Note E - CB Oncology Partners

6 Months Ended

Jun. 30, 2024

CB Oncology Partners ("CBOP") [Member]

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

Note E- 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. CBOP had no assets at the end of 2017. 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 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 June 30, 2024 and December 31, 2023, total $809,000 of outstanding principal, less $290,000 of allowances, for a net receivable of $519,000. The Company records increases in the allowance, when applicable, as a component of loss from investments in unconsolidated. For the six months ended June 30, 2024 and 2023, the Company’s equity in loss of CBOP was $230,000 and $173,000, respectively, but was not recorded due to prior losses.

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

	Six Months Ended
	2024			2023
Patient revenue	$	584,000		$	761,000
Net (loss) income	$	(761,000	)	$	(607,000	)
USNC's equity in (loss) income of CBOP	$	(230,000	)	$	(173,000	)

CBOP Condensed Balance Sheet Information

	June 30,			December 31,
	2024			2023
Current assets	$	262,000		$	116,000
Noncurrent assets		2,084,000			2,381,000
Total assets	$	2,346,000		$	2,497,000
Current liabilities	$	4,048,000		$	4,150,000
Noncurrent liabilities		3,594,000			2,882,000
Deficit		(5,296,000	)		(4,535,000	)
Total liabilities and deficit	$	2,346,000		$	2,497,000