QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Large accelerated filer ☐
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Accelerated filer ☐
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Smaller reporting company
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(do not check if a smaller reporting company)
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Emerging Growth Company
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3
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Item 1.
Financial Statements
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3
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16
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18
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Item 4.
Controls and Procedures
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19
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20
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Item 1. Legal Proceedings
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20
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20
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Item 3.
Defaults Upon Senior Securities
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21
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21
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Item 5. Other Information
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21
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Item 6.
Exhibits
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21
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22
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September 30,
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December 31,
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|||||||
2023 | 2022 | |||||||
(Unaudited) | (Audited) | |||||||
ASSETS
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||||||||
Current assets:
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||||||||
Cash and cash equivalents
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$
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$
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Other current assets
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Total current assets
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Other assets:
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Due from
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Investments in unconsolidated entities
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Total other assets
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Property and equipment:
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Operating lease right-of-use asset
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Total property and equipment
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TOTAL ASSETS
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$
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$
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LIABILITIES
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||||||||
Current liabilities:
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||||||||
Operating lease right-of-use liability - current portion
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$
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$
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Accounts payable and accrued expenses
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Income taxes payable
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Total current liabilities
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Guarantee liability
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Total liabilities
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EQUITY
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Common stock - par value $
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Additional paid-in capital
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Accumulated deficit
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(
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)
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(
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)
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||||
U.S. Neurosurgical Holdings, Inc. stockholders’ equity
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||||||||
Noncontrolling interests
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||||||||
Total stockholders’ equity
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TOTAL LIABILITIES AND EQUITY
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$
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$
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Three Months Ended
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September 30, | ||||||||
2023
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2022
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|||||||
Revenue
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$
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$
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Costs and expenses:
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Selling, general and administrative
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Total
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Operating loss
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(
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)
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(
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)
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Total other expense | ||||||||
Interest expense
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( |
) | ||||||
Interest income - sales-type sublease
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||||||||
Income from investments in unconsolidated entities, net
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(
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)
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Total other expense
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( |
) | ||||||
Loss before income taxes
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(
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)
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(
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)
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Provision for income taxes
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Net (loss) income
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(
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)
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(
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)
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Net loss attributable to noncontrolling interests
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( |
) | ( |
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Net (loss) income attributable to U.S. Neurosurgical Holdings, Inc.
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$ | ( |
) | $ | ( |
) | ||
Basic and diluted net (loss) income per share attributable to U.S. NeuroSurgical Holdings, Inc.
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$
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(
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)
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$
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(
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)
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Weighted average common shares outstanding, basic and diluted
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Nine Months Ended
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September 30, | ||||||||
2023
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2022
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Revenue
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$
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$
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Costs and expenses:
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Selling, general and administrative
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Total
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Operating loss
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(
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)
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(
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)
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Total other expense | ||||||||
Loss from investments in unconsolidated entities, net
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(
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(
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)
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Total other expense
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( |
( |
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(Loss) income before income taxes
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(
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)
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(
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)
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Provision for income taxes
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Net (loss) income
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(
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)
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(
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)
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Net loss attributable to noncontrolling interests
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( |
) | ( |
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Net (loss) income attributable to U.S. Neurosurgical Holdings, Inc.
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$ | ( |
) | $ | ( |
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Basic and diluted net (loss) income per share attributable to U.S. NeuroSurgical Holdings, Inc.
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$
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(
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)
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$
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(
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)
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Weighted average common shares outstanding, basic and diluted
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Common Stock | ||||||||||||||||||||||||||||
Number
of
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Additional
Paid-In
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(Accumulated Deficit) |
U.S.
Neurosurgical Holdings, Inc.
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Noncontrolling | Total | |||||||||||||||||||||||
Shares
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Amount | Capital | Retained Earnings | Equity | Interests | Equity | ||||||||||||||||||||||
Balance - December 31, 2021
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$
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$
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$
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(
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)
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$
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$
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$
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Issuance of common stock as compensation
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Net loss for the year ended ‘December 31, 2022
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-
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(
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)
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(
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)
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(
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)
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(
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Balance - December 31, 2022
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$
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$
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$
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(
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)
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$
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$
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$
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Issuance of common stock as compensation
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Net loss for the period ended September 30, 2023
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-
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(
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)
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(
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)
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(
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)
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(
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)
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Balance - September 30, 2023
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$
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$
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$
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(
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)
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$
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$
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$
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Nine Months Ended
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September 30, |
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2023
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2022
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Cash flows from operating activities:
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Net loss
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$
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(
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)
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$
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(
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)
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Adjustments to reconcile net loss to net cash used in operating activities:
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Amortization of operating lease right-of-use asset
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Loss from investments in unconsolidated entities, net
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Distributed earnings from unconsolidated entities
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Deferred income taxes | ||||||||
Changes in:
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Income taxes payable
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(
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)
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(
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)
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Other current assets
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(
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)
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Accounts payable and accrued expenses
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(
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)
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(
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)
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Operating lease right-of-use liability
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(
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)
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(
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)
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Net cash used in operating activities
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(
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)
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(
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)
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Cash flows from investing activities:
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Advances to unconsolidated entities
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(
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)
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(
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)
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Repayments from loans to unconsolidated entities | ||||||||
Capital contributions to unconsolidated entities
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( |
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Net cash used in investing activities
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(
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)
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(
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)
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Cash flows from financing activities:
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Repayment of finance lease obligations
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Net cash used in financing activities
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Net change in cash and cash equivalents
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(
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)
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(
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)
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Cash and cash equivalents - beginning of period
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Cash and cash equivalents - end of period
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$
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$
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Supplemental disclosures of cash flow information:
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Cash paid for:
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Interest
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$
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$
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Income taxes
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$ | $ |
Classification
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September 30, 2023
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September 30, 2022
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Assets |
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Long-term
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Operating lease assets
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Operating lease right-of-use asset
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$
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$
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Total leased assets
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$
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$
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Liabilities
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Current
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|||||||||
Operating lease liabilities
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Operating lease right-of-use liability - current portion
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$
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$
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Long-term
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|||||||||
Operating lease liabilities
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Operating lease right-of-use liability - net
of current portion
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$
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$
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Total lease liabilities
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$
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$
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Lease Cost
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Operating lease cost
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Selling, general and administrative
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$
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$
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Finance lease cost
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Interest on lease liabilities
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Interest expense
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Sublease income
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Interest income - sales-type sublease
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Net lease expense
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$
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$
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Nine Months Ended
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September 30, | ||||||||
2023
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2022
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Patient revenue
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$
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$
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Net Income (loss)
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$
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$
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(
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)
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USNC’s equity in (loss) earnings of
NeuroPartners LLC and CGK
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$
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(
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)
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$
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(
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)
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Three Months Ended
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September 30, | ||||||||
2023
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2022
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Patient Revenue
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$
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$
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(
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)
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Net loss
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$
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$
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(
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)
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USNC’s equity in earnings of
NeuroPartners, LLC and CGK
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$
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(
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)
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$
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(
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)
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September 30,
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December 31,
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|||||||
2023 | 2022 | |||||||
Current assets
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$
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$
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Noncurrent assets
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Total assets
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$
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$
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Current liabilities
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$
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$
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Noncurrent liabilities
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||||||||
Equity
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(
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)
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(
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)
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Total liabilities and equity
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$
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$
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Nine Months Ended
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||||||||
September 30, | ||||||||
2023
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2022
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Rental Income
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$
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$
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Net income
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$
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$
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USNC’s equity in earnings of BOPRE
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$
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$
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Three Months Ended
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||||||||
September 30, | ||||||||
2023
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2022
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|||||||
Rental Income
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$
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$
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Net income
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$
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$
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USNC’s equity in earnings of BOPRE
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$
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$
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September 30,
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December 31,
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|||||||
2023 | 2022 | |||||||
Current assets
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$
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$
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Noncurrent assets
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Total assets
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$
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$
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Current liabilities
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$
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$
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Noncurrent liabilities
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Equity
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Total liabilities and equity
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$
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$
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Nine Months Ended
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September 30, | ||||||||
2023
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2022
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Patient revenue
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$
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$
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Net (loss) income
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$
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(
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)
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$
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(
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)
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USNC’s equity in (loss) income of CBOP
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$
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(
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)
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$
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(
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)
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Three Months Ended
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||||||||
September 30, | ||||||||
2023
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2022
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Patient revenue
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$
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$
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Net (loss) income
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$
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(
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)
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$
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(
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)
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USNC’s equity in (loss) income of CBOP
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$
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(
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)
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$
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(
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)
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September 30, | December 31, |
|||||||
2023 |
2022 |
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Current assets
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$
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$
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Noncurrent assets
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Total assets
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$
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$
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Current liabilities
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$
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$
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Noncurrent liabilities
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Deficit
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(
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)
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(
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)
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Total liabilities and deficit
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$
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$
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Item 2. |
Management Discussion and Analysis of Financial Condition and Results of Operations.
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Item 3. |
Quantitative and Qualitative Disclosures About Market Risk.
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Item 4. |
Controls and Procedures
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Item 1. |
Legal Proceedings
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Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds
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Item 3. |
Defaults Upon Senior Securities
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Item 4. |
Submission of Matters to a Vote of Security Holders
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Item 5. |
Other Information
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Item 6. |
Exhibits
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U.S. NeuroSurgical Holdings, Inc.
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|||
(Registrant)
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|||
Date: November 14, 2023
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By:
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/s/ Alan Gold
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Alan Gold
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Director, President and Chief Executive Officer and Principal Financial Officer of the Registrant
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