AMERICAN SHARED HOSPITAL SERVICES

AMERICAN SHARED HOSPITAL SERVICES reported a net loss of $(514,000) for the second quarter of 2026, compared to a net loss of $(280,000) in the prior year period. Total revenues increased to $8,430,000 from $7,071,000 year-over-year. The company disclosed substantial doubt about its ability to continue as a going concern due to defaults on its Credit Agreement with Fifth Third Bank, which matured on April 9, 2026, and non-compliance with covenants under the DFC Loan. Fifth Third Bank has granted forbearance until June 30, 2027, but the company would not have sufficient cash to repay accelerated obligations if demanded.

American Shared Hospital Services reported a 19% increase in second-quarter revenue to $8.4 million, driven by strong growth in Direct Patient Services and Proton Beam Radiation Therapy. However, the company posted a net loss of $514,000 ($0.07 per diluted share) for the quarter, primarily due to higher legal costs and increased allowance for credit losses. For the first half of 2026, operating cash flow reached $4.4 million, and cash reserves grew to $6.8 million. Subsequent to the quarter, the company secured $2.0 million in subordinated financing and amended its credit agreement to provide additional financial flexibility.

American Shared Hospital Services announced it will release its second quarter 2026 financial results before market open on August 13, 2026. The company will host a conference call on the same day at 1:00 pm ET to discuss these results. Participants can join via domestic or international dial-in numbers, or through a live webcast on the company's website.

American Shared Hospital Services entered a Third Amendment to its Credit Agreement and Forbearance Agreement with Fifth Third Bank, National Association, due to existing Events of Default. The bank agreed to forbear from exercising certain rights until June 30, 2027, in exchange for significant obligations including monthly prepayments, principal payments, and a requirement to pursue asset sales. Additionally, the company secured a $2,000,000 loan and issued warrants to RCS/TIG Holdings LLC, an entity owned by a company director.

Raymond S. Frech resigned from his position as Chief Financial Officer of American Shared Hospital Services for personal reasons, effective July 7, 2026. His resignation was not due to any disagreement with the company regarding accounting policies. The Board of Directors appointed Alexis N. Tirrito (Wallace), the company's Chief Accounting Officer and Secretary, to serve as interim CFO, principal financial officer, and principal accounting officer. Ms. Tirrito's base salary was adjusted to $240,000, with a target performance bonus of 20% of her base salary.

AMERICAN SHARED HOSPITAL SERVICES held its Annual Meeting on June 24, 2026. Shareholders approved the Amendment and Restatement of the Company’s Incentive Compensation Plan. Additionally, four directors—Daniel G. Kelly, Jr., Kathleen Miles, Raymond C. Stachowiak, and Vicki L. Wilson—were elected to the Board. Shareholders also approved the advisory vote on executive compensation and ratified Baker Tilly US, LLP as the independent registered public accounting firm for 2026.

American Shared Hospital Services received a notice from Fifth Third Bank on May 29, 2026, asserting multiple Events of Default under its Credit Agreement. These defaults include failing to maintain a minimum cash covenant of $5 million, non-compliance with financial ratios, late delivery of a compliance certificate, and failure to pay term loan obligations. As a result, the Lender has increased the interest rate on Advances by 2% per annum and reserves the right to accelerate all payment obligations, which the company states it cannot satisfy.

AMERICAN SHARED HOSPITAL SERVICES reported a net loss attributable to ASHS of $(612,000) for Q1 2026, an improvement from $(625,000) in Q1 2025. Total revenues increased by 15.9% to $7.08 million. However, the company faces substantial doubt about its ability to continue as a going concern due to uncured defaults on its credit agreement with Fifth Third Bank, which matured on April 9, 2026, and non-compliance with DFC Loan covenants. Discussions for debt extension are ongoing with no assurance of a positive outcome.

American Shared Hospital Services reported strong financial results for Q1 2026, with total revenue increasing 15.9% year-over-year to $7.1 million. This growth was primarily driven by a 30.2% increase in direct patient services revenue, fueled by higher patient volumes at its Rhode Island and Puebla, Mexico facilities. The company also saw significant improvements in operating performance, including a 36.7% increase in gross margin to $1.3 million and an 18.4% rise in Adjusted EBITDA to $1.1 million, leading to a reduced operating loss. Management expressed optimism about continued volume growth and efforts to optimize capital structure.

American Shared Hospital Services announced it will hold a conference call to discuss its first quarter 2026 financial results. The results press release will be issued before market open on May 14, 2026, with the conference call scheduled for the same day at 12:00 pm ET. Participants can join via teleconference or a simultaneous webcast, and a replay will be available for a week.