Sensus Healthcare, Inc. (NASDAQ:SRTS) Q2 2022 Earnings Conference Call August 4, 2022 4:30 PM ET Company Participants Kim Golodetz - Senior Vice President and Principal, Lippert/Heilshorn & Associates Inc. Joe Sardano - Chairman & Chief Executive Officer Javier Rampolla - Chief Financial Officer Conference Call Participants Scott Henry - ROTH Capital Anthony Vendetti - Maxim Group Operator Good day ladies and gentlemen and welcome to the Sensus Healthcare Second Quarter 2022 Earnings Conference Call. [Opera ...

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, 2022 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 - Revenues for Q1 2022 were $10.3 million, more than three times the $3.1 million reported in Q1 2021 [6][28] - Net income for Q1 2022 was $16.1 million or $0.97 per diluted share, compared to a net loss of $1.1 million or $0.07 per share in Q1 2021 [31] - Gross profit for Q1 2022 was $7.1 million, representing 69.1% of revenues, up from $1.6 million or 51.6% of revenues in Q1 2021 [29] Business Line Data and Key Metrics Changes - A total of 33 units were shipped in Q1 2022, including 26 SRT systems and 7 TransDermal Infusion Systems [9][28] - Approximately 50% of customers purchased extended warranty service agreements, up from 25% a few years ago [14] Market Data and Key Metrics Changes - One SRT unit was delivered to China, and regulatory approval was received to treat non-melanoma skin cancer and keloids with SRT in Taiwan [23] - The company hired nine sales representatives and two service engineers, returning the sales organization to pre-pandemic levels [24] Company Strategy and Development Direction - The company is focusing on expanding its product portfolio and has initiated a $3 million share repurchase program [15][34] - An exclusive US distribution agreement for a non-invasive drug delivery system, branded as Transdermal Infusion Systems, was established [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued profitability for the year, citing a robust backlog of orders and effective expense management [27] - The company is aware of potential threats such as inflation and geopolitical turmoil but remains confident in its sales and earnings trajectory [26] Other Important Information - The company emphasized the importance of in-person meetings for solidifying customer relationships and generating sales leads [22] - The management highlighted the positive impact of improved CMS reimbursement codes on patient access to care [9] Q&A Session Summary Question: What contributed to the acceleration in demand for SRT? - Management indicated that the increase was due to a combination of better reimbursement, fair market value leasing, and best practice conversion [41][42][43] Question: How aware are sales reps of the reimbursement changes? - Management stated that all salespeople are thoroughly trained on reimbursement changes and are actively educating doctors [44][45] Question: What additional products are being considered for expansion? - Management mentioned that targets for new products will be those that can be easily integrated into existing sales discussions with dermatology practices [46][47] Question: Can the growth from the Transdermal System be quantified? - Management noted that seven units shipped in Q1 represented about 20-22% of overall shipments, indicating strategic placement with key opinion leaders [48][49] Question: What is the business model for the Transdermal System? - Management confirmed that the selling price is expected to be around $32,000 to $35,000, with consumables available for patient-specific use [53][54] Question: How was the traffic and interest at recent conferences? - Management reported high interest and positive feedback from attendees at the AAD and ASLMS conferences, with many customers looking to purchase additional units [55][56] Question: When were the new hires made? - Most of the hiring occurred after Q1, with a focus on expanding the sales force throughout the year [59]

Part I [Business](index=5&type=section&id=Item%201.%20Business) Sensus Healthcare specializes in superficial radiation therapy (SRT) for skin conditions, selling SRT-100 products and services, and sold Sculptura assets for $15 million - The company's core business provides non-invasive treatments for oncological and non-oncological skin conditions using proprietary superficial radiation therapy (SRT) technology[22](index=22&type=chunk) - On February 25, 2022, the company sold its Sculptura product assets for **$15 million** in cash[23](index=23&type=chunk) - Primary revenue derives from the sale of its SRT-100 product line, including SRT-100, SRT-100+, and SRT-100 Vision models[25](index=25&type=chunk) - As of December 31, 2021, Sensus had an installed base of **564 units** across **18 countries**, primarily in the United States[39](index=39&type=chunk) [Our Products and Services](index=5&type=section&id=Our%20Products%20and%20Services) The company's portfolio centers on SRT devices (SRT-100, Vision, 100+), complemented by a 'Sentinel' service program, aesthetic laser rentals, and consumables - The SRT-100 is a photon x-ray low energy superficial radiotherapy system, offering a surgical alternative for non-melanoma skin cancers and keloids[25](index=25&type=chunk) - The SRT-100 Vision enhances the base model with integrated high-frequency ultrasound imaging for precise treatment planning and tumor analysis[27](index=27&type=chunk) - In August 2020, the company acquired two mobile aesthetic laser companies, now SLAS, to offer in-office laser rental services in Florida[31](index=31&type=chunk) [Sales and Marketing](index=7&type=section&id=Sales%20and%20Marketing) Sensus uses a multi-tier sales strategy with a direct U.S. force and international dealers, targeting dermatology and radiation oncology markets, with growth potential in plastic surgery - The company utilizes a multi-tier sales model with a direct U.S. sales force and international dealers/distributors[35](index=35&type=chunk) - Primary target markets are private dermatology practices and radiation oncologists, with SRT products enabling dermatologists to retain patients[35](index=35&type=chunk)[36](index=36&type=chunk) - The company is expanding into the plastic surgery market, leveraging FDA clearance for treating keloids with SRT[38](index=38&type=chunk) [Manufacturing and Supply](index=8&type=section&id=Manufacturing%20and%20Supply) Sensus outsources SRT-100 manufacturing to RbM Services, LLC in the U.S., minimizing capital investment, and relies on a single preferred supplier for key components - Sensus uses a third-party manufacturer, RbM Services, LLC, in the U.S. to produce SRT-100 products under a fixed-price per unit agreement[40](index=40&type=chunk) - The company has a single preferred supplier for x-ray tubes and other major components, but believes adequate alternate suppliers exist, mitigating supply risk[43](index=43&type=chunk) [Intellectual Property](index=8&type=section&id=Intellectual%20Property) Sensus protects its technology with U.S. and international patents expiring until 2038, 22 pending applications, seven U.S. trademarks, and confidentiality agreements - The company holds multiple U.S. and international patents for its technology, with some expiring as late as **2038**[46](index=46&type=chunk)[50](index=50&type=chunk) - As of December 31, 2020, the company had **22 pending patent applications** and **seven registered U.S. trademarks**[47](index=47&type=chunk) [Government Regulation](index=10&type=section&id=Government%20Regulation) Sensus operates under extensive FDA (Class II, 510(k) clearance, QSR, MDR) and international regulations (CE mark), plus federal and state anti-kickback, false claims, and HIPAA laws - The company's medical devices are classified as **Class II** by the FDA, with marketing authorization via **510(k) clearance**[53](index=53&type=chunk)[55](index=55&type=chunk) - Sensus is subject to extensive ongoing FDA regulation, including Quality System Regulation (QSR), labeling, and Medical Device Reporting (MDR) for adverse events[56](index=56&type=chunk) - The company has obtained regulatory approvals to sell products in numerous international markets, including Australia, Canada, China, and Europe (CE mark)[61](index=61&type=chunk) - The business must comply with federal and state anti-kickback laws, false claims acts, and physician self-referral laws (Stark Law)[62](index=62&type=chunk)[63](index=63&type=chunk)[68](index=68&type=chunk) [Employees and Human Capital](index=14&type=section&id=Employees%20and%20Human%20Capital) As of December 31, 2021, Sensus had **37 employees**, primarily in the U.S., with no union representation, and implemented COVID-19 safety measures - At the end of 2021, the company had **37 employees**, primarily based in the U.S. (**33**) and Israel (**4**)[73](index=73&type=chunk) - In response to the COVID-19 pandemic, the company implemented safety protocols including remote work and facemasks[76](index=76&type=chunk) [Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) The company faces multiple risks in business operations, regulatory compliance, intellectual property, and stock ownership [Risks Related to our Business](index=15&type=section&id=Risks%20Related%20to%20our%20Business) Business risks include dependence on third-party payor reimbursement, COVID-19 impacts, reliance on the SRT-100 product line, significant customer concentration, and a single preferred supplier - The business is highly dependent on coverage and adequate reimbursement from third-party payors like Medicare and private insurers[80](index=80&type=chunk) - The COVID-19 pandemic has impacted sales and could continue to adversely affect business operations and supply chains[84](index=84&type=chunk) - The company has significant customer concentration, with one U.S. customer accounting for approximately **57% of revenues in 2021** and **40% in 2020**[94](index=94&type=chunk) - Sensus relies on a single preferred supplier for x-ray tubes and other major components, and its loss could hinder production[92](index=92&type=chunk) [Risks Related to our Regulatory Environment](index=19&type=section&id=Risks%20Related%20to%20our%20Regulatory%20Environment) Regulatory risks include compliance with federal and state healthcare laws (Anti-Kickback, Sunshine, False Claims), medical device reporting, and potential adverse impacts from healthcare policy changes - The company is subject to various healthcare laws, including the Federal Anti-Kickback Statute, 'Sunshine' Act, and False Claims laws, with potential significant penalties for violations[100](index=100&type=chunk)[103](index=103&type=chunk) - Sensus must comply with medical device reporting regulations in the U.S. and Europe for malfunctions, deaths, or serious injuries[105](index=105&type=chunk) - Changes in healthcare policy, including Medicare reimbursement reforms or cost-containment measures, could materially adversely affect the business[107](index=107&type=chunk)[108](index=108&type=chunk) [Risks Related to our Intellectual Property](index=21&type=section&id=Risks%20Related%20to%20our%20Intellectual%20Property) IP risks include inadequate patent protection, challenges to validity, competitor circumvention, costly patent litigation, and potential injunctions against product sales - The company's success relies on protecting proprietary technology through patents and IP rights, which may not sufficiently prevent competition[110](index=110&type=chunk) - The medical device industry is prone to extensive patent litigation, potentially leading to high costs, significant damages, and sales injunctions for Sensus[114](index=114&type=chunk) [Risks Related to the Ownership of Sensus's Securities](index=22&type=section&id=Risks%20Related%20to%20the%20Ownership%20of%20Sensus%27s%20Securities) Securities ownership risks include a history of net losses, uncertain future profitability, limited trading volume, no anticipated dividends, substantial influence from executive officers, and anti-takeover provisions - The company had net losses through 2020, and despite 2021 net income, maintaining profitability is not assured[116](index=116&type=chunk) - The company does not anticipate paying dividends, requiring investors to rely on stock price appreciation for returns[118](index=118&type=chunk) - As of March 9, 2022, executive officers and directors beneficially owned approximately **17%** of common stock, exerting substantial influence[126](index=126&type=chunk) - Anti-takeover provisions in the company's charter and bylaws may discourage or prevent favorable mergers or acquisitions[128](index=128&type=chunk) [Properties](index=26&type=section&id=Item%202.%20Properties) Sensus's corporate headquarters is a leased **8,926 sq. ft.** facility in Boca Raton, Florida, with manufacturing outsourced - The company's corporate headquarters is a leased **8,926 sq. ft.** facility in Boca Raton, Florida, with the lease expiring in September 2022[133](index=133&type=chunk) [Legal Proceedings](index=26&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings but does not anticipate a material effect on its financial position or operations - Sensus is involved in ordinary course legal proceedings but does not expect a material impact on its financial condition[134](index=134&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=27&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Sensus Healthcare's common stock trades on NASDAQ under 'SRTS'; no dividends are anticipated due to business needs and credit facility restrictions - The company's common stock trades on the NASDAQ Capital Market under the symbol **'SRTS'**[137](index=137&type=chunk) - Sensus has never paid dividends and anticipates retaining all future earnings for business use, with payments also restricted by its revolving line of credit[138](index=138&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2021, Sensus achieved profitability with revenues surging **182%** to **$27.0 million**, resulting in **$4.1 million** net income, a significant turnaround [Results of Operations](index=29&type=section&id=Results%20of%20Operations) In 2021, revenues surged **182%** to **$27.0 million** from **$9.6 million** in 2020, driving gross profit to **$17.0 million** and resulting in **$4.1 million** income from operations Consolidated Statements of Operations (in thousands) | | 2021 | 2020 | | :--- | :--- | :--- | | **Revenues** | **$27,042** | **$9,577** | | Cost of sales | $10,054 | $4,328 | | **Gross profit** | **$16,988** | **$5,249** | | Selling and marketing | $4,838 | $5,336 | | General and administrative | $4,594 | $3,989 | | Research and development | $3,436 | $4,158 | | **Total operating expenses** | **$12,868** | **$13,483** | | **Income (loss) from operations** | **$4,120** | **($8,234)** | | Other income (expense), net | ($1) | $1,398 | | **Net income (loss)** | **$4,119** | **($6,836)** | - Revenues in 2021 increased by **$17.5 million**, or **182%**, from 2020, reflecting a strong recovery in units sold as COVID-19 restrictions eased[148](index=148&type=chunk) - Research and development expenses decreased by **$0.7 million** (**17.4%**) from 2020, primarily due to lower spending as the Sculptura project entered production[150](index=150&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents were **$14.5 million** at year-end 2021, a slight decrease from **$14.9 million** in 2020, with no outstanding borrowings on the **$10 million** revolving credit facility Summary of Cash Flows (in thousands) | | For the Year Ended Dec 31, 2021 | For the Year Ended Dec 31, 2020 | | :--- | :--- | :--- | | Net cash provided by (used in): | | | | Operating activities | $(286) | $(434) | | Investing activities | $129 | $7,030 | | Financing activities | $(231) | $211 | | **Increase (decrease) in cash** | **$(388)** | **$6,807** | - The company's cash and cash equivalent balance decreased slightly to **$14.5 million** at year-end 2021 from **$14.9 million** at year-end 2020[152](index=152&type=chunk) - In 2020, the company received a PPP loan of **$1,022,785**, with **$757,782** forgiven and a remaining balance of **$51,021** by year-end 2021[154](index=154&type=chunk) [Financial Statements and Supplementary Data](index=32&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited consolidated financial statements for 2021 and 2020, with an unqualified auditor's opinion and detailed notes [Note 1 — Organization and Summary of Significant Accounting Policies](index=38&type=section&id=Note%201%20%E2%80%94%20Organization%20and%20Summary%20of%20Significant%20Accounting%20Policies) Sensus manufactures and sells radiation therapy devices globally; 2021 revenue included **$22.2 million** product and **$4.8 million** service, with high U.S. and customer concentration Disaggregated Revenue (in thousands) | | 2021 | 2020 | | :--- | :--- | :--- | | Product revenue | $22,217 | $5,449 | | Service revenue | $4,825 | $4,128 | | **Total revenue** | **$27,042** | **$9,577** | - The company has significant credit risk and revenue concentration, with **95% of 2021 revenue from the U.S.** and one U.S. customer accounting for approximately **57% of revenue** and **94% of accounts receivable**[198](index=198&type=chunk) [Note 2 — ACQUISITIONS](index=43&type=section&id=Note%202%20%E2%80%94%20ACQUISITIONS) The August 2020 acquisition of two mobile aesthetic laser companies resulted in a **$588,000** bargain purchase gain, but a 2021 asset sale led to an **$88,000** impairment and **$47,000** loss - The August 2020 acquisition of two mobile aesthetic laser companies resulted in a bargain purchase gain of **$588,000** in 2020[220](index=220&type=chunk) - In 2021, an asset sale back to an acquired party resulted in an **$88,000** impairment charge on intangible assets and a **$47,000** loss on property and equipment sale[222](index=222&type=chunk) [Note 5 — DEBT](index=44&type=section&id=Note%205%20%E2%80%94%20DEBT) Sensus has a **$10 million** revolving credit facility, unused as of year-end 2021 and 2020, and a 2020 PPP loan of **$1,022,785** had **$757,782** forgiven, with **$51,000** remaining - The company maintains a revolving credit facility with a **$10 million** commitment, unused as of December 31, 2021 and 2020[227](index=227&type=chunk) - The company received a PPP loan of **$1,022,785** in April 2020, with **$757,782** forgiven and a remaining balance of **$51,000** at year-end 2021[228](index=228&type=chunk) [Note 11 — Subsequent Events](index=50&type=section&id=Note%2011%20%E2%80%94%20Subsequent%20Events) On February 25, 2022, Sensus sold its Sculptura product assets for **$15 million** in cash, with a net book value of approximately **$1.6 million** - On February 25, 2022, the company sold its Sculptura product assets for **$15 million** in cash, with a net book value of approximately **$1.6 million**[259](index=259&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures and internal control over financial reporting were effective as of December 31, 2021 - Management concluded that as of December 31, 2021, the company's disclosure controls and procedures and internal control over financial reporting were effective[262](index=262&type=chunk)[263](index=263&type=chunk) Part III [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 2022 Annual Meeting Proxy Statement - Information regarding directors, executive officers, and corporate governance is incorporated by reference from the 2022 Annual Meeting Proxy Statement[270](index=270&type=chunk) [Executive Compensation](index=52&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive compensation is incorporated by reference from the company's Proxy Statement for its 2022 Annual Meeting - Information regarding executive compensation is incorporated by reference from the 2022 Annual Meeting Proxy Statement[271](index=271&type=chunk) [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, with **229,334** securities issuable upon exercise at a weighted-average price of **$5.55**, and **135,973** securities remaining for future issuance Equity Compensation Plan Information | Plan Category | Securities to be issued upon exercise (a) | Weighted-average exercise price (b) | Securities remaining available for future issuance (c) | | :--- | :--- | :--- | :--- | | Equity Compensation Plans Approved by Securities Holders | 229,334 | $5.55 | 135,973 | | Total | 229,334 | $5.55 | 135,973 | [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 2022 Annual Meeting Proxy Statement - Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the 2022 Annual Meeting Proxy Statement[274](index=274&type=chunk) [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 company's Proxy Statement for its 2022 Annual Meeting - Information regarding principal accountant fees and services is incorporated by reference from the 2022 Annual Meeting Proxy Statement[275](index=275&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=53&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all documents filed as part of the Form 10-K report, including consolidated financial statements and an index of exhibits required by Regulation S-K - This section contains the list of financial statements and all exhibits filed with the annual report, including material agreements and certifications[278](index=278&type=chunk)

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 | | ...