The Southern California Regional Gamma Knife Center

9 Months Ended

Sep. 30, 2012

The Southern California Regional Gamma Knife Center [Abstract]

The Southern California Regional Gamma Knife Center

Note C – 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 its wholly-owned subsidiary, USN Corona, Inc. ("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, and increased its ownership to 44% during 2011 to accommodate a member who desired to transfer his interest.  Subsequently, in the first quarter of 2012, USNC sold a portion of its ownership to a new member, resulting in a decrease in its ownership to 39%.

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 USN 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 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

	Nine Months Ended
	September 30,
	2012			2011
Net sales	$	666,000		$	666,000
Net income (loss)	$	(22,000	)	$	76,000
USNC's equity in loss of Neuro Partners LLC	$	(4,000	)	$	15,000
	Three Months Ended
	September 30,
		2012			2011
Net sales	$	222,000		$	222,000
Net income (loss)	$	(11,000	)	$	95,000
USNC's equity in loss of Neuro Partners LLC	$	(2,000	)	$	19,000

Neuro Partners LLC Condensed Balance Sheet Information

	September 30,			December 31,
		2012			2011
Current assets	$	432,000		$	482,000
Noncurrent assets		2,420,000			2,603,000
Total assets	$	2,852,000		$	3,085,000
Current liabilities	$	580,000		$	22,000
Noncurrent liabilities		2,449,000			3,144,000
Equity		(177,000	)		(81,000	)
Total liabilities and equity	$	2,852,000		$	3,085,000