Sensus Healthcare(US:SRTS)2025-11-12 19:56Financial Performance - Revenues for the three months ended September 30, 2025 were $6.9 million, a decrease of $1.9 million, or 21.6%, compared to $8.8 million for the same period in 2024 [105] - For the nine months ended September 30, 2025, revenues were $22.5 million, a decrease of $6.2 million, or 21.6%, from $28.7 million in the same period in 2024 [113] - Gross profit for the three months ended September 30, 2025 was $2.7 million, a decrease of $2.5 million, or 48.1%, with a gross profit percentage of 39.1% compared to 59.1% in the prior year [107] Expenses - Research and development expenses increased to $1.8 million for the three months ended September 30, 2025, up $0.9 million, or 100.0%, compared to $0.9 million in the same period in 2024 [110] - Total operating expenses for the three months ended September 30, 2025 were $5.3 million, an increase of $1.5 million, or 40.1%, compared to $3.7 million in the same period in 2024 [104] - Selling and marketing expenses increased to $5.1 million for the nine months ended September 30, 2025, up $1.5 million, or 41.7%, from $3.6 million in the same period in 2024 [117] Cash Flow - Net cash provided by operating activities for the nine months ended September 30, 2025 was $2.7 million, compared to a net cash used of $0.004 million in the same period in 2024 [129] - Net cash provided by operating activities was $2.7 million for the nine months ended September 30, 2025, consisting of a net loss of $4.6 million and non-cash activity of $0.9 million, offset by a decrease in net operating assets of $8.2 million [130] - Net cash used in investing activities for the nine months ended September 30, 2025 reflected $38 thousand of purchases of property and equipment, compared to $0.6 million for the same period in 2024 [131] - Net cash used in financing activities for the nine months ended September 30, 2025 reflected $0.3 million of repurchases of common stock, while the previous year showed $34 thousand of exercised stock options [132] Balance Sheet - Cash and cash equivalents increased to $24.5 million at September 30, 2025, compared to $22.1 million at December 31, 2024, an increase of $2.4 million [122] - Accounts receivable decreased to $9.3 million at September 30, 2025, down $10.4 million from $19.7 million at December 31, 2024, due to reduced sales [123] Taxation - The effective tax rate for the three months ended September 30, 2025 was 60.9%, up from 31.5% in the prior year, primarily due to increased estimated tax credits [112] Economic Factors - The company experienced inflationary pressures due to increased commodity and shipping prices, as well as rising energy and labor costs, prompting actions to minimize effects on product costs [133] Management Insights - Management identified revenue recognition policies as critical to understanding the financial condition and results of operations [136]