.

FONAR operated in two segments. Its medical equipment segment designed, manufactured and serviced MRI scanners, including the Upright MRI, which allows patients to be scanned while sitting, standing or bending, in addition to lying down. The scanners were intended to show conditions that appear only under weight-bearing positions, such as certain spinal and joint problems.

Its second segment, physician management and diagnostic services, was carried out largely through Health Management Corporation of America. This business provided non-medical management services to diagnostic imaging practices, including administrative support, billing and collections, compliance, information technology and marketing. The company reported that it managed dozens of imaging facilities, primarily in New York and Florida, and owned several centers in Florida.

The company's common stock was quoted on Nasdaq under the symbol FONR. FONAR had several share classes, including Class B common stock with enhanced voting rights, Class C common stock and Class A non-voting preferred stock, which meant the controlling holders could exert substantial influence over matters put to a vote. The business was profitable in recent years and funded itself from internal cash flow.

On December 23, 2025, FONAR entered into a merger agreement with FONAR, LLC, a Delaware limited liability company formed by an acquisition group led by Timothy Damadian. Because members of management were on the buyer side, the transaction was a going-private transaction subject to Schedule 13E-3 disclosure, and a special process was used to evaluate it. The agreement provided $19.00 in cash for each share of common stock and Class B common stock.

The merger closed on June 3, 2026, when FONAR Acquisition Sub, Inc. merged into FONAR Corporation, which survived as a wholly owned subsidiary of FONAR, LLC. In addition to $19.00 for common and Class B shares, holders received $6.34 per Class C share and $10.50 per share of Class A non-voting preferred stock. FONAR asked Nasdaq to suspend trading before the open on June 3, 2026 and to file a Form 25, and it planned to file a Form 15 to end its SEC reporting.