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

	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	)

BOP and BOPRE Condensed Balance Sheet Information

	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