Health Diagnostics' gross deposits in 2012 were $36 million.
In FY 2012, Health Diagnostics gross/adjusted deposits were approx. $36 million. And Fonar/HMCA had a 5 year agreement to be paid 5% of those deposits. But that's now gone. What a joke. Their current gross profit on their mgmt business is 14.8%. Even at an 18% gross profit, it will take over 6 years just to break even - cash wise (assuming about 8% interest on a seller financed loan). And book wise, you also have to factor in the amortization expense on the $34.4 million purchase price.
From the 2012 10k, "In June 2011, Health Diagnostics, LLC, outsourced its billing, collections and credentialing operations for the sites that it manages to HMCA-IMPERIAL. The fee is 5% of all adjusted deposits. The revenue received by HMCA-IMPERIAL in fiscal 2011 from this arrangement was $76,148 and in fiscal 2012 was $1,824,802. This agreement is for a term of five years."