Financial Data and Key Metrics Changes - Revenues for 2021 were $27 million, up 182% from $9.6 million in 2020, with Q4 2021 revenues reaching a record $13 million compared to $5.1 million in Q4 2020 [5][21][24] - Net income for 2021 was $4.1 million or $0.25 per diluted share, compared to a net loss of $6.8 million or a loss of $0.42 per share in 2020 [26] - Gross profit for Q4 2021 was $8.9 million or 68% of revenue, compared to $3.2 million or 63.4% of revenue in Q4 2020 [22][24] Business Line Data and Key Metrics Changes - In Q4 2021, the company shipped a record 35 units, including three to China, contributing to the overall revenue growth [5][21] - The introduction of the fair market value leasing program has encouraged physician customers to adopt the SRT Vision system, which provides a positive ROI by treating just two patients per month [10][58] - The Transdermal Infusion System, a new product, is being marketed for various applications, including skin rejuvenation and pre-plastic surgery treatments [11][12] Market Data and Key Metrics Changes - Sales in China showed promise, with three systems sold in Q4 2021 and a total of nine for the year, supported by a renewed license from the Ministry of Health [14][70] - The company is also exploring opportunities in Taiwan, anticipating orders from that market as well [70] Company Strategy and Development Direction - The company plans to leverage its sales organization to introduce new products, including the Transdermal Infusion System, which is expected to generate recurring revenue [11][18] - The focus on expanding the aesthetic laser business through Sensus Laser Aesthetic Solutions aims to improve access to laser technology and enhance customer relationships [16][18] - The management is optimistic about maintaining profitability and revenue growth in 2022, supported by a robust backlog of orders and a focus on expense management [19][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued year-over-year revenue growth and positive net income, attributing this to increased CMS reimbursement for superficial radiation therapy [6][19] - The impact of COVID-19 on the business is seen as largely behind, with growing patient volumes at customer sites contributing to the positive outlook [21][22] - The management highlighted the importance of face-to-face interactions and trade shows in driving sales momentum moving forward [39] Other Important Information - The company has a strong market presence with approximately 14,000 dermatologists and 1,000 Mohs surgeons in the U.S. [29] - The retirement of co-founder Steve Cohen was noted, with two regional managers promoted to vice presidents to ensure continuity in leadership [30] Q&A Session Summary Question: Growth expectations for 2022 and backlog comparison - Management is hopeful for continued momentum in 2022, with a strong backlog of orders expected to drive growth [35] Question: Acceleration in demand for SRT systems - Demand is attributed to both increased CMS reimbursement and a shift in treatment practices due to COVID-19 [36][38] Question: Commercialization plan for the Transdermal Infusion System - The primary model will be capital sales, with potential for recurring revenue through consumables [40][41] Question: Frequency of orders from the Chinese market - Orders may be volatile due to the ongoing pandemic, but management expects to surpass previous sales figures in 2022 [69][70] Question: Supply chain issues and mitigation strategies - The company has proactively engaged with suppliers to ensure availability of components, with 95% of components sourced domestically [59][60] Question: Efforts to secure CMS reimbursement boost - Management utilized existing contacts in government to advocate for reimbursement increases, with expectations for further improvements [73][78] Question: Breakdown of sales between Vision and SRT-100 systems - Approximately 80% of sales in Q4 were for the Vision product, driven by favorable reimbursement and leasing options [81][82]

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 September 30, 2021 OR ☐ 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: 001-37714 Sensus Healthcare, Inc. (Exact name of registrant as specified in its charter) | Delaware | 27-1647271 ...

Sensus Healthcare, Inc. (NASDAQ:SRTS) Q3 2021 Earnings Conference Call November 4, 2021 4:30 PM ET Company Participants Kim Sutton Golodetz - Investor Relations, LHA Joseph Sardano - Chief Executive Officer Javier Rampolla - Chief Financial Officer Conference Call Participants Connor Stevenson - Craig-Hallum Capital Group Anthony Vendetti - Maxim Group, LLC Benjamin Haynor - Alliance Global Partners Yi Chen - H.C. Wainwright & Co. James Terwilliger - Northland Securities, Inc. Operator Ladies and gentlemen, ...

[Introductory Note](index=3&type=section&id=Introductory%20Note) [Caution Concerning Forward-Looking Statements](index=3&type=section&id=Caution%20Concerning%20Forward-Looking%20Statements) This section identifies forward-looking statements, outlines inherent risks like COVID-19 and intellectual property, and disclaims update obligations - Forward-looking statements are identified by terms like **"believes," "estimates," "anticipates," "expects," "plans," "intends," "may," "could," "might," "will," "should," "potential"**[9](index=9&type=chunk) - Key risks include **COVID-19 severity, profitability, intellectual property protection, reimbursement, regulatory compliance, manufacturing, international operations, customer concentration, and IT performance**[10](index=10&type=chunk) - The company undertakes **no obligation to update forward-looking statements** except as legally required[11](index=11&type=chunk) [PART I – Financial Information](index=4&type=section&id=PART%20I%20%E2%80%93%20Financial%20Information) [Item 1. Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased from **$28.01 million** to **$26.36 million**, primarily due to reduced current assets, property, and intangibles | Metric | June 30, 2021 (in thousands) | December 31, 2020 (in thousands) | Change (in thousands) | | :----------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | **Assets** | | | | | Cash and cash equivalents | $15,204 | $14,907 | $297 | | Accounts receivable, net | $4,579 | $3,776 | $803 | | Inventories | $3,132 | $4,427 | $(1,295) | | Total current assets | $24,391 | $25,171 | $(780) | | Property and equipment, net | $785 | $1,356 | $(571) | | Intangibles, net | $194 | $338 | $(144) | | Total assets | $26,362 | $28,010 | $(1,648) | | **Liabilities** | | | | | Total current liabilities | $5,154 | $4,856 | $298 | | Total liabilities | $6,147 | $6,514 | $(367) | | **Stockholders' Equity** | | | | | Total stockholders' equity | $20,215 | $21,496 | $(1,281) | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenue significantly grew for both three and six-month periods, substantially reducing net loss and improving gross profit percentage | Metric (in thousands) | 3 Months Ended June 30, 2021 | 3 Months Ended June 30, 2020 | YoY Change (%) | 6 Months Ended June 30, 2021 | 6 Months Ended June 30, 2020 | YoY Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :------------- | :----------------------------- | :----------------------------- | :------------- | | Revenues | $5,422 | $1,183 | 358.3% | $8,492 | $2,862 | 196.7% | | Cost of sales | $2,077 | $543 | 282.5% | $3,561 | $1,514 | 135.2% | | Gross profit | $3,345 | $640 | 422.7% | $4,931 | $1,348 | 265.8% | | Loss from operations | $(279) | $(2,574) | -89.2% | $(1,394) | $(6,211) | -77.6% | | Net loss | $(279) | $(2,574) | -89.2% | $(1,394) | $(6,161) | -77.4% | | Net loss per share – basic and diluted | $(0.02) | $(0.16) | -87.5% | $(0.08) | $(0.38) | -78.9% | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity decreased from **$21.496 million** to **$20.215 million**, driven by net losses despite stock-based compensation | Metric (in thousands) | December 31, 2020 | June 30, 2021 | Change | | :-------------------- | :---------------- | :------------ | :----- | | Common Stock | $166 | $166 | $0 | | Additional Paid-In Capital | $43,701 | $43,820 | $119 | | Treasury Stock | $(310) | $(316) | $(6) | | Accumulated Deficit | $(22,061) | $(23,455) | $(1,394) | | Total Stockholders' Equity | $21,496 | $20,215 | $(1,281) | - **Stock-based compensation** contributed **$119 thousand** to additional paid-in capital for the six months ended June 30, 2021[16](index=16&type=chunk) - **Net loss** for H1 2021 was **$1,394 thousand**, increasing the accumulated deficit[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly decreased, investing activities provided less, and financing used cash, leading to a smaller net cash increase | Cash Flow Activity (in thousands) | 6 Months Ended June 30, 2021 | 6 Months Ended June 30, 2020 | YoY Change | | :-------------------------------- | :----------------------------- | :----------------------------- | :--------- | | Net cash provided by operating activities | $241 | $2,567 | $(2,326) | | Net cash provided by (used in) investing activities | $170 | $6,781 | $(6,611) | | Net cash provided by (used in) financing activities | $(114) | $967 | $(1,081) | | Net increase (decrease) in cash and cash equivalents | $297 | $10,315 | $(10,018) | | Cash and cash equivalents – end of period | $15,204 | $18,415 | $(3,211) | - **Operating cash flow** for H1 2021 was **$0.241 million**, a significant decrease from **$2.567 million** in H1 2020, driven by net loss and operating asset changes[17](index=17&type=chunk) - **Investing cash flow** for H1 2021 was **$0.170 million** from asset sales, a sharp contrast to H1 2020's **$6.781 million** from matured investments[17](index=17&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the company's organization, accounting policies, and financial items, clarifying presentation basis, estimates, and unaudited interim data [Note 1 — Organization and Summary of Significant Accounting Policies](index=8&type=section&id=Note%201%20%E2%80%94%20Organization%20and%20Summary%20of%20Significant%20Accounting%20Policies) - **Sensus Healthcare, Inc.** manufactures and sells **radiation therapy devices** globally, operating as one segment from Boca Raton, Florida[19](index=19&type=chunk) - **Revenue** is recognized upon transfer of control of goods or services, with **service contract revenue** recognized straight-line over the contract period[24](index=24&type=chunk)[25](index=25&type=chunk) | Revenue Type (in thousands) | 3 Months Ended June 30, 2021 | 3 Months Ended June 30, 2020 | 6 Months Ended June 30, 2021 | 6 Months Ended June 30, 2020 | | :-------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Product Revenue | $4,250 | $70 | $5,924 | $1,146 | | Service Revenue | $1,172 | $1,113 | $2,568 | $1,716 | | Total Revenue | $5,422 | $1,183 | $8,492 | $2,862 | - **U.S. customers** generated **89% and 91% of revenue** for the three and six months ended June 30, 2021, respectively, with **one customer accounting for 44% and 30%**[30](index=30&type=chunk) - **Deferred service revenue** totaled **$1.77 million** as of June 30, 2021, with **$0.932 million** expected in H2 2021[28](index=28&type=chunk) [Note 2 — ACQUISITIONS](index=11&type=section&id=Note%202%20%E2%80%94%20ACQUISITIONS) - In August 2020, Sensus acquired two mobile aesthetic laser companies (SLAS) for **$999 thousand**, initially treated as compensation for post-acquisition services[41](index=41&type=chunk)[42](index=42&type=chunk) - The aggregate purchase price was reduced to **$229 thousand** due to the termination of a compensation arrangement[42](index=42&type=chunk) - In April 2021, the company sold acquired property for **$257 thousand**, recording **$88 thousand** in intangible asset impairment and **$46 thousand** loss on sale[43](index=43&type=chunk) [Note 3 — Property and Equipment](index=12&type=section&id=Note%203%20%E2%80%94%20Property%20and%20Equipment) | Category (in thousands) | June 30, 2021 | December 31, 2020 | | :---------------------- | :------------ | :---------------- | | Operations equipment | $1,751 | $2,178 | | Tradeshow and demo equipment | $924 | $923 | | Computer equipment | $122 | $119 | | Total | $2,797 | $3,220 | | Less accumulated depreciation | $(2,012) | $(1,864) | | Property and Equipment, Net | $785 | $1,356 | - **Net property and equipment** decreased by **$571 thousand** from December 31, 2020, to June 30, 2021[46](index=46&type=chunk) - **Depreciation expense** was approximately **$112 thousand** for Q2 2021 and **$289 thousand** for H1 2021[46](index=46&type=chunk) [Note 4 — INTANGIBLES](index=13&type=section&id=Note%204%20%E2%80%94%20INTANGIBLES) | Category (in thousands) | December 31, 2020 | Impairment Charges | Amortization Expense | June 30, 2021 | | :---------------------- | :---------------- | :----------------- | :------------------- | :------------ | | Patent Rights | $241 | $0 | $(48) | $193 | | Customer Relationships | $84 | $(81) | $(2) | $1 | | Trade Names | $13 | $(7) | $(6) | $0 | | Total | $338 | $(88) | $(56) | $194 | - **Total intangible assets** decreased from **$338 thousand** to **$194 thousand**, primarily due to **$88 thousand** in impairment charges and **$56 thousand** in amortization expense[48](index=48&type=chunk) [Note 5 — Debt](index=13&type=section&id=Note%205%20%E2%80%94%20Debt) - The company has a **$10 million revolving credit facility** with **no outstanding borrowings** as of June 30, 2021, or December 31, 2020[49](index=49&type=chunk) - **Small Business Administration loan balances** under the Paycheck Protection Program are reflected in Loan Payable[50](index=50&type=chunk) [Note 6 — Product Warranties](index=13&type=section&id=Note%206%20%E2%80%94%20Product%20Warranties) | Product Warranty Liability (in thousands) | Amount | | :-------------------------------------- | :----- | | Balance, December 31, 2020 | $187 | | Warranties accrued during the period | $97 | | Payments on warranty claims | $(58) | | Balance, June 30, 2021 | $226 | - The **product warranty liability** increased from **$187 thousand** to **$226 thousand**, reflecting **$97 thousand** in accruals and **$58 thousand** in payments[51](index=51&type=chunk) [Note 7 — Leases](index=14&type=section&id=Note%207%20%E2%80%94%20Leases) - The company leases its headquarters until **September 2022** and its subsidiary's manufacturing facility lease, expiring **July 2029**, is slated for termination[52](index=52&type=chunk)[53](index=53&type=chunk) | Maturity of Operating Lease Liabilities (in thousands) | Amount | | :--------------------------------------------------- | :----- | | 2021 (July 1 – December 31, 2021) | $176 | | 2022 | $285 | | 2023 | $104 | | 2024 | $105 | | 2025 | $108 | | Thereafter | $387 | | Total undiscounted operating leases payments | $1,165 | | Present Value of Operating Lease Liabilities | $966 | - The **weighted-average remaining lease term** is **6.0 years**, with a **weighted-average discount rate of 5.0%**[54](index=54&type=chunk)[56](index=56&type=chunk) [Note 8 — Commitments and Contingencies](index=14&type=section&id=Note%208%20%E2%80%94%20Commitments%20and%20Contingencies) - The company's **SRT-100 contract manufacturing purchases** totaled **$398 thousand** for H1 2021, down from **$1.8 million** in the prior year[55](index=55&type=chunk)[56](index=56&type=chunk) - The **Department of Justice** is investigating a physician's Medicare billing for **SRT-100 treatments** and may expand to Sensus, which disputes wrongdoing and asserts strong defenses[58](index=58&type=chunk) [Note 9 — STOCK-BASED COMPENSATION](index=15&type=section&id=Note%209%20%E2%80%94%20STOCK-BASED%20COMPENSATION) - All **138,000 outstanding warrants expired** during H1 2021 with **$0 intrinsic value**[59](index=59&type=chunk) - **Unrecognized stock compensation expense** was approximately **$211 thousand** as of June 30, 2021, to be recognized over **1.25 years**[62](index=62&type=chunk) | Restricted Stock Activity | Number of Shares | Weighted Average Grant Date Fair Value | | :------------------------ | :--------------- | :------------------------------------- | | Outstanding at Dec 31, 2020 | 37,500 | $4.17 | | Vested | (8,750) | $4.11 | | Outstanding at June 30, 2021 | 28,750 | $4.19 | - **229,334 stock options** were outstanding and exercisable at June 30, 2021, with a **weighted average exercise price of $5.55** and a **6.57-year remaining contractual term**[62](index=62&type=chunk) [Note 10 — Income Taxes](index=16&type=section&id=Note%2010%20%E2%80%94%20Income%20Taxes) - The company reported **negative book income before taxes** for H1 2021, resulting in **$0 tax expense** for both 2021 and 2020 periods[63](index=63&type=chunk) - **No uncertain tax positions** require recognition, and U.S. federal and certain state tax returns are subject to examination from **2015 onwards**[64](index=64&type=chunk)[66](index=66&type=chunk) [Note 11 — Subsequent Events](index=16&type=section&id=Note%2011%20%E2%80%94%20Subsequent%20Events) - The company evaluated subsequent events up to the financial statement issuance date and found **no events requiring adjustments or disclosures**[67](index=67&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) [Overview](index=17&type=section&id=Overview) **Sensus Healthcare** specializes in non-invasive, cost-effective **SRT technology** for skin conditions, expanding into cancer treatment with **Sculptura™** - **Sensus Healthcare** provides non-invasive, cost-effective treatments for oncological and non-oncological skin conditions using proprietary **SRT technology**[69](index=69&type=chunk) - The product portfolio includes **SRT-100, SRT-100+, and SRT-100 Vision devices**, with **SRT technology** treating hundreds of thousands of patients globally[69](index=69&type=chunk) - **Sensus** introduced **Sculptura™**, expanding into cancer treatment beyond skin conditions[69](index=69&type=chunk) [Impact of COVID-19](index=17&type=section&id=Impact%20of%20COVID-19) **COVID-19** significantly impacted sales in 2020 and early 2021 due to social distancing and practice closures, with future impacts uncertain - The **COVID-19 pandemic** adversely impacted the company's sales throughout **2020 and into 2021**[70](index=70&type=chunk) - **Social distancing** and **temporary physician practice closures** were primary drivers of the sales impact[70](index=70&type=chunk) - The company cannot reasonably estimate the **full future impact of the pandemic** on its business, operations, and financial condition[70](index=70&type=chunk) [Segment Information](index=17&type=section&id=Segment%20Information) The company manages its global business as a **single reportable segment**, consistent with management's operational review - **Sensus Healthcare** operates and manages its business globally within **one reportable segment**[71](index=71&type=chunk) [Results of Operations](index=18&type=section&id=Results%20of%20Operations) Revenue and gross profit grew significantly due to higher sales and service revenue, and COVID-19 recovery, with R&D decreasing as Sculptura™ moved to production [Three months ended June 30, 2021 vs. 2020](index=18&type=section&id=Three%20months%20ended%20June%2030%2C%202021%20compared%20to%20the%20three%20months%20ended%20June%2030%2C%202020) | Metric (in thousands) | Q2 2021 | Q2 2020 | Change ($) | Change (%) | | :-------------------- | :------ | :------ | :--------- | :--------- | | Revenues | $5,422 | $1,183 | $4,239 | 358% | | Cost of sales | $2,077 | $543 | $1,534 | 283% | | Gross profit | $3,345 | $640 | $2,705 | 423% | | Gross profit percentage | 61.7% | 54.1% | 7.6 pp | | | Selling and marketing | $1,254 | $1,162 | $92 | 8% | | General and administrative | $1,445 | $904 | $541 | 60% | | Research and development | $925 | $1,148 | $(223) | -19% | | Loss from operations | $(279) | $(2,574) | $2,295 | -89% | - **Revenue increase** was primarily due to **higher unit sales, service revenue**, and **recovery from COVID-19 impact** in Q2 2020[73](index=73&type=chunk) - **R&D expense decreased** as the **Sculptura project** entered its production phase[78](index=78&type=chunk) [Six months ended June 30, 2021 vs. 2020](index=18&type=section&id=Six%20months%20ended%20June%2030%2C%202021%20compared%20to%20the%20six%20months%20ended%20June%2030%2C%202020) | Metric (in thousands) | H1 2021 | H1 2020 | Change ($) | Change (%) | | :-------------------- | :------ | :------ | :--------- | :--------- | | Revenues | $8,492 | $2,862 | $5,630 | 197% | | Cost of sales | $3,561 | $1,514 | $2,047 | 135% | | Gross profit | $4,931 | $1,348 | $3,583 | 266% | | Gross profit percentage | 58.1% | 47.1% | 11.0 pp | | | Selling and marketing | $2,322 | $2,953 | $(631) | -21% | | Research and development | $1,586 | $2,373 | $(787) | -33% | | Loss from operations | $(1,394) | $(6,211) | $4,817 | -78% | - **Revenue increase** was primarily due to **higher unit sales, service revenue**, and **recovery from COVID-19 impact** in H1 2020[79](index=79&type=chunk) - **Selling and marketing expense decreased** due to **fewer tradeshows, reduced marketing activities, and lower headcount**[82](index=82&type=chunk) - **R&D expense decreased** as the **Sculptura project** entered its production phase[83](index=83&type=chunk) [Financial Condition](index=19&type=section&id=Financial%20Condition) Cash and accounts receivable increased, while inventories and prepaid assets decreased, with no outstanding borrowings on the revolving credit line - **Cash and cash equivalents** increased by **$297 thousand** at June 30, 2021[85](index=85&type=chunk) - **Accounts receivable** increased by **$803 thousand**, primarily due to increased unit sales[85](index=85&type=chunk) - **Inventories decreased by $1.3 million** due to increased shipments of units sold[86](index=86&type=chunk) - **Prepaid and other current assets** decreased by **$585 thousand** primarily due to the amortization of prepaid expenses[87](index=87&type=chunk) - **No borrowings** were outstanding under the **revolving line of credit** at June 30, 2021, or December 31, 2020[88](index=88&type=chunk) [Liquidity and Capital Resources](index=19&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity and capital needs are driven by revenue, margins, expenses, and working capital, with short-term capital focused on sales, marketing, and R&D expansion, and management may seek additional funds - **Liquidity and capital requirements** are impacted by **revenue generation, gross margins, operating expenses, and working capital fluctuations**[89](index=89&type=chunk) - Primary **short-term capital needs** include expenditures for expanding **sales, marketing, and research and development activities**[90](index=90&type=chunk)[97](index=97&type=chunk) - Management regularly evaluates **cash requirements** and may seek **additional funds** for operations, commitments, capital, and business development[90](index=90&type=chunk) [Cash flows](index=20&type=section&id=Cash%20flows) Operating cash flow significantly decreased, investing activities provided less, and financing used cash, leading to a smaller net cash increase | Cash Flow Activity (in thousands) | 6 Months Ended June 30, 2021 | 6 Months Ended June 30, 2020 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $241 | $2,567 | | Net cash provided by (used in) investing activities | $170 | $6,781 | | Net cash provided by (used in) financing activities | $(114) | $967 | | Total net increase (decrease) in cash and cash equivalents | $297 | $10,315 | - **Operating cash flow** for H1 2021 was **$0.2 million**, down from **$2.6 million** in H1 2020, driven by net loss and changes in operating assets[91](index=91&type=chunk) - **Investing cash flow** for H1 2021 was **$0.17 million** from asset sales, a significant decrease from H1 2020's **$6.5 million** from matured investments[92](index=92&type=chunk) - **Financing activities** used **$0.114 million** in H1 2021 for loan repayments and taxes, contrasting with **$1.0 million** provided in H1 2020 from a PPP loan[93](index=93&type=chunk) [Indebtedness](index=20&type=section&id=Indebtedness) Debt information, including the revolving credit facility and SBA loan, is detailed in **Note 4** to the financial statements - Refer to **Note 4, Debt**, for detailed information on the company's indebtedness[94](index=94&type=chunk) [Contractual Obligations and Commitments](index=20&type=section&id=Contractual%20Obligations%20and%20Commitments) Information on contractual obligations and commitments is provided in **Note 7** to the financial statements - Refer to **Note 7, Commitments and Contingencies**, for detailed information on contractual obligations and commitments[95](index=95&type=chunk) [Off-Balance Sheet Arrangements](index=20&type=section&id=Off-Balance%20Sheet%20Arrangements) The company had **no off-balance sheet arrangements** during the reporting periods and currently has none - The company had **no off-balance sheet arrangements** during the reporting periods and currently has none[96](index=96&type=chunk) [Critical Accounting Policies and Estimates](index=20&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Financial statement preparation requires significant management estimates and assumptions, with details in **Note 1** and the **2020 Annual Report** - **Financial statement preparation** involves **management estimates and assumptions** that impact reported financial figures[97](index=97&type=chunk) - For a summary of **accounting policies and estimates**, refer to **Note 1, Organization and Summary of Significant Accounting Policies**, and the **2020 Annual Report**[97](index=97&type=chunk) [JOBS Act](index=21&type=section&id=JOBS%20Act) **Sensus**, an **"emerging growth company"** under the **JOBS Act**, has reporting exemptions until **December 31, 2021**, and opted out of the extended transition period for new accounting standards - **Sensus** is an **"emerging growth company"** benefiting from exemptions like reduced audited financial statements, auditor attestation, and executive compensation disclosures[98](index=98&type=chunk) - The company is expected to remain an **emerging growth company** until **December 31, 2021**, then transition to a **"smaller reporting company"**[98](index=98&type=chunk) - **Sensus** irrevocably opted out of the extended transition period for new accounting standards, adopting them on the same schedule as non-emerging growth companies[99](index=99&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=21&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This item is **not applicable**, indicating no significant quantitative or qualitative market risk disclosures are required for this period - This item is marked as **"Not applicable,"** indicating no significant market risk disclosures[100](index=100&type=chunk) [Item 4. Controls and Procedures](index=21&type=section&id=Item%204.%20Controls%20and%20Procedures) [Evaluation of Disclosure Control and Procedures](index=21&type=section&id=Evaluation%20of%20Disclosure%20Control%20and%20Procedures) As of **June 30, 2021**, management, including the CEO and CFO, concluded that disclosure controls and procedures were effective - Management, including the **CEO and CFO**, concluded that **disclosure controls and procedures were effective** as of June 30, 2021[101](index=101&type=chunk) [Changes in Internal Control over Financial Reporting](index=21&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) **No significant changes** in internal control over financial reporting occurred during the most recent fiscal quarter, nor are any likely to materially affect it - **No significant changes** in internal control over financial reporting occurred during the most recent fiscal quarter[102](index=102&type=chunk) [PART II – Other Information](index=22&type=section&id=PART%20II%20%E2%80%93%20Other%20Information) [Item 1. Legal Proceedings](index=22&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in **ordinary course legal proceedings**, assessing litigation liabilities, with details in **Note 8, Commitments and Contingencies** - The company is party to certain **legal proceedings** in the ordinary course of business[103](index=103&type=chunk) - Refer to **Note 8, Commitments and Contingencies**, for additional information[103](index=103&type=chunk) [Item 1A. Risk Factors](index=22&type=section&id=Item%201A.%20Risk%20Factors) Readers should consider **risk factors** from the **2020 Annual Report** and quarterly reports, as unknown or immaterial risks could also adversely affect the business - Readers should carefully consider the **risk factors** discussed in the **2020 Annual Report** and subsequent quarterly reports[104](index=104&type=chunk) - Additional unknown or immaterial risks and uncertainties may materially adversely affect the **business, financial condition, or operating results**[104](index=104&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=22&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported **no unregistered sales of securities** during Q2 2021, and no use of proceeds from registered sales or equity purchases by the registrant or affiliates - There were **no unregistered sales of securities** during the three months ended June 30, 2021[105](index=105&type=chunk) - There was **no use of proceeds** from the sale of registered securities[106](index=106&type=chunk) - There were **no purchases of equity securities** by the registrant and affiliated purchasers[107](index=107&type=chunk) [Item 3. Defaults Upon Senior Securities](index=22&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported **no defaults upon senior securities** - **No defaults upon senior securities** were reported[108](index=108&type=chunk) [Item 4. Mine Safety Disclosure](index=22&type=section&id=Item%204.%20Mine%20Safety%20Disclosure) This item is **not applicable** to the company - This item is marked as **"Not applicable"**[109](index=109&type=chunk) [Item 5. Other Information](index=22&type=section&id=Item%205.%20Other%20Information) The company reported **no other information** for this item - **No other information** was reported for this item[110](index=110&type=chunk) [Item 6. Exhibits](index=23&type=section&id=Item%206.%20Exhibits) This section lists **Form 10-Q exhibits**, including **CEO and CFO certifications** and **XBRL-related documents** - Exhibits include **certifications from the CEO (Joseph C. Sardano) and CFO (Javier Rampolla)** pursuant to Rules 13a-14(a) and 18 U.S.C. Section 1350[112](index=112&type=chunk) - **XBRL Instance Document and Taxonomy Extension documents** are also filed as exhibits[112](index=112&type=chunk) [Signatures](index=24&type=section&id=Signatures) The report is signed by **Joseph C. Sardano, CEO**, and **Javier Rampolla, CFO**, on behalf of **Sensus Healthcare, Inc.** on **August 13, 2021** - The report was signed by **Joseph C. Sardano, CEO**, and **Javier Rampolla, CFO**, on **August 13, 2021**[116](index=116&type=chunk)

Sensus Healthcare, Inc. (NASDAQ:SRTS) Q2 2021 Earnings Conference Call August 5, 2021 4:30 PM ET Company Participants Kim Golodetz - Investor Relations, LHA Joe Sardano - Chief Executive Officer Javier Rampolla - Chief Financial Officer Conference Call Participants Anthony Vendetti - Maxim Group Ben Haynor - Alliance Global Partners Yi Chen - H.C. Wainwright James Terwilliger - Northland Securities Operator Good day, ladies and gentlemen. And welcome to the Sensus Healthcare Second Quarter 2021 Financial Re ...

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, 2021 OR ☐ 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: 001-37714 Sensus Healthcare, Inc. (Exact name of registrant as specified in its charter) | Delaware | 27-1647271 | | ...

Financial Data and Key Metrics Changes - The company's Q1 2021 revenues were $3.1 million, an increase of 83% compared to $1.7 million in Q1 2020, reflecting a recovery from the pandemic's impact [5][20] - Gross profit for Q1 2021 was $1.6 million, representing 51.7% of revenue, up from $0.7 million or 42.2% in the prior year [21] - The net loss for Q1 2021 was $1.1 million or $0.07 per share, compared to a net loss of $3.6 million or $0.22 per share in Q1 2020 [22] Business Line Data and Key Metrics Changes - The company shipped 7 SRT systems in Q1 2021, including 6 domestic sales and 1 to China, indicating a positive trend in sales [5][20] - The reimbursement environment improved significantly, with increases of up to 50% over previous years for SRT users due to new coding [7][8] Market Data and Key Metrics Changes - The company has only penetrated about 2% of the U.S. market, indicating substantial growth potential [8] - Business in China is promising, with additional sales expected following the engagement of a new distribution partner [16] Company Strategy and Development Direction - The company is focusing on educating the market about new reimbursement codes and plans to continue this effort throughout 2021 [7][38] - There is an emphasis on expanding the Mobile Aesthetic Laser business beyond Florida, targeting markets like Dallas, Atlanta, and Scottsdale [42] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about continued revenue growth as economic activity improves post-COVID [5][26] - The company is preparing for a significant marketing push for aesthetic lasers, particularly at upcoming industry symposiums [36][27] Other Important Information - The company has developed a fair market value lease program to make higher-priced products more accessible to customers [9] - The Sculptura system received a U.S. patent, which could open new opportunities for radiation therapy applications [17][18] Q&A Session Summary Question: Do you expect any seasonality in terms of sales SRT systems? - Management indicated uncertainty due to economic conditions in China but hopes for additional orders before the license renewal in November [30] Question: What is the current operating capacity of dermatologist offices in the U.S.? - Management estimated that offices are operating at about 80% to 90% of pre-COVID levels, with stronger recovery in states like Florida and Texas [34] Question: Will sales of aesthetic lasers significantly contribute to revenue this year? - Management expects aesthetic lasers to contribute to sales but not significantly, with a marketing push planned for the second quarter [36] Question: What steps have been taken to educate the market about reimbursement changes? - Management conducted Zoom meetings with over 100 physicians to discuss new reimbursement codes and plans to continue these efforts [38][39] Question: What is the status of the sales force and expansion plans? - The sales force is nearly back to pre-COVID levels, with aggressive hiring planned to support growth in the second half of the year [41] Question: What territories are being targeted for the Mobile Aesthetic business expansion? - Management identified Dallas, Atlanta, and Scottsdale as key markets for expansion [42] Question: Any updates on the Sculptura system sales discussions? - Management remains optimistic about future sales, despite the pandemic's impact on hospital operations [47][49]

Part I [Item 1. Business](index=5&type=section&id=Item%201.%20Business) Sensus Healthcare specializes in superficial radiation therapy for skin conditions, expanding into broader cancer treatment and aesthetic lasers, with revenue from product sales and services, subject to extensive regulation [Overview and Products](index=5&type=section&id=Overview%20and%20Products) Sensus Healthcare offers non-invasive SRT for skin conditions, including the SRT-100 series, Sculptura™ for cancer, and aesthetic laser rental services - The company's core business is providing non-invasive treatments for skin conditions using its proprietary **superficial radiation therapy (SRT)** technology[20](index=20&type=chunk) - Key products include the **SRT-100, SRT-100+, and SRT-100 Vision**, used to treat non-melanoma skin cancers and keloids[22](index=22&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) - The company expanded its offerings with the **FDA-cleared Sculptura™**, a robotic brachytherapy system for intraoperative cancer treatment[25](index=25&type=chunk) - In August 2020, Sensus acquired two mobile aesthetic laser companies to form **Sensus Laser Aesthetic Solutions (SLAS)**, expanding into the aesthetic laser rental market in Florida[27](index=27&type=chunk) [Sales, Marketing, and Manufacturing](index=7&type=section&id=Sales%2C%20Marketing%2C%20and%20Manufacturing) Sensus uses a direct U.S. sales force and international distributors to target dermatologists and radiation oncologists, with manufacturing outsourced to a third party - The company targets private dermatology practices and radiation oncologists using a **direct U.S. sales force** and **international distributors**[33](index=33&type=chunk) - As of December 31, 2020, Sensus had an installed base of **491 units** in **18 countries**, primarily in the United States[38](index=38&type=chunk) - Manufacturing of SRT-100 products is outsourced to **RbM Services, LLC**, under a renewable one-year agreement[39](index=39&type=chunk) - The company relies on a **single preferred supplier** for x-ray tubes and other major components, but alternate suppliers are believed to be available[42](index=42&type=chunk) [Intellectual Property and Government Regulation](index=8&type=section&id=Intellectual%20Property%20and%20Government%20Regulation) The company protects its technology with patents and is subject to extensive FDA and international regulations, including Class II device classification and compliance with healthcare laws - The company holds several issued U.S. and global patents, with **22 patent applications pending** as of December 31, 2020[43](index=43&type=chunk)[45](index=45&type=chunk) - Sensus's medical devices are classified as **Class II devices** by the FDA and have obtained all clearances through the **510(k) pathway**[52](index=52&type=chunk)[54](index=54&type=chunk) - The company has obtained approval to sell products in numerous international markets, including **China** and the **EU/EEA**, requiring separate regulatory compliance like the CE mark[57](index=57&type=chunk)[58](index=58&type=chunk)[60](index=60&type=chunk) Regulatory Compliance Expenses | Year | Expenses (USD) | | :--- | :--- | | 2020 | ~$1.3 million | | 2019 | ~$1.6 million | [Research & Development and Human Capital](index=14&type=section&id=Research%20%26%20Development%20and%20Human%20Capital) R&D expenses decreased to $4.2 million in 2020 due to Sculptura™ development completion, and the company had 42 employees as of December 31, 2020 Research and Development Expenses | Year | R&D Expense (USD) | | :--- | :--- | | 2020 | ~$4.2 million | | 2019 | ~$6.4 million | - The decrease in R&D spending from 2019 to 2020 was primarily related to the final development and production ramp-up of the **Sculptura™ system**[71](index=71&type=chunk) - As of December 31, 2020, the company had **42 employees**, none represented by a labor union[72](index=72&type=chunk) [Item 1A. Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from reimbursement dependence, COVID-19, single product reliance, customer concentration, supply chain issues, regulatory compliance, and intellectual property disputes [Business and Financial Risks](index=15&type=section&id=Business%20and%20Financial%20Risks) Key risks include dependence on third-party reimbursement, COVID-19 impact, reliance on the SRT-100 product line, significant customer and geographic concentration, and single supplier reliance - Commercial success is highly dependent on coverage and adequate reimbursement from **governmental and private payors** for procedures using the company's products[78](index=78&type=chunk) - The **COVID-19 pandemic** has negatively impacted sales due to physician practice closures and social distancing, with its future impact remaining uncertain[81](index=81&type=chunk)[82](index=82&type=chunk) - The company has significant customer and geographic concentration, with one U.S. customer accounting for **39% of 2020 revenues** and **91% of 2020 sales** originating in the U.S.[86](index=86&type=chunk) - The company has a history of net losses, totaling approximately **$21.9 million** from inception through December 31, 2020[110](index=110&type=chunk) [Regulatory and Legal Risks](index=18&type=section&id=Regulatory%20and%20Legal%20Risks) Sensus is subject to complex healthcare laws, including Anti-Kickback Statute and HIPAA, with non-compliance risking penalties, recalls, and adverse impacts from policy changes - The company is subject to numerous healthcare laws, including the federal **Anti-Kickback Statute**, **False Claims Act**, and **HIPAA**, with non-compliance potentially leading to significant penalties[94](index=94&type=chunk)[95](index=95&type=chunk)[97](index=97&type=chunk) - Sensus must report certain device-related malfunctions, deaths, and serious injuries to the **FDA** and other international bodies, which could result in recalls or fines[98](index=98&type=chunk)[99](index=99&type=chunk) - Changes in healthcare policy and reimbursement rates from programs like **Medicare** could have a material adverse effect on the company's revenue and profitability[100](index=100&type=chunk)[101](index=101&type=chunk) [Intellectual Property and Ownership Risks](index=20&type=section&id=Intellectual%20Property%20and%20Ownership%20Risks) Risks include inadequate intellectual property protection, costly patent litigation, a history of net losses, stock price volatility, no dividends, reduced disclosure as an emerging growth company, and significant insider ownership - The company's ability to protect its proprietary technology through **patents and other IP rights** is critical, but these may not be sufficient to prevent competition or withstand legal challenges[103](index=103&type=chunk)[105](index=105&type=chunk) - The company is an **'emerging growth company'** and a **'smaller reporting company'**, allowing for reduced public reporting and disclosure requirements[116](index=116&type=chunk)[119](index=119&type=chunk) - Executive officers and directors beneficially owned approximately **19% of outstanding common stock** as of February 8, 2021, allowing substantial influence over corporate matters[120](index=120&type=chunk) - The company does not anticipate paying dividends in the foreseeable future, meaning investors must rely on **stock price appreciation** for returns[112](index=112&type=chunk) [Item 1B. Unresolved Staff Comments](index=25&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company has no unresolved comments from the SEC staff regarding its periodic or current reports - As of the filing date, Sensus Healthcare has no unresolved comments from the SEC staff[129](index=129&type=chunk) [Item 2. Properties](index=25&type=section&id=Item%202.%20Properties) Sensus Healthcare's corporate headquarters is a leased facility in Boca Raton, Florida, with manufacturing outsourced to a third-party in Tennessee - The company's corporate headquarters is in a leased space of **8,926 sq. ft.** in Boca Raton, Florida, with the lease expiring in September 2022[130](index=130&type=chunk) - The main manufacturing function is physically located at the third-party manufacturer's facility in Oak Ridge, Tennessee[130](index=130&type=chunk) [Item 3. Legal Proceedings](index=25&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, which management does not expect to materially impact financial results - Management does not anticipate that current legal proceedings will have a material impact on the company's financial results[131](index=131&type=chunk) [Item 4. Mine Safety Disclosure](index=25&type=section&id=Item%204.%20Mine%20Safety%20Disclosure) This item is not applicable to the company - Not applicable[132](index=132&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=26&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NASDAQ, has 24 stockholders, and does not anticipate paying dividends, retaining earnings for growth - The company's common stock is traded on the **NASDAQ Capital Market** under the symbol **'SRTS'**[135](index=135&type=chunk) - Sensus has never declared or paid a dividend and does not plan to in the foreseeable future, citing the need to retain earnings for growth[136](index=136&type=chunk) [Item 6. Selected Financial Data](index=26&type=section&id=Item%206.%20Selected%20Financial%20Data) This item is not applicable as the company is a smaller reporting company - Not applicable[139](index=139&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant COVID-19 impact on 2020 sales, leading to decreased revenues and increased net loss, partially offset by expense reductions and liquidity measures [Impact of COVID-19](index=27&type=section&id=Impact%20of%20COVID-19) The COVID-19 pandemic significantly impacted 2020 sales due to physician practice closures, and its future effects on the business remain uncertain - The **COVID-19 pandemic** significantly impacted the company's sales in 2020 as social distancing measures forced physicians to temporarily close their practices[144](index=144&type=chunk) - The future impact of the pandemic on the company's business, operations, and financial condition is **uncertain** and cannot be reasonably estimated[144](index=144&type=chunk) [Results of Operations (2020 vs. 2019)](index=27&type=section&id=Results%20of%20Operations%20(2020%20vs.%202019)) In 2020, revenues decreased by 64.9% to $9.6 million due to COVID-19, leading to a wider net loss despite reduced operating expenses Consolidated Results of Operations (in thousands) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Revenues | $9,577 | $27,263 | | Gross Profit | $5,249 | $17,557 | | Loss from Operations | ($8,234) | ($1,968) | | Net Loss | ($6,836) | ($1,700) | - Revenues decreased by **$17.7 million** in 2020, primarily due to the impact of COVID-19, which restricted sales activities[147](index=147&type=chunk) - Selling and marketing expenses decreased by **$3.8 million (41.4%)** due to trade show cancellations and lower commission, while R&D expenses decreased by **$2.3 million (35.2%)** as the Sculptura project entered its production phase[150](index=150&type=chunk) - Other income increased significantly in 2020, driven by a **$757,782 gain** from the forgiveness of a PPP loan and a **$588,011 bargain purchase gain** from acquisitions[151](index=151&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and equivalents slightly decreased to $14.9 million in 2020, with improved operating cash flow and increased investing cash flow from matured investments Summary of Cash Flows (in thousands) | Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net cash used in Operating | ($434) | ($2,107) | | Net cash from (used in) Investing | $7,031 | ($4,898) | | Net cash from Financing | $210 | $2,620 | - The company's cash and cash equivalents balance increased to **$14.9 million** at year-end 2020 from **$8.1 million** at year-end 2019, primarily due to matured investments[152](index=152&type=chunk)[179](index=179&type=chunk) - In 2020, the company obtained a **PPP loan of $1,022,785** to bolster liquidity amid the pandemic[154](index=154&type=chunk) - Management believes existing capital resources are **sufficient** to meet operating and funding requirements for at least the next 12 months[156](index=156&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is not applicable as the company is a smaller reporting company - Not applicable[169](index=169&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=32&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2020 and 2019, including balance sheets, income statements, equity, cash flows, and notes [Financial Statements](index=33&type=section&id=Financial%20Statements) The audited financial statements show total assets decreased to $28.0 million in 2020, with a net loss of $6.8 million, and a net increase in cash and equivalents Key Balance Sheet Data (in thousands) | Metric | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Cash and cash equivalents | $14,907 | $8,100 | | Total Current Assets | $25,171 | $34,003 | | Total Assets | $28,010 | $36,925 | | Total Liabilities | $6,514 | $8,923 | | Total Stockholders' Equity | $21,496 | $28,001 | Net Loss Per Share | Year | Basic and Diluted EPS | | :--- | :--- | | 2020 | ($0.42) | | 2019 | ($0.10) | [Notes to Financial Statements](index=38&type=section&id=Notes%20to%20Financial%20Statements) Notes detail accounting policies, the COVID-19 impact, a 2020 acquisition gain, PPP loan forgiveness, and a pending Department of Justice investigation - One U.S. customer accounted for approximately **40% of revenue in 2020** and **68% in 2019**[203](index=203&type=chunk) - On August 3, 2020, the company acquired two mobile aesthetic laser companies, resulting in a **bargain purchase gain of $588,011**[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk) - In April 2020, the company received a **PPP loan of $1,022,785**, of which **$757,782** was subsequently forgiven[235](index=235&type=chunk) - The company is cooperating with a **Department of Justice investigation** concerning Medicare billing by a physician who used an SRT-100 device, disputing wrongdoing and unable to estimate potential costs[244](index=244&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=51&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no disagreements with its accountants regarding accounting principles, financial disclosure, or auditing scope - There have been no disagreements on accounting and financial disclosure matters with the company's accountants[263](index=263&type=chunk) [Item 9A. Controls and Procedures](index=51&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2020 - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2020[264](index=264&type=chunk) - Management concluded that internal control over financial reporting was effective as of December 31, 2020[265](index=265&type=chunk) [Item 9B. Other Information](index=51&type=section&id=Item%209B.%20Other%20Information) No other information is being furnished in this report - No other information is being furnished[268](index=268&type=chunk) Part III [Item 10. Directors, Executive Officers, and Corporate Governance](index=52&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%2C%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the 2021 Proxy Statement[271](index=271&type=chunk) [Item 11. Executive Compensation](index=52&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive compensation is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the 2021 Proxy Statement[272](index=272&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=52&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section details equity compensation plans and incorporates security ownership information by reference from the 2021 Proxy Statement Equity Compensation Plan Information | Plan Category | Securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price | Securities remaining available for future issuance | | :--- | :--- | :--- | :--- | | Approved by Security Holders | 229,334 | $5.55 | 265,973 | [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=52&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the 2021 Proxy Statement[275](index=275&type=chunk) [Item 14. Principal Accountant Fees and Services](index=52&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the 2021 Proxy Statement[276](index=276&type=chunk) Part IV [Item 15. Exhibits and Financial Statement Schedules](index=53&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all exhibits and financial statement schedules filed with the Form 10-K report - This section includes the company's consolidated financial statements and a list of all exhibits filed with the report[278](index=278&type=chunk) [Item 16. Form 10-K Summary](index=53&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a summary for its Form 10-K - None provided[279](index=279&type=chunk)

FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2020 OR ☐ 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: 001-37714 Sensus Healthcare, Inc. (Exact name of registrant as specified in its charter) | Delaware | 27-1647271 ...

Sensus Healthcare, Inc. (NASDAQ:SRTS) Q3 2020 Earnings Conference Call November 5, 2020 4:30 PM ET Company Participants Kim Golodetz - SVP and Principal, Lippert/Heilshorn & Associates, Inc. Joe Sardano - CEO Javier Rampolla - CFO Conference Call Participants Benjamin Haynor - Alliance Global Scott Henry - ROTH Capital James Terwilliger - Northland Capital Markets Anthony Vendetti - Maxim Group Operator Good day, ladies and gentlemen, and welcome to your Sensus Healthcare Conference Call [Operator Instructi ...