Investment in Unconsolidated Entities

12 Months Ended

Dec. 31, 2011

Investment in Unconsolidated Entities [Abstract]

Investment in Unconsolidated Entities

Note C - Investment in Unconsolidated Entities

[1]  The Southern California Regional Gamma Knife Center

During 2007, the Company managed the formation of the Southern California Regional Gamma Knife Center at San Antonio Community Hospital (“SACH”) in Upland, California.  The Company participates in the ownership and operation of the center through USNC.  Corona Gamma Knife, LLC (“CGK”) is party to a 14-year agreement with SACH to renovate space in the hospital and install and operate a Leksell PERFEXION gamma knife.  CGK leased the gamma knife from Neuro Partners LLC, which holds the gamma knife equipment. In addition to returns on its ownership interests, USNC expects to receive fees for management services relating to the facility.

USNC is a 20% owner of Neuro Partners LLC. USNC also owned initially 27% of CGK, but increased its ownership to 44% during  2011 to accommodate a member who desired to transfer his interest.

Construction of the SACH gamma knife center was completed in December 2008 and the first patient was treated in January 2009.  The project has been funded principally by outside investors.  While the Company has led the effort in organizing the business and overseeing the development and operation of the SACH center, its investment to date in the SACH center has been minimal.

Because the Company's interest in Neuro Partners LLC may be considered to be significant relative to its other assets and operations, the following summarized financial information with respect to Neuro Partners LLC is presented:

Neuro Partners LLC Condensed Income Statement Information

	Year Ended December 31,
	2011			2010			2009
Net sales	$	888,000		$	828,000		$	828,000
Net income	$	(76,000	)	$	(346,000	)	$	(112,000	)
USNC's equity in loss of Neuro Partners LLC	$	(15,000	)	$	(69,000	)	$	(22,000	)

Neuro Partners LLC Condensed Balance Sheet Information

	December 31,
	2011			2010
Current assets	$	482,000		$	344,000
Noncurrent assets	$	2,603,000		$	3,532,000
Total assets	$	3,085,000		$	3,876,000
Current liabilities	$	22,000		$	95,000
Noncurrent liabilities	$	3,144,000		$	3,948,000
Equity	$	(81,000	)	$	(167,000	)
Total liabilities and equity	$	3,085,000		$	3,876,000

[2]  Florida Oncology Partners

During the quarter ended September 30, 2010, the Company participated in the formation of Florida Oncology Partners(“FOP”), consisting of Florida Oncology Partners, LLC and Florida Oncology Partners RE, LLC, which operates a cancer center located in West Kendall, Florida. The center diagnoses and treats patients utilizing a Varian Rapid Arc linear accelerator and a GE CT scanner. USNC owns a 20% interest in FOP and invested $200,000. The remaining 80% is owned by other outside investors. The center opened and treated its first patient in May 2011. The Company's recorded investment in FOP is $270,000 at December 31, 2011.

The Company entered into a note receivable with FOP for working capital purposes, for $200,000 in August 2011, bearing interest at 10% per annum and due in August 2012. The note receivable and accrued interest total $208,000 at December 31, 2011. These amounts are included in due from related parties. The Company's maximum exposure to loss is the amount invested in FOP and the amount of note receivable and accrued interest totaling $478,000. Due to the outstanding loan, FOP is considered to be a variable interest entity of the Company. However, as the Company is not deemed to be the primary beneficiary of FOP since it does not have the power to direct the activities that most significantly impact its economic performance, certain disclosures are required rather than consolidation.

During 2011, Florida Oncology Partners, LLC entered into a capital lease with Key Bank. Under the terms of the capital lease, USNC agreed to guarantee 20% of the outstanding lease obligation in the event of default.

Because the Company's interest in Florida Oncology Partners, LLC may be considered to be significant relative to its other assets and operations, the following summarized financial information with respect to Florida Oncology Partners, LLC is presented:

Florida Oncology Partners LLC Condensed Income Statement Information

	Year Ended December 31,
	2011		2010
Net sales	$	2,005,000	$	-
Net income (loss)	$	534,000	$	(118,000	)
USNC's equity in income of Florida Oncology Partners LLC	$	107,000	$	(24,000	)

Florida Oncology Partners LLC Condensed Balance Sheet Information

	December 31,
	2011		2010
Current assets	$	1,297,000	$	229,000
Noncurrent assets	$	5,467,000	$	154,000
Total assets	$	6,764,000	$	383,000
Current liabilities	$	905,000	$	-
Noncurrent liabilities	$	4,944,000	$	-
Equity	$	915,000	$	383,000
Total liabilities and equity	$	6,764,000	$	383,000

[3] Boca Oncology Partners

During the quarter ended June 30, 2011, the Company participated in the formation of Boca Oncology Partners, LLC (“BOP”), which expects to own and operate a cancer center in Boca Raton, Florida. In June 2011, Boca Oncology Partners RE, LLC (“BOPRE”), an affiliated entity, purchased a 20% interest in a medical office building in West Boca, Florida in which BOP plans to operate.  BOP will occupy approximately 6,000 square feet of the 32,000 square foot building.  The Company's wholly-owned subsidiary, USN Corona, Inc. invested $225,000 initially and will have a 22.5% interest in BOP and BOPRE.  The remaining 77.5% will be owned by other outside investors. The Company currently expects the cancer center in Boca Raton to open in the third quarter of 2012.