10-Q

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 1-12607

SUNLINK HEALTH SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

    Georgia

    31-0621189

    (State or other jurisdiction of
incorporation or organization)

    (I.R.S. Employer
Identification No.)

900 Circle 75 Parkway, Suite 690, Atlanta, Georgia 30339

(Address of principal executive offices)

(Zip Code)

(770) 933-7000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered Symbol(s)
Common Shares without par value	SSY	NYSE American
Preferred Share Purchase Rights

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filings requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (of for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

The number of Common Shares, without par value, outstanding as of May 14, 2024 was 7,040,603.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SUNLINK HEALTH SYSTEMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)


	March 31,
	2024			June 30,
	(unaudited)			2023
ASSETS
Current Assets:
Cash and cash equivalents	$	1,211		$	4,486
Receivables - net		3,078			2,592
Inventory		1,561			1,628
Current assets held for sale		3,512			1,920
Prepaid expense and other assets		1,604			1,648
Total current assets		10,966			12,274
Property, plant and equipment, at cost		12,302			11,259
Less accumulated depreciation		(9,399	)		(8,542	)
Property, plant and equipment - net		2,903			2,717
Noncurrent Assets:
Intangible asset		1,180			1,180
Noncurrent assets held for sale		0			5,812
Right of use assets		592			798
Other noncurrent assets		503			487
Total noncurrent assets		2,275			8,277
TOTAL ASSETS	$	16,144		$	23,268
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	1,532		$	1,067
Accrued payroll and related taxes		857			1,027
Current liabilities held for sale		563			1,326
Current operating lease liabilities		332			334
Other accrued expenses		675			1,115
Total current liabilities		3,959			4,869
Long-Term Liabilities
Noncurrent liability for professional liability risks		231			138
Long-term operating lease liabilities		273			481
Noncurrent liabilities held for sale		0			192
Other noncurrent liabilities		73			171
Total long-term liabilities		577			982
Commitments and Contingencies
Shareholders’ Equity
Preferred Shares, authorized and unissued, 2,000 shares		0			0
Common Shares, without par value:
Issued and outstanding, 7,041 shares at March 31, 2024 and 7,032 at June 30, 2023		3,521			3,516
Additional paid-in capital		10,747			10,746
Retained earnings (deficit)		(2,810	)		3,005
Accumulated other comprehensive income		150			150
Total Shareholders’ Equity		11,608			17,417
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	16,144		$	23,268

SEC Form 10-Q filed by SunLink Health Systems Inc.