asha20250630

asha20250630_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025 or

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

For the transition period from _______________ to _______________.

Commission file number 001-08789

American Shared Hospital Services

(Exact name of registrant as specified in its charter)

California	94-2918118
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

601 Montgomery Street	Suite 850	San Francisco,	California	94111-2619
(Address of principal executive offices)				(Zip code)

(415) 788-5300

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
American Shared Hospital Services Common Stock, No Par Value	AMS	NYSE AMERICAN

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☐	Accelerated Filer ☐	Non-Accelerated Filer ☒	Smaller reporting company ☒
Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by a check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 11, 2025, there were outstanding 6,510,000 shares of the registrant’s common stock.

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

AMERICAN SHARED HOSPITAL SERVICES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

ASSETS	*June 30, 2025*		*December 31, 2024*
Current assets:
Cash and cash equivalents	$	11,081,000	$	11,025,000
Restricted cash		250,000		250,000
Accounts receivable, net of allowance for credit losses of $380,000 and $265,000 at June 30, 2025 and at December 31, 2024		9,576,000		11,610,000
Tax receivables		1,200,000		550,000
Other receivables		1,115,000		503,000
Prepaid maintenance		486,000		1,392,000
Prepaid expenses and other current assets		725,000		928,000

Total current assets		24,433,000		26,258,000

Property and equipment, net		33,027,000		31,125,000
Land		1,305,000		19,000
Goodwill		1,265,000		1,265,000
Intangible asset		78,000		78,000
Right of use assets, net		3,011,000		1,015,000
Other assets		375,000		437,000

Total assets	$	63,494,000	$	60,197,000

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	806,000	$	1,562,000
Employee compensation and benefits		955,000		1,368,000
Other accrued liabilities		2,042,000		1,888,000
Related party liabilities		898,000		1,320,000
Asset retirement obligations, related party (includes $250,000 and $250,000 non-related party at June 30, 2025 and December 31, 2024)		1,200,000		1,200,000
Current portion of lease liabilities		87,000		226,000
Line of credit		5,000,000		-
Current portion of long-term debt, net		9,872,000		2,841,000

Total current liabilities		20,860,000		10,405,000

Long-term lease liabilities, less current portion		3,640,000		1,500,000
Long-term debt, net, less current portion		9,222,000		17,341,000
Deferred income taxes		924,000		924,000

Total liabilities		34,646,000		30,170,000

Commitments (see Note 8)

Shareholders' equity:
Common stock, no par value (10,000,000 authorized shares; Issued and outstanding shares - 6,480,000 at June 30, 2025 and 6,420,000 at December 31, 2024)		10,763,000		10,763,000
Additional paid-in capital		8,808,000		8,605,000
Retained earnings		4,910,000		5,815,000
Total equity-American Shared Hospital Services		24,481,000		25,183,000
Non-controlling interests in subsidiaries		4,367,000		4,844,000
Total shareholders' equity		28,848,000		30,027,000

Total liabilities and shareholders' equity	$	63,494,000	$	60,197,000

See accompanying notes

AMERICAN SHARED HOSPITAL SERVICES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	*Three Months Ended June 30,*						*Six Months Ended June 30,*
	*2025*			*2024*			*2025*			*2024*

Revenues:
Rental revenue from medical equipment leasing	$	3,571,000		$	3,899,000		$	6,562,000		$	8,152,000
Direct patient services revenue		3,500,000			3,157,000			6,621,000			4,120,000
		7,071,000			7,056,000			13,183,000			12,272,000
Costs of revenue:
Maintenance and supplies		656,000			545,000			1,266,000			1,058,000
Depreciation and amortization		1,497,000			1,455,000			2,942,000			2,752,000
Other direct operating costs		3,088,000			2,418,000			5,952,000			3,511,000
Other direct operating costs, related party		200,000			170,000			451,000			340,000
		5,441,000			4,588,000			10,611,000			7,661,000

Gross margin		1,630,000			2,468,000			2,572,000			4,611,000

Selling and administrative expense		1,746,000			1,896,000			3,554,000			3,775,000
Interest expense		428,000			385,000			861,000			734,000
Loss on write down of impaired assets and associated removal costs, net		-			188,000			-			188,000

Operating loss		(544,000	)		(1,000	)		(1,843,000	)		(86,000	)

Bargain purchase gain RI Acquisition, net of deferred income taxes of $1,226,000		-			3,679,000			-			3,679,000
Interest and other income, net		45,000			59,000			109,000			165,000
(Loss) income before income taxes		(499,000	)		3,737,000			(1,734,000	)		3,758,000
Income tax benefit		(21,000	)		(31,000	)		(344,000	)		(75,000	)
Net (loss) income		(478,000	)		3,768,000			(1,390,000	)		3,833,000
Plus (less): net loss (income) attributable to non-controlling interests		198,000			(166,000	)		485,000			(112,000	)
Net (loss) income attributable to American Shared Hospital Services	$	(280,000	)	$	3,602,000		$	(905,000	)	$	3,721,000

Net (loss) income per share:
(Loss) income per common share - basic	$	(0.04	)	$	0.56		$	(0.14	)	$	0.58
(Loss) income per common share - diluted	$	(0.04	)	$	0.55		$	(0.14	)	$	0.57

Weighted average common shares for basic (loss) earnings per share		6,582,000			6,482,000			6,577,000			6,467,000
Weighted average common shares for diluted (loss) earnings per share		6,582,000			6,583,000			6,577,000			6,564,000

See accompanying notes

AMERICAN SHARED HOSPITAL SERVICES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(Unaudited)

	FOR THE THREE AND SIX-MONTH PERIODS ENDED JUNE 30, 2025 AND 2024
	*Common Shares*		*Common Stock*		*Additional Paid-in Capital*		*Retained Earnings*			*Sub-Total ASHS*			*Non-controlling Interests in Subsidiaries*			*Total*

Balances at January 1, 2024		6,300,000	$	10,763,000	$	8,232,000	$	3,629,000		$	22,624,000		$	3,655,000		$	26,279,000
Stock-based compensation expense		-		-		98,000		-			98,000			-			98,000
Vested restricted stock awards		30,000		-		-		-			-			-			-
Capital contributions from non-controlling interests		-		-		-		-			-			38,000			38,000
Cash distributions to non-controlling interests		-		-		-		-			-			(95,000	)		(95,000	)
Net income (loss)		-		-		-		119,000			119,000			(54,000	)		65,000
Balances at March 31, 2024		6,330,000		10,763,000		8,330,000		3,748,000			22,841,000			3,544,000			26,385,000
Stock-based compensation expense		-		-		99,000		-			99,000			-			99,000
Vested restricted stock awards		30,000		-		-		-			-			-			-
RI Acquisition non-controlling interests		-		-		-		-			-			2,100,000			2,100,000
Net income		-		-		-		3,602,000			3,602,000			166,000			3,768,000
Balances at June 30, 2024		6,360,000	$	10,763,000	$	8,429,000	$	7,350,000		$	26,542,000		$	5,810,000		$	32,352,000

Balances at January 1, 2025		6,420,000	$	10,763,000	$	8,605,000	$	5,815,000		$	25,183,000		$	4,844,000		$	30,027,000
Stock-based compensation expense		-		-		89,000		-			89,000			-			89,000
Vested restricted stock awards		30,000		-		-		-			-			-			-
Capital contributions from non-controlling interests		-		-		-		-			-			8,000			8,000
Net loss		-		-		-		(625,000	)		(625,000	)		(287,000	)		(912,000	)
Balances at March 31, 2025		6,450,000		10,763,000		8,694,000		5,190,000			24,647,000			4,565,000			29,212,000
Stock-based compensation expense		-		-		114,000		-			114,000			-			114,000
Vested restricted stock awards		30,000		-		-		-			-			-			-
Net loss		-		-		-		(280,000	)		(280,000	)		(198,000	)		(478,000	)
Balances at June 30, 2025		6,480,000	$	10,763,000	$	8,808,000	$	4,910,000		$	24,481,000		$	4,367,000		$	28,848,000

See accompanying notes

AMERICAN SHARED HOSPITAL SERVICES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	*Six Months Ended June 30,*
	*2025*			*2024*
Operating activities:
Net (loss) income	$	(1,390,000	)	$	3,833,000
Adjustments to reconcile net (loss) income to net cash from operating activities:
Depreciation, amortization, and other		2,957,000			2,857,000
Loss on write down of impaired assets and associated removal costs, net		-			188,000
Accretion of debt issuance costs		79,000			58,000
Bargain purchase gain RI Acquisition, net of deferred income taxes		-			(3,679,000	)
Non cash lease expense		237,000			35,000
Accretion of unfavorable lease position		(53,000	)		-
Deferred income taxes		-			183,000
Stock-based compensation expense		203,000			197,000
Changes in operating assets and liabilities:
Receivables		772,000			(3,831,000	)
Prepaid expenses and other assets		1,218,000			977,000
Related party liabilities		(698,000	)		(1,877,000	)
Accounts payable and accrued liabilities		(1,015,000	)		1,744,000
Income taxes payable		-			(1,229,000	)
Lease liabilities		(179,000	)		(35,000	)
Net cash provided by (used in) operating activities		2,131,000			(579,000	)

Investing activities:
Cash received in excess of cash paid for the RI Acquisition		-			363,000
Payment for purchases of property and equipment		(5,916,000	)		(2,399,000	)
Net cash used in investing activities		(5,916,000	)		(2,036,000	)

Financing activities:
Principal payments on long-term debt		(1,167,000	)		(703,000	)
Payments on line of credit		(2,000,000	)		(4,950,000	)
Advances on line of credit		7,000,000			6,400,000
Long-term debt financing		-			2,700,000
Capital contribution non-controlling interests		8,000			38,000
Distributions to non-controlling interests		-			(95,000	)
Debt issuance costs long-term debt		-			(97,000	)
Net cash provided by financing activities		3,841,000			3,293,000
Net change in cash, cash equivalents, and restricted cash		56,000			678,000
Cash, cash equivalents, and restricted cash at beginning of period		11,275,000			13,808,000
Cash, cash equivalents, and restricted cash at end of period	$	11,331,000		$	14,486,000

Supplemental cash flow disclosure
Cash paid during the period for:
Interest	$	782,000		$	676,000
Income taxes	$	306,000		$	1,339,000

Schedule of non-cash investing and financing activities
Equipment included in accounts payable and accrued liabilities	$	800,000		$	524,000
Non-controlling interest RI Acquisition	$	-		$	2,100,000
Right of use assets and lease liabilities	$	175,000		$	-
Increase to right of use assets and lease liabilities due to a lease modification	$	2,071,000		$	-
Changes to asset removal obligations, net	$	-		$	688,000

Detail of cash, cash equivalents and restricted cash at end of period
Cash and cash equivalents	$	11,081,000		$	14,236,000
Restricted cash		250,000			250,000
Cash, cash equivalents, and restricted cash at end of period	$	11,331,000		$	14,486,000

See accompanying notes

AMERICAN SHARED HOSPITAL SERVICES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. Basis of Presentation

In the opinion of the management of American Shared Hospital Services (“ASHS”), the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary for the fair presentation of ASHS consolidated financial position as of June 30, 2025, the results of its operations for the three and six-month periods ended June 30, 2025 and 2024, and the cash flows for the six-month periods ended June 30, 2025 and 2024. The results of operations for the three and six-month periods ended June 30, 2025 are not necessarily indicative of results on an annualized basis. Consolidated balance sheet amounts as of December 31, 2024 have been derived from the audited consolidated financial statements.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2024 included in the ASHS Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on April 4, 2025.

These condensed consolidated financial statements include the accounts of ASHS and its subsidiaries (the “Company”) including as follows: ASHS wholly owns the subsidiaries American Shared Radiosurgery Services (“ASRS”), PBRT Orlando, LLC (“Orlando”), ASHS-Mexico, S.A. de C.V. (“ASHS-Mexico”), ASHS-Rhode Island Proton Beam Radiation Therapy, LLC (“RI-PBRT”), ASHS-Bristol Radiation Therapy, LLC (“Bristol”), OR21, Inc., and MedLeader.com, Inc. (“MedLeader”); ASHS is the majority owner of Southern New England Regional Cancer Center, LLC (“SNERCC”), Roger Williams Radiation Therapy, LLC (“RWRT”) and Long Beach Equipment, LLC (“LBE”); ASRS is the majority-owner of GK Financing, LLC (“GKF”), which wholly owns the subsidiaries Instituto de Gamma Knife del Pacifico S.A.C. (“GKPeru”) and HoldCo GKC S.A. (“HoldCo”). HoldCo wholly owns the subsidiary Gamma Knife Center Ecuador S.A. (“GKCE”). ASHS-Mexico is the majority owner of AB Radiocirugia y Radioterapia de Puebla, S.A.P.I. de C.V. of Puebla (“Puebla”). GKF is the majority owner of the subsidiaries Albuquerque GK Equipment, LLC (“AGKE”) and Jacksonville GK Equipment, LLC (“JGKE”).

The Company (through ASRS) and Elekta AB (“Elekta”), the manufacturer of the Gamma Knife (through its wholly-owned United States subsidiary, GKV Investments, Inc.), entered into an operating agreement and formed GKF. As of June 30, 2025, GKF provides Gamma Knife units to seven medical centers in the United States in the states of Illinois, Indiana, Mississippi, New Mexico, New York, Oregon, and Texas. GKF also owns and operates two single-unit Gamma Knife facilities in Lima, Peru and Guayaquil, Ecuador. The Company through its wholly-owned subsidiary, Orlando, provided proton beam radiation therapy (“PBRT”) and related equipment to a medical center in Florida.

On November 10, 2023, the Company entered into an Investment Purchase Agreement (the “IPA”) with GenesisCare USA, Inc. (the “GenesisCare”) and GenesisCare USA Holdings, Inc. (“GC Holdings”), pursuant to which GenesisCare agreed to sell to the Company its entire equity interest in each of SNERCC and RWRT, (collectively, the “RI Companies”) and to assign certain payor contacts to the RI Companies for a purchase price of $2,850,000 (such transaction, the “RI Acquisition”). The equity interests acquired by the Company under the IPA equate to a 60% interest in each RI Target Company. The RI Companies operate three functional radiation therapy cancer centers in Rhode Island. The parties closed the RI Acquisition on May 7, 2024. See Note 10 - Rhode Island Acquisition to the condensed consolidated financial statements for further information.

On April 27, 2022, the Company signed a Joint Venture Agreement with the principal owners of Guadalupe Amor y Bien S.A. de C.V. (“Guadalupe”) to establish Puebla to treat public- and private-paying cancer patients and provide radiation therapy and radiosurgery services in Guadalupe, Mexico. The Company and Guadalupe hold 85% and 15% ownership interests, respectively, in Puebla. Under the agreement, the Company was responsible for providing a linear accelerator upgrade to an Elekta Versa HD, and Guadalupe was accountable for all site modification costs. The Company formed ASHS-Mexico on October 3, 2022 to establish Puebla. Puebla was formed on December 15, 2022 and began treating patients in July 2024.

On June 28, 2024, ASHS-Mexico, signed a Joint Venture Agreement with Hospital San Javier, S.A. de C.V. (“HSJ”) to establish Newco to treat public- and private-paying cancer patients and provide radiosurgery services in Guadalajara, Mexico. The Company and HSJ will hold 70% and 30% ownership interests, respectively, in Newco. Under the agreement, the Company is responsible for upgrading HSJ’s existing Gamma Knife Perfexion system to a Gamma Knife Esprit and paying 50% of all site modification costs required to install the Esprit. The Company does not expect that Newco will begin treating patients until the fourth quarter of 2025.

On February 6, 2025, the Company’s subsidiary, Bristol, closed on the acquisition of certain parcels of real property located on Gooding Avenue, Bristol, Rhode Island. The purchase price for the property was $1,185,000. The transaction was effected pursuant to the terms of a Real Estate Purchase and Sale Agreement dated November 21, 2024 by and between the Company and the sellers identified therein, with the Company having assigned its rights under that agreement to Bristol effective February 5, 2025.

The Company formed the subsidiaries Puebla, GKPeru, ASHS-Mexico, and acquired GKCE for the purposes of expanding its business internationally; Orlando and LBE to provide PBRT equipment and services in Orlando, Florida and Long Beach, California, respectively; and AGKE and JGKE to provide Gamma Knife equipment and services in Albuquerque, New Mexico and Jacksonville, Florida, respectively. LBE is not expected to generate revenue within the next two years.

The Company owns 50% of OR21, LLC (“OR21”). The remaining 50% is owned by an architectural design company. OR21 is not operational at this time.

MedLeader was formed to provide continuing medical education online and through videos for doctors, nurses, and other healthcare workers. MedLeader is not operational at this time.

All significant intercompany accounts and transactions have been eliminated in consolidation.

Accounting pronouncements issued and not yet adopted - In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09 Income Taxes (Topic 740) Improvements to Income Tax Disclosures (“ASU 2023-09”) which requires entities, on an annual basis, to disclose: specific categories in the rate reconciliation, additional information for reconciling items that meet a quantitative threshold, the amount of income taxes paid, net of refunds, disaggregated by jurisdiction, income or loss from continuing operations before income tax, income tax expense from continuing operations disaggregated between foreign and domestic, and income tax expense from continuing operations disaggregated by federal, state and foreign. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, and interim reporting periods beginning after December 15, 2025. The Company adopted ASU 2023-09 effective January 1, 2025. The adoption of ASU 2023-09 will modify the Company’s disclosures but will not have an impact on our financial position or results of operations.

In November 2024, the FASB issued ASU 2024-03 Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (“ASU 2024-03”) which requires entities to 1. disclose amounts of (a) purchase of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, and, (e) depreciation, depletion, and amortization recognized as part of oil-and gas-producing activities, 2. include certain amounts that are already required to be disclosed under current Generally Accepted Accounting Principles in the same disclosures as other disaggregation requirements, 3. disclose a qualitative description of the amounts remaining in relevant expense captions that are not necessarily disaggregated quantitatively, and 4. disclose the total amount of selling expenses, in annual reporting periods, including an entity’s definition of selling expense. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating ASU 2024-03 to determine the impact it may have on its consolidated financial statements.

In July 2025, the FASB issued ASU 2025-05 Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”) which provides (1) all entities with a practical expedient and (2) entities other than public business entities, with an accounting policy election when estimating credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606. ASU 2025-05 is effective for annual reporting periods beginning after December 15, 2025 and interim reporting periods within those annual reporting periods. Early adoption is permitted in both interim and annual reporting periods in which financial statements have not yet been issued or made available for issuance. The Company is currently evaluating ASU 2025-05 to determine the impact it may have on its consolidated financial statements.

Revenue recognition - The Company recognizes revenues under Accounting Standards Codification (“ASC”) 842 Leases (“ASC 842”) and ASC 606 Revenue from Contracts with Customers (“ASC 606”).

Rental revenue from medical equipment leasing (“leasing”) – The Company recognizes revenues under ASC 842 when services have been rendered and collectability is reasonably assured, on either a fee per use or revenue sharing basis. The terms of the contracts do not contain any guaranteed minimum payments. The Company’s lease contracts typically have a ten-year term and are classified as either fee per use or revenue sharing. Fee per use revenues are recognized at the time the procedures are performed, based on each hospital’s contracted rate and the number of procedures performed. Under revenue sharing arrangements, the Company receives a contracted percentage of the reimbursement received by the hospital. The amount the Company expects to receive is recorded as revenue and estimated based on historical experience. Revenue estimates are reviewed periodically and adjusted as necessary. Some of the Company’s revenue sharing arrangements also have a cost sharing component. The Company records an estimate of operating costs which are reviewed on a regular basis and adjusted as necessary to more accurately reflect the actual operating costs. The operating costs are recorded as other direct operating costs in the condensed consolidated statements of operations. For the three and six-month periods ended June 30, 2025, the Company recognized leasing revenue of approximately $3,571,000 and $ 6,562,000 compared to $3,899,000 and $ 8,152,000 for the same periods in the prior year, respectively. For the three and six-month periods ended June 30, 2025, $1,921,000 and $3,563,000 of the ASC 842 revenues were for PBRT services compared to $2,420,000 and $5,069,000, respectively.

Direct patient services income – The Company has stand-alone facilities in Lima, Peru, Guayaquil, Ecuador, and Puebla, Mexico where contracts exist between the Company’s facilities and the individual patients treated at the facility. Under ASC 606, the Company acts as the principal in these transactions and provides, at a point in time, a single performance obligation, in the form of a Gamma Knife or radiation therapy treatment. Revenue related to these treatments is recognized on a gross basis at the time when the patient receives treatment. There is no variable consideration present in the Company’s performance obligation and the transaction price is agreed upon per the stated contractual rate. GKPeru’s payment terms are typically prepaid for self-pay patients and insurance provider payments are paid net 30 days. GKCE’s patient population is primarily covered by a government payor and payments are paid between three and six months following issuance of an invoice. The facility in Puebla currently has a contract with one local hospital to cover its eligible patient base and is also treating self-pay patients. Puebla’s payment terms are typically prepaid for self-pay patients and net 30 days for the hospital patients. The Company did not capitalize any incremental costs related to the fulfillment of its customer contracts.

On May 7, 2024, the Company acquired 60% of the interests of the RI Companies. The RI Companies operate three, existing, stand-alone radiation therapy cancer centers in Woonsocket, Warwick and Providence, Rhode Island, where contracts exist between the Company’s facilities and the individual patients treated at the facility. Under ASC 606, the Company acts as the principal in these transactions and provides, at a point in time, a single performance obligation, in the form of radiation therapy treatment. Revenue related to radiation therapy is recognized at the expected amount to be received, based on insurance contracts and payor mix, when the patient receives treatment. There is no variable consideration present in the Company’s performance obligation and the transaction price is agreed upon per the stated contractual rate. Payment terms at these facilities are typically prepaid for self-pay patients and insurance providers are paid net 30 to 60 days. The Company did not capitalize any incremental costs related to the fulfillment of its customer contracts. The Company also concluded the three facilities are part of its direct patient services segment, see further discussion below.

SEC Form 10-Q filed by American Shared Hospital Services