Note G - CB Oncology Partners

CBOP was organized September 1, 2017, to acquire the rights of the new center from FOP. USNC originally had a 24% equity interest in CBOP. Beginning in October of 2017, CBOP began paying the remainder of the costs associated with opening the center. The medical center opened and treated its first patient in January of 2018.

Effective November 15, 2019, FOP transferred to, and CBOP assumed, a loan with BB&T bank, that it had entered into in order to finance the purchase of equipment and build out of the new center, as well as the associated property and equipment. In addition, CBOP and BB&T agreed to reduce the monthly loan repayments for the next nine months, and to extend the term of the loan from November 2024 to July 2025. In July 2020 CBOP and BB&T further agreed to reduce the monthly payments for the life of the loan and extended the loan to July of 2027.

In June 2020, CBOP made a $500,000 capital call to its members. UNSC converted previously-made advances totaling $121,000 into equity in CBOP to meet its capital requirement, and other members contributed $212,000 in cash. The remaining capital contributions are not expected to be met and, accordingly, the Company’s equity interest in CBOP increased to 28.58% in June 2020.

Amounts due from CBOP at March 31, 2021, total $2,155,000 of outstanding principal, less $1,251,000 of allowances, for a net receivable of $904,000 all of which is included in due from related parties on the accompanying Condensed Consolidated Balance Sheet. At December 31, 2020, CBOP owed the Company $2,154,000 of which $1,251,000 had been reserved for a net receivable of $903,000 all of which is included in due from related parties on the accompanying Condensed Consolidated Balance Sheet. These balances accrue interest at 6% per annum. Interest earned by the Company from the amounts owed by CBOP totaled $31,000 for each of the three months ended March 31, 2021 and 2020. At March 31, 2021 and December 31, 2020, total accrued interest was $304,000 and $273,000, respectively, all of which has been fully reserved for. The Company recorded increases in the allowance as a component of loss from investments in unconsolidated entities and as a deduction in interest income for interest earned.

Due to loans made to CBOP, CBOP is considered to be a variable interest entity of the Company. However, as the Company is not deemed to be the primary beneficiary of CBOP, since it does not have the power to direct the operating activities that most significantly affect CBOP’s economic performance, the entity is not consolidated, but certain disclosures are provided herein.

The following table presents the summarized financial information of CBOP:

CBOP Condensed Income Statement Information

	Three Months Ended March 31,
	2021		2020

Patient revenue	$	471,000	$	467,000

Net income (loss)	$	62,000	$	(216,000	)

USNC's equity in income (loss) of CBOP	$	18,000	$	(52,000	)

CBOP Condensed Balance Sheet Information

	December 31,
		2021			2020

Current assets	$	446,000		$	385,000

Noncurrent assets		4,121,000			4,271,000

Total assets	$	4,567,000		$	4,656,000

Current liabilities	$	3,154,000		$	3,181,000

Noncurrent liabilities		3,547,000			3,684,000

Deficit		(2,134,000	)		(2,209,000	)

Total liabilities and deficit	$	4,567,000		$	4,656,000