The Southern California Regional Gamma Knife Center

3 Months Ended

Mar. 31, 2022

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, through a noncontrolling interest in joint ventures, managed the formation of the Southern California Regional Gamma Knife Center at San Antonio Regional Hospital (“SARH”) in Upland, California.  Corona Gamma Knife, LLC (“CGK”) is party to a 14-year agreement with SARH to renovate space in the hospital and install and operate a Leksell PERFEXION gamma knife.  CGK leases 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 was a 20% guarantor on NeuroPartners LLC’s seven-year lease with respect to the gamma knife equipment and certain leasehold improvements at SARH.  In February 2016, NeuroPartners LLC negotiated a new five-year lease to fund the reloading of cobalt and related construction services.  The new lease of $1,663,000 included a balance of $668,000 from the prior lease obligations.  This new lease was payable over 60 months.  The first payment of $31,000 was paid in April 2016 and the final payment was paid in March 2021, removing USNC’s guarantee obligation.

Construction of the SARH 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, through its joint ventures, has led the effort in organizing the business and overseeing the development and operation of the SARH center, its investment to date in the SARH center has been minimal.

At March 31, 2022 and December 31, 2021, the Company’s recorded investment (loss) of NeuroPartners LLC and CGK was $0 and ($10,000), respectively. For the three months ended March 31, 2022, the Company’s equity in income of NeuroPartners LLC and CGK was $10,000 and compared to equity in loss of ($2,000) for the three months ended March 31, 2021.  At March 31, 2022, and December 31, 2021, amounts due from related parties was $19,000 and $6,000, respectively.

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

NeuroPartners LLC and CGK Condensed Combined Income Statement Information

	Three Months Ended March 31,
	2022			2021
Patient revenue	$	122,000		$	166,000
Net (loss) income	$	(30,000	)	$	19,000
USNC’s equity in income (loss) of NeuroPartners LLC and CGK	$	10,000		$	(2,000	)

NeuroPartners LLC and CGK Condensed Combined Balance Sheet Information

	March 31, 2022		December 31, 2021
Current assets	$	368,000	$	299,000
Noncurrent assets		230,000		294,000
Total assets	$	598,000	$	593,000
Current liabilities	$	598,000	$	564,000
Noncurrent liabilities		-		-
Equity		-		29,000
Total liabilities and equity	$	598,000	$	593,000