American Shared Hospital Services appoints new auditor

American Shared Hospital Services (NYSE American:AMS (VIE:AMS2)), a provider of turnkey technology solutions for advanced radiosurgical and radiation therapy services with annual revenue of $29.2 million, announced a change in its certifying accountant, following a recent merger within the industry. According to InvestingPro analysis, the company maintains a "GOOD" overall financial health score despite trading near its 52-week low of $2.33. On Monday, the company was informed that its former independent registered public accounting firm, Moss Adams LLP, merged with Baker Tilly US, LLP as of Sunday. Consequently, Moss Adams resigned as the company’s auditor, and the Audit Committee of the Board of Directors approved Baker Tilly as the new independent registered public accounting firm.

The reports from Moss Adams for the fiscal years ending December 31, 2024, and 2023, contained no adverse opinions or disclaimers and were not qualified or modified regarding uncertainties, audit scope, or accounting principles. Furthermore, there were no disagreements with Moss Adams on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure that would have required mention in their reports. However, a material weakness in internal control over financial reporting was identified for the year ended December 31, 2024, which has not been remediated yet. This comes as InvestingPro data shows the company is quickly burning through cash, with negative free cash flow of $7.77 million in the last twelve months. Analysts expect net income to drop this year, with forecasted earnings per share of -$0.08.

The Audit Committee has discussed the material weakness with Moss Adams, and the company has authorized full response to inquiries from Baker Tilly regarding this matter. In compliance with SEC regulations, American Shared Hospital Services provided Moss Adams with a copy of this announcement before filing with the SEC and has included a letter from Moss Adams to the SEC, dated June 9, 2025, as an exhibit to the Form 8-K. The stock currently trades at $2.38, down 26% year-to-date, with detailed analysis and additional insights available in the comprehensive Pro Research Report on InvestingPro.

This corporate update is based on the latest 8-K filing with the Securities and Exchange Commission.

In other recent news, American Shared Hospital Services ( AMS ) reported a net loss of $625,000 for the first quarter of 2025, equating to an earnings per share of -$0.10. Despite this loss, the company saw a 17% increase in revenue, reaching $6.1 million, primarily driven by a substantial rise in direct patient services revenue. However, the equipment leasing segment experienced a decline. AMS has been expanding its international presence, having opened new centers in Latin America, which is part of its long-term growth strategy. The company expects improved performance in the latter half of 2025, with anticipated growth in its Rhode Island and Mexico locations. Analysts have noted the company’s mixed performance, highlighting the shift from profitability to a net loss as a concern. Additionally, AMS continues to focus on its strategic initiatives, including the development of new radiation therapy centers in Rhode Island. The company remains optimistic about its long-term growth prospects despite the current challenges.

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