Sensus Healthcare(US:SRTS)2020-11-10 18:44Financial Performance - Total revenues for the three months ended September 30, 2020, were $1,620,163, a decrease from $5,840,945 in the same period of 2019[18] - Gross profit for the nine months ended September 30, 2020, was $2,020,533, compared to $12,099,004 for the same period in 2019, reflecting a significant decline[18] - The net loss for the three months ended September 30, 2020, was $1,692,253, compared to a net loss of $730,394 for the same period in 2019, indicating worsening financial performance[18] - For the nine months ended September 30, 2020, the company reported a net loss of $7,853,941 compared to a net loss of $2,739,104 for the same period in 2019[23] - Total revenue for the nine months ended September 30, 2020, was $4,482,557, a decrease from $18,753,839 in the same period of 2019, representing a decline of approximately 76%[33] - Product revenue for the nine months ended September 30, 2020, was $1,620,789, down from $17,202,342 in 2019, indicating a decrease of about 91%[33] - Service revenue for the nine months ended September 30, 2020, was $2,861,768, compared to $1,551,497 in 2019, reflecting an increase of approximately 84%[33] Assets and Liabilities - Total current assets decreased to $24,640,712 as of September 30, 2020, down from $34,003,170 as of December 31, 2019[16] - Total liabilities decreased to $7,306,586 as of September 30, 2020, from $8,923,125 as of December 31, 2019, showing improved liability management[16] - Cash and cash equivalents increased to $16,127,085 as of September 30, 2020, compared to $8,100,288 as of December 31, 2019, indicating better liquidity[16] - Stockholders' equity decreased to $20,414,631 as of September 30, 2020, from $28,001,422 as of December 31, 2019, reflecting the impact of accumulated losses[16] - As of September 30, 2020, cash and cash equivalents totaled $16,127,085, significantly higher than $6,905,547 at the end of the same period in 2019[23] Expenses and Cost Management - Operating expenses for the three months ended September 30, 2020, totaled $2,951,781, compared to $4,648,964 for the same period in 2019, reflecting cost-cutting measures[18] - Selling and marketing expenses for the three months ended September 30, 2020, were $1,034,170, a decrease of $1,089,976 or 51.3% compared to $2,124,146 for the same period in 2019[92] - Research and development expenses for the three months ended September 30, 2020, were $941,735, a decrease of $625,899 or 39.9% compared to $1,567,634 for the same period in 2019[94] - General and administrative expenses increased to $3,209,536 for the nine months ended September 30, 2020, an increase of $275,551 or 9.4% compared to $2,933,985 in 2019[100] - Selling and marketing expenses were $3,986,985 for the nine months ended September 30, 2020, down by $2,662,769 or 40.0% from $6,649,754 in 2019[99] - Research and development expenses were $3,315,245 for the nine months ended September 30, 2020, a decrease of $2,152,702 or 39.4% from $5,467,947 in 2019[102] Other Income and Gains - The company reported a gain on acquisition of $588,011 during the nine months ended September 30, 2020, which positively impacted other income[18] - Other income for the three months ended September 30, 2020, was $587,151, an increase of $512,415 or 685.6% compared to $74,736 for the same period in 2019[95] - Other income increased to $637,292 for the nine months ended September 30, 2020, an increase of $423,714 or 198.4% compared to $213,578 in 2019[103] Acquisitions and Investments - The Company acquired two mobile aesthetic laser companies on August 3, 2020, for a total purchase price of $999,000, resulting in a bargain purchase gain of $588,011[47][48] - The acquisition contributed approximately $23,000 to gross profit for the nine months ended September 30, 2020, with no material impact on net loss[49] - The company acquired two mobile aesthetic laser rental companies in August 2020 to expand its offerings[82] Cash Flow and Financing - The company had a net cash increase of $8,026,797 for the nine months ended September 30, 2020, compared to a net cash decrease of $5,578,709 in the same period of 2019[23] - Net cash used in operating activities was $73,761 for the nine months ended September 30, 2020, compared to $2,566,572 in 2019[110] - Net cash provided by investing activities was $7,134,544 for the nine months ended September 30, 2020, primarily due to matured investments[111] - Net cash provided by financing activities was $966,014 during the nine months ended September 30, 2020, mainly from a loan under the Small Business Administration Paycheck Protection Program[112] Market and Operational Challenges - The company continues to face uncertainties due to the COVID-19 pandemic, which has adversely impacted sales and operations[29] - Approximately 79% of the company's revenue for the three months ended September 30, 2020, was generated from customers in the United States[37]