Sensus Healthcare Inc
For the period ended Sep 30, 2024. Filed Nov 14, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 14, 2024
SRTS$2.86-2.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-13.
0001213900-24-068165
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-14.
0001213900-24-098193
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 48 previous paragraphs and 51 current paragraphs.
22 unchanged; 25 reworded; 4 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
Nine months ended September 30, 2024 compared to the nine months ended September 30, 2023
Current report
Cash flows from operating activities
Current report
Cash flows from investing activities
Current report
Cash flows from financing activities
Removed paragraphs (1)
Previous report
Six months ended June 30, 2024 compared to the six months ended June 30, 2023
Reworded paragraphs (25)
Previous wording
The Company manages its business globally within one reportable segment, which is consistent with how our management reviews the business, prioritizes investment and resource allocation decisions and assesses operating performance.
Current wording
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.
Previous 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.
Current wording
**Revenues.**Revenues were $8.8 million for the three months ended September 30, 2024 compared to $3.9 million for the three months ended September 30, 2023, an increase of $4.9 million, or 125.6%. The increase was primarily driven by a higher number of units sold to a large customer in the three months ended September 30, 2024 compared to the three months ended September 30, 2023.
Previous 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.
Current wording
**Cost of sales.**Cost of sales was $3.6 million for the three months ended September 30, 2024 compared to $1.9 million for the three months ended September 30, 2023, an increase of $1.7 million, or 89.5%. 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 September 30, 2024 compared to the three months ended September 30, 2023.
Previous 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.
Current wording
**Gross profit.**Gross profit was $5.2 million for the three months ended September 30, 2024 compared to $2.0 million for the three months ended September 30, 2023, an increase of $3.2 million, or 160.0%. Our overall gross profit percentage was 59.1% in the three months ended September 30, 2024 compared to 51.3% 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 September 30, 2024 compared to the three months ended September 30, 2023.
Previous 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.
Current wording
**Selling and marketing.**Selling and marketing expense was $1.3 million for the three months ended September 30, 2024 and 2023.
Previous 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.
Current wording
**General and administrative.**General and administrative expense was $1.6 million for the three months ended September 30, 2024 compared to $1.5 million for the three months ended September 30, 2023, an increase of $0.1 million, or 6.7%. The net increase in general and administrative expense was primarily due to higher compensation and bad debt expense, which were offset by a reduction in bank fees.
Previous 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.
Current wording
Research and development. Research and development expense was $0.9 million for the three months ended September 30, 2024 compared to $1.1 million for the three months ended September 30, 2023, a decrease of $0.2 million, or 18.2%. The decrease was primarily due to expenses related to a project to develop a drug delivery system for aesthetic use, as most of the development expenses occurred in the 2023 period.
Previous wording
Other income. Other income of $0.2 million for the three months ended June 30, 2024 and 2023 relate primarily to interest income.
Current wording
Other income. Other income of $0.3 million for the three months ended September 30, 2024 and 2023 relate primarily to interest income.
Previous wording
**Revenues.**Revenues were $20.0 million for the six months ended June 30, 2024 compared to $8.0 million for the six months ended June 30, 2023, an increase of $12.0 million, or 151.9%. The increase was primarily driven by a higher number of units sold to a large customer in the six months ended June 30, 2024 compared to the six months ended June 30, 2023.
Current wording
**Revenues.**Revenues were $28.7 million for the nine months ended September 30, 2024 compared to $11.8 million for the nine months ended September 30, 2023, an increase of $16.9 million, or 143.2%. The increase was primarily driven by a higher number of units sold to a large customer in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023.
Previous wording
**Cost of sales.**Cost of sales was $7.8 million for the six months ended June 30, 2024 compared to $3.7 million for the six months ended June 30, 2023, an increase of $4.1 million, or 110.8%. The increase in cost of sales was primarily related to a higher number of units sold in the six months ended June 30, 2024 compared to the six months ended June 30, 2023.
Current wording
**Cost of sales.**Cost of sales was $11.4 million for the nine months ended September 30, 2024 compared to $5.6 million for the nine months ended September 30, 2023, an increase of $5.8 million, or 103.6%. The increase in cost of sales was primarily related to a higher number of units sold in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023.
Previous wording
**Gross profit.**Gross profit was $5.4 million for the three months ended June 30, 2024 compared to $2.6 million for the three months ended June 30, 2023, an increase of $2.8 million, or 107.7%. Our overall gross profit percentage remained consistent at 58.7% in the three months ended June 30, 2024 compared to 57.9% in the corresponding period in 2023.
Current wording
**Gross profit.**Gross profit was $17.3 million for the nine months ended September 30, 2024 compared to $6.2 million for the nine months ended September 30, 2023, an increase of $11.1 million, or 179.0%. Our overall gross profit percentage was 60.3% in the nine months ended September 30, 2024 compared to 52.5% in the corresponding period in 2023. The increase in gross profit was primarily driven by a higher number of units sold in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023.
Previous wording
**Selling and marketing.**Selling and marketing expense was $2.3 million for the six months ended June 30, 2024 compared to $3.7 million for the six months ended June 30, 2023, a decrease of $1.4 million, or 37.8%. 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 $3.6 million for the nine months ended September 30, 2024 compared to $5.0 million for the nine months ended September 30, 2023, a decrease of $1.4 million, or 28.0%. The decrease was primarily attributable to the decrease in marketing agency expense, travel expense, and payroll cost due to lower headcount.
Previous wording
**General and administrative.**General and administrative expense was $3.2 million for the six months ended June 30, 2024 compared to $2.7 million for the six months ended June 30, 2023, an increase of $0.5 million, or 18.5%. 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 $4.7 million for the nine months ended September 30, 2024 compared to $4.2 million for the nine months ended September 30, 2023, an increase of $0.5 million, or 11.9%. The net increase in general and administrative expense was primarily due to higher compensation and bad debt expense, which were offset by a reduction in bank fees and insurance expense.
Previous wording
Research and development. Research and development expense was $1.8 million for the six months ended June 30, 2024 compared to $1.9 million for the six months ended June 30, 2023, a decrease of $0.1 million, or 5.3%. Thedecrease was primarily due to expenses related to a project to develop a drug delivery system for aesthetic use.
Current wording
Research and development. Research and development expense was $2.7 million for the nine months ended September 30, 2024 compared to $3.0 million for the nine months ended September 30, 2023, a decrease of $0.3 million, or 10.0%. Thedecrease was primarily due to expenses related to a project to develop a drug delivery system for aesthetic use.
Previous wording
Other income. Other income of $0.4 and 0.5 million for the six months ended June 30, 2024 and 2023, respectively, relate primarily to interest income.
Current wording
Other income. Other income of $0.7 and 0.8 million for the nine months ended September 30, 2024 and 2023, respectively, relate primarily to interest income.
Previous 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.
Current wording
Cash and cash equivalents at September 30, 2024 decreased $0.5 million from December 31, 2023. SeeCash Flowsfor details on the change in cash and cash equivalents during the nine months ended September 30, 2024.
Previous 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.
Current wording
Accounts receivable at September 30, 2024 increased $6.4 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
Inventories at June 30, 2024 increased $0.9 million from December 31, 2023, as volume has been increased in anticipation of increasing future revenues.
Current wording
Inventories at September 30, 2024 increased $0.1 million from December 31, 2023, as volume has been increased in anticipation of increasing future revenues.
Previous wording
There were no borrowings outstanding under our revolving lines of credit at June 30, 2024 or December 31, 2023.
Current wording
There were no borrowings outstanding under our revolving line of credit with Comerica Bank at September 30, 2024 or December 31, 2023.
Previous wording
The Company’s liquidity position and capital requirements may be impacted by a number of factors, including the following:
Current wording
In general terms, liquidity is a measurement of the Company’s ability to meet its cash needs. For the three months ended September 30, 2024, 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 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:
Previous 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.
Current wording
Net cash used in operating activities was $4 thousand for the nine months ended September 30, 2024, consisting of net income of $5.1 million and non-cash charges of $0.6 million, offset by an increase in net operating assets of $5.8 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 approximately $4.8 million for the nine months ended September 30, 2023, consisting of net loss of approximately $3.7 million, a decrease in net working capital of approximately $0.6 million, and non-cash charges of approximately $0.5 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.
Previous 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.
Current wording
Net cash used in investing activities for the nine months ended September 30, 2024 reflected $0.6 million of purchases of property and equipment. Net cash used in investing activities for the nine months ended September 30, 2023 reflected $0.2 million of purchases of property and equipment.
Previous 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.
Current wording
Net cash provided by financing activities for the nine months ended September 30, 2024 reflected $34 thousand of exercised stock options, offset by $47 thousand of withholding taxes on stock-based compensation. Net cash provided in financing activities for the nine months ended September 30, 2023 primarily reflected $46 thousand of exercised stock options, offset by $79 thousand used for the repurchase of common stock and withholding taxes on stock-based compensation.
Previous 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.
Current wording
During the first three 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.
Previous wording
As discussed in Note 3, Debt, to the financial statements, in September 2023, the Company entered into the new Credit Facility with Comerica, replacing the Company’s prior facility with SVB. Additional information regarding the Credit Facility, including the amounts that may be borrowed under the Credit Facility and the covenants and other terms included in the Credit Facility, is included in the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on September 14, 2023.
Current wording
Please see Note 3,Debt, to the condensed consolidated financial statements.