Florida Oncology Partners

6 Months Ended

Jun. 30, 2013

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

	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

FOP and FOPRE Condensed Balance Sheet Information

	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