AMERICAN SHARED HOSPITAL SERVICES

Under the supervision and with the participation of our management, including our principal executive officer and our principal financial officer, we have evaluated the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934. These controls and procedures are designed to ensure that material information relating to the Company and its subsidiaries is communicated to the principal executive officer and our principal financial officer. Based on that evaluation, our principal executive officer and our principal financial officer concluded that, as of June 30, 2026, our disclosure controls and procedures were not effective due to the material weakness in our internal controls over financial reporting described in our Annual Report on Form 10-K for the year ended December 31, 2025, with respect to the Company having an insufficient number of personnel and resources with experience to create a proper control environment.

Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

The Company’s remediation plans related to the material weakness in our internal controls identified, which remains in process, are to hire sufficient personnel with accounting and financial reporting and direct patient billing experience to augment its current staff and to improve the timeliness of our overall effectiveness of the Company’s closing and financial reporting processes, including as described in this paragraph. As previously disclosed, on December 19, 2024, the Company appointed a new Chief Financial Officer, Scott Frech, who also served as the Company’s principal financial officer and principal accounting officer and had extensive experience and expertise in billing and collections for radiation therapy facilities. Mr. Frech resigned in July 2026 for personal reasons and was replaced as CFO on an interim basis by Alexis Tirrito, the Company’s Chief Accounting Officer. In addition, the Executive Chairman and Interim CEO, both with extensive finance and accounting experience are taking a more active role in the Rhode Island billing and collection process. In recognition of the Company’s identified material weakness, the Company brought Rhode Island’s revenue cycle management function in-house to better control the process, hired an experienced revenue cycle director along with two staff, and an accounting manager. The Company has also developed and implemented processes to better integrate the accounting and revenue cycle function to enhance the quality of information provided to Executive Management and to better execute its financial reporting responsibilities. The Company will continue to assess the need for additional resources, in the finance, accounting, and revenue cycle areas, as the Company’s business continues to grow and expand.

The primary element of our remediation plan can only be accomplished over time, and we can offer no assurance that these initiatives will ultimately have the intended effects. As management continues to evaluate and work to improve our internal control over financial reporting, management may determine it is necessary to take additional measures to address the material weakness.

Except for the continued implementation of the remediation plan described above, there were no other changes in our internal control over financial reporting during the three-month period ended June 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

None.