FONAR

FONAR's founder, Raymond Damadian, proposed the concept of the NMR body scanner in a 1970 Science paper and led the team that produced the first full-body human MRI scan on July 3, 1977. He founded FONAR in 1978 to commercialize the technology. Damadian received the National Medal of Technology and was inducted into the National Inventors Hall of Fame for this work. The company's early patents were upheld in a landmark infringement case against General Electric that settled for $128.7 million in 1997.

FONAR generates revenue through two primary channels: selling its proprietary Upright MRI scanners to hospitals and imaging centers, and operating a network of physician-staffed diagnostic facilities through its majority-owned subsidiary, Health Management Company of America (HMCA). HMCA also provides non-scanning management services — such as billing, staffing, and administrative support — to other medical practices for recurring fees. This hybrid model gives FONAR exposure to both capital-equipment sales cycles and recurring clinical service revenue.

FONAR's Upright MRI allows patients to be scanned while standing, sitting, or bending — positions that can reveal spinal and joint pathologies invisible on a standard supine (lying-down) scan. The open architecture also reduces claustrophobia complaints and accommodates patients of larger body types who cannot fit into conventional closed-bore systems. The technology is designed to capture weight-bearing anatomy, making it particularly relevant for spine surgeons and orthopedic specialists who need to observe how gravity affects the condition.

Raymond Damadian, the founder and MRI inventor, remains Chairman, President, and Treasurer of the company. His son Timothy Damadian serves as CEO. This family-led management structure has been in place for decades, with the Damadians maintaining significant operational and voting control through concentrated equity ownership. The arrangement creates a multi-generational leadership model that is unusual among publicly traded medical-device companies.

FONAR sued General Electric and other manufacturers for infringing its foundational MRI patents. After a jury trial in 1995, FONAR was awarded a judgment. The U.S. Supreme Court declined to hear GE's appeal, and in 1997 the company collected $128.7 million in damages from GE alone (per FONAR's SEC filings). The case is considered one of the most significant patent victories in medical-device history and remains a core part of the company's identity.

FONAR is both. The company manufactures and sells the Upright MRI scanner, competing with large-cap imaging OEMs. Simultaneously, through its majority-owned subsidiary HMCA, it operates a network of physician-staffed diagnostic imaging centers that use FONAR scanners and manage other facilities. This vertical integration means FONAR captures margin at two points in the value chain: the equipment sale and the ongoing clinical scan revenue.

In its most recent reported quarter (fiscal Q3 ending March 2024), FONAR posted net income of $1.4 million on total revenues of $25.7 million (per the firm's May 2024 press release). The company has maintained profitability through its combined equipment-sales and service-center model. FONAR employed approximately 340 people as of its latest annual report, with manufacturing and R&D consolidated at its Long Island headquarters.