AMS Credit Agreement Events of Default Triggered; Lender Increases Interest Rate

American Shared Hospital Services and its co-borrowers received notice on May 29, 2026 from Fifth Third Bank of multiple events of default under their April 9, 2021 Credit Agreement, including failure to maintain a $5,000,000 minimum cash covenant as of September 30, 2025, non-compliance with debt ratios as of December 31, 2025, failure to deliver a compliance certificate for Q1 2026, and failure to pay term loan obligations on April 9, 2026. The lender has increased the interest rate on advances by two percent per annum (the Default Rate) and reserves the right to accelerate all payment obligations; the company stated it lacks sufficient cash to satisfy accelerated obligations if the lender exercises that right.