Sensus Healthcare Inc

Previous wording

**Revenues.**Revenues were $10.7 million for the three months ended March 31, 2024 compared to $3.4 million for the three months ended March 31, 2023, an increase of $7.3 million, or 214.7%. The increase was primarily driven by a higher number of units sold to a large customer in the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

Current wording

**Revenues.**Revenues were $9.2 million for the three months ended June 30, 2024 compared to $4.5 million for the three months ended June 30, 2023, an increase of $4.7 million, or 104.4%. The increase was primarily driven by a higher number of units sold to a large customer in the three months ended June 30, 2024 compared to the three months ended June 30, 2023.

Previous wording

**Cost of sales.**Cost of sales was $4.0 million for the three months ended March 31, 2024 compared to $1.8 million for the three months ended March 31, 2023, an increase of $2.2 million, or 122.2%. The increase in cost of sales was primarily related to a higher number of units sold in the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

Current wording

**Cost of sales.**Cost of sales was $3.8 million for the three months ended June 30, 2024 compared to $1.9 million for the three months ended June 30, 2023, an increase of $1.9 million, or 100.0%. The increase in cost of sales was primarily related to a higher number of units sold and was fairly consistent as a percentage of revenue in the three months ended June 30, 2024 compared to the three months ended June 30, 2023.

Previous wording

**Selling and marketing.**Selling and marketing expense was $1.3 million for the three months ended March 31, 2024 compared to $2.1 million for the three months ended March 31, 2023, a decrease of $0.8 million, or 38.1%. The decrease was primarily attributable to the decrease in marketing agency expense, lower headcount and decrease in tradeshow costs.

Current wording

**Selling and marketing.**Selling and marketing expense was $1.0 million for the three months ended June 30, 2024 compared to $1.6 million for the three months ended June 30, 2023, a decrease of $0.6 million, or 37.5%. The decrease was primarily attributable to the decrease in marketing agency expense, lower headcount and decrease in tradeshow costs.

Previous wording

**General and administrative.**General and administrative expense was $1.6 million for the three months ended March 31, 2024 compared to $1.4 million for the three months ended March 31, 2023, an increase of $0.2 million, or 14.3%. The net increase in general and administrative expense was primarily due to higher professional fees and compensation.

Current wording

**General and administrative.**General and administrative expense was $1.6 million for the three months ended June 30, 2024 compared to $1.3 million for the three months ended June 30, 2023, an increase of $0.3 million, or 23.1%. The net increase in general and administrative expense was primarily due to higher professional fees and compensation.

Previous wording

Research and development. Research and development expense was $0.9 million for the three months ended March 31, 2024 compared to $1.1 million for the three months ended March 31, 2023, a decrease of $0.2 million, or 18.2%. The decrease was primarily due to a decrease in expenses related to a project to develop a drug delivery system for aesthetic use as most of the development phase was completed in 2023.

Current wording

Research and development. Research and development expense was $0.9 million for the three months ended June 30, 2024 compared to $0.8 million for the three months ended June 30, 2023, an increase of $0.1 million, or 12.5%. The increase was primarily due to expenses related to a project to develop a drug delivery system for aesthetic use.

Previous wording

**Gross profit.**Gross profit was $6.7 million for the three months ended March 31, 2024 compared to $1.6 million for the three months ended March 31, 2023, an increase of $5.1 million, or 318.8%. Our overall gross profit percentage was 62.5% in the three months ended March 31, 2024 compared to 47.5% in the corresponding period in 2023. The increase in gross profit was primarily driven by a higher number of units sold in the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

Current wording

**Gross profit.**Gross profit was $12.1 million for the six months ended June 30, 2024 compared to $4.2 million for the six months ended June 30, 2023, an increase of $7.9 million, or 188.1%. Our overall gross profit percentage was 60.7% in the six months ended June 30, 2024 compared to 53.4% in the corresponding period in 2023. The increase in gross profit was primarily driven by a higher number of units sold in the six months ended June 30, 2024 compared to the six months ended June 30, 2023.

Previous wording

Cash and cash equivalents at March 31, 2024 decreased $8.4 million from December 31, 2023. SeeCash Flowsfor details on the change in cash and cash equivalents during the three months ended March 31, 2024.

Current wording

Cash and cash equivalents at June 30, 2024 decreased $4.1 million from December 31, 2023. SeeCash Flowsfor details on the change in cash and cash equivalents during the six months ended June 30, 2024.

Previous wording

Accounts receivable at March 31, 2024 increased $9.0 million from December 31, 2023, primarily due to the increase in sales and extension of payment terms.

Current wording

Accounts receivable at June 30, 2024 increased $7.7 million from December 31, 2023, primarily due to the increase in sales and concentration of sales to the Company’s primary customer that is subject to extended payment terms.

Previous wording

There were no borrowings under our revolving lines of credit at March 31, 2024 or December 31, 2023.

Current wording

There were no borrowings outstanding under our revolving lines of credit at June 30, 2024 or December 31, 2023.

Previous wording

Net cash used in operating activities was approximately $8.2 million for the three months ended March 31, 2024, consisting of net income of approximately $2.3 million and non-cash charges of approximately $1.1 million, offset by an increase in net operating assets of $11.6 million. 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 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. Net cash used in operating activities was approximately $6.0 million for the three months ended March 31, 2023, consisting of net loss of approximately $1.9 million, an increase in net operating liabilities of $3.7 million and non-cash charges of approximately $0.4 million. 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 deferred income taxes, stock-based compensation expense, provision for product warranties and depreciation and amortization.

Current wording

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. 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. Net cash used in operating activities was $5.3 million for the six months ended June 30, 2023, consisting of net loss of $2.4 million, an increase in net operating liabilities of $2.3 million, and non-cash charges of $0.6 million. 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 and depreciation and amortization.

Previous wording

Net cash used in investing activities for the three months ended March 31, 2024 reflected $0.2 million of purchases of property and equipment. Net cash used in investing activities for the three months ended March 31, 2023 reflected $0.2 million of purchases of property and equipment.

Current wording

Net cash used in investing activities for the six months ended June 30, 2024 reflected $236 thousand of purchases of property and equipment. Net cash used in investing activities for the six months ended June 30, 2023 reflected $0.2 million of purchases of property and equipment.

Previous wording

No cash was provided by or used in financing activities for the three months ended March 31, 2024. Net cash used in financing activities for the three months ended March 31, 2023 primarily reflected $46 thousand of exercised stock options, offset by $40 thousand of withholding taxes on stock-based compensation.

Current wording

Net cash provided by financing activities for the six months ended June 30, 2024 reflected $17 thousand of exercised stock options. Net cash provided in financing activities for the six months ended June 30, 2023 primarily reflected $46 thousand of exercised stock options, offset by $40 thousand of withholding taxes on stock-based compensation.

Previous wording

During the first quarter of 2024, 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.

Current wording

During the first and second quarters of 2024, 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.