Note E – Boca Oncology Partners

During the quarter ended June 30, 2011, the Company, through the formation of a joint venture, in which it has a noncontrolling interest, 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 6,000 square feet of the 32,000 square foot building. The Company invested $225,000 initially and had a 22.5% interest in BOP and BOPRE. In February 2014, the Company and other members sold their interests in BOP.

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.

During the years ended December 31, 2018 and 2017, several investors relinquished part of their ownership interest in BOPRE, and those interests were distributed among the remaining investors in relationship to their percentages owned. As a result, the Company now holds a 21.22% ownership interest in BOPRE, which it accounts for under the equity method, at September 30, 2020. The Company’s recorded investment in BOPRE is $142,000 and $179,000 at September 30, 2020 and December 31, 2019, respectively, which is net of $43,000 of distributions during the nine months ended September 30, 2020.

USNC is a 10% guarantor of 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. In May 2020, the partners of Boca West IMP refinanced the mortgage in order to recover some of the cash that was invested before the building was completely occupied. The outstanding balance on the mortgage is $3,129,000 at September 30, 2020. Any liability from this guarantee would be mitigated by the recovery from the underlying real estate, and the Company expects its potential exposure from this guarantee to be remote.

The following tables present the summarized financial information of BOPRE:

BOPRE Condensed Income Statement Information

	Nine Months Ended September 30, (Unaudited)
	2020		2019

Rental Income	$	-	$	-

Net Income (loss)	$	37,000	$	(4,000	)

USNC's equity in earnings (loss) of BOPRE	$	8,000	$	(1,000	)

	Three Months Ended September 30, (Unaudited)
	2020		2019

Rental Income	$	-	$	-

Net income (loss)	$	30,000	$	(4,000	)

USNC's equity in earnings (loss) of BOPRE	$	7,000	$	(1,000	)

BOPRE Condensed Balance Sheet Information

	September 30, 2020		December 31, 2019
	(Unaudited)

Current assets	$	71,000	$	64,000

Noncurrent assets		757,000		935,000

Total assets	$	828,000	$	999,000

Current liabilities	$	-	$	-

Noncurrent liabilities		-		-

Equity		828,000		999,000

Total liabilities and equity	$	828,000	$	999,000