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. 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 in CGK 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 the Companyhas 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.

The following tables present the aggregation of summarized financial information of Neuro Partners LLC and CGK:

Neuro Partners LLC and CGK Condensed Income Statement Information

	Year Ended
	December 31,
	2012			2011			2010

Patient Revenue	$	1,023,000		$	1,197,000		$	765,000
Rental Income		888,000			888,000			828,000
Net sales	$	1,911,000		$	2,085,000		$	1,593,000

Net income (loss)	$	(108,000	)	$	(95,000	)	$	(467,000	)

USNC's equity in income (loss) of Neuro Partners LLC and CGK	$	(34,000	)	$	(23,000	)	$	(135,000	)


Neuro Partners LLC and CGK Condensed Balance Sheet Information

	December 31,
		2012			2011

Current assets	$	468,000		$	607,000

Noncurrent assets	$	2,261,000		$	2,603,000

Total assets	$	2,729,000		$	3,210,000

Current liabilities	$	442,000		$	440,000

Noncurrent liabilities	$	2,896,000		$	3,169,000

Equity	$	(609,000	)	$	(399,000)

Total liabilities and equity	$	2,729,000		$	3,210,000

[2]	Florida Oncology Partners

During the quarter ended September 30, 2010, the Company participated in the formation of Florida Oncology Partners, LLC ("FOP") and Florida Oncology Partners RE, LLC ("FOPRE"), which operates a cancer center located in West Kendall (Miami), Florida. The center diagnoses and treats patients utilizing a Varian Rapid Arc linear accelerator and a GE CT scanner. USNC originally invested $200,000 for 20% ownership interest in FOP and FOPRE. The remaining 80% is owned by other outside investors. The center opened and treated its first patient in May 2011. FOP made several distributions during the year that reduced the Company's investment significantly. The Company's recorded investment in FOP and FOPRE is $135,000 and $270,000 at December 31, 2012 and 2011, respectively.

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. The note (principal) was repaid in May 2012. The outstanding balance on the lease obligation was $4,917,000 at December 31, 2012.

During 2011, Florida Oncology Partners, LLC entered into a capital lease with Key Bank for approximately $5,600,000. Under the terms of the capital lease, USNC agreed to guarantee 20% of the outstanding lease obligation in the event of default.

In June 2012, FOPRE completed the financing agreement to purchase the building that is occupied by FOP. The amount of the loan was $1,354,275 to be paid at a monthly rate of approximately $8,500 for 120 months with the final payment due on June 15, 2022.

The following tables present the aggregation of summarized financial information of FOP and FOPRE:

FOP and FOPRE Condensed Income Statement Information
	Year Ended December 31,
	2012		2011		2010

Patient revenue	$	3,251,000	$	2,117,000	$	-
Rental income		90,000		-
Net sales		3,341,000		2,117,000		-

Net income (loss)	$	503,000	$	469,000	$	(118,000	)


USNC's equity in income (loss) of of FOP and FOPRE	$	106,000	$	94,000	$	(24,000	)


FOP and FOPRE Condensed Balance Sheet Information

	December 31,
		2012		2011

Current assets	$	919,000	$	1,524,000

Noncurrent assets	$	6,374,000	$	5,717,000

Total assets	$	7,293,000	$	7,241,000

Current liabilities	$	965,000	$	1,001,000

Noncurrent liabilities	$	5,734,000	$	4,977,000

Equity	$	594,000	$	1,263,000

Total liabilities and equity	$	7,293,000	$	7,241,000

[3] Boca Oncology Partners

During the quarter ended June 30, 2011, the Company participated in the formation of Boca Oncology Partners, LLC ("BOP"), for the purpose of owning and operating 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 operates. BOP occupies approximately 6,000 square feet of the 32,000 square foot building. The Company's wholly-owned subsidiary, USNC invested $225,000 initially and had a 22.5% interest in BOP and BOPRE. In January 2012, an additional investor purchased 50% of the partnership reducing the Company's ownership to 11.25%. The Company loaned the proceeds of $56,250 back to BOP as a 5 year note at 7% interest. The remaining 88.75% is owned by other outside investors. In June 2012, BOPRE purchased 3.75% of Boca West IMP from another investor and then sold 31.5% of BOPRE to a new investor. The proceeds of $28,000 were loaned to BOP and USNC's investment in BOPRE was reduced to 15.4%. Due to the outstanding loans, BOP is considered to be a variable interest entity of the Company. However, as the Company is not deemed to be the primary beneficiary of BOP 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. The center opened in August 2012.

The following tables present the aggregation of summarized financial information of BOP and BOPRE:

BOP and BOPRE Condensed Income Statement Information
	Year Ended December 31,
	2012			2011

Patient revenue	$	261,000		$	-

Net loss	$	(578,000	)	$	(106,000	)

USNC's equity in loss	$	(65,000	)	$	(24,000	)


BOP and BOPRE Condensed Balance Sheet Information

	December 31,
		2012		2011

Current assets	$	289,000	$	236,000

Noncurrent assets	$	2,897,000	$	439,000

Total assets	$	3,186,000	$	675,000

Current liabilities	$	308,000	$	-

Noncurrent liabilities	$	2,368,000	$	-

Equity	$	510,000	$	675,000

Total liabilities and equity	$	3,186,000	$	675,000