Elite Health

9 Months Ended

Sep. 30, 2022

Elite Health [Abstract]

Elite Health

Note H – Elite Health

Effective October 1, 2021, U.S. NeuroSurgical, Inc. (“USN”), acquired all of the outstanding shares of capital stock of Elite Health Plan, Inc., a California corporation (“Elite Health”.) The transaction with Elite Health was structured as an investment by Elite Health shareholders in USN, and as such did not have an immediate effect on the percentage ownership of the shareholders of the Company.  However, the Company’s interest in USN, which currently holds substantially all of the interest in the Company’s businesses and operations, was effectively diluted by 15% as a result of the issuance of the new USN shares to the former shareholders of Elite Health.  In addition, pursuant to the terms of this transaction, the former shareholders of Elite Health may request that the Company take steps that would give such shareholders access to the public trading market.  If this is requested by the Elite Health shareholders, it could be accomplished at the Company’s election through an exchange of such shareholders’ shares in USN for common stock of the Company.

Elite Health is a private company with a limited operating history.  It was formed in 2017 with the purpose of establishing a managed care organization that will operate as a Medicare Advantage plan for seniors.  It is expected that Elite Health will operate in California, initially San Bernardino, Riverside, and Orange Counties, with the objective of addressing the growing number of Medicare eligible seniors in those markets.

Elite Health is in the process of applying for a Knox Keene license to operate a Medicare Advantage plan in California and has taken preliminary steps toward identifying a network of providers who are well-versed in the healthcare needs of seniors in the communities in which they practice.  If Elite Health is successful in obtaining the license, establishing Elite Health as an operating entity will require significant investment not currently available to the Company.  The Company is currently exploring opportunities to provide the necessary funding to proceed with activities required to launch Elite Health.