[10-Q] Sensus Healthcare, Inc Quarterly Earnings Report

Q: What were Sensus Healthcare (SRTS) revenues for the six months ended June 30, 2025?

Total revenue for the six months ended June 30, 2025 was $15.659 million , down 21.1% from $19.902 million in the prior-year period.

Q: Did Sensus (SRTS) report profit or loss in H1 2025?

Sensus reported a net loss of $3.609 million for the six months ended June 30, 2025, compared with net income of $3.886 million in the prior-year six months.

Q: How much cash and borrowing capacity did Sensus have at June 30, 2025?

The company held $22.162 million in cash and cash equivalents and had $15.0 million available under its revolving credit facility, with no borrowings outstanding .

Q: How concentrated are Sensus's sales and receivables?

One U.S. customer accounted for 56% of revenue in Q2 2025 and 78% of accounts receivable as of June 30, 2025.

Filing Impact

(Moderate)

Filing Sentiment

(Neutral)

Form Type

10-Q

Rhea-AI Filing Summary

Sensus Healthcare reported weakening sales and compressed margins in the quarter and year-to-date. Revenue was $7.3 million in Q2 and $15.7 million for the six months, declines of 20.7% and 21.1% versus prior-year periods driven primarily by fewer units sold to a large U.S. customer. Gross profit fell to $2.9 million in Q2 and $7.3 million YTD, and gross margin narrowed to 39.7% for the quarter (from 58.7%) and 46.5% YTD (from 60.8%).

Higher operating expenses outpaced revenue reductions: G&A, selling and marketing, and R&D all increased, with R&D up 127.8% YTD due to lobbying, added headcount and next-generation product development. The company recorded a net loss of $1.037 million in Q2 and a $3.609 million net loss for the six months, compared with net income in the prior-year periods.

Liquidity remains a stabilizing factor: cash and cash equivalents were $22.2 million and the amended revolving credit facility provides $15.0 million of available borrowing capacity with no outstanding borrowings, and the company was in compliance with credit covenants. Material risks disclosed include significant customer concentration (one U.S. customer represented 56% of Q2 revenue and 78% of receivables) and an ongoing DOJ inquiry for which potential costs cannot be estimated.

Positive

Cash position of $22.162 million provides immediate liquidity
$15.0 million of available borrowing capacity under the amended revolving credit facility with Comerica and no borrowings outstanding at period end
Compliance with credit covenants as of June 30, 2025
Net cash provided by operating activities was $0.44 million for the six months ended June 30, 2025, improving cash generation versus the prior-year period

Negative

Revenue decline: six-month revenue fell to $15.659 million, down 21.1% from $19.902 million a year earlier
Profitability deterioration: six-month net loss of $3.609 million versus net income of $3.886 million in prior year
Margin compression: gross profit down 39.7% YTD and gross margin fell to 46.5% from 60.8%
Rising operating expenses: total operating expenses increased materially, with R&D rising 127.8% YTD and selling & marketing up 56.5% YTD
Customer concentration: one U.S. customer represented 56% of Q2 revenue and 78% of accounts receivable at June 30, 2025
Legal contingency: ongoing DOJ investigation with two Civil Investigative Demands; potential costs are unspecified and unable to be estimated

Insights

TL;DR: Revenue decline and margin compression produced a material operating loss, but cash and unused credit provide near-term liquidity.

The company reported a meaningful drop in demand from its largest U.S. customer, driving a 21% year-to-date revenue decline to $15.7 million and gross profit down 39.7% YTD to $7.3 million. Operating expenses rose sharply, particularly R&D (up 127.8% YTD), turning prior-year profit into a $3.6 million net loss for the six months. The balance sheet shows $22.2 million in cash and an unused $15.0 million revolving facility, with covenant compliance at period end—providing a buffer while management attempts to restore sales momentum. Given the magnitude of the revenue and margin deterioration, this filing represents a materially negative operating performance.

TL;DR: High customer concentration and a long-running DOJ inquiry create material execution and legal risks despite adequate short-term liquidity.

One U.S. customer accounted for 56% of Q2 revenue and 78% of accounts receivable at June 30, 2025, exposing the company to customer-specific demand and payment risks. Accounts receivable fell $7.1 million versus year-end, reflecting lower sales and extended payment terms from that customer. The company disclosed an ongoing Department of Justice investigation dating back to 2015, including two Civil Investigative Demands, and cannot estimate potential costs. While cash of $22.2 million and an available $15.0 million credit facility mitigate immediate funding risk, the combination of customer concentration and unresolved legal exposure is a material operational and compliance risk.

08/12/2025 - 02:05 PM

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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 June 30, 2025

☐ 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
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

851 Broken Sound Pkwy., NW #215, Boca Raton, FL		33487
(Address of principal executive office)		(Zip Code)

(561) 922-5808

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.01 per share		SRTS		The NASDAQ Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an “emerging growth company.” See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐		Accelerated filer ☐		Non-accelerated filer ☒		Smaller reporting company ☒
						Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 6, 2025, there were 16,440,036 shares of the registrant’s common stock outstanding.

SENSUS HEALTHCARE, INC.

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

		Page
PART I – Financial Information

Item 1.	Condensed Consolidated Financial Statements (unaudited)	1

	Condensed Consolidated Balance Sheets (unaudited)	1

	Condensed Consolidated Statements of Income (Loss) (unaudited)	2

	Condensed Consolidated Statements of Stockholders’ Equity (unaudited)	3

	Condensed Consolidated Statements of Cash Flows (unaudited)	4

	Notes to the Condensed Consolidated Financial Statements (unaudited)	5

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	22

Item 4.	Controls and Procedures	23

PART II – Other Information

Item 1.	Legal Proceedings	23

Item 1A.	Risk Factors	23

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23

Item 3.	Defaults Upon Senior Securities	23

Item 4.	Mine Safety Disclosure	23

Item 5.	Other Information	23

Item 6.	Exhibits	24

	Signatures	25

INTRODUCTORY NOTE

Forward-Looking Statements

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

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

To date, the Middle East conflict, the Russian invasion of Ukraine, and other geopolitical uncertainties have not had any significant impact on our business, but we continue to monitor developments and will address them in future disclosures, if applicable.

Any forward-looking statements that we make in this report speak only as of the date of such statement, and we undertake no obligation to update such statements to reflect events or circumstances after the date this report is filed, except as may be required by applicable law.

PART I. FINANCIAL INFORMATION

Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SENSUS HEALTHCARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

	As of June 30,			As of December 31,
(in thousands, except shares and per share data)	2025			2024
	(unaudited)
Assets
Current assets
Cash and cash equivalents	$	22,162		$	22,056
Accounts receivable, net		12,622			19,731
Inventories		12,405			10,097
Prepaid inventory		2,681			3,347
Other current assets		2,349			1,507
Total current assets		52,219			56,738
Property and equipment, net		2,714			1,997
Deferred tax asset		2,810			2,197
Operating lease right-of-use assets, net		574			581
Other noncurrent assets		535			652
Total assets	$	58,852		$	62,165

Liabilities and stockholders’ equity
Current liabilities
Accounts payable and accrued expenses	$	5,365		$	4,811
Product warranties		267			329
Operating lease liabilities, current portion		252			204
Deferred revenue, current portion		529			541
Total current liabilities		6,413			5,885
Operating lease liabilities		343			398
Deferred revenue, net of current portion		32			55
Total liabilities		6,788			6,338
Commitments and contingencies
Stockholders’ equity
Preferred stock, 5,000,000 shares authorized and none issued and outstanding		—			—
Common stock, $0.01 par value – 50,000,000 authorized; 17,031,845 issued and 16,440,036 outstanding at June 30, 2025; 17,036,845 issued and 16,495,396 outstanding at December 31, 2024		169			169
Additional paid-in capital		45,941			45,795
Treasury stock, 591,809 and 541,449 shares at cost, at June 30, 2025 and December 31, 2024, respectively		(3,871	)		(3,571	)
Retained earnings		9,825			13,434
Total stockholders’ equity		52,064			55,827
Total liabilities and stockholders’ equity	$	58,852		$	62,165

See accompanying notes to the condensed consolidated financial statements (unaudited).

SENSUS HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(unaudited)


	For the Three Months Ended					For the Six Months Ended
	June 30,					June 30,
(in thousands, except shares and per share data)	2025			2024		2025			2024

Revenues	$	7,315		$	9,239	$	15,659		$	19,902
Cost of sales		4,412			3,816		8,403			7,817
Gross profit		2,903			5,423		7,256			12,085
Operating expenses
General and administrative		1,986			1,579		4,193			3,158
Selling and marketing		1,389			996		3,575			2,266
Research and development		1,471			866		4,077			1,792
Total operating expenses		4,846			3,441		11,845			7,216
(Loss) income from operations		(1,943	)		1,982		(4,589	)		4,869
Other income:
Interest income, net		183			209		367			423
Other income, net		183			209		367			423
(Loss) income before income tax		(1,760	)		2,191		(4,222	)		5,292
(Benefit from) provision for income taxes		(723	)		579		(613	)		1,406
Net (loss) income	$	(1,037	)	$	1,612	$	(3,609	)	$	3,886
Net (loss) income per share – basic	$	(0.06	)	$	0.10	$	(0.22	)	$	0.24
diluted	$	(0.06	)	$	0.10	$	(0.22	)	$	0.24
Weighted average number of shares used in
computing net (loss) income per share – basic		16,320,036			16,298,459		16,330,891			16,296,715
diluted		16,320,036			16,333,481		16,330,891			16,325,764

See accompanying notes to the condensed consolidated financial statements (unaudited).

SENSUS HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(unaudited)


						Additional
	Common Stock					Paid-In			Treasury Stock						Retained
(in thousands, except shares)	Shares			Amount		Capital			Shares			Amount			Earnings			Total

December 31, 2023		16,907,095		$	169	$	45,405			(532,924	)	$	(3,519	)	$	6,787		$	48,842
Stock-based compensation		20,000			—		92			—			—			—			92
Forfeiture of restricted stock units		(1,500	)		—		(1	)		—			—			—			(1	)
Net income		—			—		—			—			—			2,274			2,274
March 31, 2024		16,925,595		$	169	$	45,496			(532,924	)	$	(3,519	)	$	9,061		$	51,207
Stock-based compensation		—			—		66			—			—			—			66
Exercise of stock options		3,000			—		17			—			—			—			17
Forfeiture of restricted stock units		(750	)		—		(1	)		—			—			—			(1	)
Net income		—			—		—			—			—			1,612			1,612
June 30, 2024		16,927,845		$	169	$	45,578			(532,924	)	$	(3,519	)	$	10,673		$	52,901

December 31, 2024		17,036,845		$	169	$	45,795			(541,449	)	$	(3,571	)	$	13,434		$	55,827
Stock-based compensation		—			—		79			—			—			—			79
Stock repurchase		—			—		—			(50,360	)		(300	)		—			(300	)
Net loss		—			—		—			—			—			(2,572	)		(2,572	)
March 31, 2025		17,036,845		$	169	$	45,874			(591,809	)	$	(3,871	)	$	10,862		$	53,034
Stock-based compensation		—			—		72			—			—			—			72
Forfeiture of restricted stock units		(5,000	)		—		(5	)		—			—			—			(5	)
Net loss		—			—		—			—			—			(1,037	)		(1,037	)
June 30, 2025		17,031,845		$	169	$	45,941			(591,809	)	$	(3,871	)	$	9,825		$	52,064

See accompanying notes to the condensed consolidated financial statements (unaudited).

SENSUS HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)


	For the Six Months Ended
	June 30,
(in thousands)	2025			2024
Cash flows from operating activities
Net (loss) income	$	(3,609	)	$	3,886

Adjustments to reconcile net (loss) income to net cash and cash equivalents provided by (used in) operating activities:
Credit loss expense		—			42
Depreciation		185			101
Amortization of right-of-use asset		118			95
Provision for product warranties		138			186
Stock-based compensation		146			156
Deferred income taxes		(613	)		496
Changes in operating assets and liabilities:
Accounts receivable		7,109			(7,690	)
Inventories		(3,176	)		(1,021	)
Prepaid inventory		666			(347	)
Other current assets		(842	)		(218	)
Other noncurrent assets		117			149
Accounts payable and accrued expenses		554			491
Operating lease liability		(118	)		(85	)
Income tax payable		—			(37	)
Deferred revenue		(35	)		46
Product warranties		(200	)		(207	)
Net cash provided by (used in) operating activities		440			(3,957	)
Cash flows from investing activities
Acquisition of property and equipment		(34	)		(236	)
Net cash used in investing activities		(34	)		(236	)
Cash flows from financing activities
Repurchase of common stock		(300	)		—
Exercise of stock options		—			17
Net cash (used in) provided by financing activities		(300	)		17
Net increase (decrease) in cash and cash equivalents		106			(4,176	)
Cash and cash equivalents – beginning of period		22,056			23,148
Cash and cash equivalents – end of period	$	22,162		$	18,972
Supplemental disclosure of cash flow information:
Interest paid	$	—		$	—
Income tax paid	$	979		$	935
Supplemental schedule of noncash investing and financing transactions:
Transfer of inventory to property and equipment	$	868		$	113
Lease liability arising from obtaining right-of-use-assets	$	111		$	—

See accompanying notes to the condensed consolidated financial statements (unaudited).

SENSUS HEALTHCARE, INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 1 — Organization and Summary of Significant Accounting Policies

Description of the Business

Sensus Healthcare, Inc. (together, with its subsidiaries, unless the context otherwise indicates, “Sensus” or the “Company”) is a manufacturer of radiation therapy devices sold to healthcare providers globally through its distribution and marketing network. The Company operates from its corporate headquarters located in Boca Raton, Florida.

In 2024, the Company formed Sensus Healthcare Services, LLC, a wholly owned subsidiary that provides operational healthcare services in the form of leased equipment, radiation oncology and physics oversight, including radiotherapy technologists for dermatology clinics.

Basis of Presentation and Principles of Consolidation

These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of the Company and its subsidiaries. Accounts and transactions between condensed consolidated entities have been eliminated.

These financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and notes required by GAAP. In the opinion of management, all adjustments considered necessary for a fair presentation of the results have been included. Operating results for the three and six months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025 or for any other period.

The condensed consolidated balance sheet as of December 31, 2024 has been derived from the audited financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report”).

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. Actual results could differ from those estimates.

Revenue Recognition

The Company derives revenue from sales of the Company’s devices and services related to maintaining and repairing the devices as part of a service contract or on an ad-hoc basis without a service contract.

The Company provides warranties, generally for one year, in conjunction with the sale of its products. These warranties entitle the customer to repair, replacement, or modification of the defective product, subject to the terms of the relevant warranty. The Company has determined that these warranties do not represent separate performance obligations, as the customer does not have the option to purchase the warranty separately and the warranty does not provide the customer with a service in addition to the assurance that the product complies with agreed-upon specifications. The Company records an estimate of future warranty claims at the time it recognizes revenue from the sale of the device based upon management’s estimate of the future claims rate.

Revenue is recognized upon transfer of control of promised goods or services to customers when the product is shipped or the service is rendered, based on the amount the Company expects to receive in exchange for those goods or services. The Company enters into contracts that can include multiple services, which are accounted for separately if they are determined to be distinct.

To determine the transaction price for contracts in which a customer promises consideration in a form other than cash, the Company measures the estimated fair value of the noncash consideration at contract inception. If the Company cannot reasonably estimate the fair value of the noncash consideration, the Company measures the consideration indirectly by reference to the stand-alone selling price of the products promised to the customer or class of customer in exchange for the consideration.

Our service contracts include maintenance or repair service for device purchases and personnel service to assist in the use and operation of leased-out equipment under lease agreements where the Company is the lessor.

The revenues from maintenance or repair service contracts are recognized over the service contract period on a straight-line basis. In the event that a customer does not sign a service contract, but requests maintenance or repair services after the warranty expires, the Company recognizes revenue when the service is rendered. There is no termination provision in the service contract or any penalties in practice for cancellation of the service contract.

The revenues from personnel service contracts are recognized in the period that the work is performed, as the Company has elected the practical expedient under Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, to recognize revenue in the amount to which the entity has a right to invoice. The service contracts can be terminated by mutual written agreement.

The Company has determined that in practice no significant discount is given on service contracts when offered with the device purchase or equipment lease as compared to when sold on a stand-alone basis. The service level provided is identical whether the service contract is purchased on a stand-alone basis or together with the device purchase or equipment lease. The Company may also incur preparation cost to ensure the customer’s space meets the requirement and specifications for the operation of the equipment. The preparation cost is expensed as incurred.

The components of disaggregated revenue for the three and six months ended June 30, 2025 and 2024 were as follows:

Schedule of Total Revenue

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
(in thousands)	2025		2024		2025		2024
Product Revenue - recognized at a point in time	$	5,390	$	8,074	$	12,098	$	17,566
Product Revenue - recognized over time		358		—		557		—
Service Revenue - recognized at a point in time		726		367		1,350		739
Service Revenue - recognized over time		841		798		1,654		1,597
Total Revenue	$	7,315	$	9,239	$	15,659	$	19,902

The Company operates in a highly regulated environment, primarily in the U.S. dermatology market, in which state regulatory approval is sometimes required prior to the customer being able to use the product. In cases where such regulatory approval is pending, revenue is deferred until such time as regulatory approval is obtained.

Deferred revenue activity as of June 30, 2025 was as follows:

Schedule of Deferred Revenue

(in thousands)	Product		Service			Total
December 31, 2024	$	81	$	515		$	596
Revenue recognized		—		(1,654	)		(1,654	)
Amounts invoiced		—		1,619			1,619
June 30, 2025	$	81	$	480		$	561

Remaining performance obligations of deposits for products have original expected durations of one year or less. Estimated service revenue to be recognized in the future related to the performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2025 is as follows:

Year	Service Revenue
2025 (July 1 - December 31, 2025)		348
2026		122
2027		10
Total	$	480

For the six months ended June 30, 2025 and 2024, the Company paid commissions for certain equipment sales. Because the recovery of commissions is expected to occur from product revenue within one year, the Company charges commissions to expense as incurred.

In addition, the Company incurs commissions associated with equipment lease agreements, which are accounted as initial direct costs and recorded in other noncurrent assets in the condensed consolidated balance sheets. The commission is capitalized at the commencement of the lease and recognized as an expense in selling and marketing expenses over the lease term.

Shipping and handling costs are expensed as incurred and are included in cost of sales.

Concentration

Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable.

One customer in the U.S. accounted for 56% and 83% of revenue for the three months ended June 30, 2025 and 2024, respectively, 63% and 77% of the revenue for the six months ended June 30, 2025 and 2024, respectively, and 78% and 86% of the accounts receivable as of June 30, 2025 and December 31, 2024, respectively.

Geographical Information

The following table illustrates total revenue for the three and six months ended June 30, 2025 and 2024 by country.

Schedule of Total Revenue

	For the Three Months Ended
	June 30,
(in thousands)	2025				2024
United States	$	6,712	92	%	$	8,667	94	%
China		587	8	%		572	6	%
Other		16	0	%		—	0	%
Total Revenue	$	7,315	100	%	$	9,239	100	%

	For the Six Months Ended
	June 30,
(in thousands)	2025				2024
United States	$	14,863	95	%	$	19,146	96	%
China		763	5	%		727	4	%
Other		33	0	%		29	0	%
Total Revenue	$	15,659	100	%	$	19,902	100	%

Fair Value of Financial Instruments

Carrying amounts of cash equivalents, accounts receivable, accounts payable and the revolving credit facility approximate fair value due to their relatively short maturities.

Fair Value Measurements

The Company uses a fair value hierarchy that prioritizes inputs to valuation approaches used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. Assets and liabilities measured and reported at fair value are classified and disclosed in one of the following categories:

Level 1 Inputs:

Quoted prices (unadjusted) in active markets for identical assets or liabilities at the reporting date.

●

Level 1 assets may include listed mutual funds, ETFs and listed equities

Level 2 Inputs:

Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; quotes from pricing services or brokers for which the Company can determine that orderly transactions took place at the quoted price or that the inputs used to arrive at the price are observable; and inputs other than quoted prices that are observable, such as models or other valuation methodologies.

●

Level 2 assets may include debt securities and foreign currency exchange contracts that have inputs to the valuations that generally can be corroborated by observable market data.

Level 3 Inputs:

Unobservable inputs for the valuation of the asset or liability, which may include nonbinding broker quotes.

●

Level 3 assets include investments for which there is little, if any, market activity. These inputs require significant management judgment or estimation.

Significance of Inputs: The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument.

Cash and Cash Equivalents

Cash and cash equivalents primarily consist of cash, money market funds and short-term, highly liquid investments with original maturities of three months or less.

Accounts Receivable

The Company does business and extends credit based on an evaluation of each customer’s financial condition, generally without requiring collateral. Exposure to losses on receivables is expected to vary by customer due to the financial condition of each customer. The Company estimates future credit losses based on the age of customer receivable balances, collection history and forecasted economic trends. Future collections can be significantly different from historical collection trends or current estimates. The Company monitors exposure to credit losses and maintains allowances for anticipated losses considered necessary under the circumstances. The allowance for expected credit losses was $0.1 million as of June 30, 2025 and December 31, 2024. Credit loss expense was $0 and $42 thousand for both the three and six months ended June, 2025 and 2024, respectively.

Inventories

Inventories consist of finished product and components and are stated at the lower of cost or net realizable value, determined using the first-in, first-out method.

Earnings Per Share

Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding for the period using the treasury stock method for options, restricted stock and warrants. Diluted net income (loss) per share is computed by giving effect to all potential dilutive common share equivalents outstanding for the period.

The factors used in the net income (loss) per share computation are as follows:

	For the Three Months Ended					For the Six Months Ended
	June 30,					June 30,
(in thousands)	2025			2024		2025			2024
Basic
Net (loss) income	$	(1,037	)	$	1,612	$	(3,609	)	$	3,886
Weighted average number of shares used in computing net (loss) income per share – basic		16,320			16,298		16,331			16,297
Net (loss) income per share - basic	$	(0.06	)	$	0.10	$	(0.22	)	$	0.24
Diluted
Net (loss) income	$	(1,037	)	$	1,612	$	(3,609	)	$	3,886
Weighted average number of shares used in computing net (loss) income per share – basic		16,320			16,298		16,331			16,297
Dilutive effects of:
Restricted stock awards		—			35		—			29
Weighted average number of shares used in computing net (loss) income per share – diluted		16,320			16,333		16,331			16,326
Net (loss) income per share - diluted	$	(0.06	)	$	0.10	$	(0.22	)	$	0.24

The shares in full amount listed below were not included in the computation of diluted net (loss) income
per share because to do so would have been antidilutive for the periods presented:
Restricted stock awards		120,000			52,500		120,000			52,500
Stock options		77,550			86,550		77,550			86,550

Diluted net loss per share for the three and six months ended June 30, 2025 excludes the dilutive effect of any stock options or shares issued under restricted stock awards, as the inclusion would be antidilutive due to the Company’s net loss during the period. Diluted net income per share for the three and six months ended June 30, 2024 includes the dilutive effect of restricted stock awards that were issued in July 2021 and January 2024 to our directors, officers, and employees. Diluted weighted average common shares outstanding for the three and six months ended June 30, 2025 excludes stock options whose exercise prices were higher than the average price of our shares of common stock during the period. Diluted weighted average common shares outstanding for the three and six months ended June 30, 2024 also excludes the 52,500 shares issued under restricted stock awards in December 2022 to employees, as the average price of our shares of common stock during the three and six months ended June 30, 2024 was less than average unrecognized compensation expense.

Leases

The Company evaluates arrangements at inception to determine if an arrangement is or contains a lease. Operating lease assets represent the Company’s right to control an underlying asset for the lease term, and operating lease liability represents the Company’s obligation to make lease payments arising from the lease. Control of an underlying asset is conveyed to the Company if the Company obtains the rights to direct the use of and to obtain substantially all of the economic benefits from using the underlying asset. Operating lease assets and liabilities are recognized at the commencement date of the lease based upon the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company uses an incremental borrowing rate that the Company would expect to incur for a fully collateralized loan over a similar term under similar economic conditions to determine the present value of the lease payments. The Company has lease agreements which include lease and non-lease components, which the Company has elected to account for as a single lease component for all classes of underlying assets.

The lease payments used to determine the Company’s operating lease assets may include lease incentives, and stated rent increases are recognized in the Company’s operating lease assets in the Company’s condensed consolidated balance sheets. Operating lease assets are amortized to rent expense over the lease term and included in operating expenses in the condensed consolidated statements of income (loss).

For leases in which the Company is the lessor, the Company identifies the lease and non-lease components and allocates the contract consideration to the different components on a relative stand-alone selling price basis at lease inception. The Company uses a residual approach for the components when the stand-alone selling price is not directly observable or those for which the Company has not established a price.

The Company elects the practical expedient to combine lease and non-lease components when the components qualify to be combined. Continuous supporting services are the primary non-lease components and are not predominant. As a result, the combined components are accounted for as a lease under ASC 842, Leases. The revenues from non-lease components that are not qualified to be combined are recognized when the services are rendered under ASC 606, Revenue from Contracts with Customers. The revenues from non-lease components were $29 thousand and $50 thousand for the three months ended June 30, 2025 and 2024, respectively, and $176 thousand and $50 thousand for the six months ended June 30, 2025 and 2024, respectively.

For operating leases where the Company is the lessor, the Company recognizes the underlying assets and depreciates them over the estimated useful life which is based upon to estimate the residual value expected at the end of the lease term. Lease income is recognized on a straight-line basis over the lease term when the lease payment is determined. Leasing revenue is not recognized when collection of all contractual rents over the term of the agreement is not probable. When collection is not probable, the Company limits the lease revenue to the lesser of the revenue recognized on a straight-line basis or cash basis. The lease income is included in revenues in the condensed consolidated statements of income (loss).

Variable lease payments associated with the leases are recognized when the event, activity, or circumstance in the lease agreement on which those payments are assessed occurs. Variable lease payments are presented within revenues in the condensed consolidated statements of income (loss).

Income Taxes

The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s condensed consolidated financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on differences between the financial statement carrying amounts and the tax bases of the assets and liabilities using the enacted tax rates in effect in the years in which the differences are expected to reverse. A valuation allowance against deferred tax assets is recorded if, based on the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

Uncertain tax positions are recognized in the condensed consolidated financial statements only if that position is more likely than not to be sustained upon examination by taxing authorities, based on the technical merits of the position. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense.

Recent Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to enhance transparency into income tax disclosures. The amendments require annual disclosure of certain information relating to the rate reconciliation, income taxes paid by jurisdiction, income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign jurisdictions, income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign jurisdictions. The amendments also eliminate certain requirements relating to unrecognized tax benefits and certain deferred tax disclosure relating to subsidiaries and corporate joint ventures. The ASU is effective for fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its condensed consolidated financial statements and related disclosures.

In March 2024, the FASB issued ASU 2024-01, Compensation - Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards, to clarify how an entity determines whether a profits interest or similar award is within the scope of Topic 718 or is not a share-based payment arrangement and therefore within the scope of other guidance. ASU 2024-01 provides an illustrative example with multiple fact patterns and also amends certain language in the “Scope” and “Scope Exceptions” sections of Topic 718 to improve its clarity and operability without changing the guidance. The ASU is effective for fiscal years beginning after December 15, 2024, and interim periods within those annual periods. Early adoption is permitted. These updates do not have a significant impact on the Company’s condensed consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures, which requires entities to (i) disclose amounts of (a) purchase of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, and, (e) depreciation, depletion, and amortization recognized as part of oil-and gas-producing activities, (ii) include certain amounts that are already required to be disclosed under current U.S. GAAP in the same disclosures as other disaggregation requirements, (iii) disclose a qualitative description of the amounts remaining in relevant expense captions that are not necessarily disaggregated quantitatively, and (iv) disclose the total amount of selling expenses, in annual reporting periods, an entity’s definition of selling expense. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating ASU 2024-03 to determine the impact it may have on its condensed consolidated financial statements.

Note 2 — Property and Equipment

Property and equipment consist of the following:

Schedule of Property and Equipment

(in thousands)	As of June 30, 2025			As of December 31, 2024			Estimated Useful Lives

Operations equipment	$	968		$	940		3-10 years
Equipment leased to customers		2,357			1,597		10 years
Tradeshow and demo equipment		1,184			1,184		3 years
Computer equipment		175			168		3 years
Research and development equipment		100			—		3 years
Subtotal		4,784			3,889
Construction in progress		228			228
Less accumulated depreciation		(2,298	)		(2,120	)
Property and Equipment, Net	$	2,714		$	1,997

Depreciation expense was $99 thousand and $31 thousand for the three months ended June 30, 2025 and 2024, respectively, and $185 thousand and $101 thousand for the six months ended June 30, 2025 and 2024, respectively.

Note 3 — Debt

On September 11, 2023, the Company entered into a new revolving credit facility (the “Credit Facility”) with Comerica Bank (“Comerica”) that originally provided for maximum borrowings of $10 million. In October 2024, the Credit Facility was amended to extend the term of the Credit Facility and to increase the maximum borrowings to $15 million. The Credit Facility may be terminated by the Company or Comerica at any time without penalty. At June 30, 2025, the available borrowings under this facility were $15 million. Any borrowings bear interest at the Secured Overnight Financing Rate plus 2.50% (or 6.95% at June 30, 2025) and would be due upon demand by Comerica. The Credit Facility is secured by all of the Company’s assets. The Credit Facility includes covenants requiring that the Company maintain (1) unencumbered liquid assets having a minimum value of $10.0 million in a Comerica account; (2) minimum profitability of $1 on a trailing 12-month basis; and (3) the contractual relationship with the manufacturer of the SRT-100 discussed in Note 6, Commitments and Contingencies – Manufacturing Agreement.

The Company was in compliance with its financial covenants under the Credit Facility as of June 30, 2025 and December 31, 2024. There were no borrowings outstanding under the facility at June 30, 2025 and December 31, 2024.

Note 4 — Product Warranties

Changes in product warranty liability were as follows for the six months ended June 30, 2025:

(in thousands)
Balance, December 31, 2024	$	329
Warranties accrued during the period		138
Payments on warranty claims		(200	)
Balance, June 30, 2025	$	267

Note 5 — Leases

Operating Lease Agreements

The Company leases its headquarters office from an unrelated third party under a lease expiring in September 2027. The amortization expense of the right of use lease asset was $59 thousand and $48 thousand for the three months ended June 30, 2025 and 2024, respectively, and $118 thousand and $95 thousand for the six months ended June 30, 2025 and 2024, respectively. In January 2025, the Company entered into a sublease agreement with an unrelated third party to lease a new office space which is adjacent to the current headquarters office. The term of the sublease ends in September 2027.

The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s operating leases as of June 30, 2025.

Schedule of Received Lease Agreements

Maturity of Operating Lease Liability	Amount
2025 (July 1 - December 31, 2025)	$	138
2026		281
2027		214
Total undiscounted operating leases payments	$	633
Less: Imputed interest		(38	)
Present Value of Operating Lease Liability	$	595
Operating lease liability, current portion	$	252
Operating lease liability, net of current portion	$	343

Other Information
Weighted-average remaining lease term		2.25 years
Weighted-average discount rate		5.32	%

Cash paid for amounts included in the measurement of the operating lease liability was $118 thousand and $85 thousand for the six months ended June 30, 2025 and 2024, respectively, and is included in cash flows from operating activities in the accompanying condensed consolidated statements of cash flows.

Operating lease cost recognized as expense was $68 thousand and $57 thousand for the three months ended June 30, 2025 and 2024, respectively, and $136 thousand and $114 thousand for the six months ended June 30, 2025 and 2024, respectively. The financing component for operating lease liability represents the effect of discounting the operating lease payments to their present value.

Lessor Accounting

The Company, through its subsidiary, Sensus Healthcare Services, LLC, leases superficial radiotherapy equipment to dermatology clinics. The leases generally have initial lease terms of sixty months and automatically renew for a one-year period upon the expiration of the initial lease terms. Payments due under the leases may be fixed or variable payments.

The component of lease income for the three and six months ended June 30, 2025 is as follows:

Schedule of Operating Lease Income

	For the		For the
	Three Months Ended		Six Months Ended
(in thousands)	June 30, 2025		June 30, 2025
Lease income - operating leases - fixed payments	$	64	$	128
Lease income - operating leases - variable payments		294		429
Total	$	358	$	557

The future minimum fixed lease payments to be received under the lease agreements as of June 30, 2025 are as follows:

Schedule of Received Lease Agreements

(in thousands)	Amount
2025 (July 1 - December 31, 2025)	$	128
2026		256
2027		256
2028		256
2029		256
Thereafter		87
Total	$	1,239

Note 6 – Commitments and Contingencies

Manufacturing Agreement

The Company has a contract manufacturing agreement with an unrelated third party for the production and manufacture of the SRT-100 (and subsequently the SRT-100 Vision and the SRT-100+), in accordance with the Company’s product specifications. The agreement renews for successive one-year periods unless either party notifies the other party in writing, at least sixty days prior to the anniversary date of the agreement, that it will not renew the agreement. The Company or the manufacturer may terminate the agreement upon ninety days’ prior written notice.

The Company pays this manufacturer for finished goods in advance of the inventory being received. The Company paid this manufacturer $1.3 million and $0 million for finished goods for the three months ended June 30, 2025 and 2024, respectively, and $4.9 million and $5.7 million for the six months ended June 30, 2025 and 2024, respectively. Finished goods of $4.3 million and $0.3 million were received from this manufacturer for the three months ended June 30, 2025 and 2024, respectively, and finished goods of $6.5 million and $5.2 million were received from this manufacturer for the six months ended June 30, 2025 and 2024, respectively. As of June 30, 2025 and December 31, 2024, a prepayment related to these finished goods of $2.7 million and $3.3 million, respectively, was presented in prepaid inventory in the accompanying condensed consolidated balance sheets.

Legal Contingencies

The Company is party to certain legal proceedings in the ordinary course of business. The Company assesses, in conjunction with its legal counsel, the need to record a liability for litigation and related contingencies.

In 2015, the Company learned that the Department of Justice (the “Department”) had commenced an investigation of the billing to Medicare by a physician who had treated patients with the Company’s SRT-100. The Department subsequently advised the Company that it was considering expanding the investigation to determine whether the Company had any involvement in the physician’s use of certain reimbursements codes. The Company has received two Civil Investigative Demands from the Department seeking documents and written responses in connection with its investigation. The Company has fully cooperated with the Department. The Company disputes that it has engaged in any wrongdoing with respect to such reimbursement claims; among other considerations, the Company does not submit claims for reimbursement or provide coding or billing advice to physicians. To the Company’s knowledge, the Department has made no determination as to whether the Company engaged in any wrongdoing, or whether to pursue any legal action against the Company. Should the Department decide to pursue legal action, the Company believes it has strong and meritorious defenses and will vigorously defend itself. As of June 30, 2025, the Company was unable to estimate the cost, if any, associated with this matter.

Note 7 — Stockholders’ Equity

Preferred Stock

The Company has authorized 5,000,000 shares of preferred stock. No shares of preferred stock were issued or outstanding at June 30, 2025 or December 31, 2024.

Treasury Stock

Treasury stock includes shares surrendered by employees for tax withholding on the vesting of restricted stock awards and shares repurchased in open market transactions. No shares were surrendered by employees for tax withholding for the three and six months ended June 30, 2025 and 2024. During the three months ended June 30, 2025 and 2024, the Company did not repurchase any shares in open market transactions. During the six months ended June 30, 2025 and 2024, the Company repurchased 50,360 and zero shares in open market transactions, respectively.

Note 8 — Equity-based Compensation

2016 and 2017 Equity Incentive Plans

The Company’s 2016 Equity Incentive Plan and the 2017 Incentive Plan, as amended in June 2023 (collectively, the “Plans”), provide for the issuance of up to 397,473 shares and 750,000 shares, respectively. In addition, unless the Compensation Committee specifically determines otherwise, the maximum number of shares available under the Plans and the awards granted under the Plans will be subject to appropriate adjustment in the case of any stock dividends, stock splits, recapitalizations, reorganizations, mergers, consolidations, exchanges or other changes in capitalization affecting the Company’s common stock. The awards may be made in various forms of equity-based incentive compensation, including restricted stock awards, stock options, stock appreciation rights, performance shares and phantom stock, and awards consisting of combinations of such incentive awards. As of June 30, 2025 and December 31, 2024, 200,223 and 195,223 shares were available to be granted under the Plans, respectively.

On January 11, 2024, 20,000 shares of common stock with a fair value of $2.65 per share, the stock price on the grant date, were issued to an employee. 10,000 of the shares were vested and the expense related to these shares was recognized on the grant date. The remaining 10,000 shares vested in January 2025. The grant date fair value of $2.65 per share is being recognized as expense on a straight-line basis over the vesting period. As of June 30, 2025, the shares issued on January 11, 2024 were fully vested.

On December 17, 2024, 100,000 shares of common stock with a fair value of $7.78 per share, the stock price on the grant date, were issued to employees and directors. 10,000 of the shares issued to one individual vested and the expense related to these shares was recognized on the grant date. The remaining 30,000 shared issued to the same individual vest over a three-year period. The remaining 60,000 shares issued to other individuals vest 25% per year over a four-year period. The grant date fair value of $7.78 per share is being recognized as expense on a straight-line basis over the vesting period. During the six months ended June 30, 2025, none of the common stock were vested or forfeited. As of June 30, 2025, 10,000 of the shares issued on December 17, 2024 were vested.

Restricted Stock

Restricted stock activity for the six months ended June 30, 2025 is summarized below:

Schedule of Restricted Stock Activity

				Weighted-
				Average
				Grant
	Restricted			Date Fair
Outstanding at	Stock			Value
December 31, 2024		135,000		$	7.04
Granted		—			—
Vested		(10,000	)		2.65
Forfeited		(5,000	)		6.40
June 30, 2025		120,000		$	7.44

The Company recognizes forfeitures as they occur. The reduction of stock compensation expense related to the forfeitures was $5 and $1 thousand for the three months ended June 30, 2025 and 2024, respectively, and $5 thousand and $2 thousand for the six months ended June 30, 2025 and 2024, respectively.

Stock compensation expense related to restricted stock, excluding the recognition of forfeitures, was $72 thousand and $66 thousand for the three months ended June 30, 2025 and 2024, respectively, and $151 thousand and $158 thousand for the six months ended June 30, 2025 and 2024, respectively.

Unrecognized stock compensation expense was $0.7 million as of June 30, 2025, which will be recognized over a weighted-average period of 3.0 years.

Stock Options

Stock options expire ten years after the grant date. Options that have been granted are exercisable and vest based on the terms of the related agreements.

The following table summarizes the Company’s stock options activity after December 31, 2024:

Schedule of Stock Option Activity

	Number of Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (In Years)
Outstanding - December 31, 2024		77,550	$	5.55		3.08
Granted		—		—		—
Exercised		—		—		—
Expired		—		—		—
Outstanding - June 30, 2025		77,550	$	5.55		2.58
Exercisable - June 30, 2025		77,550	$	5.55		2.58

No stock compensation expense related to stock options was incurred for the three and six months ended June 30, 2025 and 2024. The stock options outstanding had an intrinsic value of $0 and $0.1 million as of June 30, 2025 and December 31, 2024, respectively.

Note 9 — Income Taxes

The Company accounts for income taxes in accordance with ASC 740, Income Taxes, (“ASC 740”), which prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

Effective income tax rates for interim periods are based upon the Company’s current estimated annual tax rate, which varies based upon the Company’s estimate of taxable earnings or loss and the mix of taxable earnings or loss in the various states in which the Company operates. In addition, the Company recognizes taxes related to unusual or infrequent items or resulting from a change in judgment regarding a position taken in a prior period as discrete items in the interim period in which the event occurs.

As of June 30, 2025 and December 31, 2024, management determined there continues to be sufficient positive evidence that it is more likely than not that the net deferred tax asset (other than foreign net operation losses) is realizable.

Income tax (benefit) expense was ($723) thousand and $579 thousand for the three months ended June 30, 2025 and 2024, respectively. Income tax (benefit) expense was ($613) thousand and $1,406 thousand for the six months ended June 30, 2025 and 2024, respectively.

The effective tax rates for the three months ended June 30, 2025 and 2024 were 41.1% and 26.4%, respectively. The effective tax rates for the six months ended June 30, 2025 and 2024 were 14.5% and 26.6%, respectively. The increase in the effective tax rate for the three months ended June 30, 2025 compared to the prior period was primarily attributable to the reversal of the negative effective tax rate recorded during the three months ended March 31, 2025. This reversal occurred because the projected full-year tax liability began to exceed the amount of estimated tax credits, eliminating the amounts previously recorded in returning to a positive effective tax rate. The decrease in the effective tax rate for the six months ended June 30, 2025 compared to the prior year period was primarily due to an increase in the estimated tax credits that are expected to be generated and utilized.

The effective tax rate differs from the U.S. federal statutory rate for the three and six months ended June 30, 2025, primarily due to nondeductible expenses, state income taxes and the favorable impact of tax credits.

As of June 30, 2025, the Company’s U.S. federal and certain state tax returns remain subject to examination, beginning with those filed for the year ended December 31, 2017.

Note 10 — Segment Reporting

The Company has a single reportable segment focused on selling medical devices which are used to treat oncological and non-oncological skin conditions with SRT technology and providing services related to operating, maintaining, and repairing these devices.

The Company’s chief executive officer serves as the Company’s operating decision-maker (the “CODM”), assessing performance and making operating decisions using net income as the primary measure of profitability. The CODM is not regularly provided with specific segment expenses, but focuses on revenue, gross profit, and net income. Expense information, including cost of sales can be easily computed from the provided information. These segment (and consolidated) measures of profitability are shown in the condensed consolidated statements of income. The measure of segment assets is reported on the condensed consolidated balance sheets as total assets.

Note 11 — Subsequent Events

The Company has evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the condensed consolidated financial statements were issued for potential recognition or disclosure. The Company did not identify any subsequent events that would have required adjustment to or disclosure in the condensed consolidated financial statements.

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following discussion and analysis in conjunction with the information set forth within the financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q, and with our Management’s Discussion and Analysis of Financial Condition and Results of Operations in the 2024 Annual Report.

Overview

Sensus Healthcare, Inc. (together, with its subsidiaries, Sensus Medical Devices Ltd. and Sensus Healthcare Services, LLC, unless the context otherwise indicates, “Sensus,” “we,” “us,” “our,” or the “Company”) is a medical device company committed to providing highly effective, non-invasive and cost-effective treatments for both oncological and non-oncological skin conditions. The Company uses a proprietary low-energy X-ray technology known as superficial radiation therapy (“SRT”), which is based on over a decade of dedicated research and development, and has successfully incorporated SRT into a portfolio of treatment devices: the SRT-100^TM, SRT-100+^TM and SRT-100 Vision^TM. To date, SRT technology has been used to effectively and safely treat oncological and non-oncological skin conditions in hundreds of thousands of patients around the world.

Segment Information

The Company manages its business globally within one reportable segment, which is consistent with how our management views the business, prioritizes investment and resource allocation decisions, and assesses operating performance.

Results of Operations

	For the Three Months Ended June 30,					For the Six Months Ended June 30,
(in thousands, except shares and per share data)	2025			2024		2025			2024

Revenues	$	7,315		$	9,239	$	15,659		$	19,902
Cost of sales		4,412			3,816		8,403			7,817
Gross profit		2,903			5,423		7,256			12,085
Operating expenses
General and administrative		1,986			1,579		4,193			3,158
Selling and marketing		1,389			996		3,575			2,266
Research and development		1,471			866		4,077			1,792
Total operating expenses		4,846			3,441		11,845			7,216
(Loss) income from operations		(1,943	)		1,982		(4,589	)		4,869
Other income:
Interest income, net		183			209		367			423
Other income, net		183			209		367			423
(Loss) income before income tax		(1,760	)		2,191		(4,222	)		5,292
(Benefit from) provision for income taxes		(723	)		579		(613	)		1,406
Net (loss) income	$	(1,037	)	$	1,612	$	(3,609	)	$	3,886

Three months ended June 30, 2025 compared to the three months ended June 30, 2024

Revenues. Revenues were $7.3 million for the three months ended June 30, 2025 compared to $9.2 million for the three months ended June 30, 2024, a decrease of $1.9 million, or 20.7%. The decrease was primarily driven by a lower number of units sold to a large customer in the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

Cost of sales. Cost of sales was $4.4 million for the three months ended June 30, 2025 compared to $3.8 million for the three months ended June 30, 2024, an increase of $0.6 million, or 15.8%. The increase in cost of sales was primarily related to higher costs of servicing systems and the cost associated with the new placement program in the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

Gross profit. Gross profit was $2.9 million for the three months ended June 30, 2025 compared to $5.4 million for the three months ended June 30, 2024, a decrease of $2.5 million, or 46.3%. Our overall gross profit percentage was 39.7% in the three months ended June 30, 2025 compared to 58.7% in the corresponding period in 2024. The decrease in gross profit was primarily driven by lower sales, higher costs of servicing systems, and the cost associated with the new placement program in the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

General and administrative. General and administrative expense was $2.0 million for the three months ended June 30, 2025 compared to $1.6 million for the three months ended June 30, 2024, an increase of $0.4 million, or 25.0%. The net increase in general and administrative expense was primarily due to higher professional fees (legal and consult) and compensation.

Selling and marketing. Selling and marketing expense was $1.4 million for the three months ended June 30, 2025 compared to $1.0 million for the three months ended June 30, 2024, an increase of $0.4 million, or 40.0%. The increase was primarily driven by an increase in tradeshow costs, costs related to clinical studies, and payroll cost due to an increase in headcount.

Research and development. Research and development expense was $1.5 million for the three months ended June 30, 2025 compared to $0.9 million for the three months ended June 30, 2024, an increase of $0.6 million, or 66.7%. The increase was primarily due to an increase in product development costs related to next generation systems.

Other income. Other income of $0.2 million for the three months ended June 30, 2025 and 2024 relates primarily to interest income.

Income taxes. The effective tax rates for the three months ended June 30, 2025 and 2024 were 41.1% and 26.4%, respectively. The increase in the effective tax rate for the three months ended June 30, 2025 compared to the prior period was primarily attributable to the reversal of the negative effective tax rate recorded during the three months ended March 31, 2025. This reversal occurred because the projected full-year tax liability began to exceed the amount of estimated tax credits, eliminating the amounts previously recorded in returning to a positive effective tax rate.

Six months ended June 30, 2025 compared to the six months ended June 30, 2024

Revenues. Revenues were $15.7 million for the six months ended June 30, 2025 compared to $19.9 million for the six months ended June 30, 2024, a decrease of $4.2 million, or 21.1%. The decrease was primarily driven by a lower number of units sold to a large customer in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

Cost of sales. Cost of sales was $8.4 million for the six months ended June 30, 2025 compared to $7.8 million for the six months ended June 30, 2024, an increase of $0.6 million, or 7.7%. The increase in cost of sales was primarily related to higher costs of servicing systems and the cost associated with the new placement program in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

Gross profit. Gross profit was $7.3 million for the six months ended June 30, 2025 compared to $12.1 million for the six months ended June 30, 2024, a decrease of $4.8 million, or 39.7%. Our overall gross profit percentage was 46.5% in the six months ended June 30, 2025 compared to 60.8% in the corresponding period in 2024. The decrease in gross profit was primarily driven by lower sales, higher costs of servicing systems, and the cost associated with the new placement program in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

General and administrative. General and administrative expense was $4.2 million for the six months ended June 30, 2025 compared to $3.2 million for the six months ended June 30, 2024, an increase of $1.0 million, or 31.3%. The net increase in general and administrative expense was primarily due to higher professional fees and compensation.

Selling and marketing. Selling and marketing expense was $3.6 million for the six months ended June 30, 2025 compared to $2.3 million for the six months ended June 30, 2024, an increase of $1.3 million, or 56.5%. The increase was primarily driven by an increase in tradeshow costs, costs related to clinical studies, and payroll cost due to an increase in headcount.

Research and development. Research and development expense was $4.1 million for the six months ended June 30, 2025 compared to $1.8 million for the six months ended June 30, 2024, an increase of $2.3 million, or 127.8%. The increase was primarily due to significant lobbying costs related to billing code reimbursement, increased headcount, and an increase in product development costs related to next generation systems.

Other income. Other income of $0.4 million for the six months ended June 30, 2025 and 2024 relates primarily to interest income.

Income taxes. The effective tax rates for the six months ended June 30, 2025 and 2024 were 14.5% and 26.6%, respectively. The decrease in the effective tax rate for the six months ended June 30, 2025 compared to the prior year period was primarily due to an increase in the estimated tax credits that are expected to be generated and utilized.

Financial Condition

The following discussion summarizes significant changes in assets and liabilities. Please see the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024 contained in Part I, Item 1 of this filing.

Assets

Cash and cash equivalents were $22.2 million at June 30, 2025 compared to $22.1 million at December 31, 2024, an increase of $0.1 million. See Cash Flows for details on the change in cash and cash equivalents during the six months ended June 30, 2025.

Accounts receivable was $12.6 million at June 30, 2025 compared to $19.7 million at December 31, 2024, a decrease of $7.1 million. The decrease was primarily due to the decrease in sales and concentration of sales to the Company’s primary customer that is subject to extended payment terms.

Inventories was $12.4 million at June 30, 2025 compared to $10.1 million at December 31, 2024, an increase of $2.3 million. The increase was primarily due to the anticipation of increasing future sales.

Liabilities

There were no borrowings outstanding under our revolving line of credit with Comerica Bank at June 30, 2025 or December 31, 2024.

Liquidity and Capital Resources

In general terms, liquidity is a measurement of the Company’s ability to meet its cash needs. For the six months ended June 30, 2025, funding was derived primarily from cash generated by the sale of equipment to our customers in the ordinary course of business. The Company believes that proceeds from maturing cash equivalents, as well as the Company’s borrowing capacity under its existing line of credit and access to capital resources are sufficient to meet operating capital and funding requirements for the next 12 months from the date of this quarterly report. Please see Note 3, Debt, to the condensed consolidated financial statements for a discussion regarding the Company’s revolving credit facility with Comerica Bank. The Company’s liquidity position and capital requirements may be impacted by a number of factors, including the following:

●

ability to generate and increase revenue;

●

fluctuations in gross margins, operating expenses and net results; and

●

financial market instability or disruptions to the banking system due to bank failures

The Company’s primary short-term capital needs, which are subject to change, include expenditures related to:

●

expansion of sales and marketing activities; and

●

expansion of research and development activities.

The Company claimed Employee Retention Credits (“ERC”) as provided in the Coronavirus Aid, Relief, and Economic Security Act of 2020 and subsequent amendments. The ERC is a fully refundable payroll tax credit to provide financial incentives to eligible businesses to retain their workforce through the period of financial hardship resulting from the COVID-19 pandemic. The Company received $0.3 million in the second quarter of 2025 and $0.2 million in the fourth quarter of 2024. These amounts were recorded against the payroll expenses in the condensed consolidated statements of income (loss). Further claims outstanding will be recorded in the period in which payment is received.

Sensus’s management regularly evaluates cash requirements for current operations, commitments, capital requirements and business development transactions, and may seek to raise additional funds for these purposes in the future. However, there can be no assurance that it will be able to raise such funds or the terms on which such funds may be raised, if at all.

Cash flows

The following table provides a summary of cash flows for the periods indicated:

	For the Six Months Ended June 30,
(in thousands)	2025			2024
Net cash provided by (used in):
Operating activities	$	440		$	(3,957	)
Investing activities		(34	)		(236	)
Financing activities		(300	)		17
Total	$	106		$	(4,176	)

Cash flows from operating activities

Net cash provided by operating activities was $0.4 million for the six months ended June 30, 2025, consisting of net loss of $3.6 million and non-cash activity of less than $0.1 million, offset by a decrease in net operating assets of $4.1 million, primarily driven by a $7.1 million decrease in accounts receivable and a $3.2 million increase in inventories. Cash flows provided by operating activities primarily include the receipt of revenues offset by the payment of operating expenses incurred in the normal course of business. Non-cash items consisted of stock-based compensation expense, deferred income taxes, provision for product warranties, amortization of right-of-use asset and depreciation and amortization of property and equipment. Net cash used in operating activities was $4.0 million for the six months ended June 30, 2024, consisting of net income of $3.9 million and non-cash charges of $1.1 million, offset by an increase in net operating assets of $9.0 million, primarily driven by a $7.7 million increase in accounts receivable and a $1.0 million increase in inventories. Cash flows provided by operating activities primarily include the receipt of revenues offset by the payment of operating expenses incurred in the normal course of business. Non-cash items consisted of credit loss expense, deferred income taxes, stock-based compensation expense, provision for product warranties, amortization of right-of-use asset and depreciation and amortization of property and equipment.

Cash flows from investing activities

Net cash used in investing activities for the six months ended June 30, 2025 reflected $34 thousand of purchases of property and equipment. Net cash used in investing activities for the six months ended June 30, 2024 reflected $0.2 million of purchases of property and equipment.

Cash flows from financing activities

Net cash used in financing activities for the six months ended June 30, 2025 reflected $0.3 million of repurchases of common stock. Net cash provided by financing activities for the six months ended June 30, 2024 reflected $17 thousand of exercised stock options.

Inflation

During the first and second quarters of 2025, we continued to experience some increase in commodity and shipping prices and energy and labor costs which resulted in inflationary pressures across various parts of our business and operations, including on our customers, partners, and suppliers. We continue to monitor the impact of inflation and we are taking actions, such as ordering inventory in advance, to minimize its effects on our product cost and sales.

Indebtedness

Please see Note 3, Debt, to the condensed consolidated financial statements.

Contractual Obligations and Commitments

Please see Note 6, Commitments and Contingencies, to the condensed consolidated financial statements.

Critical Accounting Policies and Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expense during the reporting periods. Management has not applied any critical accounting estimates but has identified revenue recognition policies as critical to understanding the financial condition and results of operations. For a detailed discussion on the application of these and other accounting policies, see the Note 1, Organization and Summary of Significant Accounting Policies to the consolidated financial statements included in the 2024 Annual Report for further information.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

Item 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Control and Procedures

As of June 30, 2025, the end of the period covered by this Form 10-Q, our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer each concluded that, as of June 30, 2025, the end of the period covered by this Form 10-Q, we maintained effective disclosure controls and procedures.

Changes in Internal Control Over Financial Reporting

There have been no significant changes in our internal control over financial reporting during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Item 1A. Risk Factors

In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factors discussed in Part I, Item 1A. “Risk Factors” in our 2024 Annual Report, as updated in our subsequent quarterly reports. The risks described in our 2024 Annual Report and our subsequent quarterly reports are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or operating results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a)

Sales of Unregistered Securities

There were no unregistered sales of securities during the three months ended June 30, 2025.

(b)

Use of Proceeds from the Sale of Registered Securities

None.

(c)

Purchases of Equity Securities by the Registrant and Affiliated Purchasers.

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosure

Not applicable.

Item 5. Other Information

(c) Rule 10b5-1 Trading Plans

During the three months ended June 30, 2025, none of our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act or any “non-Rule 10b5-1 trading arrangement” as defined in Item 408(c) of Regulation S-K. None.

Item 6. Exhibits

EXHIBIT INDEX

Exhibit No.		Description
31.1*		Certification of Joseph C. Sardano, Chairman and Chief Executive Officer of Sensus Healthcare, Inc., Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.

31.2*		Certification of Javier Rampolla, Chief Financial Officer of Sensus Healthcare, Inc., Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.

32.1*		Certification of Joseph C. Sardano, Chairman and Chief Executive Officer of Sensus Healthcare, Inc., Pursuant to 18 U.S.C. Section 1350.

32.2*		Certification of Javier Rampolla, Chief Financial Officer of Sensus Healthcare, Inc., Pursuant to 18 U.S.C. Section 1350.

101.INS*		Inline XBRL Instance Document.

101.SCH*		Inline XBRL Taxonomy Extension Schema Document.

101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document.

101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document.

104.*		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

*	Filed electronically herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SENSUS HEALTHCARE, INC.

Date: August 12, 2025	/s/ Joseph C. Sardano
	Joseph C. Sardano
	Chief Executive Officer
	(Principal Executive Officer)

Date: August 12, 2025	/s/ Javier Rampolla
	Javier Rampolla
	Chief Financial Officer
	(Principal Financial Officer and Principal Accounting Officer)

Source: View Original Filing on SEC EDGAR

FAQ

What were Sensus Healthcare (SRTS) revenues for the six months ended June 30, 2025?

Total revenue for the six months ended June 30, 2025 was $15.659 million, down 21.1% from $19.902 million in the prior-year period.

Did Sensus (SRTS) report profit or loss in H1 2025?

Sensus reported a net loss of $3.609 million for the six months ended June 30, 2025, compared with net income of $3.886 million in the prior-year six months.

How much cash and borrowing capacity did Sensus have at June 30, 2025?

The company held $22.162 million in cash and cash equivalents and had $15.0 million available under its revolving credit facility, with no borrowings outstanding.

How concentrated are Sensus's sales and receivables?

One U.S. customer accounted for 56% of revenue in Q2 2025 and 78% of accounts receivable as of June 30, 2025.

What drove the increase in operating expenses?

Operating expenses rose due to higher professional fees and compensation, increased tradeshow and clinical study costs, and higher R&D spending; R&D increased 127.8% YTD driven by lobbying, headcount and next-generation product development.

Are there any legal contingencies disclosed by Sensus (SRTS)?

Yes. The company disclosed a Department of Justice investigation dating from 2015, two Civil Investigative Demands, and stated it cannot estimate any potential cost related to this matter as of June 30, 2025.

[10-Q] Sensus Healthcare, Inc Quarterly Earnings Report

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