Florida Oncology Partners

9 Months Ended

Sep. 30, 2012

Florida Oncology Partners [Abstract]

Florida Oncology Partners

Note E – Florida Oncology Partners

During the quarter ended September 30, 2010, the Company participated in the formation of Florida Oncology Partners, consisting of, Florida Oncology Partners, LLC ("FOP"), and Florida Oncology Partners RE, LLC, ("FOPRE") (collectively referred to as "Florida Oncology Partners"), 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 Florida Oncology Partners 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 Florida Oncology Partners is $200,000 at September 30, 2012, consisting of a $160,000 investment in FOP and a $40,000 investment in FOPRE.

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.  This note (principal) was repaid in May 2012.

During 2011, FOP 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 of $5,060,255 at September 30, 2012 in the event of default.

In June of 2012, FOPRE completed the financing agreement to purchase the building that is occupied by FOP. The amount of the loan was $1,534,275 to be paid at a monthly rate of approximately $8,500 for 120 months with the final payment due in June 15, 2022.

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

Florida Oncology Partners LLC Condensed Income Statement Information

	Nine Months Ended
	September 30,
	2012		2011
Net sales	$	2,322,000	$	1,110,000
Net income	$	364,000	$	86,000
USNC's equity in income of Florida Oncology Partners LLC	$	73,000	$	17,000
	Three Months Ended
	September 30,
		2012		2011
Net sales	$	839,000	$	465,000
Net income	$	178,000	$	390,000
USNC's equity in income of Florida Oncology Partners LLC	$	36,000	$	78,000

Florida Oncology Partners LLC Condensed Balance Sheet Information

	September 30,		December 31,
		2012		2011
Current assets	$	1,076,000	$	1,297,000
		.
Noncurrent assets		5,115,000		5,467,000
Total assets	$	6,191,000	$	6,764,000
Current liabilities	$	968,000	$	905,000
Noncurrent liabilities		4,416,000		4,944,000
Equity		807,000		915,000
Total liabilities and equity	$	6,191,000	$	6,764,000