x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
|
Delaware
|
|
52-1842411
|
(State of other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
Large accelerated filer o
|
Accelerated filer o
|
Non-accelerated filer o
|
Smaller reporting company x
|
PART I - FINANCIAL INFORMATION
|
3
|
|
|
Item 1. Financial Statements
|
3
|
|
14
|
|
|
18
|
|
|
Item 4. Controls and Procedures
|
18
|
PART II - OTHER INFORMATION
|
21
|
|
|
Item 1. Legal Proceedings
|
21
|
|
21
|
|
|
Item 3. Defaults Upon Senior Securities
|
21
|
|
21
|
|
|
Item 5. Other Information
|
21
|
|
Item 6. Exhibits
|
21
|
22
|
|
June 30,
|
December 31,
|
||||||
|
2013
|
2012
|
||||||
|
(UNAUDITED)
|
|||||||
ASSETS
|
||||||||
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
1,646,000
|
$
|
1,450,000
|
||||
Accounts receivable
|
-
|
7,000
|
||||||
Insurance recoveries receivable
|
-
|
3,265,000
|
||||||
Due from related parties
|
514,000
|
292,000
|
||||||
Other current assets
|
84,000
|
33,000
|
||||||
Total current assets
|
2,244,000
|
5,047,000
|
||||||
|
||||||||
Investment in unconsolidated entities
|
308,000
|
246,000
|
||||||
|
||||||||
Total assets
|
$
|
2,552,000
|
$
|
5,293,000
|
||||
|
||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
|
||||||||
Current liabilities:
|
||||||||
Accounts payable and accrued expenses
|
$
|
160,000
|
$
|
67,000
|
||||
Obligations under capital lease
|
-
|
2,271,000
|
||||||
Asset retirement obligations
|
485,000
|
525,000
|
||||||
Total current liabilities
|
645,000
|
2,863,000
|
||||||
|
||||||||
Deferred income taxes
|
166,000
|
362,000
|
||||||
|
||||||||
Total liabilities
|
$
|
811,000
|
$
|
3,225,000
|
||||
|
||||||||
Commitments and contingencies
|
||||||||
|
||||||||
Stockholders’ equity:
|
||||||||
Common stock
|
78,000
|
78,000
|
||||||
Additional paid-in capital
|
3,100,000
|
3,100,000
|
||||||
Accumulated deficit
|
(1,437,000
|
)
|
(1,110,000
|
)
|
||||
Total stockholders’ equity
|
1,741,000
|
2,068,000
|
||||||
|
||||||||
Total liabilities and stockholders' equity
|
$
|
2,552,000
|
$
|
5,293,000
|
|
Three Months Ended
|
|||||||
|
June 30,
|
|||||||
|
2013
|
2012
|
||||||
|
||||||||
Revenue:
|
||||||||
Patient revenue
|
$
|
-
|
$
|
469,000
|
||||
|
||||||||
Expenses:
|
||||||||
Patient expenses
|
-
|
220,000
|
||||||
Selling, general and administrative
|
322,000
|
210,000
|
||||||
|
||||||||
Total
|
322,000
|
430,000
|
||||||
|
||||||||
Operating income (loss)
|
(322,000
|
)
|
39,000
|
|||||
|
||||||||
Income from investments in unconsolidated entities - net
|
19,000
|
6,000
|
||||||
Interest expense
|
-
|
(57,000
|
)
|
|||||
Interest income
|
3,000
|
1,000
|
||||||
|
||||||||
Income (loss) before income taxes
|
(300,000
|
)
|
(11,000
|
)
|
||||
|
||||||||
Income tax benefit
|
112,000
|
-
|
||||||
|
||||||||
Net loss
|
(188,000
|
)
|
(11,000
|
)
|
||||
|
||||||||
Basic and diluted loss per share
|
$
|
(0.02
|
)
|
$
|
-
|
|||
|
||||||||
Weighted average shares outstanding
|
7,797,185
|
7,797,185
|
|
Six Months Ended
|
|||||||
|
June 30,
|
|||||||
|
2013
|
2012
|
||||||
|
||||||||
Revenue:
|
||||||||
Patient revenue
|
-
|
$
|
1,064,000
|
|||||
|
||||||||
Expenses:
|
||||||||
Patient expenses
|
-
|
426,000
|
||||||
Selling, general and administrative
|
544,000
|
488,000
|
||||||
|
||||||||
Total
|
544,000
|
914,000
|
||||||
|
||||||||
Operating income (loss)
|
(544,000
|
)
|
150,000
|
|||||
|
||||||||
Gain from sales of investments in unconsolidated entities
|
-
|
24,000
|
||||||
Income (loss) from invesment in unconsolidated entites - net
|
12,000
|
(15,000
|
)
|
|||||
Interest expense
|
-
|
(116,000
|
)
|
|||||
Interest income
|
9,000
|
8,000
|
||||||
|
||||||||
Income (loss) before income taxes
|
(523,000
|
)
|
51,000
|
|||||
|
||||||||
Income tax benefit
|
196,000
|
-
|
||||||
|
||||||||
Net income (loss)
|
$
|
(327,000
|
)
|
$
|
51,000
|
|||
|
||||||||
Basic and diluted income (loss) per share
|
$
|
(0.04
|
)
|
$
|
0.01
|
|||
|
||||||||
Weighted average shares outstanding
|
7,797,185
|
7,797,185
|
|
Six Months Ended
|
|||||||
|
June 30,
|
|||||||
|
2013
|
2012
|
||||||
Cash flows from operating activities:
|
||||||||
Net income (loss)
|
$
|
(327,000
|
)
|
$
|
51,000
|
|||
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:
|
||||||||
Depreciation and amortization
|
-
|
256,000
|
||||||
Gain from sales of investments in unconsolidated entites
|
(24,000
|
)
|
||||||
Loss (income) from investments in unconsolidated entites - net
|
(12,000
|
)
|
31,000
|
|||||
Deferred income taxes
|
(196,000
|
)
|
-
|
|||||
Changes in:
|
||||||||
Accounts receivable
|
7,000
|
(65,000
|
)
|
|||||
Due from related parties
|
(222,000
|
)
|
166,000
|
|||||
Other current assets
|
(51,000
|
)
|
(6,000
|
)
|
||||
Accounts payable and accrued expenses
|
93,000
|
(19,000
|
)
|
|||||
Asset retirement obligations
|
(40,000
|
)
|
-
|
|||||
|
||||||||
Net cash provided (used) by operating activities
|
(748,000
|
)
|
390,000
|
|||||
|
||||||||
Cash flows from investing activities:
|
||||||||
Investments in unconsolidated entities
|
(50,000
|
)
|
-
|
|||||
Proceeds from insurance recoveries
|
3,265,000
|
-
|
||||||
|
||||||||
Net cash provided by investing activities
|
3,215,000
|
-
|
||||||
|
||||||||
Cash flows from financing activities:
|
||||||||
Repayment of capital lease obligations
|
(2,271,000
|
)
|
(264,000
|
)
|
||||
|
||||||||
Net change in cash and cash equivalents
|
$
|
196,000
|
$
|
126,000
|
||||
|
||||||||
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD
|
$
|
1,450,000
|
$
|
830,000
|
||||
|
||||||||
CASH AND CASH EQUIVALENTS - END OF PERIOD
|
$
|
1,646,000
|
$
|
956,000
|
||||
|
||||||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid for
|
||||||||
Interest
|
$
|
-
|
$
|
116,000
|
||||
|
||||||||
Supplemental disclosure of noncash investing and financing activities
|
||||||||
Distribution from unconsolidated entities included in due from related parties |
$
|
-
|
$
|
50,000
|
||||
Sales proceeds from sale of member interests in unconsolidated entities included in due from related parties
|
$
|
-
|
$
|
112,000
|
||||
Investment in unconsolidated entities included in due from related parties
|
$
|
-
|
$
|
28,000
|
|
Six Months Ended
|
|||||||
|
June 30,
|
|||||||
|
2013
|
2012
|
||||||
|
||||||||
Patient revenue
|
$
|
603,000
|
$
|
516,000
|
||||
Rental income
|
444,000
|
444,000
|
||||||
Net sales
|
$
|
1,047,000
|
$
|
960,000
|
||||
|
||||||||
Net income (loss)
|
$
|
(3,000
|
)
|
$
|
27,000
|
|||
|
||||||||
USNC's equity in income (loss) of Neuro Partners LLC and CGK
|
$
|
(6,000
|
)
|
$
|
10,000
|
|
Three Months Ended
|
|||||||
|
June 30,
|
|||||||
|
2013
|
2012
|
||||||
|
||||||||
Patient revenue
|
$
|
245,000
|
$
|
269,000
|
||||
Rental income
|
222,000
|
222,000
|
||||||
Net sales
|
$
|
467,000
|
$
|
491,000
|
||||
|
||||||||
Net income (loss)
|
$
|
(66,000
|
)
|
$
|
159,000
|
|||
|
||||||||
USNC's equity in income (loss) of Neuro Partners LLC and CGK
|
$
|
(28,000
|
)
|
$
|
32,000
|
|
June 30,
|
December 31,
|
||||||
|
2013
|
2012
|
||||||
|
||||||||
Current assets
|
$
|
547,000
|
$
|
468,000
|
||||
|
||||||||
Noncurrent assets
|
$
|
1,943,000
|
$
|
2,261,000
|
||||
|
||||||||
Total assets
|
$
|
2,490,000
|
$
|
2,729,000
|
||||
|
||||||||
Current liabilities
|
$
|
1,112,000
|
$
|
442,000
|
||||
|
||||||||
Noncurrent liabilities
|
$
|
1,990,000
|
$
|
2,896,000
|
||||
|
||||||||
Equity
|
$
|
(612,000
|
)
|
$
|
(609,000
|
)
|
||
|
||||||||
Total liabilities and equity
|
$
|
2,490,000
|
$
|
2,729,000
|
|
Six Months Ended
|
|||||||
|
June 30,
|
|||||||
|
2013
|
2012
|
||||||
|
||||||||
Patient revenue
|
$
|
1,469,000
|
$
|
1,483,000
|
||||
Rental income
|
$
|
90,000
|
$
|
-
|
||||
Net sales
|
$
|
1,559,000
|
$
|
1,483,000
|
||||
|
||||||||
Net income
|
$
|
81,000
|
$
|
186,000
|
||||
|
||||||||
USNC's equity in income of FOP and FOPRE
|
$ | 16,000 | $ | 37,000 |
|
Three Months Ended
|
|||||||
|
June 30,
|
|||||||
|
2013
|
2012
|
||||||
|
||||||||
Patient revenue
|
$
|
812,000
|
$
|
922,000
|
||||
Rental income
|
$
|
45,000
|
$
|
-
|
||||
Net sales
|
$
|
857,000
|
$
|
922,000
|
||||
|
||||||||
Net income
|
$
|
116,000
|
$
|
250,000
|
||||
|
||||||||
USNC's equity in income of FOP and FOPRE
|
$ | 23,000 | $ | 50,000 |
|
June 30,
|
December 31,
|
||||||
|
2013
|
2012
|
||||||
|
||||||||
Current assets
|
$
|
1,206,000
|
$
|
919,000
|
||||
|
||||||||
Noncurrent assets
|
$
|
6,121,000
|
$
|
6,374,000
|
||||
|
||||||||
Total assets
|
$
|
7,327,000
|
$
|
7,293,000
|
||||
|
||||||||
Current liabilities
|
$
|
1,332,000
|
$
|
965,000
|
||||
|
||||||||
Noncurrent liabilities
|
$
|
5,320,000
|
$
|
5,734,000
|
||||
|
||||||||
Equity
|
$
|
675,000
|
$
|
594,000
|
||||
|
||||||||
Total liabilities and equity
|
$
|
7,327,000
|
$
|
7,293,000
|
|
Six Months Ended
|
|||||||
|
June 30,
|
|||||||
|
2013
|
2012
|
||||||
|
||||||||
Patient revenue
|
$
|
1,119,000
|
$
|
-
|
||||
|
||||||||
Net loss
|
$
|
(94,000
|
)
|
$
|
(144,000
|
)
|
||
|
||||||||
USNC's equity in loss in BOP and BOPRE
|
$
|
(11,000
|
)
|
$
|
(16,000
|
)
|
|
Three Months Ended
|
|||||||
|
June 30,
|
|||||||
|
2013
|
2012
|
||||||
|
||||||||
Patient revenue
|
$
|
600,000
|
$
|
-
|
||||
|
||||||||
Net loss
|
$
|
(102,000
|
)
|
$
|
(71,000
|
)
|
||
|
||||||||
USNC's equity in loss in BOP and BOPRE
|
$
|
(11,000
|
)
|
$
|
(8,000
|
)
|
|
June 30,
|
December 31,
|
||||||
|
2013
|
2012
|
||||||
|
||||||||
Current assets
|
$
|
115,000
|
$
|
289,000
|
||||
|
||||||||
Noncurrent assets
|
$
|
2,681,000
|
$
|
2,897,000
|
||||
|
||||||||
Total assets
|
$
|
2,796,000
|
$
|
3,186,000
|
||||
|
||||||||
Current liabilities
|
$
|
127,000
|
$
|
308,000
|
||||
|
||||||||
Noncurrent liabilities
|
$
|
2,253,000
|
$
|
2,368,000
|
||||
|
||||||||
Equity
|
$
|
416,000
|
$
|
510,000
|
||||
|
||||||||
Total liabilities and equity
|
$
|
2,796,000
|
$
|
3,186,000
|
Certification of President and Chief Executive Officer (Principal Executive Officer and Principal Financial Officer) pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
|
Certification of President and Chief Executive Officer (Principal Executive Officer and Principal Financial Officer) pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
|
101
|
Interactive Data Files providing financial information from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 31, 2013 in XBRL (eXtensible Business Reporting Language). Pursuant to Regulation 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities Exchange Act of 1934, as amended, and are otherwise not subject to liability.
|
|
U.S. Neurosurgical, Inc.
|
||
|
(Registrant)
|
||
|
|
||
Date: August 13, 2013
|
By: |
/s/ Alan Gold
|
|
|
Alan Gold
|
||
|
Director, President and
|
||
|
Chief Executive Officer and
|
||
|
Principal Financial Officer of the Registrant
|
1. | I have reviewed this Report on Form 10-Q of U.S. Neurosurgical, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures, and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and; |
5. | I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonable likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: August 13, 2013
|
/s/ Alan Gold
|
|
Alan Gold
|
|
President & Chairman of the Board
|
|
(Principal Executive Officer
|
|
and Principal Financial Officer)
|
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of U.S. Neurosurgical, Inc. |
/s/ Alan Gold
|
Alan Gold
|
President and Chief Executive Officer
|
(Principal Executive Officer
|
and Principal Financial Officer)
|
|
August 13, 2013
|
Broward Oncology Partners
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Broward Oncology Partners [Abstract] | |
Broward Oncology Partners | Note F – Broward Oncology Partners In January 2013, the Company formed Broward Oncology Partners, LLC (“BROP”) with other outside investors. The Company invested $50,000 in late April 2013 for a 12.5% ownership interest in BROP. BROP operates a radiation oncology center in Fort Lauderdale, Florida under a lease from Tenet Health Services. BROP began operations in February 2013. The facility is undergoing renovation and continues to operate on a limited basis during construction. Revenues for BROP through June 30, 2013 were $78,000 and after expenses BROP has reported a loss of $82,000. The Company recognized a loss of $4,000 for the second quarter of 2013 and its recorded investment in BROP is $46,000. |
Destruction of Gamma Knife at NYU Medical Center; Planning for Replacement and Restoration
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
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Destruction of Gamma Knife at NYU Medical Center; Planning for Replacement and Restoration [Abstract] | |
Destruction of Gamma Knife at NYU Medical Center; Planning for Replacement and Restoration | Note B – Destruction of Gamma Knife at NYU Medical Center; Planning for Replacement and Restoration USN opened its New York gamma knife treatment center in July 1997 on the campus of New York University (“NYU”) Medical Center. The Company installed a new Leksell gamma knife, the PERFEXION model, at the NYU Medical Center in March 2009 in replacement of the older gamma knife equipment. In connection with this upgrade, the Company modified its arrangement with NYU to extend the term for 12 years from March 2009. In October 2012, the Company’s facility at NYU was totally destroyed as a result of flooding from Hurricane Sandy. The gamma knife had to be removed to prevent any cobalt leakage that might occur due to rusting of the equipment. The emergency removal cost was $525,000. The Company paid a lease settlement of the outstanding principal balance only and received from insurance coverage $930,000 above the lease principal payments and emergency removal costs. The Company is in the process of finalizing arrangements with NYU regarding the restoration of the gamma knife center and the Company’s long term contract with NYU. Initial steps are being taken to prepare space for the center in the Tisch Hospital of NYU Langone Medical Center where the replacement Leksell PERFECTION gamma knife will be located. It is currently estimated that the center will be open and treating patients by March 2014. It is currently expected that the term of the agreement with NYU will remain the same, terminating at the end of March 2021. The Company has obtained a commitment for lease financing in the amount of $4.6 million for the purchase of the replacement equipment as well as the cost of the construction required at the relocated site. |
Florida Oncology Partners
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Jun. 30, 2013
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Florida Oncology Partners [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Florida Oncology Partners | Note D – 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. During 2012, FOP made several distributions that reduced the Company’s investment significantly. The Company’s recorded investment in FOP and FOPRE is $151,000 and $135,000 at June 30, 2013 and December 31, 2012, respectively. During 2011, FOP 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. The outstanding balance on the lease obligation was $4,546,000 at June 30, 2013. In June 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 on June 15, 2022. USNC is the guarantor of 20% of the outstanding balance of this loan, which was $1,502,000 at June 30, 2013. The following tables present the aggregation of summarized financial information of FOP and FOPRE: FOP and FOPRE Condensed Income Statement Information
FOP and FOPRE Condensed Balance Sheet Information
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Income Taxes
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6 Months Ended |
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Jun. 30, 2013
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Income Taxes [Abstract] | |
Income Taxes | Note G – Income Taxes The Company’s income tax rate, which includes federal and state income taxes, was approximately 37% for the three and six months ending June 30, 2013. The Company recorded income tax benefit of $112,000 and $196,000 for the three and six months ended June 30, 2013, respectively, as a result of the losses incurred in those periods. |
Boca Oncology Partners
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Jun. 30, 2013
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Boca Oncology Partners [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Boca Oncology Partners | Note E – 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 affect its economic performance; certain disclosures are required rather than consolidation. The center opened in August 2012. The Company’s share of cumulative losses associated with its investment in BOP has exceeded its investment and accordingly the Company has not recognized income or loss for such investment in the periods reported. The Company’s recorded investment in BOPRE is $111,000 at June 30, 2013 and December 31, 2012. The following tables present the aggregation of summarized financial information of BOP and BOPRE: BOP and BOPRE Condensed Income Statement Information
BOP and BOPRE Condensed Balance Sheet Information
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