Note 8 - Commitments |
6 Months Ended |
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Jun. 30, 2025 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] |
Note 8. Commitments
As of June 30, 2025, the Company had commitments to purchase and install three Leksell Gamma Knife Esprit Systems (“Esprit”) and two Linear Accelerator (“LINAC”) systems. One of the Esprit upgrades was installed at the Company’s facility in Peru in July 2025. The remaining Esprit upgrades and one LINAC installation are scheduled to occur around the fourth quarter of 2025 or later at existing customer sites. The remaining LINAC is reserved for a future customer site. Total Gamma Knife and LINAC commitments as of June 30, 2025 were $8,385,000. There are no deposits on the condensed consolidated balance sheets related to these commitments as of June 30, 2025. It is the Company’s intent to finance substantially all of these commitments. There can be no assurance that financing will be available for the Company’s current or future projects, or at terms that are acceptable to the Company. However, the Company currently has cash on hand of $11,331,000 and its Revolving Line of $7,000,000 and is actively engaged with financing resources to fund these projects. The Company borrowed $5,000,000 on the Revolving Line as of June 30, 2025, which was repaid in July 2025.
On
September 4, 2022, the Company entered into a Maintenance and Support Agreement with Mevion Medical Systems, Inc. (“Mevion”), which provides for maintenance and support of the Company’s PBRT unit at Orlando Health from
September 2022 through
April 2026. The agreement requires the Company to make an annual prepayment of
$1,939,000 for the current contractual period (
one year). This payment was recorded as a prepaid contract and is being amortized over the
-year service period.
As of June 30, 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 commitment to purchase one LINAC system also includes a 5-year agreement to service the equipment, respectively. Total service commitments as of June 30, 2025 were $11,928,000. The 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.
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