Fonar Corporation (Fonar) operates in two segments: medical equipment segment, and physician management and diagnostic services segment. The Company is engaged in the business of designing, manufacturing, selling and servicing magnetic resonance imaging (MRI) scanners, which utilize MRI technology for the detection and diagnosis of human disease, abnormalities, other medical conditions and injuries. Health Management Corporation of America (HMCA) was established as a wholly owned subsidiary to enable the Company to expand into the business of providing management services to medical providers. HMCA provides management services, administrative services, billing and collection services, office space, equipment, repair, maintenance service and clerical and other non-medical personnel to medical providers. As of June 30, 2012, Imperial managed 11 diagnostic imaging facilities located in states of New York and Florida.