Revenue and Financial Performance - The Company recognized leasing revenue of approximately $2,991,000 for the three-month period ended March 31, 2025, compared to $4,253,000 for the same period in 2024, with PBRT services contributing approximately $1,642,000 and $2,649,000, respectively [97]. - Direct patient services revenues for the three-month period ended March 31, 2025, were approximately $3,121,000, a significant increase from $963,000 in the same period of 2024 [100]. - Revenues increased by $896,000 to $6,112,000 for Q1 2025 compared to $5,216,000 for Q1 2024 [107]. - Revenues from the leasing segment decreased by $1,262,000 to $2,991,000 due to lower Gamma Knife volumes and the expiration of two customer contracts [107]. - Direct patient services revenue increased by $2,158,000 to $3,121,000, primarily driven by the RI Companies following the acquisition on May 7, 2024 [107]. - Radiation therapy revenues from the acquired facilities and the Puebla facility totaled $2,374,000 for Q1 2025, compared to $0 for Q1 2024 [108]. - Total costs of revenue increased by $2,097,000 to $5,170,000 for Q1 2025 compared to $3,073,000 for Q1 2024 [113]. - Net loss attributable to American Shared Hospital Services increased by $744,000 to a loss of $625,000, or $0.10 per diluted share for Q1 2025 [123]. Assets and Liabilities - As of March 31, 2025, accounts receivable balances under ASC 606 were $6,120,000, compared to $1,882,000 as of March 31, 2024 [100]. - Working capital decreased by $4,821,000 to $11,032,000 as of March 31, 2025, compared to $15,853,000 at December 31, 2024 [125]. - The Company had cash, cash equivalents, and restricted cash of $11,491,000 as of March 31, 2025, an increase of $216,000 from December 31, 2024 [124]. - Long-term debt was $18,372,000 as of March 31, 2025, compared to $18,462,000 at December 31, 2024 [129]. - As of March 31, 2025, the Company had long-term debt of $19,926,000 on its condensed consolidated balance sheets [136]. Debt and Financing - The DFC Loan has a first tranche outstanding amount of $1,642,000 with a fixed interest rate of 3.67% and a second tranche of $1,806,000 at 7.49% [131]. - Interest expense increased by $84,000 to $433,000 for Q1 2025 due to increased borrowings [119]. - The Company is in compliance with all covenants related to the DFC Loan as amended and waived as of March 31, 2025 [133]. - The Company received a waiver and amendment from DFC for certain covenants as of December 31, 2023, and through December 31, 2024 [132]. Commitments and Obligations - Total commitments for purchasing and installing three Leksell Gamma Knife Esprit Systems and two Linear Accelerator systems amounted to $9,618,000 as of March 31, 2025 [138]. - The Company has commitments for service and maintenance of its Gamma Knife, LINAC, and PBRT equipment totaling $12,252,000 as of March 31, 2025 [140]. - The Company has an obligation to maintain a minimum fixed charge coverage ratio of 1.25 and a maximum funded debt to EBITDA ratio of 3.0 to 1.0 under the Credit Agreement [130]. Operational Developments - The Company acquired 60% of the equity interests of the RI Companies on May 7, 2024, which operate three radiation therapy facilities in Rhode Island [90]. - The Company operates ten domestic Gamma Knife units and one PBRT system in the United States as of March 31, 2025 [96]. - The Company’s facilities in Rhode Island, Peru, Ecuador, and Mexico are considered direct patient services, where contracts exist between the Company and individual patients [90]. - The approximate CMS reimbursement rates for PBRT treatments in 2025 are $578 for simple treatments and $1,276 for intermediate and complex treatments [92]. - The Company’s revenue recognition policies are based on ASC 842 and ASC 606, with revenues recognized when services are rendered and collectability is reasonably assured [96]. Related Party Transactions - The Company recorded total related party transactions of $1,558,000 for the three months ended March 31, 2025, compared to $2,586,000 for the same period in 2024 [142]. Equipment and Salvage Value - The Company has not assigned any salvage value to its PBRT or LINAC equipment as of March 31, 2025 [101].
American Shared Hospital Services(AMS) - 2025 Q1 - Quarterly Report