AHPI Allied Healthcare Products Inc

Item 2.06 Material Impairments

On December 19, 2022, the Board of Directors of Allied Healthcare Products, Inc. (the “Company”) approved a reduction in force that will impact employees of its St. Louis, Missouri manufacturing facilities and certain employees of its administrative offices. Affected employees have been provided pre-termination notices as required by the federal Worker Adjustment and Retraining Notification (“WARN”) Act and applicable state laws. The reduction in force has been adopted in response to the Company’s ongoing losses from operations.

Workers will remain employed through the 60-day WARN Act notice period, at which point the terminations will be effective. The Company does not expect to incur material severance obligations. The reduction in force will result in the termination of substantially all of the Company’s union employees, which is expected to trigger withdrawal liabilities owed to certain multiemployer pension plans which were recently estimated by such pension plans to be $17.5 million. The actual multiemployer plan withdrawal liability is not likely to be known until the conclusion of any and all appeal processes.

The Company expects that it will incur material additional costs in association with actions that are contemplated pursuant to the reduction in force, which could include the impairment of assets and professional fees. The Company is unable at this time to estimate the full amount of such charges and impairments. The Company will file an amendment to this Form 8-K within four business days after it determines an estimate or range of estimates of these costs.