Basis of Preparation

9 Months Ended

Sep. 30, 2023

Note A - Basis of Preparation

The accompanying Condensed Consolidated Financial Statements of U.S. NeuroSurgical Holdings, Inc. and Subsidiaries (the “Company”) as of September 30, 2023, and 2022, are unaudited. However, in the opinion of management, such statements include all adjustments necessary for a fair statement of the information presented therein. The Consolidated Balance Sheet at December 31, 2022, has been derived from the audited Consolidated Financial Statements at that date appearing in the Company’s Annual Report on Form 10-K. All amounts are shown in nearest thousands in the Consolidated Financial Statements and accompanying notes therein.

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 Consolidated Financial Statements.

Consolidated results of operations for interim periods are not necessarily indicative of those to be achieved for full fiscal years. The only change to the Company’s equity in the nine months ended September 30, 2023, and 2022 was net loss for the periods. The Company issued 50,000 shares of stock to a new Board Member in April 2023.

The Company applies the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidation to noncontrolling interests in consolidated financial statements. The guidance requires noncontrolling interests to be reported as a component of equity separate from the parent’s equity and purchases and sales of equity interests, that do not result in a change in control, to be accounted for as equity transactions. In addition, net (loss) income attributable to noncontrolling interests are to be included in net (loss) income and, upon a loss of control, the interest sold, as well as any interest retained, is to be recorded at fair value, with any gain or loss recognized in net (loss) income.

The Company recognizes revenue in accordance with two different accounting standards: 1) Topic 606 and 2) Accounting Standards Codification (“ASC”) Topic 842, Leases. However, the Company generated no revenue in 2022 or in the first nine months of 2023.

The tables below present financial information associated with our leases.

	Classification	September 30, 2023		September 30, 2022
Assets
Long-term
Operating lease assets	Operating lease right-of-use asset	$	-	$	30,000
Total leased assets		$	-	$	30,000

Liabilities
Current
Operating lease liabilities	Operating lease right-of-use liability - current portion	$	-	$	34,000

Long-term
Operating lease liabilities	Operating lease right-of-use liability - net of current portion	$	-	$	-
Total lease liabilities		$	-	$	34,000

Lease Cost
Operating lease cost	Selling, general and administrative	$	-	$	31,000

Finance lease cost
Interest on lease liabilities	Interest expense		-		-

Sublease income	Interest income - sales-type sublease		-		-
Net lease expense		$	-	$	31,000