|                                                                          
|--------------------------------------------------------------------------
|UNITED STATESSECURITIES AND EXCHANGE COMMISSION
    Washington, D.C. 20549
|                                                                          
|FORM 10-QSB                                                               
|                                                                          

|x                                            | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|-------------------------------------------- | ---------------------------------------------------------------------------------
|                                             |                                                                                  
|For the quarterly period ended June 30, 2007
|                                            
|or                                          
|                                            
|o                                            | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE
ACT                  
|                                             |                                                                                  

|For the transition period from                       to                 .
|-------------------------------------------------------------------------
|                                                                         
|Commission file number:  0-15586                                         
|                                                                         
|U.S. Neurosurgical, Inc.                                                 
|(Exact name of small business issuer as specified in its charter)        

| |                                 |  |                    
| | ------------------------------- |  | -------------------
| | Delaware                        |  | 52-1842411         
| | (State of other jurisdiction of |  | (I.R.S. Employer   
| | incorporation or organization)  |  | Identification No.)

|                                                                                  
|----------------------------------------------------------------------------------
|2400 Research Blvd, Suite 325, Rockville, Maryland 20850                          
|(Address of principal executive offices)                                          
|                                                                                  
|(301) 208-8998                                                                    
|(Issuers telephone number)                                                       
|                                                                                  
|Not Applicable                                                                    
|(Former name, former address and former fiscal year, if changed since last report)
|                                                                                  

|Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange
Act during the past 12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past 90 days.               Yes x No o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act).                                Yes o  Nox
As of July 27, 2007, there were outstanding 7,697,185 shares of the registrants Common Stock.
$.01 par value.
Transitional Small Business Disclosure Format (check one)
Yes o  Nox
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|



|TABLE OF CONTENTS
|-----------------

|                              |   
|----------------------------- | --
|PART I -FINANCIAL INFORMATION | 3 
|Item 1.                       |   
|Item 2.                       |   
|Item 3.                       |   
|                              |   
|                              |   
|PART II -OTHER INFORMATION    | 13
|Item 1.                       |   
|Item 2.                       |   
|Item 3.                       |   
|Item 4.                       |   
|Item 5.                       |   
|Item 6.                       |   
|                              |   
|                              |   
|SIGNATURES.                   | 15
|                              |   

|2
|-



|PART I - FINANCIAL INFORMATION
|------------------------------
|                              
|Item 1.   Financial Statements
|                              

|U.S. NEUROSURGICAL, INC. AND SUBSIDIARY
|---------------------------------------
|CONSOLIDATED BALANCE SHEETS            
|                                       

|                                                         | June 30,
      2007 |   | December 31,
      2006 |  
|-------------------------------------------------------- | ------------------- | - | ----------------------- | -
|                                                         |                     |   |                         |  
|ASSETS                                                   |                     |   |                         |  
|                                                         |                     |   |                         |  
|Current assets:                                          |                     |   |                         |  
|Cash and cash equivalents                                |                     | $ | 208,000                 |  
|Accounts receivable (net of allowance for doubtful       |                     |   |                         |  
|accounts of $36,000 in 2007 and 2006)                    |                     |   | 191,000                 |  
|Accounts receivable - RMC                                |                     |   | 39,000                  |  
|Other current assets                                     |                     |   | 71,000                  |  
|                                                         |                     |   |                         |  
|Total current assets                                     |                     | $ | 509,000                 |  
|                                                         |                     |   |                         |  
|Gamma Knife (net of accumulated depreciation of          |                     |   |                         |  
|$4,905,000 in 2007 and $4,599,000 in 2006)               |                     |   | 2,064,000               |  
|Leasehold improvements (net of accumulated amortization  |                     |   |                         |  
|of $1,895,000 in 2007 and $1,739,000 in 2006)            |                     |   | 255,000                 |  
|                                                         |                     |   |                         |  
|Total property and equipment                             |                     |   | 2,319,000               |  
|                                                         |                     |   |                         |  
|Due from related party                                   |                     |   | 18,000                  |  
|Cash held in escrow                                      |                     |   | 115,000                 |  
|                                                         |                     |   |                         |  
|                                                         |                     |   |                         |  
|TOTAL                                                    |                     | $ | 2,961,000               |  
|                                                         |                     |   |                         |  
|                                                         |                     |  
|LIABILITIES AND STOCKHOLDERS EQUITY                     |                     |   |                         |  
|                                                         |                     |  
|Current liabilities:                                     |                     |   |                         |  
|Accounts payable and accrued expenses                    |                     | $ | 178,000                 |  
|Obligations under capital leases                         |                     |   |                         |  
|and loans payable- current portion                       |                     |   | 416,000                 |  
|                                                         |                     |   |                         |  
|Total current liabilities                                |                     |   | 594,000                 |  
|                                                         |                     |   |                         |  
|Obligations under capital leases and loans payable - net |                     |   |                         |  
|of current portion                                       |                     |   | 1,398,000               |  
|Asset retirement obligations                             |                     |   | 200,000                 |  
|                                                         |                     |   |                         |  
|Total liabilities                                        |                     |   | 2,192,000               |  
|                                                         |                     |   |                         |  
|Stockholders equity:                                    |                     |   |                         |  
|Common stock                                             |                     |   | 77,000                  |  
|Additional paid-in capital                               |                     |   | 3,097,000               |  
|Accumulated deficit                                      |                     |   | (2,405,000              | )
|                                                         |                     |   |                         |  
|Total stockholders equity                               |                     | $ | 769,000                 |  
|                                                         |                     |   |                         |  
|                                                         |                     |   |                         |  
|TOTAL                                                    |                     | $ | 2,961,000               |  
|                                                         |                     |   |                         |  

|                                                                           
|---------------------------------------------------------------------------
|The accompanying notes to financial statements are an integral part hereof.

|3
|-



|U.S. NEUROSURGICAL, INC. AND SUBSIDIARY
|---------------------------------------
|CONSOLIDATED STATEMENTS OF OPERATIONS  
|                                       

|                                             | Three Months Ended
      June 30, |  
|-------------------------------------------- | --------------------------------- | -
|
|
|                                             |                                   |  
|Revenue:                                     |                                   |  
|Patient revenue                              |                                   | $
|                                             |                                   |  
|Expenses:                                    |                                   |  
|Patient expenses                             |                                   | $
|Selling, general and administrative          |                                   |  
|                                             |                                   |  
|                                             |                                   |  
|Total                                        |                                   |  
|                                             |                                   |  
|                                             |                                   |  
|                                             |                                   |  
|Operating loss                               |                                   | $
|                                             |                                   |  
|                                             |                                   |  
|Interest expense                             |                                   | $
|Interest income                              |                                   |  
|                                             |                                   |  
|                                             |                                   |  
|Loss before income taxes                     |                                   |  
|                                             |                                   |  
|Income tax provision                         |                                   |  
|                                             |                                   |  
|                                             |                                   |  
|Net loss                                     |                                   | $
|                                             |                                   |  
|                                             |                                   |  
|Proforma basic and diluted loss per share    |                                   |  
|                                             |                                   |  
|Proforma weighted average shares outstanding |                                   |  

|                                                                           
|---------------------------------------------------------------------------
|The accompanying notes to financial statements are an integral part hereof.

|4
|-



|U.S. NEUROSURGICAL, INC. AND SUBSIDIARY
|---------------------------------------
|CONSOLIDATED STATEMENTS OF OPERATIONS  
|                                       

|                                             | Six Months Ended
      June 30, |  
|-------------------------------------------- | ------------------------------- | -
|
|
|                                             |                                 |  
|Revenue:                                     |                                 |  
|Patient revenue                              |                                 | $
|                                             |                                 |  
|Expenses:                                    |                                 |  
|Patient expenses                             |                                 | $
|Selling, general and administrative          |                                 |  
|                                             |                                 |  
|                                             |                                 |  
|Total                                        |                                 |  
|                                             |                                 |  
|                                             |                                 |  
|                                             |                                 |  
|Operating loss                               |                                 | $
|                                             |                                 |  
|                                             |                                 |  
|Interest expense                             |                                 | $
|Interest income                              |                                 |  
|                                             |                                 |  
|                                             |                                 |  
|Net loss                                     |                                 | $
|                                             |                                 |  
|                                             |                                 |  
|Proforma basic and diluted loss per share    |                                 |  
|                                             |                                 |  
|                                             |                                 |  
|Proforma weighted average shares outstanding |                                 |  

|                                                                           
|---------------------------------------------------------------------------
|The accompanying notes to financial statements are an integral part hereof.

|5
|-



|U.S. NEUROSURGICAL, INC. AND SUBSIDIARY
|---------------------------------------
|CONSOLIDATED STATEMENTS OF CASH FLOWS  
|                                       

|                                                          | Six Months Ended
      June 30, | 
|--------------------------------------------------------- | ------------------------------- | 
|
|
|                                                          |                                 | 
|Cash flows from operating activities:                     |                                 | 
|Loss from continuing operations                           |                                 | 
|Adjustments to reconcile net income to net cash (used in) |                                 | 
|provided by operating activities:                         |                                 | 
|Depreciation and amortization                             |                                 | 
|Changes in operating assets and liabilities:              |                                 | 
|Decrease in receivables                                   |                                 | 
|Decrease (increase) in other current assets               |                                 | 
|Increase in payables and other current liabilities        |                                 | 
|                                                          |                                 | 
|Net cash provided by operating activities                 |                                 | 
|                                                          |                                 | 
|                                                          |                                 | 
|Cash flows from investing activities:                     |                                 | 
|Increase in due from related party                        |                                 | 
|Increase in cash held in escrow                           |                                 | 
|                                                          |                                 | 
|Net cash used in investing activities                     |                                 | 
|                                                          |                                 | 
|Cash flows from financing activities:                     |                                 | 
|                                                          |                                 | 
|Repayment of capital lease obligations and loans payable  |                                 | 
|                                                          |                                 | 
|                                                          |                                 | 
|Net (decrease) increase in cash and cash equivalents      |                                 | 
|                                                          |                                 | 
|                                                          |                                 | 
|Cash and cash equivalents - beginning of period           |                                 | 
|                                                          |                                 | 
|                                                          |                                 | 
|CASH AND CASH EQUIVALENTS - END OF PERIOD                 |                                 | 
|                                                          |                                 | 
|                                                          |                                 | 
|Supplemental disclosures of cash flow information:        |                                 | 
|Cash paid for interest                                    |                                 | 

|                                                                           
|---------------------------------------------------------------------------
|The accompanying notes to financial statements are an integral part hereof.

|6
|-



|U.S. NEUROSURGICAL, INC. AND SUBSIDIARIESNOTES TO FINANCIAL STATEMENTS
|----------------------------------------------------------------------
|                                                                      

|Note A - Basis of Preparation
The accompanying financial statements at June 30, 2007, and for the six months ended June 30, 2007
and 2006, are unaudited. However, in the opinion of management, such statements include all adjustments
necessary for a fair statement of the information presented therein. The balance sheet at December
31, 2006 has been derived from the audited financial statements at that date appearing in the Companys
Annual Report on Form 10-KSB.
Pursuant to accounting requirements of the Securities and Exchange Commission applicable to quarterly
reports on Form 10-QSB, the accompanying 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 financial statements.
Results of operations for interim periods are not necessarily indicative of those to be achieved for
full fiscal years.
Note B  Uncertainties
In May of 2007, the Company filed a lawsuit against Research Medical Center (RMC) in the
Circuit Court of Jackson County, Missouri. RMC is the hospital in Kansas City where the Companys
Kansas City center is located and to which USN provides Gamma Knife Services on a cost per treatment
basis. The litigation involves the Companys claims for additional reimbursement from RMC under
the Gamma Knife Neuroradiosurgery Equipment Agreement of December 29, 1993 between USN and RMC (the
Agreement). The litigation is in its early stages and it is not possible to say whether the
outcome will result in any additional payments to USN.
Primarily due to decreased patient procedures in recent periods at the Kansas City center, the Company
has incurred operating losses which have contributed to a working capital deficit of $85,000 as of
June 30, 2007. The Company experienced a net after tax loss of $383,000 for the year ended December
31, 2006 and an after tax loss of $327,000 for the six month period ended June 30, 2007.
The Companys management is taking steps to improve profitability and overcome the negative effects
of its working capital deficit, but the final effects of such steps cannot be assessed at this time.
Nevertheless, the Company has already experienced an increase in the volume of procedures at the
Kansas City center in July, and procedures scheduled for the month of August are higher than previous
periods. In addition, the Company has taken steps to reduce maintenance expenses and has arranged
for reductions in payroll expenses in the event losses continue.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7
|-



|The
      Company believes such changes will improve its liquidity and will be sufficient to generate adequate amounts of cash to meet the Companys needs for operating expenses and debt (and lease)
    service requirements for the next year.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8
|-



|Item 2.  Management Discussion and Analysis or Plan of Operation
  Critical Accounting Policies
The condensed financial statements of U.S. Neurosurgical, Inc. (USN or the Company)
have been prepared in accordance with accounting principles generally accepted in the United States
of America. As such, some accounting policies have a significant impact on amounts reported in the
financial statements. A summary of those significant accounting policies can be found in our 2006
Annual Report on Form 10-KSB, filed, in the Notes to the Financial Statements, Note B. In particular,
judgment is used in areas such as determining the allowance for doubtful accounts and asset impairments.
The following discussion and analysis provides information which the Companys management believes
is relevant to an assessment and understanding of the Companys results of operations and financial
condition. This discussion should be read in conjunction with the consolidated financial statements
and notes there to appearing elsewhere herein.
Results of Operation: Second Quarter 2007 Compared to Second Quarter 2006 and Six Months Ended
June 30, 2007 Compared to Six Months Ended June 30, 2006
Patient revenue decreased 26% to $392,000 in the quarter ended June 30, 2007 from $528,000 for the
quarter ended June 30, 2006. The decrease was due primarily to reduced patient procedures at the
Kansas City center. Patient expenses increased 2% to $233,000 for the second quarter of 2007 compared
to $229,000 in the same period a year ago. Although patient revenue was down significantly as compared
to the prior period, patient expenses are principally fixed, consisting largely of maintenance and
depreciation, and thus did not decrease. Selling, general and administrative expense decreased 2%
to $316,000 for the quarter ended June 30, 2007 from $323,000 in the comparable period a year ago.
The decrease was due to decreases in professional fees and payroll expenses for the period in question.
Interest expense decreased 26% to $42,000 from $57,000 in the same period a year earlier. This was
due primarily to the fact that the Gamma Knife assets at the New York center were not under a financing
arrangement for most of the second quarter of 2007. For the quarter ended June 30, 2007, the net
loss was $196,000 as compared to a loss of 113,000 for the same period a year earlier. This increased
loss was due primarily to the lower level of revenues for the period.
For the six months ended June 30, 2007, patient revenue decreased 17% to $854,000 from $1,034,000 for
the same period a year earlier. The decrease was due primarily to reduced patient procedures at the
Kansas City center. Patient expenses for the six months ended June 30, 2007 increased 4% to $465,000
from $445,000 in the same period a year ago. Although patient revenue was down significantly as compared
to the prior period, patient expenses are principally fixed, consisting largely of maintenance and
depreciation, and thus did not decrease. Selling, general and administrative expense decreased 7%
to $663,000 for the six months ended June 30, 2007 from $681,000 in the comparable period a year
ago. The decrease was due to decreases in professional fees
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9
|-



|and lower payroll expenses for the period in question. Interest expense decreased 23% to $89,000 from $116,000 in the same period
          a year earlier, due primarily to the fact that the Gamma Knife assets at the New York center were not under a financing arrangement for most of the second quarter of 2007. For the six months
          ended June 30, 2007, the net loss was $327,000 as compared to a loss of $199,000 for the same period a year earlier. This increased loss was due primarily to decreased revenues during this period.
      Liquidity and Capital Resources
      At
          June 30, 2007 the Company had a working capital deficit of $85,000 as compared to positive working capital of $121,000 at December 31, 2006. Cash and cash equivalents at June 30, 2007 were $208,000
          as compared with $297,000 at December 31, 2006.
      Net
          cash provided by operating activities for the six months ended June 30, 2007 was $195,000 as compared to $365,000 for the same period a year earlier. Depreciation and amortization was $354,000
          for the six months ended June 30, 2007, the same as it was in the first six months of 2006.
      The
          Company paid $264,000 towards its lease obligations during the six months ended June 30, 2007 as compared to $328,000 in the same period a year ago. With our current cash position, and continued
          collection on our accounts receivable, the Company believes that its cash position will be sufficient to support operations for at least the next twelve months.
      Risk Factors
      We
          desire to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The following factors, as well as the factors listed under the caption Risk
          Factors in our Form 10-KSB for the fiscal year ended December 31, 2006, have affected or could affect our actual results and could cause such results to differ materially from those expressed
          in any forward-looking statements made by us. Investors should consider carefully these risks and speculative factors inherent in and affecting our business and an investment in our common stock.
      Operating
            Losses.  We have experienced significant operating losses and may continue to do so in the future. We reported a net after tax loss of $383,000 for the year ended December 31, 2006
            and $327,000 for the first six months of 2007. While the Company is taking steps to improve profitability, it is likely that losses will continue in the near term.
      Availability
            of Working Capital. To date, we have earned sufficient income from operations to fund periodic operating losses and support efforts to pursue new Gamma Knife centers. If losses continue,
            we will be required to seek additional capital to support continued operations and the development of new centers, but we cannot assure you, however, that we will be able to raise such additional
            capital as and when required.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10
|--



|Disclosure Regarding Forward Looking Statements
      The
          Securities and Exchange Commission encourages companies to disclose forward-looking information so that investors can better understand a companys future prospects and make informed investment
          decisions. This document contains such forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, particularly statements anticipating
          future growth in revenues and cash flow. Words such as anticipates, estimates, expects,
        projects, intends, plans, believes, will be,
        will continue, will likely result, and words and terms of similar substance used in connection with any discussion of future operating or financial performance identify
        such forward-looking statements. Those forward-looking statements are based on managements present expectations about future events. As with any projection or forecast, they are inherently
        susceptible to uncertainty and changes in circumstances, and the Company is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements
        whether as a result of such changes, new information, future events or otherwise.
      The
          Company operates in a highly competitive and rapidly changing environment and business segments that are dependent on our ability to: achieve profitability; increase revenues; sustain our current
          level of operation; introduce on a timely basis new products; maintain satisfactory relations with our customers; attract and retain key personnel; maintain and expand our strategic alliances;
          and protect our know-how. The Companys actual results could differ materially from managements expectations because of changes in such factors. New risk factors can arise and it is
          not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the Companys business or the extent to which any factor, or combination
          of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance
          on forward-looking statements as a prediction of actual results.
      Investors
          should also be aware that while the Company might, from time to time, communicate with securities analysts, it is against the Companys policy to disclose to them any material non-public
          information or other confidential commercial information. Accordingly, investors should not assume that the company agrees with any statement or report issued by any analyst irrespective of the
          content of the statement or report. Furthermore, the Company has a policy against issuing or confirming financial forecasts or projections issued by others. Thus, to the extent that reports issued
          by securities analysts or others contain any projections, forecasts or opinions, such reports are not the responsibility of the Company.
      In
          addition, the Companys overall financial strategy, including growth in operations, maintaining financial ratios and strengthening the balance sheet, could be adversely affected by increased
          interest rates, failure to meet earnings expectations, significant acquisitions or other transactions, economic slowdowns and changes in the Companys plans, strategies and intentions.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11
|--



|Item 3. Controls and Procedures
      Management
          of the Company, including the Chief Executive Officer, evaluated the effectiveness of the design and operation of the Companys disclosure controls and procedures (as such term is defined
          in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based upon that evaluation, the Companys Chief Executive
          Officer concluded that the Companys disclosure controls and procedures were effective as of the end of the period covered by this report for the information required to be disclosed by
          the Company in the reports it files or submits under the Securities Exchange Act of 1934, as amended, to be recorded, processed, summarized and reported within the time periods specified in the
          Securities and Exchange Commissions rules and forms.
      There
          have not been any changes in the Companys internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter
    ended June 30, 2007 that have materially affected, or are reasonably likely to materially affect, the Companys internal control over financial reporting.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12
|--



|PART II - OTHER INFORMATION
Item 1. Legal Proceedings
In May of 2007, USN filed a lawsuit against Research Medical Center (RMC) in the Circuit
Court of Jackson County, Missouri. RMC is the hospital in Kansas City where USNs Kansas City
center is located and to which USN provides Gamma Knife Services on a cost per treatment
basis. The litigation involves USNs claims for additional reimbursement from RMC under the
Gamma Knife Neuroradiosurgery Equipment Agreement of December 29, 1993 between USN and RMC (the
Agreement).
The Agreement provides for certain minimum payments, as well as other payments, to be made by RMC to
USN. In the lawsuit, USN claims that RMC substantially underpaid it for a number of years. The litigation
is in its early stages and it is not possible to say whether the outcome will result in any additional
payments to USN. In addition, it is not clear how the presence of the lawsuit will impact RMCs
willingness to perform its future obligations under the Agreement. RMC is a unit of HCA, Inc., a
very large health services organization which has substantially greater resources than are available
to USN. Nevertheless, USN has made a substantial investment in Kansas City to build its business
and provide quality healthcare to patients in the Kansas City community in reliance on the RMCs
performance under the Agreement, and thus USN intends to pursue its rights aggressively in an effort
to protect that business.
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds
Not applicable.
Item 3.  Defaults Upon Senior Securities
Not applicable.
Item 4.  Submission of Matters to a Vote of Security Holders
Not applicable.
Item 5.  Other Information
Not applicable.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13
|--



|Item 6. Exhibits
|----------------
|                
|31.1            
|                
|32.1            

|14
|--



|SIGNATURES
      In
    accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                         

|                       | U.S. Neurosurgical, Inc.
|---------------------- | ------------------------
|                       | (Registrant)            
|                       |                         
|                       |                         
|Date:  August 13, 2007 | By :                    
|                       |                         
|                       |                         
|                       |                         
|                       |                         
|                       |                         
|                       |                         
|                       |                         

|15
|--