Filing pursuant to Rule 424(b)(3)
                                            Registration Statement No. 333-63782



                 PROSPECTUS SUPPLEMENT NO 1. DATED JUNE 24, 2002

                       (TO PROSPECTUS DATED NOVEMBER 1, 2001)

                                9,900,000 SHARES

FONAR CORPORATION


                                  COMMON STOCK

This  prospectus  supplement  relates to a temporary  reduction  in the exercise
price of the  callable  warrants  previously  issued by us to The Tail Wind Fund
Ltd.  covering  2,000,000  shares of our common stock.  See "Callable  Warrants"
below  for a more  detailed  description  of this  reduction  and  the  callable
warrants.

You  should  read  this  prospectus   supplement  along  with  the  accompanying
prospectus.  These documents contain information you should consider when making
your  investment  decision.  You should rely only on  information  contained  or
incorporated  by reference in this  prospectus  supplement and the  accompanying
prospectus.  We have not authorized anyone else to provide you with different or
additional  information.  You  should not assume  that the  information  in this
prospectus  supplement  is  accurate  as of any date  other than the date on the
front of this document.

The prospectus  supplement and the accompanying  prospectus do not constitute an
offer to sell or a solicitation of an offer to buy any securities other than the
common stock offered  hereby.  This prospectus  supplement and the  accompanying
prospectus do not constitute an offer to sell or a  solicitation  of an offer to
buy our common stock in any  circumstances  in which an offer or solicitation is
unlawful.

INVESTING IN OUR COMMON STOCK INVOLVES A HIGH DEGREE OF RISK. SEE "RISK
FACTORS" BEGINNING ON PAGE 4 OF THE PROSPECTUS.

NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR DETERMINED IF THIS
PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.

                              SELLING STOCKHOLDERS
                                CALLABLE WARRANTS

On May 24, 2001, we issued callable warrants to The Tail Wind Fund Ltd. covering
2,000,000  shares  of our  common  stock.  Under  the  original  terms  of those
warrants, the exercise price was to be equal to the average closing bid price of
Fonar's common stock for the full calendar month  preceding the date of exercise
subject to a maximum  exercise  price of $6.00 per share and a minimum  exercise
price of $2.00 per share.

In order to induce The Tail Wind Fund Ltd. to exercise the callable  warrants we
have  agreed to set the  exercise  price of the  callable  warrants at $1.50 per
share for the period from the date of this prospectus  through July 31, 2002. We
also agreed not to exercise our right to redeem any callable warrants during the
months of July, 2002 and August, 2002.

In return The Tail Wind Fund Ltd. has agreed to exercise  callable  warrants for
at least  500,000  shares of common stock  during this period.  Except for these
shares,  The Tail Wind Fund shall have the right to  exercise or not to exercise
the callable warrants in its sole and absolute  discretion.  We do not presently
know or have any  indication  from The Tail Wind Fund Ltd as to the total number
of shares of our  common  stock  they will  purchase  on  exercise  of  callable
warrants.

In consideration for The Tail Wind Fund Ltd.'s exercise of callable warrants, we
have agreed to issue by August 15, 2002, new callable warrants covering the same
number of shares as the  number of shares  purchased  by The Tail Wind Fund Ltd.
upon  exercise  of callable  warrants at the reduced  price of $1.50 by July 31,
2002. We have agreed to file a registration  statement for the underlying shares
by August 31, 2002.

To date,  and not  including any shares of common stock which may be issued upon
the exercise of the callable warrants, we have issued 4,921,576 shares of common
stock to The Tail Wind Fund Ltd.  These  shares are  covered  by the  prospectus
dated November 1, 2001 which is part of our  Registration  Statement on Form S-3
(File  No.  333-63782).  The  shares  issued  to date  have been used to pay the
convertible debentures, which have now been paid in full.

                                 USE OF PROCEEDS

We intend to use the net proceeds from the exercise of the callable warrants for
general corporate purposes,  including working capital to fund operating losses,
expenses and capital expenditures.  As of the date of this prospectus, we cannot
specify with certainty the  particular  uses for the net proceeds we may receive
upon the exercise of the warrants.  Accordingly,  our management will have broad
discretion in the application of any net proceeds  received.  Pending such uses,
we intend to invest  the net  proceeds  from the  exercise  of the  warrants  in
short-term, interest-bearing, investment grade securities.

                           MARKET FOR OUR COMMON STOCK

Our  common  stock is listed on the  NASDAQ  Small Cap  Market  under the symbol
"FONR".  On June 21,  2002 our  closing  price of one share of common  stock was
$2.01.  As  of  June  21,  2002,  we  had  70,766,820  shares  of  common  stock
outstanding.

                       WHERE YOU CAN FIND MORE INFORMATION

The SEC allows us to  "incorporate by reference"  information  that we file with
them, which means that we can disclose important information to you by referring
you  to  those  documents.  The  information  incorporated  by  reference  is an
important part of this prospectus supplement and the accompanying prospectus.

The  documents we  incorporate  by reference  and where you can find  additional
filings  and  information  concerning  Fonar  are set  forth  in the  prospectus
beginning on page 17.