Management characterized 2025 as a year of transition, shifting the business model toward direct patient care which now represents the majority of total revenue.
Performance was impacted by physician turnover and reimbursement dynamics, alongside expected headwinds within the Medical Equipment Leasing segment.
The company stabilized its physician base through a new collaboration with Brown University Health, which is beginning to drive improvements in treatment volumes.
Operational focus has shifted toward enhancing revenue cycle management infrastructure to gain greater control over billing and collections.
International growth remains a core pillar, with the Puebla, Mexico center exceeding expectations and a new facility in Guadalajara expected to begin operations in 2026.
The company is actively engaged in constructive discussions with lenders to restructure credit facilities following a breach of certain financial covenants at year-end.
Strategic positioning is centered on long-term health system partnerships, exemplified by a 7-year lease extension with Orlando Health for proton beam therapy.
Management expects treatment volumes to continue improving into 2026 as the stabilized physician team in Rhode Island ramps up operations.
The development pipeline includes a new radiation therapy center in Bristol slated for late 2027 and a proton beam center in Johnston for 2028.
Future financial flexibility is contingent upon reaching an agreement with lenders to resolve substantial doubt regarding the company’s ability to continue as a going concern.
Expansion strategy relies on leveraging existing professional staff across new regional sites to manage expenses during initial facility ramp-up periods.
Management aims to drive margin improvement by aligning the cost structure with the increased scale of the direct patient care platform.
The company reported a net loss of $1.6 million for 2025, compared to a prior year profit that was skewed by a $3.8 million bargain purchase gain.
Capital expenditures of $7.5 million for Rhode Island and international expansions significantly reduced cash reserves to $3.7 million at year-end.
Three Gamma Knife contract expirations drove a 14.8% decline in fourth-quarter revenue as health systems opted to finance their own capital expenditures.
Management acknowledged a ‘steep discount’ in market valuation relative to a shareholders’ equity of $3.66 per outstanding share.
