WHAT IS SERVOTRONICS HIDING? Servotronics on Financial Life Support: BHW Uncovers Massive Cash Burn, Secretive Board Conduct, and Imminent Risk to Shareholder Value

Drastic Change is Needed At Servotronics Today to Safeguard the Interests of Shareholders, Employees and Customers

Beaver Hollow Wellness Urges Shareholders to Vote the WHITE Proxy Card "FOR" Its Four Highly Qualified Director Nominees and "WITHHOLD" on all Company Nominees except for Karen L. Howard

ELMA, N.Y., May 13, 2025 /PRNewswire/ -- Beaver Hollow Wellness, LLC ("BHW"), the largest shareholder of Servotronics, Inc. (NYSE American – SVT, "Servotronics" or the "Company"), owning 15.2% of the outstanding shares, today issued a dire warning about the Company's future under its current Board of Directors. Continuing a pattern of bad faith, obstruction, and brazen disregard for fiduciary responsibility, the Board's secrecy and defiance, if left unchecked, may ultimately lead to the collapse of Servotronics' operations in Western New York — putting hundreds of local jobs at risk, destroying shareholder value and threatening the economic viability of one of the region's last remaining advanced manufacturers.

The Financial Truth Behind Servotronics' Spin
While Servotronics issued a press release for Q1 2025, touting a modest quarterly profit and operational turnaround, a closer review of the Company's financial filings paints a far different picture—one of financial distress, deteriorating liquidity, and structural instability.

Key facts from the Company's own 10-Q filing include:

• Cash from operations fell to negative $1.6 million — a $2 million deterioration from Q1 2024;
• Line of credit borrowing spiked 75% in a single quarter to $3.7 million;
• Unrestricted cash dropped to just $37,000;
• Interest expense rose nearly 17%, further straining profitability; and
• SG&A costs rose due to legal, proxy, and investment bank fees, not operational growth.

This performance does not reflect a healthy or stable business. It reflects a management team attempting to obscure reality from shareholders while preparing a sale or dismantling of the Company without transparency or stakeholder input. The reported profit, driven by accounting maneuvering and one-time addbacks, does not signal sustainable financial health.

Since 2022, BHW has continually pressed for improved transparency, accountability, and oversight from the Company's directors.

Instead, the Board has refused every reasonable offer to work collaboratively with its largest shareholder and inexplicably ignored BHW's requests to examine corporate records — including those concerning a potential sale of the Company, while utilizing delay tactics in responding to lawful requests under Delaware General Corporation Law (§ 220).

"For 100 days, the Board has acted in secret and in defiance of its obligations to shareholders, employees and customers," said Paul L. Snyder III, Managing Member of BHW. "Their refusal to disclose critical information and unwillingness to meet with the Company's largest shareholder sends a chilling signal: this Board is either covering up incompetence or actively preparing to dismantle the Company behind closed doors. Either outcome would be catastrophic for Western New York."

The consequences of this betrayal are real:

• SVT's Elma-based jobs and local manufacturing presence are on the brink.
  
  
• No explanation has been provided for the lack of operational turnaround or strategic direction, as was promised over a year ago.
  
  
• Employees remain in the dark about the future of their Company and their Careers.

"This is not just corporate negligence — it's a slow-motion liquidation of Servotronics' legacy, carried out by a Board that seems more committed to hiding the truth than saving the Company," Snyder continued.

BHW calls on all shareholders — particularly SVT employees and retirees — to demand change now, before it's too late.

Vote FOR the election of Paul L. Snyder III, Christine R. Marlow, Michael W. Dolpp and Charles C. Alfiero on the WHITE proxy card to restore independent oversight, protect jobs, and give this Company a future.

For more information, visit www.SaveServotronics.com

Media Contacts

Michael P. Hughes Masiello Martucci Hughes (716) 983-3731
[email protected]

Kevin Keenan
Keenan Communications Group
(716) 481-6806
[email protected]

Investor Contact
Brian Valerio Alliance Advisors
[email protected]

SOURCE Beaver Hollow Wellness