----

----

| x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|--------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------|

| Delaware                                                       | 52-1842411                           |
|----------------------------------------------------------------|--------------------------------------|
| (State of other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
|                                                           |                                 |
| 2400 Research Blvd, Suite 325,                                 |                                 |
| Rockville, Maryland                                            | 20850                                |
| (Address of principal executive offices)                       | (Zip Code)                           |

| Securities registered under Section 12(b) of the Act: | None                                   |
|-------------------------------------------------------|----------------------------------------|
|                                                  |                                   |
| Securities registered under Section 12(g) of the Act: | Common Stock, par value $.01 per share |

| Large accelerated filer o           |                                          | Accelerated filer o         |
|-------------------------------------|-----------------------------------------------|-----------------------------|
| Non-accelerated filer   o | (Do not check if a smaller reporting company) | Smaller reporting company x |

----

| Item 15.  | Exhibits, Financial Statement Schedules. |
|----------------|------------------------------------------|

|                                             | Page No.                                                                                                       |
|--------------------------------------------------|----------------------------------------------------------------------------------------------------------------|
| Consolidated Financial Statements of the Company | F-1                                                                                                            |
|                                             | Report of Independent Registered Public Accounting Firm                                                        | F-2 |
|                                             | Consolidated Balance Sheets as of December 31, 2010 and 2009                                                   | F-3 |
|                                             | Consolidated Statements of Operations for the years ended                                                      |   |
|                                             | December 31, 2010, 2009, and 2008.                                                                             | F-4 |
|                                             | Consolidated Statements of Changes in Stockholders' Equity                                                     |   |
|                                             | for the years ended December 31, 2010, 2009, and 2008 Consolidated Statements of Cash Flows for the year ended | F-5 |
|                                             | December 31, 2010, 2009, and 2008                                                                              | F-6 |
|                                             | Notes to Consolidated Financial Statements                                                                     | F-7 |

| (b) | Exhibits: |
|-----|-----------|

|   | 3.1 | Form of Amended and Restated Certificate of Incorporation of U.S. Neurosurgical, Inc. (“USN”) (incorporated herein by reference to Exhibit 3.1 to our Form 10 Registration Statement as filed July 1, 1999) |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2 | Form of Amended and Restated Bylaws of USN (incorporated herein by reference to Exhibit 3.2 to our Form 10 Registration Statement as filed July 1, 1999) |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1 | Form of Stock Certificate of Common Stock (incorporated herein by reference to Exhibit 4.1 to our Form 10 Registration Statement as filed July 1, 1999) |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.1 | Distribution Agreement dated May 27, 1999 between GHS, Inc. (“GHS”) and USN (incorporated herein by reference to Exhibit 10.1 to our Form 10 Registration Statement as filed July 1, 1999) |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.2 | Tax Matters Agreement dated May 27, 1999 between GHS and USN (incorporated herein by reference to Exhibit 10.2 to our Form 10 Registration Statement as filed July 1, 1999) |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.3 | Assignment and Assumption Agreement dated May 27, 1999 between GHS and USN (incorporated herein by reference to Exhibit 10.3 to our Form 10 Registration Statement as filed July 1, 1999) |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.4 | Employment Agreement dated December 14, 1984 between USN and Alan Gold, as amended March 7, 1986 (incorporated by reference to Exhibit 10.3 of GHS’s Registration Statement No. 33-4532-W on form S-18) |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.5 | Gamma Knife Neuroradiosurgery Equipment Agreement dated August, 1993 between Research Medical Center and USN (incorporated by reference to Exhibit 10h to GHS’s Quarterly Report or Form 10-Q for the quarter ended September 30, 1993) |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|   | 10.6 | Ground Lease Agreement dated August, 1993 between Research Medical Center and USN (incorporated by reference to Exhibit 10j to GHS’s Quarterly Report on Form 10-Q for the quarter ended September 30, 1993) |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.7 | LGK Agreement dated July 12, 1993 between Elekta Instruments, Inc. and USN (incorporated by reference to Exhibit 10k to GHS’s Quarterly Report on Form 10-Q for the quarter ended September 30, 1993) |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.8 | Agreement dated December 29, 1993 between USN and Elekta Instruments, Inc. (incorporated by reference to 10o to GHS’s 1994 Annual Report on Form 10-K) |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.9 | Agreement dated August 1, 1996 between USN and DVI, Inc. (incorporated by reference 10j to GHS’s 1997 Annual Report on form 10-K) |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.10 | Gamma Knife Neuroradiosurgery Equipment dated as of November 26, 1996 between New York University on behalf of New York University Medical Center and USN (incorporated herein by reference to Exhibit 10.10 to our Form 10 Registration Statement as filed July 1, 1999) |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 21.1 | List of Subsidiaries (incorporated herein by reference to Exhibit 21.1 to our Form 10 Registration Statement as filed July 1, 1999) |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.1* | Certifications of CEO and CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|-------|-----------------------------------------------------------------------------------------|

|   | 32.1* | Certifications of CEO and CFO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|--------|-------|-----------------------------------------------------------------------------------------|

| (c) | Financial Statement Schedules.  None |
|-----|------------------------------------------------|

----

Table of Contents

|   | U.S. Neurosurgical, Inc.(Registrant) |                                                                 |
|--------|--------------------------------------|----------------------------------------------------------------------|
|   |                                 |                                                                 |   |
|   | By:                                  | /s/ Alan Gold                                                   |   |
|   |                                 | Alan Gold                                                            |   |
|   |                                 | President & Chairman of the Board andPrincipal Financial Officer |   |
|   |                                 |                                                                 |   |
|   | Dated:                               | November 7, 2011                                                     |   |

| November 7, 2011 | By:    | /s/ Alan Gold                    |   |
|------------------|--------|---------------------------------------|--------|
|             |   | Alan Gold                             |   |
|             |   | President & Chairman of the Board |   |

| November 7, 2011 | By:    | /s/ William F. Leimkuhler  |   |
|------------------|--------|---------------------------------|--------|
|             |   | Name William F. Leimkuhler |   |
|             |   | Director                        |   |

| November 7, 2011 | By:    | /s/ Charles H. Merriman III  |   |
|------------------|--------|-----------------------------------|--------|
|             |   | Name Charles H. Merriman III |   |
|             |   | Director                          |   |

----

Table of Contents

|                              | Page                                                                                                  |
|-----------------------------------|-------------------------------------------------------------------------------------------------------|
|                              |                                                                                                  |
| Consolidated Financial Statements | F-1                                                                                                   |
|                              |                                                                                                  |   |
|                              | Report of Independent Registered Public Accounting Firm                                               | F-2 |
|                              |                                                                                                  |   |
|                              | Consolidated Balance Sheets as of December 31, 2010 and 2009                                          | F-3 |
|                              |                                                                                                  |   |
|                              | Consolidated Statements of Operations for the years ended December 31, 2010, 2009, and 2008           | F-4 |
|                              |                                                                                                  |   |
|                              | Consolidated Statements of Stockholders' Equity for the years ended December 31, 2010, 2009, and 2008 | F-5 |
|                              |                                                                                                  |   |
|                              | Consolidated Statements of Cash Flows for the years ended December 31, 2010, 2009, and 2008           | F-6 |
|                              |                                                                                                  |   |
|                              | Notes to Consolidated Financial Statements                                                            | F-7 |

----

Table of Contents

----

Table of Contents

|                                                                                                                               |   | December 31, |       |
|------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|------------|
|                                                                                                                               |   | 2010         |       |   | 2009 |   |
| ASSETS                                                                                                                             |   |         |       |   |   |   |
| Current assets:                                                                                                                    |   |         |       |   |   |   |
| Cash and cash equivalents                                                                                                          |   | $            | 820,000    |   |   | $ | 673,000 |   |
| Accounts receivable (net of allowance for doubtful accounts of $36,000 in 2010 and 2009)                                           |   |         | 421,000    |   |   |   | 232,000 |   |
| Accounts receivable - stockholder                                                                                                  |   |         | -          |   |   |   | 48,000 |   |
| Other current assets                                                                                                               |   |         | 89,000     |   |   |   | 57,000 |   |
|                                                                                                                               |   |         |       |   |   |   |   |   |
| Total current assets                                                                                                               |   |         | 1,330,000  |   |   |   | 1,010,000 |   |
|                                                                                                                               |   |         |       |   |   |   |   |   |
| Investment in unconsolidated entities                                                                                              |   |         | 200,000    |   |   |   | - |   |
|                                                                                                                               |   |         |       |   |   |   |   |   |
| Property and equipment:                                                                                                            |   |         |       |   |   |   |   |   |
| Gamma Knives (net of accumulated depreciation of $2,937,000 in 2010 and $2,108,000 in 2009)                                        |   |         | 2,864,000  |   |   |   | 3,693,000 |   |
| Leasehold improvements (net of accumulated amortization of $807,000 in 2010 and $730,000  in 2009)                       |   |         | 367,000    |   |   |   | 293,000 |   |
|                                                                                                                               |   |         |       |   |   |   |   |   |
|                                                                                                                               |   |         | 3,231,000  |   |   |   | 3,986,000 |   |
|                                                                                                                               |   |         |       |   |   |   |   |   |
| Cash held in escrow                                                                                                                |   |         | 51,000     |   |   |   | 52,000 |   |
|                                                                                                                               |   |         |       |   |   |   |   |   |
|                                                                                                                               |   | $            | 4,812,000  |   |   | $ | 5,048,000 |   |
|                                                                                                                               |   |         |       |   |   |   |   |   |
| LIABILITIES                                                                                                                        |   |         |       |   |   |   |   |   |
| Current liabilities:                                                                                                               |   |         |       |   |   |   |   |   |
| Accounts payable and accrued expenses                                                                                              |   | $            | 113,000    |   |   | $ | 67,000 |   |
| Obligations under capital leases and loans payable - current portion                                                               |   |         | 623,000    |   |   |   | 894,000 |   |
|                                                                                                                               |   |         |       |   |   |   |   |   |
| Total current liabilities                                                                                                          |   |         | 736,000    |   |   |   | 961,000 |   |
|                                                                                                                               |   |         |       |   |   |   |   |   |
| Asset retirement obligations                                                                                                       |   |         | 200,000    |   |   |   | 200,000 |   |
| Obligations under capital leases and loans payable - net of current portion                                                        |   |         | 2,568,000  |   |   |   | 3,048,000 |   |
|                                                                                                                               |   |         |       |   |   |   |   |   |
| Total liabilities                                                                                                                  |   |         | 3,504,000  |   |   |   | 4,209,000 |   |
|                                                                                                                               |   |         |       |   |   |   |   |   |
| Commitments, litigation and other matters (Notes B[10], D, J, K and L)                                                        |   |         |       |   |   |   |   |   |
|                                                                                                                               |   |         |       |   |   |   |   |   |
| STOCKHOLDERS' EQUITY                                                                                                               |   |         |       |   |   |   |   |   |
| Common stock - par value $.01; 25,000,000 shares authorized; 7,747,185 shares issued and outstanding at December 31, 2010 and 2009 |   |         | 77,000     |   |   |   | 77,000 |   |
| Additional paid-in capital                                                                                                         |   |         | 3,099,000  |   |   |   | 3,099,000 |   |
| Accumulated deficit                                                                                                                |   |         | (1,868,000 | ) |   |   | (2,337,000 | ) |
|                                                                                                                               |   |         |       |   |   |   |   |   |
|                                                                                                                               |   |         | 1,308,000  |   |   |   | 839,000 |   |
|                                                                                                                               |   |         |       |   |   |   |   |   |
|                                                                                                                               |   | $            | 4,812,000  |   |   | $ | 5,048,000 |   |

----

Table of Contents

|                                       |   | Years Ended December 31, |      |
|--------------------------------------------|--------|--------------------------|-----------|
|                                       |   | 2010                     |      |   | 2009 |   |   | 2008 |   |
|                                       |   |                     |      |   |   |   |   |   |   |
|                                       |   |                     |      |   |   |   |   |   |   |
|                                       |   |                     |      |   |   |   |   |   |   |
| Revenue (Notes C and D)                    |   | $                        | 2,557,000 |   |   | $ | 2,261,000 |   |   | $ | 1,751,000 |   |
|                                       |   |                     |      |   |   |   |   |   |   |   |   |   |
| Costs and expenses:                        |   |                     |      |   |   |   |   |   |   |   |   |   |
| Patient expenses                           |   |                     | 1,092,000 |   |   |   | 901,000 |   |   |   | 671,000 |   |
| Selling, general and administrative        |   |                     | 1,019,000 |   |   |   | 918,000 |   |   |   | 961,000 |   |
|                                       |   |                     |      |   |   |   |   |   |   |   |   |   |
|                                       |   |                     | 2,111,000 |   |   |   | 1,819,000 |   |   |   | 1,632,000 |   |
|                                       |   |                     |      |   |   |   |   |   |   |   |   |   |
| Income from operations                     |   |                     | 446,000   |   |   |   | 442,000 |   |   |   | 119,000 |   |
|                                       |   |                     |      |   |   |   |   |   |   |   |   |   |
| Revenue from litigation activity           |   |                     | 459,000   |   |   |   | - |   |   |   | - |   |
| Interest expense                           |   |                     | (401,000  | ) |   |   | (375,000 | ) |   |   | (126,000 | ) |
| Interest income                            |   |                     | 5,000     |   |   |   | 5,000 |   |   |   | 11,000 |   |
| Equity in loss of unconsolidated entities  |   |                     | (40,000   | ) |   |   | - |   |   |   | - |   |
|                                       |   |                     |      |   |   |   |   |   |   |   |   |   |
|                                       |   |                     | 23,000    |   |   |   | (370,000 | ) |   |   | (115,000 | ) |
|                                       |   |                     |      |   |   |   |   |   |   |   |   |   |
|                                       |   |                     |      |   |   |   |   |   |   |   |   |   |
| Income before income taxes                 |   |                     | 469,000   |   |   |   | 72,000 |   |   |   | 4,000 |   |
|                                       |   |                     |      |   |   |   |   |   |   |   |   |   |
| Provision for income tax expense           |   |                     | -         |   |   |   | - |   |   |   | - |   |
|                                       |   |                     |      |   |   |   |   |   |   |   |   |   |
|                                       |   |                     |      |   |   |   |   |   |   |   |   |   |
| Net income                                 |   | $                        | 469,000   |   |   | $ | 72,000 |   |   | $ | 4,000 |   |
|                                       |   |                     |      |   |   |   |   |   |   |   |   |   |
|                                       |   |                     |      |   |   |   |   |   |   |   |   |   |
| Basic and diluted net income per share     |   | $                        | 0.06      |   |   | $ | 0.01 |   |   | $ | 0.00 |   |
|                                       |   |                     |      |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding |   |                     | 7,747,185 |   |   |   | 7,704,465 |   |   |   | 7,697,185 |   |

----

Table of Contents

|                                           |   | Common Stock     |      |   |   |   |    |                       |   |   |                |   |
|------------------------------------------------|--------|------------------|-----------|--------|--------|--------|---------|----------------------------|--------|--------|---------------------|--------|
|                                           |   | Number of Shares |      |   | Amount |   |    | Additional Paid-In Capital |   |   | Accumulated Deficit |   |   | Total |   |
|                                           |   |             |      |   |   |   |    |                       |   |   |                |   |   |   |   |
| Balance - December 31, 2007                    |   |             | 7,697,185 |   |   |   | 77,000  |                       |   |   | 3,097,000           |   |   |   | (2,413,000 | ) |   |   | 761,000 |   |
|                                           |   |             |      |   |   |   |    |                       |   |   |                |   |   |   |   |   |   |   |   |   |
| Net income for the year endedDecember 31, 2008 |   |             |  -   |   |   |   |  - |                       |   |   |  -             |   |   |   |  4,000 |   |   |   |  4,000 |   |
| Balance - December 31, 2008                    |   |             | 7,697,185 |   |   | $      | 77,000  |                       |   | $      | 3,097,000           |   |   | $ | (2,409,000 | ) |   | $ | 765,000 |   |
|                                           |   |             |      |   |   |   |    |                       |   |   |                |   |   |   |   |   |   |   |   |   |
| Issuance of common stock as compensation       |   |             | 50,000    |   |   |   | -       |                       |   |   | 2,000               |   |   |   | - |   |   |   | 2,000 |   |
| Net income for the year endedDecember 31, 2009 |   |             |  -   |   |   |   |  - |                       |   |   |  -             |   |   |   |  72,000 |   |   |   |  72,000 |   |
| Balance - December 31, 2009                    |   |             | 7,747,185 |   |   | $      | 77,000  |                       |   | $      | 3,099,000           |   |   | $ | (2,337,000 | ) |   | $ | 839,000 |   |
|                                           |   |             |      |   |   |   |    |                       |   |   |                |   |   |   |   |   |   |   |   |   |
| Net income for the year endedDecember 31, 2010 |   |             |  -   |   |   |   |  - |                       |   |   |  -             |   |   |   |  469,000 |   |   |   |  469,000 |   |
| Balance - December 31, 2010                    |   |             | 7,747,185 |   |   | $      | 77,000  |                       |   | $      | 3,099,000           |   |   | $ | (1,868,000 | ) |   | $ | 1,308,000 |   |

----

Table of Contents

|                                                                   |   | Years Ended December 31, |      |
|------------------------------------------------------------------------|--------|--------------------------|-----------|
|                                                                   |   | 2010                     |      |   | 2009 |   |   | 2008 |   |
|                                                                   |   |                     |      |   |   |   |   |   |   |
| Cash flows from operating activities:                                  |   |                     |      |   |   |   |   |   |   |
| Net income (loss)                                                      |   | $                        | 469,000   |   |   | $ | 72,000 |   |   | $ | 4,000 |   |
| Adjustments to reconcile to net cash provided by operating activities: |   |                     |      |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                          |   |                     | 906,000   |   |   |   | 780,000 |   |   |   | 574,000 |   |
| Equity in loss of unconsolidated entities                              |   |                     | 40,000    |   |   |   | - |   |   |   | - |   |
| Stock based compensation expense                                       |   |                     | -         |   |   |   | 2,000 |   |   |   | - |   |
| Interest expense paid through a capital lease obligation               |   |                     | -         |   |   |   | 96,000 |   |   |   | - |   |
| Changes in:                                                            |   |                     |      |   |   |   |   |   |   |   |   |   |
| Accounts receivable                                                    |   |                     | (189,000  | ) |   |   | (228,000 | ) |   |   | 93,000 |   |
| Accounts receivable - stockholder                                      |   |                     | 48,000    |   |   |   | (4,000 | ) |   |   | - |   |
| Other current assets                                                   |   |                     | (32,000   | ) |   |   | (14,000 | ) |   |   | 10,000 |   |
| Accounts payable and accrued expenses                                  |   |                     | 46,000    |   |   |   | 11,000 |   |   |   | (13,000 | ) |
| Net cash from operating activities                                     |   |                     | 1,288,000 |   |   |   | 715,000 |   |   |   | 668,000 |   |
|                                                                   |   |                     |      |   |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                  |   |                     |      |   |   |   |   |   |   |   |   |   |
| Investment in unconsolidated entities                                  |   |                     | (240,000  | ) |   |   | - |   |   |   | - |   |
|                                                                   |   |                     |      |   |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                  |   |                     |      |   |   |   |   |   |   |   |   |   |
| Repayment of capital lease and loan obligations                        |   |                     | (902,000  | ) |   |   | (647,000 | ) |   |   | (435,000 | ) |
| Decrease (increase) in cash held in escrow                             |   |                     | 1,000     |   |   |   | - |   |   |   | - |   |
| Net cash from financing activities                                     |   |                     | (901,000  | ) |   |   | (647,000 | ) |   |   | (435,000 | ) |
|                                                                   |   |                     |      |   |   |   |   |   |   |   |   |   |
| Net change in cash and cash equivalents                                |   |                     | 147,000   |   |   |   | 68,000 |   |   |   | 233,000 |   |
| Cash and cash equivalents - beginning of year                          |   |                     | 673,000   |   |   |   | 605,000 |   |   |   | 372,000 |   |
| Cash and cash equivalents - end of year                                |   | $                        | 820,000   |   |   | $ | 673,000 |   |   | $ | 605,000 |   |
|                                                                   |   |                     |      |   |   |   |   |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                     |   |                     |      |   |   |   |   |   |   |   |   |   |
| Cash paid for:                                                         |   |                     |      |   |   |   |   |   |   |   |   |   |
| Interest                                                               |   | $                        | 401,000   |   |   | $ | 279,000 |   |   | $ | 126,000 |   |
|                                                                   |   |                     |      |   |   |   |   |   |   |   |   |   |
| Supplemental disclosures of noncash activities:                        |   |                     |      |   |   |   |   |   |   |   |   |   |
| Equipment and leasehold improvements acquired through a capital lease  |   | $                        | 151,000   |   |   | $ | 3,315,000 |   |   | $ | - |   |

----

Table of Contents

| [1] | Basis of presentation and consolidation |
|-----|-----------------------------------------|

| [2] | Cash and cash equivalents: |
|-----|----------------------------|

| [3] | Revenue recognition: |
|-----|----------------------|

| [4] | Long-lived assets: |
|-----|--------------------|

| [5] | Depreciation and amortization: |
|-----|--------------------------------|

----

Table of Contents

| [6] | Income taxes: |
|-----|---------------|

| [7] | Earnings per share: |
|-----|---------------------|

| [8] | Advertising costs: |
|-----|--------------------|

| [9] | Bad debts: |
|-----|------------|

| [10] | Estimates and assumptions: |
|------|----------------------------|

| [11] | Fair values of financial instruments: |
|------|---------------------------------------|

| [12] | Credit risk: |
|------|--------------|

----

Table of Contents

| [13] | Asset retirement obligations: |
|------|-------------------------------|

| [14] | Reclassifications: |
|------|--------------------|

| [15] | Recently Issued Accounting Standards: |
|------|---------------------------------------|

----

Table of Contents

| NeuroPartners, LLC Condensed Income Statement Information                                        |   |
|--------------------------------------------------------------------------------------------------|--------|
|                                                                                             |   |   |   |   |   |   |
|                                                                                             |   | 2010 |   |   | 2009 |   |
| Net Sales                                                                                        |   | $ | 828,000 |   |   | $ | 828,000 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Net income (loss)                                                                                |   | $ | (346,000 | ) |   | $ | (112,000 | ) |
|                                                                                             |   |   |   |   |   |   |   |   |
| USN's equity in loss of                                                                          |   | $ | (69,000 | ) |   | $ | (22,000 | ) |
| NeuroPartners, LLC                                                                               |   |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| USN is limited to losses in NeuroPartners, LLC equal to the amount of its investment of $40,000. |
|                                                                                             |
| NeuroPartners, LLC Condensed Balance Sheet Information                                           |   |
|                                                                                             |   |   |   |   |   |   |   |   |
|                                                                                             |   |   | 2010 |   |   |   | 2009 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Current assets                                                                                   |   | $ | 344,000 |   |   | $ | 333,000 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Noncurrent assets                                                                                |   | $ | 3,532,000 |   |   | $ | 4,219,000 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Total assets                                                                                     |   | $ | 3,876,000 |   |   | $ | 4,552,000 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Current liabilities                                                                              |   | $ | 95,000 |   |   | $ | 633,000 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Noncurrent liabilities                                                                           |   | $ | 3,948,000 |   |   | $ | 3,764,000 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Equity                                                                                           |   | $ | (167,000 | ) |   | $ | 155,000 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Total liabilities and equity                                                                     |   | $ | 3,876,000 |   |   | $ | 4,552,000 |   |

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Table of Contents

| [1]   | Gamma Knife neuroradiosurgery equipment agreement: |
|-----------------|----------------------------------------------------|

| [2]   | Ground lease agreement: |
|-----------------|-------------------------|

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Table of Contents

|                         |   | December 31, |      |
|------------------------------|--------|--------------|-----------|
|                         |   | 2010         |      |   | 2009 |   |
|                         |   |         |      |   |   |   |
| Capital leases - Gamma Knife |   | $            | 3,191,000 |   |   | $ | 3,942,000 |   |
|                         |   |         |      |   |   |   |   |   |
| Less current portion         |   |         | (623,000  | ) |   |   | (894,000 | ) |
|                         |   |         |      |   |   |   |   |   |
|                         |   | $            | 2,568,000 |   |   | $ | 3,048,000 |   |

|                                                                                   |   | 2010   |       |   | 2009   |   |
|----------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                                   |   |   |       |   |   |   |
| Capitalized costs                                                                      |   | $      | 6,067,000  |   |   | $      | 5,915,000 |   |
| Less - accumulated depreciation                                                        |   |   | (2,985,000 | )      |   |   | (2,119,000 | ) |
|                                                                                   |   |   |       |   |   |   |   |   |
| Capitalized lease equipment and improvements- reported as property and equipment - net |   | $      | 3,082,000  |   |   | $      | 3,796,000 |   |

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Table of Contents

| Year EndingDecember 31,                 |   |   |       |
|-----------------------------------------|--------|--------|------------|
|                                    |   |   |       |
| 2011                                    |   | $      | 944,000    |   |
| 2012                                    |   |   | 758,000    |   |
| 2013                                    |   |   | 758,000    |   |
| 2014                                    |   |   | 758,000    |   |
| 2015                                    |   |   | 758,000    |   |
| Thereafter                              |   |   | 220,000    |   |
|                                    |   |   | 4,196,000  |   |
| Less interest                           |   |   | (1,005,000 | ) |
| Present value of net minimum obligation |   | $      | 3,191,000  |   |

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|      |   | Year Ended December 31, |   |
|-----------|--------|-------------------------|--------|
|      |   | 2010                    |   |   | 2009 |   |   | 2008 |   |
| Current:  |   |                    |   |   |   |   |   |   |   |
| Federal   |   | $                       | -      |   |   | $ | - |   |   | $ | - |   |
| State     |   |                    | -      |   |   |   | - |   |   |   | - |   |
|      |   |                    | -      |   |   |   | - |   |   |   | - |   |
|      |   |                    |   |   |   |   |   |   |   |   |   |   |
| Deferred: |   |                    |   |   |   |   |   |   |   |   |   |   |
| Federal   |   |                    | -      |   |   |   | - |   |   |   | - |   |
| State     |   |                    | -      |   |   |   | - |   |   |   | - |   |
|      |   |                    | -      |   |   |   | - |   |   |   | - |   |
|      |   | $                       | -      |   |   | $ | - |   |   | $ | - |   |

|                                          |   | Year Ended December 31, |     |
|-----------------------------------------------|--------|-------------------------|----------|
|                                          |   | 2010                    |     |   | 2009 |   |   | 2008 |   |
|                                          |   |                    |     |   |   |   |   |   |   |
| Income tax at the federal statutory rate |   | $                       | 173,000  |   |   | $ | 25,000 |   |   | $ | 2,000 |   |
| State income tax, net of federal taxes        |   |                    | 17,000   |   |   |   | 4,000 |   |   |   | - |   |
| Other                                         |   |                    | (30,000  | ) |   |   | (16,000 | ) |   |   | 40,000 |   |
| Change in valuation allowance                 |   |                    | (160,000 | ) |   |   | (13,000 | ) |   |   | (42,000 | ) |
|                                          |   |                    |     |   |   |   |   |   |   |   |   |   |
| Income tax provision (benefit)                |   | $                       | -        |   |   | $ | - |   |   | $ | - |   |

|                                                           |   | December 31, |     |
|----------------------------------------------------------------|--------|--------------|----------|
|                                                           |   | 2010         |     |   | 2009 |   |
| Deferred tax asset:                                            |   |         |     |   |   |   |
| Net operating loss                                             |   | $            | 560,000  |   |   | $ | 610,000 |   |
| Asset retirement obligation                                    |   |         | 74,000   |   |   |   | 78,000 |   |
|                                                           |   |         | 634,000  |   |   |   | 688,000 |   |
| Deferred tax liability:                                        |   |         |     |   |   |   |   |   |
| Excess of book depreciation over tax depreciation              |   |         | (406,000 | ) |   |   | (344,000 | ) |
| Net effect of the conversion from accrual basis of accounting  |   |         |     |   |   |   |   |   |
| to cash basis accounting for tax purposes primarily related    |   |         | -        |   |   |   | - |   |
| to accounts receivable, prepaid expenses, and accounts payable |   |         | (146,000 | ) |   |   | (102,000 | ) |
|                                                           |   |         | 82,000   |   |   |   | 242,000 |   |
| Valuation allowance                                            |   |         | (82,000  | ) |   |   | (242,000 | ) |

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Table of Contents

|                    |   | Beginning Balance |    |   | Additions |   |   | Deductions |   |   | Ending Balance |   |
|-------------------------|--------|-------------------|---------|--------|-----------|--------|--------|------------|--------|--------|----------------|--------|
|                    |   |              |    |   |      |   |   |       |   |   |           |   |
|  December 31, 2010 |   | $                 | 242,000 |   |      | $      | -      |       |   | $      | 160,000        |   |   | $ | 82,000 |   |
|  December 31, 2009 |   | $                 | 255,000 |   |      | $      | -      |       |   | $      | 13,000         |   |   | $ | 242,000 |   |

|   |   |   |      |
|--------|--------|--------|-----------|
| 2026   |   |   | 289,389   |   |
| 2027   |   |   | 77,363    |   |
| 2028   |   |   | -         |   |
| 2029   |   |   | 1,133,517 |   |
|   |   |   |      |   |
|   |   | $      | 1,500,269 |   |

| Year Ending December 31, |   |
|--------------------------|--------|
|                     |   |   |   |
| 2011                     |   | $ | 45,000 |   |
| 2012                     |   |   | 47,000 |   |
| 2013                     |   |   | 12,000 |   |
|                     |   | $ | 104,000 |   |

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Table of Contents

|                                             |   | Three Months Ended |   |
|--------------------------------------------------|--------|--------------------|--------|
|                                             |   | March 31           |   |   | June 30 |   |   | September 30 |   |   | December 31 |   |
| 2010                                             |   |               |   |   |   |   |   |   |   |   |   |   |
| Revenue                                          |   | $                  | 532    |   |   | $ | 541 |   |   | $ | 734 |   |   | $ | 750 |   |
| Income from operations                      |   |               | 37     |   |   |   | 38 |   |   |   | 155 |   |   |   | 216 |   |
| Net income (loss)                                |   |               | (67    | ) |   |   | 395 |   |   |   | 55 |   |   |   | 86 |   |
| Basic and diluted income (loss) per common share |   | $                  | (0.01  | ) |   | $ | 0.05 |   |   | $ | 0.01 |   |   | $ | 0.01 |   |
|                                             |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                                             |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                          |   | $                  | 366    |   |   | $ | 693 |   |   | $ | 657 |   |   | $ | 545 |   |
| Income (loss) from operations                    |   |               | (9     | ) |   |   | 202 |   |   |   | 157 |   |   |   | 94 |   |
| Net income (loss)                                |   |               | (33    | ) |   |   | 86 |   |   |   | 40 |   |   |   | (21 | ) |
| Basic and diluted income (loss) per common share |   | $                  | 0.00   |   |   | $ | (0.01 | ) |   | $ | 0.01 |   |   | $ | 0.01 |   |
|                                             |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2008                                             |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                          |   | $                  | 535    |   |   | $ | 390 |   |   | $ | 497 |   |   | $ | 329 |   |
| Income (loss) from operations                    |   |               | 65     |   |   |   | (23 | ) |   |   | 110 |   |   |   | (33 | ) |
| Net income (loss)                                |   |               | 31     |   |   |   | (51 | ) |   |   | 82 |   |   |   | (58 | ) |
| Basic and diluted income (loss) per common share |   | $                  | 0.00   |   |   | $ | (0.01 | ) |   | $ | 0.01 |   |   | $ | 0.00 |   |

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