10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2015

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT

For the transition period from                 to                     .

Commission file number:  0-15586

U.S. Neurosurgical, Inc.

(Exact name of registrant as specified in its charter)

Delaware	52-1842411
(State of other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

2400 Research Blvd, Suite 325, Rockville, Maryland 20850

(Address of principal executive offices)

(301) 208-8998

(Registrant's telephone number)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).Yes ☒   No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐No  ☒

The number of shares of the registrant’s common stock, $0.01 par value, outstanding as of May 8, 2015 was 7,797,185.

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION		4
	Item 1.  Financial Statements	4
	Item 2.  Management Discussion and Analysis of Financial Condition and Results of Operations.	14
	Item 3.  Quantitative and Qualitative Disclosures About Market Risk.	17
	Item 4.  Controls and Procedures	17
PART II - OTHER INFORMATION		19
	Item 1.  Legal Proceedings	19
	Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds	19
	Item 3.  Defaults Upon Senior Securities	19
	Item 4.  Submission of Matters to a Vote of Security Holders	19
	Item 5.  Other Information	19
	Item 6.  Exhibits	19
SIGNATURES		20

PART I - FINANCIAL INFORMATION

Item1. Financial Statements

U.S. NEUROSURGICAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	March 31, 2015			December 31, 2014
	(UNAUDITED)
ASSETS
Current assets:
Cash and cash equivalents	$	1,104,000		$	1,053,000
Accounts receivable		638,000			277,000
Due from related parties		32,000			8,000
Elekta refund due		115,000			115,000
Other current assets		50,000			72,000
Total current assets		1,939,000			1,525,000
Investments in unconsolidated entities		338,000			323,000
Gamma knife (net of accumulated depreciation of $634,000 in 2015 and $475,000 in 2014)		3,801,000			3,960,000
Leasehold improvements (net of accumulated amortization of $276,000 in 2015 and $197,000 in 2014)		1,904,000			1,643,000
		5,705,000			5,603,000
TOTAL ASSETS	$	7,982,000		$	7,451,000
LIABILITIES
Current liabilities:
Obligations under capital lease - current portion	$	903,000		$	821,000
Deferred tax liability- current portion		136,000			92,000
Accounts payable and accrued expenses		455,000			96,000
Deferred revenue		207,000			48,000
Due to related parties		13,000			13,000
Total current liabilities		1,714,000			1,070,000
Obligations under capital lease - net of current portion		3,609,000			3,838,000
Deferred tax liability - net of current portion		154,000			150,000
Guarantee liability		15,000			-
Asset retirement obligations		448,000			431,000
Total liabilities		5,940,000			5,489,000
Commitments and contingencies
STOCKHOLDERS’ EQUITY
Common stock - par value $.01; 25,000,000 shares authorized; 7,797,185 shares issued and outstanding at March 31, 2015 and December 31, 2014.		78,000			78,000
Additional paid-in capital		3,100,000			3,100,000
Accumulated deficit		(1,136,000	)		(1,216,000	)
Total stockholders' equity		2,042,000			1,962,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	7,982,000		$	7,451,000

The accompanying notes to condensed consolidated financial statements are an integral part hereof.

4

U.S. NEUROSURGICAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three Months Ended March 31,
	2015			2014
Revenue	$	809,000		$	-
Costs and expenses:
Patient expenses		255,000			-
Selling, general and administrative		349,000			259,000
Total		604,000			259,000
Operating income (loss)		205,000			(259,000	)
Interest expense		(54,000	)		(13,000	)
Gain from sale of investments in unconsolidated entity		-			205,000
Other income		13,000			-
Loss from investments in unconsolidated entities		(36,000	)		(39,000	)
		.
Income (loss) before income taxes		128,000			(106,000	)
Provision for income tax expense		(48,000	)		-
Net income (loss)	$	80,000		$	(106,000	)
Basic and diluted net income (loss) per share	$	0.01		$	(0.01	)
Weighted average common shares outstanding		7,797,185			7,797,185

The accompanying notes to condensed consolidated financial statements are an integral part hereof.

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U.S. NEUROSURGICAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Three Months Ended March 31,
	2015			2014
Cash flows from operating activities:
Net income (loss)	$	80,000		$	(106,000	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		238,000			-
Loss from investment in unconsolidated entities, net		36,000			39,000
Gain from sale of investments in unconsolidated entities		-			(205,000	)
Accretion of asset retirement obligations		17,000			-
Amortization of guarantee liability		2,000
Deferred income taxes		48,000			-
Changes in:
Accounts receivable		(361,000	)		-
Other current assets		22,000			3,000
Accounts payable and accrued expenses		18,000			37,000
Deferred revenue		159,000			-
Net cash provided by (used in) operating activities		259,000			(232,000	)
Cash flows from investing activities:
Proceeds from sale of investments		-			156,000
Purchase of leasehold improvements		-			(301,000	)
(Increase in) decrease of due from related parties		(61,000	)		198,000
Net cash (used in) provided by investing activities		(61,000	)		53,000
Cash flows from financing activities:
Repayment of capital lease obligations		(147,000	)		-
Proceeds from short-term loans		-			462,000
Net cash (used in) provided by financing activities		(147,000	)		462,000
Net change in cash and cash equivalents		51,000			283,000
Cash and cash equivalents - beginning of period		1,053,000			1,414,000
Cash and cash equivalents - end of period	$	1,104,000		$	1,697,000
Supplemental disclosures of cash flow information:
Cash paid for:
Interest	$	54,000		$	13,000
Supplemental disclosure of of noncash investing and financing activities:
Purchase of gamma knife and related leasehold improvements included in accounts payable	$	341,000		$	139,000
Increase in investment in unconsolidated entities through recording of guarantee liability	$	22,000		$	-
Increase in guarantee liability recorded	$	13,000		$	-

The accompanying notes to condensed consolidated financial statements are an integral part hereof.

6

U.S. NEUROSURGICAL, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note A - Basis of Preparation

The accompanying condensed consolidated financial statements of U.S. Neurosurgical, Inc. and subsidiaries (“USN” or the “Company”) at March 31, 2015, and 2014, are unaudited.  However, in the opinion of management, such statements include all adjustments necessary for a fair statement of the information presented therein.  The balance sheet at December 31, 2014 has been derived from the audited financial statements at that date appearing in the Company's Annual Report on Form 10-K.

Pursuant to accounting requirements of the Securities and Exchange Commission applicable to quarterly reports on Form 10-Q, the accompanying condensed consolidated financial statements and notes do not include all disclosures required by accounting principles generally accepted in the United States of America for complete financial statements.  Accordingly, these statements should be read in conjunction with the Company's most recent annual financial statements.

Consolidated results of operations for interim periods are not necessarily indicative of those to be achieved for full fiscal years.

Note B – Destruction of Gamma Knife at NYU Medical Center; 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 finalized arrangements with NYU regarding the restored gamma knife center and the Company’s long term contract with NYU in early 2014. The Company’s new facility, with the Leksell PERFEXION gamma knife, is located in the Tisch Hospital of NYU Langone Medical Center. The facility reopened and began receiving patients at the end of April 2014.

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The Company entered into a six year lease in the amount of $4.7 million for the purchase of the replacement equipment and associated leasehold improvements. The first payment of $78,000 was made on September 1, 2014, including $18,000 of interest, and the final payment is due on May 1, 2020. The Company entered into a second two year lease in the amount of $250,000 for the cost of the construction required at the relocated site. The first payment of $12,000 was made on November 1, 2014, and the final payment is due on July 1, 2016.

The major terms of the agreement with NYU continue in effect, terminating at the end of March 2021.  The Company is responsible for the maintenance and insurance for the gamma knife equipment at the NYU facility and is reimbursed for use of the gamma knife based on a fee per procedure performed with the equipment.  NYU provides the medical and technical staff to operate the facility.  At the end of the contract term, costs associated with closing and restoring the NYU facility to its original condition are the responsibility of USN.

Note C – 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 Regional Hospital (“SARH”) in Upland, California.  The Company participates in the ownership and operation of the center through its wholly-owned subsidiary USN Corona, Inc. (“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 NeuroPartners 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 NeuroPartners LLC and owns 39% of CGK.

USNC is a 20% guarantor on NeuroPartners LLC’s seven-year lease with respect to the gamma knife equipment and certain leasehold improvements at SACH.  The outstanding balance on the lease obligations was $1,493,000 at March 31, 2015.  In 2016, NeuroPartners LLC has the option to purchase the gamma knife for $490,000. The Company expects any potential obligations from these guarantees would be reduced by the recoveries of the respective collateral and has recorded a liability of $2,000 associated with this guarantee at March 31, 2015.

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 Company has 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.

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The Company’s share of cumulative losses associated with its investment in NeuroPartners LLC and CGK has exceeded its investment.  Due to the outstanding loans made to NeuroPartners LLC and CGK, NeuroPartners LLC and CGK are considered to be variable interest entities of the Company.  However, as the Company is not deemed to be the primary beneficiary of NeuroPartners LLC and CGK, since it does not have the power to direct the operating activities that most significantly affect NeuroPartners LLC’s and CGK’s economic performance, certain disclosures are required rather than consolidation.  During the three months ended March 31, 2015, the Company absorbed losses against the total outstanding receivables of $37,000 from NeuroPartners LLC and CGK. For the three months ended March 31, 2015, the Company’s equity in loss of NeuroPartners LLC and CGK was $33,000.

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

	Three Months Ended March 31,
	2015			2014
Patient revenue	$	203,000		$	264,000
Net loss	$	(70,000	)	$	(24,000	)
USNC's equity in loss of Neuro Partners, LLC and CGK	$	(33,000	)	$	(14,000	)

NeuroPartners, LLC and CGK Condensed Balance Sheet Information

	March 31, 2015			December 31, 2014
Current assets	$	87,000		$	92,000
Noncurrent assets		849,000			991,000
Total assets	$	936,000		$	1,083,000
Current liabilities	$	869,000		$	829,000
Noncurrent liabilities		854,000			969,000
Equity		(787,000	)		(715,000	)
Total liabilities and equity	$	936,000		$	1,083,000

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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. In January of 2015, one of the investors was removed from the entities, and his ownership interest was distributed among the remaining members in relationship to the percentage they owned. This distribution resulted in an increase of ownership interest for the company of 4% in each entity. As of January 1, 2015, the Company has a 24% ownership in both FOP and FOPRE.

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 $205,000 and $190,000 at March 31, 2015 and December 31, 2014, respectively. Amounts due from FOP and FOPRE included in due from related parties total $32,000 and $8,000 at March 31, 2015 and December 31, 2014 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 $3,210,000 at March 31, 2015. The Company expects any potential obligations from this guarantee would be reduced by the recoveries of the respective collateral and has recorded a liability of $13,000 associated with this guarantee at March 31, 2015.

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 $1,435,000 at March 31, 2015. The Company expects any potential obligations from these guarantees would be reduced by the recovery of the real estate collateral and expects any amounts arising from this guarantee to be insignificant.

10

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,
	2015			2014
Patient revenue	$	584,000		$	487,000
Net loss	$	(38,000	)	$	(107,000	)
USNC's equity in loss of FOP and FOPRE	$	(8,000	)	$	(21,000	)

FOP and FOPRE Condensed Balance Sheet Information

	March 31, 2015		December 31, 2014
Current assets	$	557,000	$	606,000
Noncurrent assets		4,907,000		5,070,000
Total assets	$	5,464,000	$	5,676,000
Current liabilities	$	1,538,000	$	858,000
Noncurrent liabilities		3,145,000		3,947,000
Equity		781,000		871,000
Total liabilities and equity	$	5,464,000	$	5,676,000

11

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 Boca West IMP, LLC (Boca West IMP), owner of 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% was owned by other outside investors.  In June 2012, BOPRE purchased an additional 3.75% of Boca West IMP from another investor bringing its total interest to 23.75%. BOPRE accounts for this investment under the cost method since it does not exercise significant influence over Boca West IMP. Then the members of BOPRE sold 31.5% of their interests in 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%.

Although the Company reduced its investment to 11.25% of BOP and 15.4% of BOPRE, the Company continues to account for these investments under the equity method due to its participation in the management of the administration and accounting functions of BOP and BOPRE. Due to the outstanding loans made to BOP, BOP was considered to be a variable interest entity of the Company.  However, as the Company was not deemed to be the primary beneficiary of BOP, since it does not have the power to direct the operating activities that most significantly affect BOP’s economic performance, certain disclosures are required rather than consolidation.  The center opened in August 2012.

In February 2014, the Company and other members sold their interests in BOP.

The Company’s recorded investment in BOPRE is $133,000 and $134,000 at March 31, 2015 and December 31, 2014.

USNC is a 10% guarantor on 50% of the outstanding balance of Boca West IMP’s ten-year mortgage.  This mortgage had an original balance of $3,000,000 and is secured by the medical office building in which BOP operates. The outstanding balance on the mortgage is $2,706,000 at March 31, 2015.  The Company expects any potential obligations from this guarantee would be reduced by the recovery of the real estate and expects any amounts arising from this guarantee to be insignificant.

USNC was a 14.06% guarantor on BOP’s five-year lease with respect to the oncology equipment at the Boca Raton, Florida cancer center. Upon the sale of BOP, which occurred in 2014, USNC was indemnified by the buyer from any losses arising from the guarantee.

12

The following tables present the summarized financial information of BOPRE:

BOPRE Condensed Income Statement Information

	Three Months Ended March 31,
	2015		2014
Rental Income	$	-	$	-
Net income (loss)	$	-	$	-
USNC's equity in income in BOPRE	$	-	$	-

BOPRE Condensed Balance Sheet Information

	March 31, 2015		December 31, 2014
Current assets	$	36,000	$	61,000
Noncurrent assets		811,000		786,000
Total assets	$	847,000	$	847,000
Current liabilities	$	-	$	-
Noncurrent liabilities		-		-
Equity		847,000		847,000
Total liabilities and equity	$	847,000	$	847,000

Note F – Broward Oncology Partners

In early 2013, the Company formed Broward Oncology Partners, LLC (“BROP”) with other outside investors. The Company invested $50,000 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. In May 2014, the Company and other members sold their interests in BROP.

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Note G – Income Taxes

The Company’s income tax rate, which includes federal and state income taxes, was approximately 38%, for the three months ended March 31, 2015. The Company recorded a tax charge of $48,000 for the three months ended March 31, 2015.

Item 2. Management Discussion and Analysis of Financial Condition and Results of Operations.

Critical Accounting Policies

The condensed consolidated financial statements of U.S. Neurosurgical, Inc. and subsidiaries (“USN” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America.  As such, some accounting policies have a significant impact on amounts reported in the condensed consolidated financial statements.  A summary of those significant accounting policies can be found in Note B to the Consolidated Financial Statements, in our 2014 Annual Report on Form 10-K.  In particular, judgment is used in areas such as determining and assessing possible asset impairments and determination of the asset retirement obligation.

The following discussion and analysis provides information which the Company’s management believes is relevant to an assessment and understanding of the Company’s results of operations and financial condition. This discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto appearing elsewhere herein.

Results of Operation

Three Months Ended March 31, 2015 Compared to Three Months Ended March 31, 2014

Patient revenue and expenses for the three months ended March 31, 2015 were $809,000 and $255,000 respectively, compared to none the previous year due to the center being closed during the first quarter of 2014, as a result of the destruction of the NYU gamma knife facility in October 2012.

Selling, general and administrative expense of $349,000 for the first quarter of 2015 was 35% higher than the $259,000 incurred during the comparable period in 2014.  The increase in SG&A expenses was mostly due to higher insurance expenses including a new flood policy and reinstated liability policy due to the reopening of the center.

The Company incurred $54,000 of interest expense in the first quarter of 2015 related to the new capital lease. Interest expense for the same period in 2014 was $13,000 as a result of periodic interest payments made on the new capital lease agreement.

During the three months ended March 31, 2015, the Company recognized an income tax charge of $48,000. The 2015 tax expense is due to the Company commencing operations at NYU during 2014.

14

For the three months ended March 31, 2015, the Company reported a net income of $80,000 as compared to a net loss of $106,000 for the same period a year earlier.

Liquidity and Capital Resources

At March 31, 2015, the Company had working capital of $225,000 as compared to $455,000 at December 31, 2014.  This decrease was due to accrual of accounts payable for the improvements of the gamma knife center. Cash and cash equivalents at March 31, 2015 were $1,104,000 as compared to $1,053,000 at December 31, 2014.

Net cash provided by operating activities for the three months ended March 31, 2015 was $259,000 as compared to $232,000 used in operating activities in the same period a year earlier. The increase was primarily due to cash inflows from the operation of the new gamma knife center, net of working capital requirements. Accounts receivable increased $361,000 for the three months ended March 31, 2015 as compared to none the previous year due to the reopening of the NYU gamma knife facility.

With respect to financing activities, the Company paid $147,000 towards its capital lease during the first three months of 2015, compared with net borrowings from short-term loans of $462,000 in the same period a year earlier.

The terms of the agreement with NYU remain the same, terminating at the end of March 2021.  The Company entered into a six year lease in the amount of $4.7 million for the purchase of the replacement equipment. The first payment of $78,000 was made on September 1, 2014, and the final payment is due on May 1, 2020. The Company entered into a second two year lease in the amount of $250,000 for the cost of the construction required at the relocated site. The first payment of $12,000 was made on November 1, 2014, and the final payment is due on July 1, 2016.

Risk Factors

We desire to take advantage of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.  The following factors, as well as the factors listed under the caption “Risk Factors” in Annual Report on our Form 10-K for the fiscal year ended December 31, 2014, have affected or could affect our actual results and could cause such results to differ materially from those expressed in any forward-looking statements made by us.  Investors should carefully consider these risks and speculative factors inherent in and affecting our business and an investment in our common stock.

Reliance on Business of the New York University Gamma Knife Center; Recent Destruction of Equipment and Discontinuation of Business at NYU.  While it is the Company’s objective to expand activities to additional cancer centers that rely on a broad range of diagnostic and radiation treatments, the Company has relied on the NYU gamma knife for substantially all of its revenue.  In recent periods, services provided at NYU have represented over 90% of the Company’s revenues.  Unless and until the Company is successful in building its activities at other centers and at new locations, disruptions at NYU could have a materially adverse effect on the Company.

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Availability of Working Capital.  To date, we have earned sufficient income from operations to fund periodic operating losses and support efforts to pursue new gamma knife or other types of cancer treatment centers.

Disclosure Regarding Forward Looking Statements

The Securities and Exchange Commission encourages companies to disclose forward looking information so that investors can better understand a company's future prospects and make informed investment decisions.  This document contains such "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, particularly statements anticipating future growth in revenues and cash flow.  Words such as "anticipates," "estimates," "expects," "projects," "targets," "intends," "plans," "believes," "will be," "will continue," "will likely result," and words and terms of similar substance used in connection with any discussion of future operating or financial performance identify such forward-looking statements.  Those forward-looking statements are based on management's present expectations about future events.  As with any projection or forecast, they are inherently susceptible to uncertainty and changes in circumstances, and the Company is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of such changes, new information, future events or otherwise.

The Company operates in a highly competitive and rapidly changing environment and in businesses that are dependent on our ability to: achieve profitability; increase revenues; sustain our current level of operations; maintain satisfactory relations with business partners; attract and retain key personnel; maintain and expand our strategic alliances; and protect our intellectual property.  The Company's actual results could differ materially from management's expectations because of changes in such factors.  New risk factors can arise and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.  Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

Investors should also be aware that while the Company might, from time to time, communicate with securities analysts, it is against the Company's policy to disclose to them any material non-public information or other confidential commercial information. Accordingly, investors should not assume that the Company agrees with any statement or report issued by any analyst irrespective of the content of the statement or report. Furthermore, the Company has a policy against issuing or confirming financial forecasts or projections issued by others.  Thus, to the extent that reports issued by securities analysts or others contain any projections, forecasts or opinions, such reports are not the responsibility of the Company.

In addition, the Company’s overall financial strategy, including growth in operations, maintaining financial ratios and strengthening the balance sheet, could be adversely affected by increased interest rates, construction delays or other transactions, economic slowdowns and changes in the Company’s plans, strategies and intentions.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Not applicable.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company's reports under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, as appropriate, to allow timely decisions regarding required disclosure.  Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.  We do realize that we are a very small company and as a small company with only the officers and directors participating in the day to day management, with the ability to override controls, each officer and director has multiple positions and responsibilities that would normally be distributed among several employees in larger organizations with adequate segregation of duties to ensure the appropriate checks and balances.  Because the Company does not currently have a separate chief financial officer, the Chief Executive Officer performs these functions with the support of one of the Company’s outside directors who assists in the reporting and disclosure process (the “Lead Director”).

Our management evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report.  Based upon that evaluation the Company’s Chief Executive Officer concluded that the Company’s disclosure controls and procedures were not effective as of the end of the period covered by this report for the information required to be disclosed by the Company in the reports it files or submits under the Securities Exchange Act of 1934, as amended, to be recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, due to the material weakness in internal control over financial reporting described below.

Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934).  Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.  The Company’s internal control over financial reporting includes those policies and procedures that:

17

(i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

(iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving their control objectives.

Our management assessed the effectiveness of the Company’s internal control over financial reporting as of March 31, 2015. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework. A material weakness is a control deficiency, or a combination of control deficiencies in internal controls over financial reporting, such that there is a reasonable possibility that a material misstatement of annual or interim financial statements will not be prevented or detected on a timely basis. In connection with the assessment described above, management identified the following material weakness as of March 31, 2015: the Company did not maintain sufficient qualified personnel with the appropriate level of knowledge, experience and training in the application of accounting principles generally accepted in the United States of America and in internal controls over financial reporting commensurate with its financial reporting requirements. Specifically, effective controls were not designed and in place to ensure that the Company maintained, or had access to, appropriate resources with adequate experience and expertise in the area of financial reporting for transactions such as lease financing, investments in unconsolidated entities, income taxes and guarantee obligations. The Company is in the process of developing efficient approaches to remediate this material weakness.  To do this in a cost-effective manner, considering the current extent of the Company’s operations, management is making arrangements with consultants and advisors to assist on an as-needed basis.

Changes in Internal Control over Financial Reporting

While there have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter ended March 31, 2015, management is in the process of developing plans to remediate the material weakness identified above.

18

PART II - OTHER INFORMATION

Item1. Legal Proceedings

None

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Not applicable.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Submission of Matters to a Vote of Security Holders

Not applicable.

Item 5. Other Information

Not applicable.

Item 6.  Exhibits

31.1 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.

32.1 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 March 31, 2015 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.

19

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	U.S. Neurosurgical, Inc.
	(Registrant)
Date:  May 15, 2015	By:	/s/ Alan Gold
		Alan Gold
		Director, President and
		Chief Executive Officer and
		Principal Financial Officer of the Registrant

20

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF PRESIDENT AND CHIEF EXECUTIVE OFFICER

(PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER)

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Alan Gold, certify that:

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 evaluationof 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:  May 15, 2015	/s/ Alan Gold
	Alan Gold
	President & Chairman of the Board
	(Principal Executive Officer and Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

Certificate pursuant to 18 U.S.C. Section 1350,

as adopted pursuant to Section 906 of the

Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of U.S. Neurosurgical, Inc. on Form 10-Q for the period ending March 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Alan Gold, President and Chief Executive Officer of U.S. Neurosurgical, Inc., certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(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)

May 15, 2015

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Florida Oncology Partners

3 Months Ended

Mar. 31, 2015

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. In January of 2015, one of the investors was removed from the entities, and his ownership interest was distributed among the remaining members in relationship to the percentage they owned. This distribution resulted in an increase of ownership interest for the company of 4% in each entity. As of January 1, 2015, the Company has a 24% ownership in both FOP and FOPRE.

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 $205,000 and $190,000 at March 31, 2015 and December 31, 2014, respectively. Amounts due from FOP and FOPRE included in due from related parties total $32,000 and $8,000 at March 31, 2015 and December 31, 2014 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 $3,210,000 at March 31, 2015. The Company expects any potential obligations from this guarantee would be reduced by the recoveries of the respective collateral and has recorded a liability of $13,000 associated with this guarantee at March 31, 2015.

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 $1,435,000 at March 31, 2015. The Company expects any potential obligations from these guarantees would 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,
	2015			2014
Patient revenue	$	584,000		$	487,000
Net loss	$	(38,000	)	$	(107,000	)
USNC's equity in loss of FOP and FOPRE	$	(8,000	)	$	(21,000	)

FOP and FOPRE Condensed Balance Sheet Information

	March 31, 2015		December 31, 2014
Current assets	$	557,000	$	606,000
Noncurrent assets		4,907,000		5,070,000
Total assets	$	5,464,000	$	5,676,000
Current liabilities	$	1,538,000	$	858,000
Noncurrent liabilities		3,145,000		3,947,000
Equity		781,000		871,000
Total liabilities and equity	$	5,464,000	$	5,676,000

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The Southern California Regional Gamma Knife Center

3 Months Ended

Mar. 31, 2015

The Southern California Regional Gamma Knife Center [Abstract]

The Southern California Regional Gamma Knife Center

Note C – 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 Regional Hospital (“SARH”) in Upland, California.  The Company participates in the ownership and operation of the center through its wholly-owned subsidiary USN Corona, Inc. (“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 NeuroPartners 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 NeuroPartners LLC and owns 39% of CGK.

USNC is a 20% guarantor on NeuroPartners LLC’s seven-year lease with respect to the gamma knife equipment and certain leasehold improvements at SACH.  The outstanding balance on the lease obligations was $1,493,000 at March 31, 2015.  In 2016, NeuroPartners LLC has the option to purchase the gamma knife for $490,000. The Company expects any potential obligations from these guarantees would be reduced by the recoveries of the respective collateral and has recorded a liability of $2,000 associated with this guarantee at March 31, 2015.

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 Company has 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 Company’s share of cumulative losses associated with its investment in NeuroPartners LLC and CGK has exceeded its investment.  Due to the outstanding loans made to NeuroPartners LLC and CGK, NeuroPartners LLC and CGK are considered to be variable interest entities of the Company.  However, as the Company is not deemed to be the primary beneficiary of NeuroPartners LLC and CGK, since it does not have the power to direct the operating activities that most significantly affect NeuroPartners LLC’s and CGK’s economic performance, certain disclosures are required rather than consolidation.  During the three months ended March 31, 2015, the Company absorbed losses against the total outstanding receivables of $37,000 from NeuroPartners LLC and CGK. For the three months ended March 31, 2015, the Company’s equity in loss of NeuroPartners LLC and CGK was $33,000.

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

	Three Months Ended March 31,
	2015			2014
Patient revenue	$	203,000		$	264,000
Net loss	$	(70,000	)	$	(24,000	)
USNC's equity in loss of Neuro Partners, LLC and CGK	$	(33,000	)	$	(14,000	)

NeuroPartners, LLC and CGK Condensed Balance Sheet Information

	March 31, 2015			December 31, 2014
Current assets	$	87,000		$	92,000
Noncurrent assets		849,000			991,000
Total assets	$	936,000		$	1,083,000
Current liabilities	$	869,000		$	829,000
Noncurrent liabilities		854,000			969,000
Equity		(787,000	)		(715,000	)
Total liabilities and equity	$	936,000		$	1,083,000

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CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 1,104,000	$ 1,053,000
Accounts receivable	638,000	277,000
Due from related parties	32,000	8,000
Elekta refund due	115,000	115,000
Other current assets	50,000	72,000
Total current assets	1,939,000	1,525,000
Investments in unconsolidated entities	338,000	323,000
Gamma knife (net of accumulated depreciation of $634,000 in 2015 and $475,000 in 2014)	3,801,000	3,960,000
Leasehold improvements (net of accumulated amortization of $276,000 in 2015 and $197,000 in 2014)	1,904,000	1,643,000
Total property and equipment	5,705,000	5,603,000
TOTAL ASSETS	7,982,000	7,451,000
Current liabilities:
Obligations under capital lease - current portion	903,000	821,000
Deferred tax liability- current portion	136,000	92,000
Accounts payable and accrued expenses	455,000	96,000
Deferred revenue	207,000	48,000
Due to related parties	13,000	13,000
Total current liabilities	1,714,000	1,070,000
Obligations under capital lease - net of current portion	3,609,000	3,838,000
Deferred tax liability - net of current portion	154,000	150,000
Guarantee liability	15,000	0
Asset retirement obligations	448,000	431,000
Total liabilities	5,940,000	5,489,000
Commitments and contingencies
STOCKHOLDERS' EQUITY
Common stock - par value $.01; 25,000,000 shares authorized; 7,797,185 shares issued and outstanding at March 31, 2015 and December 31, 2014.	78,000	78,000
Additional paid-in capital	3,100,000	3,100,000
Accumulated deficit	(1,136,000)	(1,216,000)
Total stockholders' equity	2,042,000	1,962,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 7,982,000	$ 7,451,000

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Basis of Preparation

3 Months Ended

Mar. 31, 2015

Basis of Preparation [Abstract]

Basis of Preparation

Note A - Basis of Preparation

The accompanying condensed consolidated financial statements of U.S. Neurosurgical, Inc. and subsidiaries (“USN” or the “Company”) at March 31, 2015, and 2014, are unaudited.  However, in the opinion of management, such statements include all adjustments necessary for a fair statement of the information presented therein.  The balance sheet at December 31, 2014 has been derived from the audited financial statements at that date appearing in the Company's Annual Report on Form 10-K.

Pursuant to accounting requirements of the Securities and Exchange Commission applicable to quarterly reports on Form 10-Q, the accompanying condensed consolidated financial statements and notes do not include all disclosures required by accounting principles generally accepted in the United States of America for complete financial statements.  Accordingly, these statements should be read in conjunction with the Company's most recent annual financial statements.

Consolidated results of operations for interim periods are not necessarily indicative of those to be achieved for full fiscal years.

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Destruction of Gamma Knife at NYU Medical Center; Replacement and Restoration

3 Months Ended

Mar. 31, 2015

Destruction of Gamma Knife at NYU Medical Center; Replacement and Restoration [Abstract]

Destruction of Gamma Knife at NYU Medical Center; Replacement and Restoration

Note B – Destruction of Gamma Knife at NYU Medical Center; 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 finalized arrangements with NYU regarding the restored gamma knife center and the Company’s long term contract with NYU in early 2014. The Company’s new facility, with the Leksell PERFEXION gamma knife, is located in the Tisch Hospital of NYU Langone Medical Center. The facility reopened and began receiving patients at the end of April 2014.

The Company entered into a six year lease in the amount of $4.7 million for the purchase of the replacement equipment and associated leasehold improvements. The first payment of $78,000 was made on September 1, 2014, including $18,000 of interest, and the final payment is due on May 1, 2020. The Company entered into a second two year lease in the amount of $250,000 for the cost of the construction required at the relocated site. The first payment of $12,000 was made on November 1, 2014, and the final payment is due on July 1, 2016.

The major terms of the agreement with NYU continue in effect, terminating at the end of March 2021.  The Company is responsible for the maintenance and insurance for the gamma knife equipment at the NYU facility and is reimbursed for use of the gamma knife based on a fee per procedure performed with the equipment.  NYU provides the medical and technical staff to operate the facility.  At the end of the contract term, costs associated with closing and restoring the NYU facility to its original condition are the responsibility of USN.

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Current assets:
Gamma Knife, accumulated depreciation	$ 634,000	$ 475,000
Leasehold improvements, accumulated depreciation	$ 276,000	$ 197,000
STOCKHOLDERS' EQUITY
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	25,000,000	25,000,000
Common stock, shares issued (in shares)	7,797,185	7,797,185
Common stock, shares outstanding (in shares)	7,797,185	7,797,185

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The Southern California Regional Gamma Knife Center (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
NeuroPartners, LLC and CGK Condensed Income Statement Information [Abstract]
Patient revenue	$ 809,000	$ 0
USNC's equity in loss of Neuro Partners, LLC and CGK	(36,000)	(39,000)
NeuroPartners, LLC and CGK Condensed Balance Sheet Information [Abstract]
Renovation installation and operation agreement period	14 years
Loss from investments in unconsolidated entities	(36,000)	(39,000)
CGK [Member]
NeuroPartners, LLC and CGK Condensed Balance Sheet Information [Abstract]
Ownership percentage (in hundredths)	39.00%
Neuro Partners LLC [Member]
NeuroPartners, LLC and CGK Condensed Balance Sheet Information [Abstract]
Ownership percentage (in hundredths)	20.00%
Share of guarantee in lease obligations (in hundredths)	20.00%
Lease term	7 years
Operating lease payable	1,493,000
Option to purchase equipment	490,000
Liability of guarantee	2,000
Losses against outstanding receivables	37,000
Neuro Partners LLC and CGK [Member]
NeuroPartners, LLC and CGK Condensed Income Statement Information [Abstract]
Patient revenue	203,000	264,000
Net loss	(70,000)	(24,000)
USNC's equity in loss of Neuro Partners, LLC and CGK	(33,000)	(14,000)
NeuroPartners, LLC and CGK Condensed Balance Sheet Information [Abstract]
Current assets	87,000		92,000
Noncurrent assets	849,000		991,000
Total assets	936,000		1,083,000
Current liabilities	869,000		829,000
Noncurrent liabilities	854,000		969,000
Equity	(787,000)		(715,000)
Total liabilities and equity	936,000		1,083,000
Loss from investments in unconsolidated entities	$ (33,000)	$ (14,000)

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Document and Entity Information	3 Months Ended
	Mar. 31, 2015	May 08, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	US NEUROSURGICAL INC
Entity Central Index Key	0001089815
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		7,797,185
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2015

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Florida Oncology Partners (Details) (USD $)	3 Months Ended			12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Sep. 30, 2010	Dec. 31, 2011	Dec. 31, 2014	Jun. 30, 2012
Schedule of Equity Method Investments [Line Items]
Recorded investments	$ 338,000				$ 323,000
Due from related parties	32,000				8,000
Liability associated with guarantee	13,000
FOP and FOPRE Condensed Income Statement Information [Abstract]
Patient revenue	809,000	0
USNC's equity in loss of FOP and FOPRE	(36,000)	(39,000)
FOP and FOPRE [Member]
Schedule of Equity Method Investments [Line Items]
Recorded investments	205,000		200,000		190,000
Ownership percentage (in hundredths)			20.00%		24.00%
Ownership percentage by outside investors (in hundredths)			80.00%
Increase in ownership percentage					4.00%
Due from related parties	32,000				8,000
Lease term				7 years
Capital leases, amount				5,800,000
Maximum guarantee				1,433,000
Percentage of guarantee obligations (in hundredths)	20.00%			25.00%
Outstanding lease obligation	3,210,000
Outstanding Loan	1,435,000					1,534,000
Loan amount to be paid in monthly basis	8,500
Debt maturity period	120 months
Maturity date	Jun. 15, 2022
FOP and FOPRE Condensed Income Statement Information [Abstract]
Patient revenue	584,000	487,000
Net loss	(38,000)	(107,000)
USNC's equity in loss of FOP and FOPRE	(8,000)	(21,000)
FOP and FOPRE Condensed Balance Sheet Information [Abstract]
Current assets	557,000				606,000
Noncurrent assets	4,907,000				5,070,000
Total assets	5,464,000				5,676,000
Current liabilities	1,538,000				858,000
Noncurrent liabilities	3,145,000				3,947,000
Equity	781,000				871,000
Total liabilities and equity	$ 5,464,000				$ 5,676,000

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) [Abstract]
Revenue	$ 809,000	$ 0
Costs and expenses:
Patient expenses	255,000	0
Selling, general and administrative	349,000	259,000
Total	604,000	259,000
Operating income (loss)	205,000	(259,000)
Interest expense	(54,000)	(13,000)
Gain from sale of investments in unconsolidated entity	0	205,000
Other income	13,000	0
Loss from investments in unconsolidated entities	(36,000)	(39,000)
Income (loss) before income taxes	128,000	(106,000)
Provision for income tax expense	(48,000)	0
Net income (loss)	$ 80,000	$ (106,000)
Basic and diluted net income (loss) per share (in dollars per share)	$ 0.01	$ (0.01)
Weighted average common shares outstanding (in shares)	7,797,185	7,797,185

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Income Taxes

3 Months Ended

Mar. 31, 2015

Income Taxes [Abstract]

Income Taxes

Note G – Income Taxes

The Company’s income tax rate, which includes federal and state income taxes, was approximately 38%, for the three months ended March 31, 2015. The Company recorded a tax charge of $48,000 for the three months ended March 31, 2015.

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Broward Oncology Partners

3 Months Ended

Mar. 31, 2015

Broward Oncology Partners [Abstract]

Broward Oncology Partners

Note F – Broward Oncology Partners

In early 2013, the Company formed Broward Oncology Partners, LLC (“BROP”) with other outside investors. The Company invested $50,000 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. In May 2014, the Company and other members sold their interests in BROP.

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Boca Oncology Partners (Details) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2011	Dec. 31, 2014	Jun. 30, 2012	Jun. 30, 2011
Schedule of Equity Method Investments [Line Items]
Investments in unconsolidated entities	$ 338,000			$ 323,000
Condensed Income Statement Information [Abstract]
Loss from investments in unconsolidated entities	(36,000)	(39,000)
USNC [Member]
Schedule of Equity Method Investments [Line Items]
Reduced ownership percentage (in hundredths)	11.25%
Boca Oncology Partners, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Area of building (in square feet)	6,000
Ownership percentage (in hundredths)	11.25%
Amount loaned to related parties	56,250
Debt maturity period	5 years
Company loan interest rate (in hundredths)	7.00%
Share of guarantee in mortgage (in hundredths)	14.06%
Lease term	5 years
Boca Oncology Partners, LLC [Member] | USNC [Member]
Schedule of Equity Method Investments [Line Items]
Amount loaned to related parties	28,000
Boca West IMP [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage (in hundredths)	3.75%				23.75%
Share of guarantee in mortgage (in hundredths)	10.00%
Share of guarantee in outstanding mortgage (in hundredths)	50.00%
Mortgage term of guarantee	10 years
Original balance of mortgage	3,000,000
Outstanding balance on mortgage	2,706,000
Boca Oncology Partners RE, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Investments in unconsolidated entities	133,000			134,000
Ownership percentage (in hundredths)	15.40%
Ownership percentage by outside investors (in hundredths)	31.50%
Condensed Income Statement Information [Abstract]
Rental income	0	0
Net income (loss)	0	0
Loss from investments in unconsolidated entities	0	0
Equity Method Investment Summarized Financial Information Balance Sheet [Abstract]
Current assets	36,000			61,000
Noncurrent assets	811,000			786,000
Total assets	847,000			847,000
Current liabilities	0			0
Noncurrent liabilities	0			0
Equity	847,000			847,000
Total liabilities and equity	847,000			847,000
Boca Oncology Partners RE, LLC [Member] | USNC [Member]
Schedule of Equity Method Investments [Line Items]
Percentage of interest in medical office building (in hundredths)	20.00%
BOP and BOPRE [Member]
Schedule of Equity Method Investments [Line Items]
Area of building (in square feet)	32,000
Investments in unconsolidated entities						$ 225,000
Ownership percentage (in hundredths)						22.50%
Additional investor purchased (in hundredths)	50.00%		20.00%
Ownership percentage by outside investors (in hundredths)	88.75%
BOP and USNC's [Member] | USNC [Member]
Schedule of Equity Method Investments [Line Items]
Reduced ownership percentage (in hundredths)	15.40%

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Boca Oncology Partners (Tables) (Boca Oncology Partners RE, LLC [Member])

3 Months Ended

Mar. 31, 2015

Boca Oncology Partners RE, LLC [Member]

Schedule of Equity Method Investments [Line Items]

Schedule Of Equity Method Investment Summarized Financial Information

The following tables present the summarized financial information of BOPRE:

BOPRE Condensed Income Statement Information

	Three Months Ended March 31,
	2015		2014
Rental Income	$	-	$	-
Net income (loss)	$	-	$	-
USNC's equity in income in BOPRE	$	-	$	-

BOPRE Condensed Balance Sheet Information

	March 31, 2015		December 31, 2014
Current assets	$	36,000	$	61,000
Noncurrent assets		811,000		786,000
Total assets	$	847,000	$	847,000
Current liabilities	$	-	$	-
Noncurrent liabilities		-		-
Equity		847,000		847,000
Total liabilities and equity	$	847,000	$	847,000

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The Southern California Regional Gamma Knife Center (Tables) (Neuro Partners LLC and CGK [Member])

3 Months Ended

Mar. 31, 2015

Neuro Partners LLC and CGK [Member]

Schedule of Equity Method Investments [Line Items]

Schedule Of Equity Method Investment Summarized Financial Information

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

	Three Months Ended March 31,
	2015			2014
Patient revenue	$	203,000		$	264,000
Net loss	$	(70,000	)	$	(24,000	)
USNC's equity in loss of Neuro Partners, LLC and CGK	$	(33,000	)	$	(14,000	)

NeuroPartners, LLC and CGK Condensed Balance Sheet Information

	March 31, 2015			December 31, 2014
Current assets	$	87,000		$	92,000
Noncurrent assets		849,000			991,000
Total assets	$	936,000		$	1,083,000
Current liabilities	$	869,000		$	829,000
Noncurrent liabilities		854,000			969,000
Equity		(787,000	)		(715,000	)
Total liabilities and equity	$	936,000		$	1,083,000

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Florida Oncology Partners (Tables) (FOP and FOPRE [Member])

3 Months Ended

Mar. 31, 2015

FOP and FOPRE [Member]

Schedule of Equity Method Investments [Line Items]

Schedule Of Equity Method Investment Summarized Financial Information

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,
	2015			2014
Patient revenue	$	584,000		$	487,000
Net loss	$	(38,000	)	$	(107,000	)
USNC's equity in loss of FOP and FOPRE	$	(8,000	)	$	(21,000	)

FOP and FOPRE Condensed Balance Sheet Information

	March 31, 2015		December 31, 2014
Current assets	$	557,000	$	606,000
Noncurrent assets		4,907,000		5,070,000
Total assets	$	5,464,000	$	5,676,000
Current liabilities	$	1,538,000	$	858,000
Noncurrent liabilities		3,145,000		3,947,000
Equity		781,000		871,000
Total liabilities and equity	$	5,464,000	$	5,676,000

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Destruction of Gamma Knife at NYU Medical Center; Replacement and Restoration (Details) (USD $)	0 Months Ended	3 Months Ended
	Oct. 31, 2012	Mar. 31, 2015
Destruction of Gamma Knife at NYU Medical Center; Replacement and Restoration [Abstract]
Terms of agreement with NYU		12 years
Emergency removal cost	$ 525,000
Insurance coverage	930,000
First lease term		6 years
Commitment for lease financing for replacement equipment and restoration		4,700,000
First payment due		78,000
Interest on lease		18,000
Second lease term		2 years
Lease amount for cost of construction		250,000
First lease payment due for the cost of construction		$ 12,000

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Income Taxes (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Taxes [Abstract]
Federal and state income taxes, rate (in hundredths)	38.00%
Tax liability	$ 48,000	$ 0

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net income (loss)	$ 80,000	$ (106,000)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	238,000	0
Loss from investment in unconsolidated entities, net	36,000	39,000
Gain from sale of investments in unconsolidated entities	0	(205,000)
Accretion of asset retirement obligations	17,000	0
Amortization of guarantee liability	2,000	0
Deferred income taxes	48,000	0
Changes in:
Accounts receivable	(361,000)	0
Other current assets	22,000	3,000
Accounts payable and accrued expenses	18,000	37,000
Deferred revenue	159,000	0
Net cash provided by (used in) operating activities	259,000	(232,000)
Cash flows from investing activities:
Proceeds from sale of investments	0	156,000
Purchase of leasehold improvements	0	(301,000)
(Increase in) decrease of due from related parties	(61,000)	198,000
Net cash (used in) provided by investing activities	(61,000)	53,000
Cash flows from financing activities:
Repayment of capital lease obligations	(147,000)	0
Proceeds from short-term loans	0	462,000
Net cash (used in) provided by financing activities	(147,000)	462,000
Net change in cash and cash equivalents	51,000	283,000
Cash and cash equivalents - beginning of period	1,053,000	1,414,000
Cash and cash equivalents - end of period	1,104,000	1,697,000
Cash paid for
Interest	54,000	13,000
Supplemental disclosure of of noncash investing and financing activities:
Purchase of gamma knife and related leasehold improvements included in accounts payable	341,000	139,000
Increase in investment in unconsolidated entities through recording of guarantee liability	22,000	0
Increase in guarantee liability recorded	$ 13,000	$ 0

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Boca Oncology Partners

3 Months Ended

Mar. 31, 2015

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 Boca West IMP, LLC (Boca West IMP), owner of 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% was owned by other outside investors.  In June 2012, BOPRE purchased an additional 3.75% of Boca West IMP from another investor bringing its total interest to 23.75%. BOPRE accounts for this investment under the cost method since it does not exercise significant influence over Boca West IMP. Then the members of BOPRE sold 31.5% of their interests in 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%.

Although the Company reduced its investment to 11.25% of BOP and 15.4% of BOPRE, the Company continues to account for these investments under the equity method due to its participation in the management of the administration and accounting functions of BOP and BOPRE. Due to the outstanding loans made to BOP, BOP was considered to be a variable interest entity of the Company.  However, as the Company was not deemed to be the primary beneficiary of BOP, since it does not have the power to direct the operating activities that most significantly affect BOP’s economic performance, certain disclosures are required rather than consolidation.  The center opened in August 2012.

In February 2014, the Company and other members sold their interests in BOP.

The Company’s recorded investment in BOPRE is $133,000 and $134,000 at March 31, 2015 and December 31, 2014.

USNC is a 10% guarantor on 50% of the outstanding balance of Boca West IMP’s ten-year mortgage.  This mortgage had an original balance of $3,000,000 and is secured by the medical office building in which BOP operates. The outstanding balance on the mortgage is $2,706,000 at March 31, 2015.  The Company expects any potential obligations from this guarantee would be reduced by the recovery of the real estate and expects any amounts arising from this guarantee to be insignificant.

USNC was a 14.06% guarantor on BOP’s five-year lease with respect to the oncology equipment at the Boca Raton, Florida cancer center. Upon the sale of BOP, which occurred in 2014, USNC was indemnified by the buyer from any losses arising from the guarantee.

The following tables present the summarized financial information of BOPRE:

BOPRE Condensed Income Statement Information

	Three Months Ended March 31,
	2015		2014
Rental Income	$	-	$	-
Net income (loss)	$	-	$	-
USNC's equity in income in BOPRE	$	-	$	-

BOPRE Condensed Balance Sheet Information

	March 31, 2015		December 31, 2014
Current assets	$	36,000	$	61,000
Noncurrent assets		811,000		786,000
Total assets	$	847,000	$	847,000
Current liabilities	$	-	$	-
Noncurrent liabilities		-		-
Equity		847,000		847,000
Total liabilities and equity	$	847,000	$	847,000

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Broward Oncology Partners (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014	Jan. 31, 2013
Schedule of Equity Method Investments [Line Items]
Investments in unconsolidated entities	$ 338,000	$ 323,000
Broward Oncology Partners, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Investments in unconsolidated entities			$ 50,000
Ownership percentage in venture (in hundredths)			12.50%