AMERICAN SHARED HOSPITAL SERVICES

NOTE1 – BUSINESS AND BASIS OF PRESENTATION**

Business – These consolidated financial statements include the accounts of American Shared Hospital Services (“ASHS”) and its subsidiaries (together with ASHS, the “Company”) 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”) and Instituto Gamma Knife San Javier Mexico S.A.P.I. de C.V. (“San Javier”). 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 AG (“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. During2025, GKF leased Gamma Knife units toeight medical centers in the United States in the states of Florida, Illinois, Indiana, Mississippi, New Mexico, New York, Oregon, and Texas. GKF also owns and operatestwo 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 customer in the United States.

On* May 7, 2024the Company closed on the acquisition of a transaction whereby it acquired a 60% equity interest in each of Southern New England Regional Cancer Center, LLC (“SNERCC”) and Roger Williams Radiation Therapy, LLC (“RWRT”), (collectively, the “RI Companies”) and was assigned certain payor contracts to the Company for a purchase price of $2,850,000 (such transaction, the “RI Acquisition. The RI Companies operate three functional radiation therapy cancer centers in Rhode Island. The parties closed the RI Acquisition on May 7, 2024.Accordingly, activity from May 7, 2024forward is included in the consolidated financial statements. See Note12* - Rhode Island Acquisition to the consolidated financial statements for further information.

On* June 28, 2024,ASHS-Mexico signed a Joint Venture Agreement with Hospital San Javier, S.A. de C.V. (“HSJ”) to establish San Javier 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 San Javier. 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 doesnot* expect that San Javier will begin treating patients until mid to late2026.

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 is responsible for providing a linear accelerator upgrade to an Elekta Versa HD, and Guadalupe will be accountable for all site modification costs. The Company formed ASHS-Mexico on October 3, 2022to establish Puebla. Puebla was formed on December 15, 2022and began treating patients in July**2024.*

The Company formed the subsidiaries GKPeru, Puebla, 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 isnot expected to generate revenue within the nexttwo years.

The Company owns 50% of “The Operating Room for the21st Century”SM,OR21, LLC (“OR21”). The remaining 50% ofOR21 is owned by an architectural design company.OR21 isnot operational at this time.

MedLeader was formed to provide continuing medical education online and through videos for doctors, nurses, and other healthcare workers. This subsidiary isnot operational at this time.

All intercompany accounts and transactions have been eliminated in consolidation.

NOTE2 – ACCOUNTING POLICIES

Use of estimates in the preparation of financial statements – In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant accounting estimates reflected in the Company’s consolidated financial statements include the estimated useful lives of property and equipment and its salvage values, impairment of property and equipment, the obligation to remove this equipment at contract term (ARO), business combinations, and revenue recognition for revenue sharing customers. Actual results could differ from those estimates.

Advertising and marketing – The Company expenses advertising and marketing costs as incurred (collectively,“marketing costs”). Marketing costs were$116,000 and $98,000 during the years ended* December 31, 2025and2024*, respectively. Marketing costs include joint marketing with customers and corporate advertising costs. Marketing costs are recorded in other direct operating costs and sales and administrative costs in the consolidated statements of operations.

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Sales and Service – The Company markets its financial and turn-key solutions directly to cancer treatment centers, hospitals, and large cancer networks worldwide through its sales staff. Sales expense includes payroll and travel costs for the Company’s sales staff. The Company also typically provides the equipment, as well as planning, installation, reimbursement and marketing support services to its customers.

Cash and cash equivalents – The Company considers all liquid investments with original maturities ofthree months or less at the date of purchase to be cash equivalents. Restricted cash isnot considered a cash equivalent for purposes of the consolidated statements of cash flows.

Restricted cash – Restricted cash represents the minimum cash that must be maintained in GKF to fund operations, per the subsidiary’s operating agreement and the minimum cash that must be maintainedby GKF per its financing agreement with the United States International Development Finance Corporation (“DFC”). See further discussion at Note5 - Long Term Debt.

Business and credit risk – The Company maintains its cash balances, which exceed federally insured limits, in financial institutions. The Company believes it isnot exposed to any significant credit risk on cash and cash equivalents. The Company monitors the financial condition of the financial institutions it uses on a regular basis.

All of the Company’s revenue was provided by 15 locations or1 PBRT unit,4 LINACs and10 Gamma Knife units in2025 and by 17 locations or1 PBRT unit,4 LINACs and12 Gamma Knife units in2024. Two customers individually accounted forapproximately 26%and 31% of the Company’s total revenue in2025, andtwo customers individually accounted forapproximately 35% and 27% of the Company’s total revenue in2024, respectively. At* December 31, 2025*, four locations accounted for 81% of total accounts receivable. At* December 31, 2024*, one location accounted for 32% of total accounts receivable. The Company performs credit evaluations of its customers and generally doesnot require collateral. The Company hasnot experienced significant losses related to receivables from individual customers or groups of customers in any particular geographic area.

All of the Company’s radiosurgery devices have been purchased through Elekta, to date. However, there are other manufacturers that also make radiosurgery devices.

Accounts receivable and allowance for credit losses – Accounts receivable are recorded at net realizable value. An allowance for credit losses is estimated based on historical collections plus an allowance for expected losses. Receivables are considered past due based on contractual terms and are charged off in the period that they are deemed uncollectible. Recoveries of receivables previously charged off are offset against bad debt expense when received.

The Company had an allowance for credit losses of $980,000 at* December 31, 2025and $265,000 at December 31, 2024.The Company increased its allowance by $715,000 during2025* to account for receivables deemed uncollectible on patient accounts in the direct patient service segment. The increase to the reserve in2025 is reflected in other direct operating costs in the consolidated statements of operations. There wereno accounts charged against the allowance for credit losses during the year ended* December 31, 2025.*

Non-controlling interests - The Company reports its non-controlling interests as a separate component of shareholders’ equity. Non-controlling interest is determined by the income (loss) multiplied by the non-controlling interest in subsidiaries, and the income or losses of the non-controlling interests in the RI Companies, in Puebla, and in the various subsidiaries controlled by GKF. The Company also presents the consolidated net income and the portion of the consolidated net income (loss) allocable to the non-controlling interests and to the shareholders of the Company separately in its consolidated statements of operations.

Property and equipment – Property and equipment are stated at cost less accumulated depreciation. Depreciation for Gamma Knife and other equipment is determined using the straight-line method over the estimated useful lives of the assets, which for medical and office equipment is generally 3 –10 years, and after accounting for salvage value on the equipment where applicable. The Company acquired a building as part of the acquisition of GKCE in* June 2020.Depreciation for buildings is determined using the straight-line method over 20 years. The Company determines salvage value based on the estimated fair value of the equipment at the end of its useful life. As of December 31, 2024*, the Company reduced its estimate of salvage value for allseven Gamma Knife units to $0. This change was made as of* December 31, 2024,therefore there wasno* impact from the change in estimate for the year-ended* December 31, 2024,*but this change in estimate will impact future periods.

Depreciation for PBRT and related equipment is determined using the modified units of production method, which is a function of both time and usage of the equipment. This depreciation method allocates costs considering the projected volume of usage through the useful life of the PBRT unit, which has been estimated at 20 years. The estimated useful life of the PBRT unit is consistent with the estimated economic life of 20 years.

The Company leases Gamma Knife and radiation therapy equipment to its customers under arrangements accounted for as operating leases. At* December 31, 2025*, the Company held equipment under operating lease contracts with customers with an original cost of $53,128,000 and accumulated depreciation of $36,665,000. At* December 31, 2024*, the Company held equipment under operating lease contracts with customers with an original cost of $54,266,000 and accumulated depreciation of $37,002,000.

As of* December 31, 2024*, the Company recognized a loss on the write down of impaired assets $3,084,000. The Company reviewed its long-lived assets during thefourth quarter of2024 and concluded events and circumstances existed that indicatedsix of the Company’s domestic Gamma Knife units were impaired. One of the assets was partially impaired in the prior year and is now fully impaired, and the Company expects to remove this equipment prior to the contract term. The Company also increased and impaired itsasset removal obligation (“ARO”)liability forone of the impaired units where the Company doesnot plan to renew the contract in early2026 and will remove this unit at its contract term. Thesix sites that were impaired and ARO fortwo of the impaired sites, were recorded as write down of impaired assets for the* December 31, 2024.Total ARO impairment for the year ended December 31, 2024* was $450,000. Total equipment impairment for the year ended* December 31, 2024* was $2,634,000. The Company also reviewed its long-lived assets during thefourth quarter of2025 and concluded events and circumstances indicatedno additional impairment existed

See further discussion under Note2 - Long-lived asset impairment and Note3 - Property and Equipment.

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Revenue recognition - The Company recognizes revenues under Accounting Standards Codification (“ASC”)842 Leases (“ASC842”) and ASC606 Revenue from Contracts with Customers (“ASC606”).

Rental income from medical equipment leasing (“leasing”) – The Company recognizes revenues under ASC842 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 donot contain any guaranteed minimum payments. The Company’s lease contracts typically have aten-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 and net profit share for the operating costs of the center. 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 and profit. The operating costs and estimated net operating profit are recorded as other direct operating costs in the consolidated statements of operations. For the years ended,* December 31, 2025and2024*, the Company recognized leasing revenue of approximately $12,553,000 and $15,629,000 under ASC842, respectively, of which approximately $7,369,000 and $9,952,000 were for PBRT services, respectively.

Revenue sharing arrangements amounted to approximately 36 % and 70 % of total revenue for the years ended* December 31, 2025and2024*, respectively. Because the revenue estimates are reviewed on a quarterly basis, any adjustments required for past revenue estimates would result in an increase or reduction in revenue during the current quarterly period. Payor mix is a significant variable in the Company’s estimate for revenue sharing revenues.

Direct patient services income – The Company has stand-alone facilities in Lima, Peru and Guayaquil, Ecuador, where a contract exists between the Company’s facilities and the individual patient treated at the facility. Under ASC606, the Company acts as the principal in this transaction and provides, at a point in time, a single performance obligation, in the form of a Gamma Knife treatment. Revenue related to a Gamma Knife treatment is recognized on a gross basis at the time when the patient receives treatment. There isno 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 net30 days. GKCE’s patient population is primarily covered by a government payor and payments are paid betweensix andnine months, following issuance of invoice. The Company didnot capitalize any incremental costs related to the fulfillment of its customer contracts.

On* May 7, 2024,the Company acquired 60% of the equity 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 ASC606,* 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. The Company’s stand alone radiation therapy facility in Puebla, Mexico is also accounted for under ASC606. 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 isno 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 didnot capitalize any incremental costs related to the fulfillment of its customer contracts. The Company also concluded these facilities are part of its direct patient service segment, see further discussion below.

Accounts receivable under ASC606 at* December 31, 2025* and* January 1, 2025were $8,138,000 and $6,073,000. Accounts receivable under ASC606* at* December 31, 2024* and* January 1, 2024were $6,073,000 and $1,626,000. For the years ended December 31, 2025and2024*, the Company recognized direct patient service revenues of approximately $15,529,000 and $12,556,000 under ASC606, respectively.

Equipment sales – During the year-ended* December 31, 2024*, the Company soldone of its Gamma Knife Perfexion units with an Icon upgrade to the customer it was leased to and recorded a net gain on equipment sale. The Company assessed this transaction under ASC606 and concluded the Company acted as the agent in this transaction and provided, at a point in time, a single performance obligations, in the form of an equipment sale of an Icon. Revenue related to the equipment sale is recognized on a net basis when the sale is complete. The Company recognized net revenues of $155,000 on the sale of equipment for the year ended* December 31, 2024*.

Stock-based compensation – The Company measures all stock-based compensation awards at fair value and records such expense in its consolidated financial statements over the requisite service period of the related award. See Note8 - Stock-Based Compensation Expense for additional information on the Company’s stock-based compensation programs.

Costs of revenue– The Company’s costs of revenue consist primarily of maintenance and supplies, depreciation and amortization, and other operating expenses (such as insurance, property taxes, sales taxes, marketing costs and operating costs from the Company’s revenue sharing and direct patient service sites). Costs of revenue are recognized as incurred.

Income taxes – The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.

F-10

The Company accounts for uncertainty in income taxes as required by the provisions of ASC740 Income taxes (“ASC740”), which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. Thefirst step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely thannot that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. Thesecond step is to estimate and measure the tax benefit as the largest amount that is more than50% likely of being realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as this requires the Company to determine the probability of various possible outcomes. The Company considers many factors when evaluating and estimating the Company’s tax positions and tax benefits, which* mayrequire periodic adjustments and may**not* accurately anticipate actual outcomes.

See Note7 - Income Taxes for further discussion on income taxes.

Business Combinations- Business combinations are accounted for under ASC805 Business Combinations (“ASC805”) using the acquisition method of accounting. Under the acquisition method of accounting, all assets acquired, identifiable intangible assets, liabilities assumed and applicable non-controlling interests are recognized at fair value as of the acquisition date. Costs incurred associated with the acquisition of a business are expensed as incurred. The allocation of purchase price requires management to make significant estimates and assumptions, especially with respect to tangible assets, any intangible assets identified and non-controlling interests. These estimates include, but arenot limited to, a market participant’s expectation of future cash flows from acquired customers, acquired trade names, useful lives of acquired assets, and discount rates. See Note12 - Rhode Island Acquisition to the consolidated financial statements for further discussion on acquisitions.

Fair Values of Financial Instruments - Financial assets and liabilities measured at fair value on a recurring basis are classified inone of thethree following categories, which are described below:

Level1 — Valuations based on unadjusted quoted prices for identical assets in an active market.

Level2 — Valuations based on quoted prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets.

Level3 — Valuations based on inputs that are unobservable and involve management judgment and our own assumptions about market participants and pricing.

The Company doesnot have any financial assets or liabilities that are measured at fair value on a recurring basis.

Functional currency – Based on guidance provided in accordance with ASC830, Foreign Currency Matters (“ASC830”), the Company analyzes its operations outside the United States to determine the functional currency of each operation. Management has determined that these operations are accounted for in U.S. dollars since the primary transactions incurred are in U.S. dollars and the Company provides significant funding towards the startup of the operation. When Management determines that an operation has become predominantly self-sufficient, the Company will reassess its accounting for the operation to the local currency from the U.S. dollar. The Company analyzed its Gamma Knife site in Peru and its startup operations in Mexico for Puebla under ASC830 as of* December 31, 2025and2024* and concluded the functional currency was the U.S. dollar. As facts and circumstances change, the Company will reassess this conclusion. The functional currency of the Company’s Gamma Knife site in Ecuador is the U.S. dollar because that is the local currency of Ecuador.

Asset Retirement Obligations– Based on the guidance provided in ASC410, Asset Retirement Obligations (“ASC410”), the Company analyzed its existing lease agreements and determined whether an ARO exists to remove the respective units at the end of the lease terms. As of* December 31, 2025*, the Company hadtwo AROs recorded for thetwo customer sites,one expired in* February 2025and thesecond* will expire in* May 2026,totaling $1,200,000. One ARO was recorded and impaired in a prior period. The Company recorded and impaired the ARO for thesecond* customer site during2024. No liability has been recorded as of* December 31, 2025* for the remaining Gamma Knife or PBRT locations, because it is uncertain these units will be removed at the end of the lease term. The Company will re-evaluate the need to record additional ARO liabilities on a periodic basis when facts and circumstances change that could affect this conclusion.

Asset retirement obligations, included in related party liabilities, were $1,200,000 and $1,200,000 at* December 31, 2025and2024*, respectively. The following illustrates the change in asset retirement obligations, related party as of* December 31, 2025and2024*:

F-11

Earnings per share – The Company calculates diluted shares using the treasury stock method. Basic earnings per share excludes dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the year. The fully vested restricted stock unitsnot issued and outstanding are also included therein. Diluted earnings per share reflect the potential dilution that could occur if common shares were issued pursuant to the exercise of options and from unvested restricted stock units. Because the Company reported a loss for the year-ended* December 31, 2025,the potentially dilutive effects of approximately 18,000 of the Company’s stock options and 161,000 of the Company’s unvested restricted stock awards werenot* considered for the reporting period. The computation for the year ended* December 31, 2024included all of the Company’s stock options outstanding because the exercise price of the options was less than the average market price during the period. The weighted average common shares outstanding for the years ended December 31, 2025and2024*, included approximately 123,000 and 123,000, respectively, of the Company’s restricted stock awards that are fully vested but are deferred for issuance.

The following table illustrates the computations of basic and diluted earnings per share for the years ended* December 31, 2025and2024*.

Business segment information - Based on the guidance provided in accordance with ASC280 Segment Reporting (“ASC280”), the Company analyzed its subsidiaries which are all in the business of providing radiosurgery and radiation therapy services, either through leasing to healthcare providers or directly to patients, and concluded there aretwo reportable segments, leasing and direct patient service. During2025, the Company provided Gamma Knife and PBRT equipment toeleven hospitals in the United States, which constitutes the leasing segment. As of* December 31, 2025*, the Company owns and operatestwo single-unit Gamma Knife facilities in Lima, Peru and Guayaquil, Ecuador,one single-unit radiation therapy facility in Puebla, Mexico, and following the RI Acquisition on* May 7, 2024,the Company also owns a 60% interest in and operatesthree* single-unit radiation therapy facilities in Rhode Island, which collectively constitute the direct patient segment.

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An operating segment is defined by ASC280 as it engages in business activities in which it* mayrecognize revenues and incur expenses, its operating results are regularly reviewed by the Company’s Chief Operating Decision Maker (“CODM”), and its discrete financial information is available. The Company determinedtwo* reportable segments existed due to similarities in economics of business operations and how the Company recognizes revenue for the patient treatment. The type of equipment varies by segment, but the method for recognizing revenue is the same. The operating results of thetwo reportable segments are reviewed by the Company’s Executive Chairman of the Board, who is also the CODM.

For the years ended* December 31, 2025and2024*, the Company’s PBRT operations represented a significant majority of the net income attributable to American Shared Hospital Services from the leasing segment, disclosed below. The revenues, depreciation, interest expense, interest income, tax expense, net (loss) income attributable to American Shared Hospital Services, total asset allocations, and other non-recurring expense for the Company’stwo reportable segments as of* December 31, 2025* and2024 consists of the following:

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Long lived asset impairment – The Company assesses the recoverability of its long-lived assets when events or changes in circumstances indicate their carrying value* may**not* be recoverable. Such events or changes in circumstances* mayinclude: a significant adverse change in the extent or manner in which a long-lived asset is being used, significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset, an accumulation of costs significantly in excess of the amount originally expected for the acquisition or development of a long-lived asset, current or future operating or cash flow losses that demonstrate continuing losses associated with the use of a long-lived asset, or a current expectation that, more likely thannot,* a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The Company performs impairment testing at the asset group level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The Company assesses recoverability of a long-lived asset by determining whether the carrying value of the asset group can be recovered through projected undiscounted cash flows over their remaining lives. If the carrying value of the asset group exceeds the forecasted undiscounted cash flows, an impairment loss is recognized, measured as the amount by which the carrying amount exceeds estimated fair value. An impairment loss is charged to the consolidated statement of operations in the period in which management determines such impairment. As of* December 31, 2025and2024*, the Company recognized a loss on the write down of impaired assets of $0 and $3,084,000, respectively. See Note3 - Property and Equipment for further discussion.

Goodwill and intangible assets -The Company recorded goodwill of $1,265,000 and an intangible asset with a fair value of $78,000 as part of the acquisition of GKCE in June 2020.The intangible asset identified was GKCE’s trade name and the Company assigned an indefinite useful life to the asset. Based on the guidance provided in accordance with ASC350 Intangibles-Goodwill and Other (“ASC350”), the Company doesnot amortize the intangible asset because it has an indefinite life. The Company assesses goodwill at the reporting unit level, which has been determined to be direct patient services. Each reporting period, the Company assesses whether events or circumstances continue to support an indefinite useful life for the intangible asset. Per ASC350, the Company tests goodwill and intangible assets for impairment annually or as events or circumstances change that indicate the fair value maybe below the carrying amount. As of December 31, 2025 and2024, there has beenno change to the Company’s assessment of the value of intangible assets or goodwill.

Accounting pronouncements issued and adopted - In* December 2023,the FASB issued ASU2023*-09 Income Taxes (Topic740*) Improvements to Income Tax Disclosures* (“ASU2023-09”) 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. ASU2023-09 is effective for annual periods beginning after* December 31, 2024.The Company adopted ASU2023*-09 for the year-ended* December 31, 2025,prospectively, and enhanced its disclosure requirements, accordingly. See Note7* - Income Taxes for further discussion.

Accounting pronouncements issued and not yet adopted - In* November 2024,the FASB issued ASU2024*-03 Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (“ASU2024-03”) which requires entities to1. 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 arenot necessarily disaggregated quantitatively, and4. disclose the total amount of selling expenses, in annual reporting periods, an entity’s definition of selling expense. ASU2024-03 is effective for annual reporting periods beginning after* December 15, 2026and interim reporting periods beginning after December 15, 2027.Early adoption is permitted. The Company is currently evaluating ASU2024*-03 to determine the impact it* may*have on its consolidated financial statements.

In* July2025,* the FASB issued ASU2025-05 Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU2025**-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 Topic606. ASU2025-05 is effective for annual reporting periods beginning after* December 15, 2025and interim reporting periods within those annual reporting periods. Early adoption is permitted in both interim and annual reporting periods in which financial statements havenot* yet been issued or made available for issuance. The Company is currently evaluating ASU2025-05 to determine the impact it* may*have on its consolidated financial statements.

Reclassifications - Certain comparative balances as of* December 31, 2024*have been reclassified to make them consistent with the current year presentation.

Liquidity - On* April 9, 2021,ASHS, Orlando, GKF (together with ASHS and Orlando, the “Borrowers”), and ASRS (together with the Borrowers, collectively, the “Loan Parties”) entered into afive*-year $22,000,000 credit agreement (the “Credit Agreement”) with Fifth Third Bank, N.A. (“Fifth Third”). The loan entered into with United States International Development Finance Corporation (“DFC”) in connection with the acquisition of GKCE in* June 2020 (the “DFC Loan”; together with the Credit Agreement, the “Credit Agreements”) was obtained through the Company’s wholly-owned subsidiary, HoldCo and is guaranteed by GKF. On December 10, 2025,the Loan Parties received a notice from Fifth Third asserting that an Event of Default (as defined) occurred under the Credit Agreement due to the Borrower's failure to maintain minimum unrestricted domestic cash of at least an aggregate of $5,000,000. The Credit Agreement matures on April 9, 2026and is secured by a lien on substantially all of the assets of the Loan Parties and is guaranteed by ASHS. ASHS is currently in discussions with Fifth Third regarding a potential extension of the maturity of the Credit Agreement. However, there can beno* assurance that Fifth Third will agree to such an extension or, if obtained, as to the terms or duration of any such extension. If ASHS is unable to obtain an extension of the maturity of the Credit Agreement, the Company willnot have sufficient cash on hand to repay the Facilities at maturity. See Note5 - “Long Term Debt” for additional information.

The Company reassessed its ability to continue as a going concern in light of the Event of Default. As long as the Company remains in default under the Credit Agreements, Fifth Third and DFC could accelerate all payment obligations under the Credit Agreements. If Fifth Third or DFC were to accelerate all payment obligations under the Credit Agreements as a result of the defaults thereunder, the Company wouldnot have sufficient cash on hand to satisfy such accelerated payment obligations. As a result, these conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company believes it will be able to negotiate an extension to the Credit Agreement, however, if the Company is unable to do so, the Company’s liquidity will be adversely impacted and the Company’s ability to satisfy all of its commitments over the nexttwelve months in accordance with their current terms would be jeopardized. As a result of these conditions, in connection with management’s assessment of going-concern considerations in accordance with ASC205-40 Presentation of Financial Statements - Going Concern, management has determined that the Company’s liquidity condition raises substantial doubt about the Company’s ability to continue as a going concern, should Fifth Third and DFC accelerate all payment obligations. The Company’s consolidated balance sheet as of* December 31, 2025,doesnot* contain any adjustments that might result from the uncertainty regarding the Company’s ability to continue as a going concern.

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NOTE3 – PROPERTY AND EQUIPMENT

Property and equipment consists of the following:

Depreciation expense recorded in costs of revenue and selling and administrative expense in the consolidated statements of operations for the years ended* December 31, 2025and2024* is as follows:

As of* December 31, 2025and2024*, the Company recognized a loss on the write down of impaired assets of $0 and $3,084,000, respectively. The impairment as of* December 31, 2024*, related to cash flow impairment forsix of the Company’s domestic Gamma Knife units and estimated removal costs forone of the impaired units, which the Company expects to remove in thesecond quarter of2026. The impairment as of* December 31, 2024* wasrelated to cash flow impairment forone of the Company’s Gamma Knife units and estimated removal costs of thetwo Gamma Knife contracts that expired during the year. The Company reviewed its Gamma Knife equipment, in light of available information as of* December 31, 2025* and concludedno impairment exists. The Company reviewed its PBRT equipment, in light of available information as of* December 31, 2025* and2024 and concludedno impairment exists.

F-15

NOTE4 - OTHER ACCRUED LIABILITIES

Other accrued liabilities consists of the following:

NOTE5 - LONG TERM DEBT

On* April 9, 2021,ASHS, Orlando, GKF (together with ASHS and Orlando, the “Borrowers”), and ASRS (together with the Borrowers, collectively, the “Loan Parties”) entered into afive year $22,000,000 credit agreement (the “Credit Agreement”) with Fifth Third Bank, N.A. (“Fifth Third”). Capitalized terms that are used butnot* defined in this Note5 have the meanings given to them in the Credit Agreement, as amended. The Credit Agreement includes three loan facilities. Thefirst loan facility is a $9,500,000 term loan (the “Term Loan”), which was used to refinance the domestic Gamma Knife debt and finance leases, and associated closing costs. Thesecond loan facility is a $5,500,000 delayed draw term loan (the “DDTL”) which was used to refinance the Company’s PBRT finance leases and associated closing costs, as well as to provide additional working capital. Thethird loan facility provides for a $7,000,000 revolving line of credit (the “Revolving Line”) available for future projects and general corporate purposes. The facilities have afive-year maturity, which mature on* April 9, 2026,carry a floating interest of SOFR plus 3.0% (6.99% as of December 31, 2025),*and are secured by a lien on substantially all of the assets of the Loan Parties and guaranteed by ASHS.

On* January 25, 2024 (the “First Amendment Effective Date”), the Company and Fifth Third entered into a First Amendment to the Credit Agreement (the “First Amendment”), which amended the Credit Agreement to add a new term loan in the aggregate principal amount of $2,700,000 (the “Supplemental Term Loan”). The proceeds of the Supplemental Term Loan were advanced in a single borrowing on January 25, 2024,and were used for capital expenditures related to the Company’s operations in Puebla, Mexico and other related transaction costs. The Supplemental Term Loan will mature on January 25, 2030 (the “Maturity Date”). Interest on the Supplemental Term Loan is payable monthly during the initialtwelve* month period following the First Amendment Effective Date. Following suchtwelve month period, the Company is required to make equal monthly payments of principal and interest to fully amortize the amount outstanding under the Supplemental Term Loan by the Maturity Date. The Supplemental Term Loan is secured by a lien on substantially all of the assets of ASHS and certain of its domestic subsidiaries. The First Amendment also replaces the LIBOR-based rates in the Credit Agreement with SOFR-based rates. Pursuant to the First Amendment, advances under the Credit Agreement bear interest at a floating rate per annum equal to SOFR plus 3.00%, subject to a SOFR floor of 0.00% (the “Applicable Rate”).

On* December 18, 2024 (the “Second Amendment Effective Date”), the Company and Fifth Third entered into a Second Amendment to the Credit Agreement (the “Second Amendment”), which amended the Credit Agreement to add a new term loan in the aggregate principal amount of $7,000,000 (the “Second Supplemental Term Loan”). The proceeds of the Second Supplemental Term Loan were advanced in a single borrowing on December 18, 2024,and were used for capital expenditures related to the Company’s domestic Gamma Knife leasing operations and the RI Acquisition and related transaction costs. The Second Supplemental Term Loan will mature on December 18, 2029 (the “Second Maturity Date”). Interest on the Second Supplemental Term Loan is payable monthly during the initialtwelve* month period following the Second Amendment Effective Date. Following suchtwelve month period, the Company is required to make equal monthly payments of principal and interest to fully amortize the amount outstanding under the Second Supplemental Term Loan over a period ofseven years. All unpaid principal of the Second Supplemental Term Loan and accrued and unpaid interest thereon is due and payable in full on the Second Maturity Date. The Second Supplemental Term Loan is secured by a lien on substantially all of the assets of ASHS and certain of its domestic subsidiaries. Advances under the Credit Agreement continue to bear interest at the Applicable Rate established under the First Amendment.

The long-term debt on the consolidated balance sheets related to the Term Loan, DDTL, Supplemental Term Loan and Second Supplemental Term Loan was $16,197,000 and $18,462,000 as of* December 31, 2025* and* December 31, 2024*, respectively. The Company capitalized debt issuance costs of $164,000 during the year ended* December 31, 2024*related to issuance of the Supplemental Term Loan and Second Supplemental Term Loan.

The Credit Agreement contains customary covenants and representations, including without limitation, a minimum fixed charge coverage ratio of 1.25 and maximum funded debt to EBITDA ratio of 3.0 to1.0 (tested on a trailingtwelve-month basis at the end of each fiscal quarter), that the Company maintain at least $5,000,000 of unrestricted cash, reporting obligations, limitations on dispositions, changes in ownership, mergers and acquisitions, indebtedness, encumbrances, distributions, investments, transactions with affiliates and capital expenditures.

On* September 30, 2025,the Company received a limited waiver from Fifth Third with respect to its failure to be in compliance with the maximum funded debt to EBITDA ratio covenant in the Credit Agreement as of June 30, 2025*and with respect to the delivery of items following the closing of the Second Amendment.

As of* September 30, 2025,the Company wasnot* in compliance with its obligation to maintain minimum unrestricted domestic cash and Cash Equivalents of at least an aggregate of $5,000,000 (the “Minimum Cash Covenant”). On* December 10, 2025,the Loan Parties received a notice from Fifth Third (i) asserting that an Event of Default occurred under the Credit Agreement due to the failure of the Borrowers to comply with the Minimum Cash Covenant for the fiscal quarter ending September 30, 2025 (the “SeptemberEvent of Default”), and (ii) informing the Loan Parties that Fifth Third has suspended the Revolving Loan Commitment with respect to additional Revolving Loan Advances. In addition to confirming that Fifth Third hasnot* waived the* SeptemberEvent of Default or any other Event of Default, the notice reserves all of Fifth Third’s other rights, powers, privileges, and remedies under the Credit Agreement, the other Loan Documents, applicable law, and otherwise with respect to any Event of Default, including butnot* limited to Fifth Third’s right to accelerate the Borrowers’ payment obligations in respect of all Advances and other Obligations owing under the Credit Agreement and to repossess, liquidate, or take any other action with respect to any or all Collateral.

As of* December 31, 2025,the Company wasnot* in compliance with the minimum fixed-charge coverage ratio, the maximum funded debt-to-EBITDA ratio, and the Minimum Cash Covenant required by the Credit Agreement (the* “DecemberEvents of Default,” together with the SeptemberEvent of Default, the “Financial Covenant Defaults”). The Company has notified Fifth Third of the DecemberEvents of Default, and as a result thereof, Fifth Third mayexercise any of its rights, powers, privileges, and remedies under the Credit Agreement, the other Loan Documents, and applicable law, including butnot* limited to the right to accelerate the Borrowers’ payment obligations under the Credit Agreement.

Due to the Financial Covenant Defaults described above, the Loan Parties arenot in compliance with the Credit Agreement as of* December 31, 2025.To date, Fifth Third hasnot* accelerated the obligations of the Loan Parties under the Credit Agreement or other Loan Documents. ASHS is currently in discussions with Fifth Third regarding a waiver and an amendment to the Credit Agreement. However, there can beno assurances regarding the outcome of such discussions.

F-16

NOTE5 - LONG TERM DEBT (CONTINUED)

The loan entered into with DFC in connection with the acquisition of GKCE in* June 2020**(the “DFC Loan”) was obtained through the Company’s wholly-owned subsidiary, HoldCo, and is guaranteed by GKF. The DFC Loan is secured by a lien on GKCE’s assets. Thefirst* tranche of the DFC Loan was funded in* June 2020.During thefourth* quarter of2023, thesecond tranche of the DFC loan was funded to finance the equipment upgrade in Ecuador. The amount outstanding under thefirst tranche of the DFC Loan is payable in 29 quarterly installments with a fixed interest rate of 3.67%. The amount outstanding under thesecond tranche of the DFC Loan is payable in 16 quarterly installments with a fixed interest rate of 7.49%. The long-term debt on the consolidated balance sheets related to the DFC loan was $1,149,000 and $1,806,000 as of* December 31, 2025and2024*, respectively. The Company didnot capitalize any debt issuance costs as of* December 31, 2025and2024*, respectively, related to maintenance and administrative fees on the DFC Loan.

The DFC Loan contains customary covenants among other covenants and obligations, requirements that the Company maintain certain financial ratios related to liquidity and cash flow as well as depository requirements. On* March 28, 2024,HoldCo received a waiver and amendment from DFC for certain covenants as of December 31, 2023and through December 31, 2024and amended other covenants and definitions permanently. On March 3, 2025,HoldCo received an additional waiver from DFC for certain covenants as of December 31, 2024and through December 31, 2025.*

In* Novemberand December 2024,GKCE obtainedtwo* loans with banks locally in Ecuador (the “GKCE Loans”). The GKCE Loans carry interest rates of 12.60% and 12.78% and are payable intwelve andthirty-six equal monthly installments of principal and interest, respectively. Total long-term debt on the consolidated balance sheets related to the GKCE Loans was $53,000 and $145,000 as of* December 31, 2025and2024*, respectively. The Company didnot capitalize any debt issuance costs related to the GKCE Loans.

As a result of the Loan Parties’ default under the Credit Agreement with Fifth Third discussed above, ASHS has determined that the non-compliance with the Credit Agreement could be deemed to have resulted in an Event of Default (as defined in the DFC Loan) under the DFC Loan (the “Potential Event of Default”). However, as of the date ofthis10-K, DFC hasnot delivered any notice to HoldCo or ASHS asserting the occurrence of an Event of Default or sought to exercise any remedies it* may*have under the DFC Loan.

Due to the Potential Event of Default described above, HoldCo* maybe deemed tonot* be in compliance with the DFC Loan as of* September 30, 2025and December 31, 2025*.

The Company’s failure to comply with the covenants under the Credit Agreements could result in the Company’s credit commitments being terminated and the principal of any outstanding borrowings, together with any accrued but unpaid interest, under the Credit Agreements could be declared immediately due and payable. Furthermore, the lenders under the Credit Agreements could also exercise their rights to take possession of, and to dispose of, the collateral securing the credit facilities and loans and could pursue additional default remedies upon default as set forth in each such agreement.

As long as the Company remains in default under the Credit Agreements, Fifth Third and DFC could accelerate all payment obligations under the Credit Agreements. If Fifth Third or DFC were to accelerate all payment obligations under the Credit Agreements as a result of the defaults thereunder, the Company wouldnot have sufficient cash on hand to satisfy such accelerated payment obligations. As a result, these conditions raise substantial doubt about the Company’s ability to continue as a going concern.

The accretion of debt issuance costs for the years ended* December 31, 2025and2024*, was $126,000 and $95,000, respectively. As of* December 31, 2025and2024*, the unamortized debt issuance costs on the consolidated balances sheets were $105,000 and $231,000.

The following are contractual maturities of long-term debt by year at* December 31, 2025*, excluding debt issuance costs of $105,000:

F-17

NOTE6 - LEASES

The Company determines if a contract is a lease at inception. Under ASC842, the Company is a lessor of equipment to various customers. Leases that commenced prior to ASC842 adoption date were classified as operating leases under historical guidance. As the Company has elected the package of practical expedients allowing it tonot reassess lease classification, these leases are classified as operating leases under ASC842 as well. All of the Company’s lessor arrangements entered into, amended or extended after ASC842 adoption are also classified as operating leases. Some of these lease terms have an option to extend the lease after the initial term, but donot contain the option to terminate early or purchase the asset at the end of the term. The Company has electednot to recognize right-of-use (“ROU”) assets and lease liabilities that arise from short-term (12 months or less) leases for any class of underlying asset.

The Company’s Gamma Knife and PBRT contracts with hospitals are classified as operating leases under ASC842. The related equipment is included in medical equipment and facilities on the Company’s consolidated balance sheets (see further discussion at Note2). As all income from the Company’s lessor arrangements is solely based on procedure volume, all income is considered variable paymentsnot dependent on an index or a rate. As such, the Company doesnot measure future operating lease receivables.

On* May 7, 2024,the Company completed the RI Acquisition and acquired 60% of the equity interests of the RI Companies. The RI Companies operate three single-unit radiation therapy facilities. The Company assessed the existing lease agreements under ASC842* and concludedtwo of thethree facilities contained operating leases. The Company included these leases in its presentation of the consolidated financial statements for years ended* December 31, 2025and2024*. The Company’s operating lease in Woonsocket contains a sublease for a 1,950 square feet of the clinic space, which is leased back to the lessor. The Company didnot make any lease payments during the year-ended* December 31, 2024related to the RI Companies and its leases. Sublease income for thetwelve* months ended* December 31, 2025and2024* was $61,000 and $40,000, respectively.

The Company’s lessee operating leases are accounted for as ROU assets, current portion of lease liabilities, and lease liabilities on the condensed consolidated balance sheets. Operating lease ROU assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The Company’s operating lease contracts donot provide an implicit rate for calculating the present value of lease payments. The Company determined its incremental borrowing rate to be approximately 8% by using available market rates and expected lease terms. The operating lease ROU assets and liabilities include any lease payments made and there wereno lease incentives or initial direct costs incurred. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company’s lessee operating lease agreements are for administrative office space and related equipment andtwo of its recently acquired stand-alone facilities in Rhode Island. These leases have remaining lease terms of approximately 8 to 15 years, some of which include options to renew or extend the lease. As of* December 31, 2025*, operating ROU assets, net of unfavorable leasehold interests were $3,648,000, and lease liabilities were $4,379,000.

The following table summarizes maturities of lessee operating lease liabilities as of* December 31, 2025*:

F-18

NOTE6 - LEASES (CONTINUED)

The Company’s corporate offices were located at601 Montgomery Street, Suite1112, San Francisco, California, where it leased approximately 900 square feet for $4,500 per month and the lease term ended in* November 2024.In November 2024,the Company closed this office and signedtwo* sublease agreements for small, office spaces in San Francisco, California and Downers Grove, Illinois. The sublease in San Francisco is for 80 square feet for $1,003 per month located at601 Montgomery Street, Suite850. The sublease in Downers Grove was signed in* February 2025and is fortwo* offices andthree cubicle spaces for $2,300 per month located at3041 Woodcreek Drive. Total ROU assets and lease liabilities for the Downers Grove sublease were $26,000. The sublease for Downers Grove expired in* January 2026and wasnot* renewed.

On* May 7, 2024,the Company completed the RI Acquisition and acquired 60% of the equity interests of the RI Companies. The RI Companies operate three single-unit radiation therapy facilities. The Company assessed the existing lease agreements under ASC842* and concludedtwo of thethree facilities contained operating leases. The facility in Woonsocket, RI has a ground lease with a sublease for 1,950 square feet of the clinic space, which is leased back to the lessor. The Woonsocket ground lease has an annual prepayment of approximately $44,000. The facility in Warwick, RI has a lease for 10,236 square feet for $32,790 per month. The facility in Providence, RI also has a ground lease, which was contributed byone of the minority partners. On* January 1, 2025,the Company entered into the Amended and Restated Lease Agreement (the “Amended Lease”) for the facility lease in Warwick, Rhode Island. The Amended Lease includes a lease extension to December 31, 2039and modified the monthly lease payment to $26,443. The Company assessed the Amended Lease under ASC842* and concluded it was a lease modification. On* January 1, 2025,*the effective date of the Amended Lease, the Company recorded additional ROU asset and lease liability in the amount of $1,922,000.

The Company owns and operates a stand-alone Gamma Knife facility in Lima, Peru where it leased approximately 1,600 square feet for approximately $8,850 per month through* June 2025.In May 2024,the Company executed a new lease agreement for approximately 7,704 square feet for $9,000 per month. The Company renovated this space during thefirst* half of2025 to accommodate its Gamma Knife Esprit and administrative offices and moved into the leased space in* June 2025.The lease expires in May 2034.Total ROU asset and lease liability for the Peru lease was $771,000. The Company also owns and operates a stand-alone Gamma Knife facility in Guayaquil, Ecuador where it owns 864 square feet of condominium space in an office building and approximately 10,135 of related land and parking spaces. The Company’s stand-alone radiation therapy facility in Puebla, Mexico also has a lease for approximately 536 square meters for $1,800 per month with a lease expiration in July 2034.*The lease in Puebla is with a related party. Total ROU assets and lease liabilities for the Puebla lease were $149,000.

Net rent expense was $593,000 and $427,000 for the years ended* December 31, 2025and2024*, respectively, and includes the above operating leases as well as month-to-month rental and certain executory costs.

F-19

NOTE7 – INCOME TAXES

The components of income before income taxes for the years ended* December 31, 2025and2024* are as follows:

For the year ended* December 31, 2025and2024*, the Company recorded an income tax benefit of $493,000 and $295,000, respectively.

The components of the provision for income taxes for the years ended* December 31, 2025and2024* consists of the following:

Significant components of the Company’s deferred tax liabilities and assets as of* December 31, 2025and2024* are as follows:

Upon adoption of ASU2023-09, the reconciliation of the statutory federal rate to the Company’s effective income tax rate for the year ended* December 31, 2025*was as follows:

(1) The states and local jurisdictions that contribute to the majority (greater than50%) of the tax effect in this category include Florida and Rhode Island.

F-20

NOTE7 – INCOME TAXES (CONTINUED)

The reconciliation of the statutory federal rate to the Company’s effective income tax rate for the year ended* December 31, 2024in accordance with the guidance prior to the adoption of ASU2023*-09 was as follows:

Due to uncertainty surrounding the realization of certain deferred tax assets and capital losses, the Company has placed a valuation allowance against a portion of its net domestic and foreign deferred tax assets. The net valuation allowance increased by $121,000 and decreased by $627,000 for the years ended* December 31, 2025and2024*, respectively.

The Company has federal net operating loss carryforwards of appr oximately$3,443,000 and $1,966,000 as of* December 31, 2025and2024*, respectively. All federal net operating losses have an indefinite carryforward period.

The Company has various state net operating loss carryforwards. The determination of the state net operating loss carryforwards is dependent upon apportionment percentages and state laws that can change from year to year and impact the amount of such carryforwards. If such net operating carryforwards arenot utilized, they will begin to expire in 2029.

The tax return years2020 through 2025 remain open to examination by the major domestic taxing jurisdictions to which the Company is subject.

F-21

NOTE7 – INCOME TAXES (CONTINUED)

The Company has adopted accounting standards which prescribe a recognition threshold and measurement attribute for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in a company’s income tax return, and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. Additionally, these accounting standards specify that tax positions for which the timing of the ultimate resolution is uncertain should be recognized as long-term liabilities. The Company has madeno reclassifications between current taxes payable and long term taxes payable under this guidance.

As of* December 31, 2025*, the unrecognized tax benefit was $87,000 which, if recognized, willnot affect the annual effective tax rate as these unrecognized tax benefits would increase deferred tax assets, which would be subject to a full valuation allowance. A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows:

The Company’s policy for deducting interest and penalties is to treat interest as interest expense and penalties as income taxes. As of* December 31, 2025*, the Company had $21,000 accrued for the payment of penalties andzero interest related to unrecognized tax benefits. The Company doesnot expect any material changes to our uncertain tax positions within the next12 months.

Upon adoption of ASU2023-09, as described in Note2 - Accounting Policies, cash paid for income taxes, net of refunds, during the year ended* December 31, 2025*was as follows:

NOTE8 – STOCK-BASED COMPENSATION EXPENSE

Incentive Compensation Plan

In* June 2021,the Company’s shareholders approved an amendment and restatement of the Company’s Incentive Compensation Plan (the “Plan”), that among other things, increased the number of shares of the Company’s common stock reserved for issuance under the Plan to 2,580,000 and extended the term of the Plan byfive* years to* February 22, 2027.The Plan provides that the shares reserved under the Plan are available for issuance to officers of the Company, other key employees, non-employee directors, and advisors.No further grants or share issuances will be made under the previous plans. As of December 31, 2025*, approximately 414,000 shares remain available for grant under the Plan.

Under the Plan, a total of 1,298,000 restricted stock units have been granted, consisting of 53,000 of annual automatic grants to non-employee directors,327,000 of deferred retainer fees to non-employee members of the Board,58,000 grants issued in lieu of commission or bonus to employees of the Company, and 860,000 restricted stock units issued to the Executive Chairman of the Board and other members of executive management, see further discussion below. Of the total restricted stock units granted under the Plan,123,000 of them are fully vested butnot yet deemed issued and outstanding,1,014*,000* are fully vested and outstanding, and 161,000 are outstanding as of* December 31, 2025*.

Changes in restricted stock units, consisting primarily of annual automatic grants, deferred compensation to non-employee directors, shares issued to employees as part of the Company’s bonus plan, and restricted stock units awards to the Executive Chairman of the Board and other members of executive management, under the Incentive Compensation Plans during2025 and2024 are as follows:

F-22

NOTE8 – STOCK-BASED COMPENSATION EXPENSE (CONTINUED)

Certain Executive Equity Awards

The Company appointed Raymond C. Stachowiak as Chief Executive Officer (“CEO”) of the Company on* October 1, 2020and served in such position until he was appointed Executive Chairman of the Board on March 7, 2023.For the year ended December 31, 2024*,120,000 restricted stock awards were issued to Mr. Stachowiak and 120,000 became fully vested. Total compensation expense recorded for the year ended* December 31, 2024* in the consolidated financial statements of operations related to executive equity awards was $352,000. For the year ended* December 31, 2025*,110,000 restricted stock awards were issued to Mr. Stachowiak and 115,000 became fully vested. Total compensation expense recorded for the year ended* December 31, 2025* in the consolidated financial statements of operations related to the executive equity awards was $268,000.

For the year ended* December 31, 2025*, stock compensation expense recorded in the consolidated financial statements is summarized as follows:

Total stock-based compensation expense before income tax effect for the Company’s options and restricted stock awards in the amount of $404,000 and $373,000 for the years ended* December 31, 2025and2024*, is reflected in selling and administrative expense in the consolidated statements of operations, respectively.

Stock Options

Changes in stock options outstanding under the Plan during2025 and2024 are as follows:

F-23

NOTE8 – STOCK-BASED COMPENSATION EXPENSE (CONTINUED)

There wereno options granted during2025 or2024. There wereno options exercised during the years ended* December 31, 2025* and2024. Total stock-based compensation expense recognized for stock options for the years ended* December**2025* and2024 was $4,000 and $17,000, respectively.

At* December 31, 2025*, there was approximately $3,000 of unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Plan. This cost is expected to be recognized over a period of less thanone year.

The Company’s stock option awards to employees are calculated using the Black-Scholes options valuation model. The Black-Scholes model was developed for use in estimating the fair value of traded options which haveno vesting restrictions and are fully transferable. In addition, the Black-Scholes model requires the input of highly subjective assumptions including the expected stock price volatility. The Company’s stock-based awards have characteristics significantly different from those of traded options, and changes in the subjective input assumptions can materially affect the present value estimates. For these reasons, management believes that the existing models donot necessarily provide a reliable single measure of the fair value of its stock-based awards to employees.

Repurchase of Common Stock, Common Stock Warrants and Stock Options

In1999 and2001, the Board of Directors approved resolutions authorizing the Company to repurchase up to a total of 1,000,000 shares of its own stock on the open market, which the Board reaffirmed in2008. There wereno shares of the Company repurchased during2025 or2024. There are approximately 72,000 shares remaining under this repurchase authorization.

F-24

NOTE9 – RETIREMENT PLAN

The Company has a defined-contribution retirement plan (the “Retirement Plan”) that allows for a matching safe harbor contribution. For2025, the Board of Directors elected to match participant deferred salary contributions up to a maximum of 4% of the participant’s annual compensation. Discretionary profit sharing contributions are allowed under the Retirement Plan in years that the Board doesnot elect a safe harbor match. During2025, the Company contributed $181,000 to the Retirement Plan for the safe harbor match for the year ended* December 31, 2025*. The Company has accrued approximately $18,000 for additional safe harbor matching contribution for the year ended* December 31, 2025*. Also during2025, the Company contributed $10,000 to the Retirement Plan for the safe harbor match for the year ended* December 31, 2024*.

NOTE10 – COMMITMENTS AND CONTINGENCIES

As of* December 31, 2025*, the Company had commitments to purchase and installtwo Leksell Gamma Knife Esprit (“Esprit”) systems andtwo Linear Accelerator (“LINAC”) systems. The Esprit upgrades andone LINAC installation are anticipated to occur in thesecond half of2026, or later, at existing customer sites. The remaining LINAC is reserved for a future customer site. Total Gamma Knife and LINAC commitments as of* December 31, 2025*, were $7,884,000. There areno deposits on the consolidated balance sheets related to these commitments as of* December 31, 2025*. It is the Company’s intent to finance substantially all of these commitments. There can beno assurance that financing will be available for the Company’s current or future projects, or at terms that are acceptable to the Company.

On* September 4, 2022,the Company entered into a Maintenance and Support Agreement with Mevion (the “Mevion Service Agreement”), which provides for maintenance and support of the Company’s PBRT unit at Orlando Health from September 2022through April 2026.The Company’s maintenance commitment for the final service period, September 2025through April 2026,*is $1,184,000.

As of* December 31, 2025*, the Company had commitments to service and maintain its Gamma Knife, LINAC, and PBRT equipment. The service commitments are carried out via contracts with Mevion, Elekta, Solutech, and Mobius Imaging, LLC. The Company’s commitments to purchaseone LINAC system also includes a 5-year agreement to service the equipment, respectively. Total service commitments as of* December 31, 2025* were $7,114,000. The Gamma Knife and certain other service contracts are paid monthly, as service is performed. The Company believes that cash flow from cash on hand and operations will be sufficient to cover these payments.

The Company’s customer contracts generally contain mutual indemnification provisions. The Company maintains general and professional liability insurance in the United States. The Company isnot involved in the practice of medicine and therefore believes its present insurance coverage and indemnification agreements are adequate for its business. The Company’s Peruvian and Ecuadorian Gamma Knife centers and Mexican LINAC center are free-standing facilities operated by GKPeru, GKCE, and Puebla, respectively. The treating physicians and clinical staff at these facilities are independent contractors. The Company maintains general and professional liability insurance consistent with the operations of these facilities and believes its present coverage is adequate for its business.

F-25

NOTE11 – RELATED PARTY TRANSACTIONS

The Company’s Gamma Knife business is operated through its 81% indirect interest in its GKF subsidiary. The remaining 19% of GKF is owned by a wholly owned U.S. subsidiary of Elekta, which is the manufacturer of the Gamma Knife and other radiation therapy equipment. Since the Company purchases the majority of its equipment from Elekta, there are significant related party transactions with Elekta such asequipment purchases, commitments to purchase and service equipment, and costs to maintain the equipment.

The following summarizes related party activity for the years ended* December 31, 2025* and2024:

The Company had related party commitments to purchase and installtwo Esprit upgrades,one LINACs, and service the related equipment. Total related party commitments were $10,754,000 as of* December 31, 2025*.

Related party liabilities on the consolidated balance sheets consist of the following as of* December 31, 2025* and2024:

Note12. Rhode Island Acquisition

On* November 10, 2023,*the Company entered into an Investment Purchase Agreement (the “IPA”) with GenesisCare and GC Holdings, pursuant to which GenesisCare agreed to sell to the Company its entire equity interest in each of the RI Companies and to assign certain payor contracts to the Company for a cash purchase price of $2,850,000 (previously defined, the “RI Acquisition”). The equity interests acquired by the Company under the IPA equates to a 60% interest in each RI Company. The RI Companies operate three functional radiation therapy cancer centers in Rhode Island. The Company acquired the RI Companies to expand its growing direct patient service business model in the United States and continue to diversify its cancer treatment product offerings.

On* April 18, 2024,the parties amended the IPA and GenesisCare agreed to sell a GE Discovery RT CT Simulator (“CT Sim”) to the Company for $175,000, payment for which was required5* days following the close of the acquisition. On* May 7, 2024,the parties amended the IPA and GenesisCare agreed to transfer certain assets and payor contracts to the RI Companies, rather than transferring such assets and payor contracts to the Company. The parties completed the closing conditions pursuant to the IPA and closed the RI Acquisition on May 7, 2024 (*the “Closing Date”).

The RI Acquisition has been accounted for as a business combination under ASC805**, which requires, among other things, that purchase consideration, assets acquired, liabilities assumed and non-controlling interest be measured at their fair values as of the acquisition date. The assets acquired were recorded based on valuations derived from estimated fair value assessments and assumptions used by the Company. While the Company believes its estimates and assumptions underlying the valuations are reasonable, different estimates and assumptions could result in different valuations assigned to the individual assets acquired, and the resulting amount of the bargain purchase gain. During thethree-month periods ended* September 30, 2024and December 31, 2024**,* the Company concluded some of the fair value estimates for accounts receivable, non-controlling interests, and unfavorable leasehold interests required adjustment. The adjusted allocations provided below reflect these changes.

The Company recorded medical equipment, facilities and non-controlling interest at fair value as of the Closing Date. Sales comparison and cost approaches were used to value the medical equipment, including assumptions of estimated direct costs associated with acquiring the equipment. Where appropriate, adjustments were made to the direct replacement cost to reflect depreciation and obsolescence. The sales comparison approach was also utilized to value certain assets, involving secondary market research. The cost approach was also used to value the facilities acquired and the unfavorable leasehold interest. The non-controlling interest was recorded at fair value based on the purchase price paid for the acquisition, after any premium or discount derived from the operating agreement with the minority owners.

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Note12. Rhode Island Acquisition (CONTINUED)

The Company recorded the preliminary allocation of the purchase price consideration as of the Closing Date, for thethree-month period ended* June 30, 2024.During each of thethree*-month periods ended* September 30, 2024and December 31, 2024,the Company concluded some of the fair value estimates for accounts receivable, non-controlling interests, and unfavorable leasehold interests required adjustment. The net effect of these changes was an increase to the bargain purchase gain of $115,000, net of deferred taxes of $6,000. The net impact to the consolidated statement of operations, outside of the change in the bargain purchase gain, wasnot* material for the years ended* December 31, 2025and2024*.

The major classes of assets and liabilities to which the Company allocated the fair value of the purchase price consideration as of* December 31, 2025* were as follows:

The Company recognized a bargain purchase, as defined by ASC805, in connection with the RI Acquisition. The Company purchased its interest in the RI Companies as part of the sale of certain of GenesisCare’s assets in its bankruptcy proceedings, resulting in a “bargain purchase”. A bargain purchase gain of $3,794,000, net of deferred taxes of $1,220,000 is reflected in other income in the consolidated statement of operations for the year-ended* December 31, 2024.*None of the purchase price was allocated to intangible assets becausenone were acquired as part of the transaction. The Company recorded the unfavorable lease position received as part of the RI Acquisition as a reduction to ROU assets on the consolidated balance sheet.

The preliminary value of the acquired tangible assets acquired were as follows:

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NOTE13 – SUBSEQUENT EVENT

On* December 31, 2025,the Company remittedtwo payments on its debt obligations totaling $562,500 via an established automatic payment process, pursuant to the Credit Agreement. Subsequently, the Company and Fifth Third agreed these payments werenot* contractually due and the funds were returned to the Company on* February 5, 2026.The Company assessed this event under ASC855* -Subsequent Events and concluded it qualified as a subsequent even that should be recognized as of the balance sheet date. Accordingly, the Company recognized this event as of* December 31, 2025*by increasing other receivables and increasing the current portion of long-term debt, net, by $562,500.

On* March 13, 2026,the Company and Orlando Health, Inc. (“Orlando Health”) entered into Amendment Two to Proton Beam Radiation Therapy Lease Agreement (the “Amendment”). The Amendment extends the term of the Proton Beam Radiation Therapy Lease Agreement dated October 18, 2006between the Company and Orlando Health, as amended by Amendment One to Proton Beam Radiation Therapy Lease Agreement dated effective as of August 12, 2012 (the “Lease”) for an additional seven years commencing April 6, 2026through April 5, 2033 (the “Extended Term”), and sets the lease payment terms during the Extended Term based on a technical component collection percentage with that percentage decreasing during certain of thetwelve* month periods of the Extended Term. The Amendment amends certain other terms of the Lease and sets forth certain agreements between the parties with respect to the leased equipment, including (i) an option granted to Orlando Health whereby it* mayelect to purchase the leased equipment at the end of the lease term, including setting the purchase price and the period in which Orlando Health mayexercise its option, (ii) matters related to the Company’s obligation to remove, at its expense, the leased equipment from Orlando Health at the end of the Extended Term in the event Orlando Health doesnot* exercise its purchase option, and certain financial understandings of the parties related to that obligation, and (iii) maintenance and insurance coverage obligations of the parties.

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