Sensus Healthcare Files Q2 2024 10-Q

TL;DR

SENS filed its Q2 10-Q. Check financials.

AI Summary

Sensus Healthcare, Inc. filed its 10-Q for the quarterly period ended June 30, 2024. The company, incorporated in Delaware, reported its financial status and business operations. The filing provides details on its fiscal year end of December 31 and its principal executive office located in Boca Raton, Florida.

Why It Matters

This filing provides investors with an update on Sensus Healthcare's financial performance and operational status for the second quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial and operational information.

Key Players & Entities

• Sensus Healthcare, Inc. (company) — Registrant
• June 30, 2024 (date) — Quarterly period end date
• Delaware (jurisdiction) — State of incorporation
• 27-1647271 (identifier) — IRS Employer Identification No.
• Boca Raton, FL (location) — Address of principal executive office
• 561-922-5808 (phone_number) — Registrant's telephone number

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share SRTS The NASDAQ Stock Market,

Filing Documents

• ea0210678-10q_sensus.htm (10-Q) — 567KB
• ea021067801ex3-1_sensus.htm (EX-3.1) — 32KB
• ea021067801ex31-1_sensus.htm (EX-31.1) — 9KB
• ea021067801ex31-2_sensus.htm (EX-31.2) — 10KB
• ea021067801ex32-1_sensus.htm (EX-32.1) — 4KB
• ea021067801ex32-2_sensus.htm (EX-32.2) — 4KB
• 0001213900-24-068165.txt ( ) — 4326KB
• srts-20240630.xsd (EX-101.SCH) — 35KB
• srts-20240630_cal.xml (EX-101.CAL) — 40KB
• srts-20240630_def.xml (EX-101.DEF) — 207KB
• srts-20240630_lab.xml (EX-101.LAB) — 373KB
• srts-20240630_pre.xml (EX-101.PRE) — 205KB
• ea0210678-10q_sensus_htm.xml (XML) — 510KB

– Financial Information

PART I – Financial Information Item 1. Condensed Consolidated Financial Statements (unaudited) 1 Condensed Consolidated Balance Sheets (unaudited) 1 Condensed Consolidated Statements of Income (Loss) (unaudited) 2 Condensed Consolidated Statements of Stockholders' Equity (unaudited) 3 Condensed Consolidated Statements of Cash Flows (unaudited) 4 Notes to the Condensed Consolidated Financial Statements (unaudited) 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 17 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 21 Item 4.

Controls and Procedures

Controls and Procedures 21

– Other Information

PART II – Other Information Item 1.

Legal Proceedings

Legal Proceedings 22 Item 1A.

Risk Factors

Risk Factors 22 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 22 Item 3. Defaults Upon Senior Securities 22 Item 4. Mine Safety Disclosure 22 Item 5. Other Information 22 Item 6. Exhibits 23

Signatures

Signatures 24 i INTRODUCTORY NOTE

Forward-Looking Statements

Forward-Looking Statements This report includes statements that are, or may be deemed, "forward-looking statements." In some cases, these statements can be identified by the use of forward-looking terminology such as "believes," "estimates," "anticipates," "expects," "plans," "intends," "may," "could," "might," "will," "should," "approximately," or "potential," or negative or other variations of those terms or comparable terminology, although not all forward-looking statements contain these words.

Forward-looking statements involve risks and uncertainties

Forward-looking statements involve risks and uncertainties because they relate to events, developments, and circumstances relating to Sensus Healthcare, Inc., our industry, and/or general economic or other conditions that may or may not occur in the future or may occur on longer or shorter timelines or to a greater or lesser degree than anticipated. In addition, even if future events, developments and circumstances are consistent with the forward-looking statements contained in this report, they may not be predictive of results or developments in future periods. Although we believe that we have a reasonable basis for each forward-looking statement contained in this report, forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity, and the development of the industry in which we operate, may differ materially from the forward-looking statements contained in this report as a result of the following factors, among others: the level and availability of government and/or third party payor reimbursement for clinical procedures using our products, and the willingness of healthcare providers to purchase our products if the level of reimbursement declines; concentration of our customers in the U.S. and China, including the concentration of sales to one particular customer in the U.S; the development by others of new products, treatments, or technologies that render our technology partially or wholly obsolete; the regulatory requirements applicable to us and our competitors; our ability to efficiently manage our manufacturing processes and costs; the risks arising from doing business in China and other foreign countries; legislation, regulation, or other governmental action that affects our products, taxes, international trade regulation, or other aspects of our business; the performance of the Company's information technology systems and its ability to maintain data security; our ability to ob

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SENSUS HEALTHCARE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except shares and per share data) As of June 30, 2024 As of December 31, 2023 (unaudited) Assets Current assets Cash and cash equivalents $ 18,972 $ 23,148 Accounts receivable, net 18,293 10,645 Inventories 12,769 11,861 Prepaid inventory 3,333 2,986 Other current assets 1,106 888 Total current assets 54,473 49,528 Property and equipment, net 712 464 Deferred tax asset 1,644 2,140 Operating lease right-of-use asset, net 679 774 Other noncurrent assets 655 804 Total assets $ 58,163 $ 53,710 Liabilities and stockholders' equity Current liabilities Accounts payable and accrued expenses $ 3,284 $ 2,793 Product warranties 517 538 Operating lease liability, current portion 195 187 Income tax payable - 37 Deferred revenue, current portion 686 657 Total current liabilities 4,682 4,212 Operating lease liability 503 596 Deferred revenue, net of current portion 77 60 Total liabilities 5,262 4,868 Commitments and contingencies Stockholders' equity Preferred stock, 5,000,000 shares authorized and none issued and outstanding - - Common stock, $ 0.01 par value – 50,000,000 authorized; 16,927,845 issued and 16,394,921 outstanding at June 30, 2024; 16,907,095 issued and 16,374,171 outstanding at December 31, 2023 169 169 Additional paid-in capital 45,578 45,405 Treasury stock, 532,924 shares at cost, at June 30, 2024 and December 31, 2023 ( 3,519 ) ( 3,519 ) Retained earnings 10,673 6,787 Total stockholders' equity 52,901 48,842 Total liabilities and stockholders' equity $ 58,163 $ 53,710 See accompanying notes to the condensed consolidated

financial statements (unaudited)

financial statements (unaudited). 1 SENSUS HEALTHCARE, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (unaudited) For the Three Months Ended June 30, For the Six Months Ended June 30, (in thousands, except shares and per share data) 2024 2023 2024 2023 Revenues $ 9,239 $ 4,527 $ 19,902 $ 7,941 Cost of sales 3,816 1,908 7,817 3,700 Gross profit 5,423 2,619 12,085 4,241 Operating expenses Selling and marketing 996 1,595 2,266 3,693 General and administrative 1,579 1,329 3,158 2,693 Research and development 866 822 1,792 1,920 Total operating expenses 3,441 3,746 7,216 8,306 Income (loss) from operations 1,982 ( 1,127 ) 4,869 ( 4,065 ) Other income: Interest income, net 209 245 423 488 Other income, net 209 245 423 488 Income (loss) before income tax 2,191 ( 882 ) 5,292 ( 3,577 ) Provision for (benefit from) income taxes 579 ( 502 ) 1,406 ( 1,303 ) Net income (loss) $ 1,612 $ ( 380 ) $ 3,886 $ ( 2,274 ) Net income (loss) per share – basic $ 0.10 $ ( 0.02 ) $ 0.24 $ ( 0.14 ) diluted $ 0.10 $ ( 0.02 ) $ 0.24 $ ( 0.14 ) Weighted average number of shares used in computing net income (loss) per share – basic 16,298,459 16,249,766 16,296,715 16,247,567 diluted 16,333,481 16,249,766 16,325,764 16,247,567 See accompanying notes to the condensed consolidated

financial statements (unaudited)

financial statements (unaudited). 2 SENSUS HEALTHCARE, INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) Common Stock Additional Paid-In Treasury Stock Retained (in thousands, except shares) Shares Amount Capital Shares Amount Earnings Total December 31, 2022 16,902,761 $ 169 $ 45,031 ( 512,342 ) $ ( 3,433 ) $ 6,302 $ 48,069 Stock-based compensation 10,000 - 161 - - - 161 Exercise of stock options 8,334 - 46 - - - 46 Forfeiture of restricted stock units ( 7,500 ) - ( 18 ) - - - ( 18 ) Surrender of shares for tax withholding on stock-based compensation - - - ( 4,487 ) ( 40 ) - ( 40 ) Net loss - - - - - ( 1,894 ) ( 1,894 ) March 31, 2023 16,913,595 $ 169 $ 45,220 ( 516,829 ) $ ( 3,473 ) $ 4,408 $ 46,324 Stock-based compensation - - 67 - - - 67 Forfeiture of restricted stock units ( 1,000 ) - ( 1 ) - - - ( 1 ) Net loss - - - - - ( 380 ) ( 380 ) June 30, 2023 16,912,595 $ 169 $ 45,286 ( 516,829 ) $ ( 3,473 ) $ 4,028 $ 46,010 December 31, 2023 16,907,095 $ 169 $ 45,405 ( 532,924 ) $ ( 3,519 ) $ 6,787 $ 48,842 Stock-based compensation 20,000 - 92 - - - 92 Forfeiture of restricted stock units ( 1,500 ) - ( 1 ) - - - ( 1 ) Net income - - - - - 2,274 2,274 March 31, 2024 16,925,595 $ 169 $ 45,496 ( 532,924 ) $ ( 3,519 ) $ 9,061 $ 51,207 Stock-based compensation - - 66 - - - 66 Exercise of stock options 3,000 - 17 - - - 17 Forfeiture of restricted stock units ( 750 ) - ( 1 ) - - - ( 1 ) Net income - - - - - 1,612 1,612 June 30, 2024 16,927,845 $ 169 $ 45,578 ( 532,924 ) $ ( 3,519 ) $ 10,673 $ 52,901 See accompanying notes to the condensed consolidated financial statements (unaudited). 3 SENSUS HEALTHCARE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) For the Six Months Ended June 30, (in thousands) 2024 2023 Ca

financial statements (unaudited)

financial statements (unaudited). 4 SENSUS HEALTHCARE, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 1 — Organization and Summary of Significant Accounting Policies Description of the Business Sensus Healthcare, Inc. (together, with its subsidiaries, unless the context otherwise indicates, "Sensus" or the "Company") is a manufacturer of radiation therapy devices sold to healthcare providers globally through its distribution and marketing network. The Company operates from its corporate headquarters located in Boca Raton, Florida. In February 2024, the Company formed Sensus Healthcare Services, LLC, a wholly-owned subsidiary that provides operational healthcare services in the form of leased equipment, radiation oncology and physics oversight, including radiotherapy technologists for dermatology clinics. Basis of Presentation and Principles of Consolidation These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and include the accounts of the Company and its subsidiaries. Accounts and transactions between condensed consolidated entities have been eliminated. These financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and notes required by GAAP. In the opinion of management, all adjustments considered necessary for a fair statement of the results have been included. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or for any other period. The condensed consolidated balance sheet as of December 31, 2023 has been derived from the audited financial statements at that date but does not include all of the in

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