Florida Oncology Partners

3 Months Ended

Mar. 31, 2014

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 and 2013, FOP made several distributions that reduced the Company's investment significantly.  The Company's recorded investment in FOP and FOPRE is $130,000 and $151,000 at March 31, 2014 and December 31, 2013, respectively. Amounts due from FOP and FOP RE included in due from related parties total $50,000 and $40,000 at March 31, 2014 and December 31, 2013 respectively.

During 2011, Florida Oncology Partners, LLC entered into a seven year capital lease with Key Bank for approximately $5,800,000. Under the terms of the capital lease, USNC agreed to guarantee a maximum of $1,433,000, approximately 25% of the original lease obligation in the event of default. It is a guarantor jointly with most of the other members (except USNC who is not a named guarantor) of FOP.  The outstanding balance on the lease obligation was $4,022,000 at March 31, 2014. The Company expects any potential obligations from this guarantee to be reduced by the recoveries of the respective collateral and expects any amounts arising from this guarantee to be insignificant.

In June 2012, FOPRE completed the financing agreement to purchase the building that is occupied by FOP.  The amount of the loan was $1,534,000 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 $1,472,000 at March 31, 2014. The Company expects any potential obligations from these guarantees to be reduced by the recovery of the real estate collateral and expects any amounts arising from this guarantee to be insignificant.

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

FOP and FOPRE Condensed Income Statement Information

	Three Months Ended
	March 31,
	2014			2013
Patient revenue	$	487,000		$	612,000
Net loss	$	(107,000	)	$	(35,000	)
USNC's equity in loss of FOP   and FOPRE	$	(21,000	)	$	(7,000	)

FOP and FOPRE Condensed Balance Sheet Information

	March 31,		December 31,
	2014		2013
Current assets	$	642,000	$	653,000
Noncurrent assets		5,559,000		5,795,000
Total assets	$	6,201,000	$	6,448,000
Current liabilities	$	980,000	$	893,000
Noncurrent liabilities		4,655,000		4,881,000
Equity		566,000		674,000
Total liabilities and equity	$	6,201,000	$	6,448,000