Sensus Healthcare, Inc.
For the period ended Jun 30, 2026. Filed Aug 14, 2026.
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.
Jun 30, 2026 · Filed Aug 14, 2026
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 2026-03-31; filed 2026-05-13.
0001753926-26-000845
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-14.
0001753926-26-001508
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 56 current paragraphs.
28 unchanged; 18 reworded; 6 added; 2 removed; 0 previous and 4 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 (6)
Current report
Income taxes. The effective tax rates for the three months ended June 30, 2026 and 2025 were (185.6%) and 41.1%, respectively. The decrease in the effective tax rate for the three months ended June 30, 2026 compared to the prior period was primarily attributable to the valuation allowance recorded against the Company’s deferred tax assets during the second quarter of 2026.
Current report
Management will continue to evaluate the realizability of its deferred tax assets each reporting period based on all available evidence. Changes in future operating results, taxable income projections, or other relevant evidence could result in changes to the amount of the valuation allowance in future periods.
Current report
Six months ended June 30, 2026 compared to the six months ended June 30, 2025
Current report
Cost of sales. Cost of sales was $3.9 million for the six months ended June 30, 2026 compared to $8.4 million for the six months ended June 30, 2025, a decrease of $4.5 million, or 53.6%. The decrease in cost of sales was primarily related to a lower number of units sold.
Current report
General and administrative. General and administrative expense was $3.8 million for the six months ended June 30, 2026 compared to $4.2 million for the six months ended June 30, 2025, a decrease of $0.4 million, or 9.5%. The net decrease in general and administrative expense was primarily due to lower compensation costs, slightly offset by increase in professional fees.
Current report
Selling and marketing. Selling and marketing expense was $2.8 million for the six months ended June 30, 2026 compared to $3.6 million for the six months ended June 30, 2025, a decrease of $0.8 million, or 22.2%. The decrease was primarily driven by a decrease in tradeshow expenses, commission expenses, and clinical research costs.
Removed paragraphs (2)
Previous report
However, the Company’s operating results have historically exhibited seasonality, with variability in revenue and profitability across interim periods driven in part by the timing of equipment sales and customer purchasing patterns. This seasonality can result in fluctuations in quarterly and annual earnings and introduces additional uncertainty into projections of future taxable income.
Previous report
Management continues to monitor all available evidence, including recent operating results, forecasts of future profitability, and the impact of business trends, in assessing the need for a valuation allowance. While management currently believes it is more likely than not that its deferred tax assets are realizable (excluding certain foreign net operating losses), changes in the Company’s operating performance, including the continuation or worsening of seasonal variability or declines in revenue, could impact this conclusion in future periods and may result in the recording of a valuation allowance, which could materially affect the Company’s results of operations.
Reworded paragraphs (18)
Previous wording
**Revenues.**Revenues were $3.4 million for the three months ended March 31, 2026 compared to $8.3 million for the three months ended March 31, 2025, a decrease of $4.9 million, or 59.0%. The decrease in revenue was primarily driven by a lower number of units sold (10 in the three months ended March 31, 2026, compared to 21 in the three months ended March 31, 2025), reflecting no units sold in the current period to a historically large customer. In addition, some systems placed during the quarter were under Fair Deal Agreement program and rental arrangements, for which revenue is recognized over the term of the agreement rather than at the time of shipment.
Current wording
**Revenues.**Revenues were $2.3 million for the three months ended June 30, 2026 compared to $7.3 million for the three months ended June 30, 2025, a decrease of $5.0 million, or 68.5%. The decrease in revenue was primarily driven by a lower number of units sold (6 in the three months ended June 30, 2026, compared to 19 in the three months ended June 30, 2025), reflecting no sales in the current period to a historically large customer. In addition, some systems placed during the quarter were under the Fair Deal Agreement program and rental arrangements, for which revenue is recognized over the term of the agreement rather than at the time of shipment.
Previous wording
**Cost of sales.**Cost of sales was $2.4 million for the three months ended March 31, 2026 compared to $4.0 million for the three months ended March 31, 2025, a decrease of $1.6 million, or 40%. The decrease in cost of sales was primarily related to lower number of units sold.
Current wording
**Cost of sales.**Cost of sales was $1.5 million for the three months ended June 30, 2026 compared to $4.4 million for the three months ended June 30, 2025, a decrease of $2.9 million, or 65.9%. The decrease in cost of sales was primarily related to a lower number of units sold.
Previous wording
**Gross profit.**Gross profit was $1.0 million for the three months ended March 31, 2026 compared to $4.4 million for the three months ended March 31, 2025, a decrease of $3.4 million, or 77.3%. Our overall gross profit percentage was 29.4% in the three months ended March 31, 2026 compared to 53.0% in the corresponding period in 2025. The decrease in gross profit and margin was primarily driven by product mix, including a higher proportion of international shipments, which carry lower average selling prices, and costs associated with new system placements pursuant to the Fair Deal Agreement program, which are recognized upfront while related revenue is recognized over the term of the applicable agreement.
Current wording
**Gross profit.**Gross profit was $0.8 million for the three months ended June 30, 2026 compared to $2.9 million for the three months ended June 30, 2025, a decrease of $2.1 million, or 72.4%. Our overall gross profit percentage was 34.8% in the three months ended June 30, 2026 compared to 39.7% in the corresponding period in 2025. The decrease in gross profit and margin was primarily driven by product mix, including a higher proportion of international shipments, which carry lower average selling prices, and costs associated with new system placements pursuant to the Fair Deal Agreements, which are recognized upfront while related revenue is recognized over the term of the agreement.
Previous wording
**General and administrative.**General and administrative expense was $2.0 million for the three months ended March 31, 2026 compared to $2.2 million for the three months ended March 31, 2025, a decrease of $0.2 million, or 9.1%. The net decrease in general and administrative expense was primarily due to lower professional fees.
Current wording
**General and administrative.**General and administrative expense was $1.8 million for the three months ended June 30, 2026 compared to $2.0 million for the three months ended June 30, 2025, a decrease of $0.2 million, or 10.0%. The net decrease in general and administrative expense was primarily due to lower compensation costs, slightly offset by increases in professional fees.
Previous wording
**Selling and marketing.**Selling and marketing expense was $1.7 million for the three months ended March 31, 2026 compared to $2.2 million for the three months ended March 31, 2025, a decrease of $0.5 million, or 22.7%. The decrease was primarily driven by an decrease in tradeshow expenses.
Current wording
**Selling and marketing.**Selling and marketing expense was $1.1 million for the three months ended June 30, 2026 compared to $1.4 million for the three months ended June 30, 2025, a decrease of $0.3 million, or 21.4%. The decrease was primarily driven by a decrease in tradeshow expenses, commission expenses, and clinical research costs.
Previous wording
Other income. Other income of $0.1 and $0.2 million for the three months ended March 31, 2026 and 2025, respectively, relates primarily to interest income.
Current wording
Other income. Other income of $0.1 million and $0.2 million for the three months ended June 30, 2026 and 2025, respectively, relates primarily to interest income.
Previous wording
The Company evaluates the realizability of its deferred tax assets on a quarterly basis, considering both positive and negative evidence in accordance with ASC 740. A key component of this assessment is the Company’s recent cumulative earnings history. As of March 31, 2026, the Company has generated cumulative pre-tax income over the most recent three-year period, which represents significant positive evidence supporting the realizability of its deferred tax assets.
Current wording
The Company evaluates the realizability of its deferred tax assets on a quarterly basis, considering both positive and negative evidence in accordance with ASC 740. During the second quarter of 2026, based on its quarterly assessment of all available positive and negative evidence, management concluded that a valuation allowance against the Company's net deferred tax assets was required. As a result, the Company recorded a valuation allowance during the quarter, which materially increased income tax expense and the effective tax rate for the six-month period ended June 30, 2026.
Previous wording
Research and development. Research and development expense was $1.6 million for the three months ended March 31, 2026 compared to $2.6 million for the three months ended March 31, 2025, a decrease of $1.0 million, or 42%. The decrease was primarily due to the decrease in lobbying costs related to billing code reimbursement, decreased headcount, and decrease in product development costs related to next generation systems.
Current wording
Research and development. Research and development expense was $2.7 million for the six months ended June 30, 2026 compared to $4.1 million for the six months ended June 30, 2025, a decrease of $1.4 million, or 34.1%. The decrease was primarily due to the decrease in lobbying costs related to billing code reimbursement, thedecrease in product development costs related to next-generation systems, and reduced headcount.
Previous wording
Income taxes. The effective tax rates for the three months ended March 31, 2026 and 2025 were 37.9% and (4.5%), respectively. The increase in the effective tax rate for the three months ended March 31, 2026 compared to the prior period was primarily due to projected full year income and a decrease in the estimated tax credits that are expected to be generated and utilized in proportion to the amount of pretax profit.
Current wording
Income taxes. The effective tax rates for the six months ended June 30, 2026 and 2025 were (55.9%) and 14.5%, respectively. The decrease in the effective tax rate for the six months ended June 30, 2026 compared to the prior year period was primarily due to an increase in valuation allowance.
Previous wording
Cash and cash equivalents were $18.3 million at March 31, 2026 compared to $22.1 million at December 31, 2025, a decrease of $3.8 million. SeeCash Flowsfor details on the change in cash and cash equivalents during the three months ended March 31, 2026.
Current wording
Cash, restricted cash, and cash equivalents were $15.2 million at June 30, 2026 compared to $22.1 million at December 31, 2025, a decrease of $6.9 million. The decrease was primarily attributable to cash used to purchase inventory. SeeCash Flowsfor details on the change in cash, restricted cash, and cash equivalents during the six months ended June 30, 2026.
Previous wording
Accounts receivable was $3.6 million at March 31, 2026 compared to $6.0 million at December 31, 2025, a decrease of $2.4 million. The decrease was primarily due to the decrease in sales and concentration of sales to the Company’s historically large customer, which have historically been subject to extended payment terms.
Current wording
Accounts receivable was $1.7 million at June 30, 2026 compared to $6.0 million at December 31, 2025, a decrease of $4.3 million. The decrease was primarily due to the decrease in sales and concentration of sales to the Company’s historically large customer, which have historically been subject to extended payment terms.
Previous wording
Inventories were $16.5 million at March 31, 2026 compared to $14.6 million at December 31, 2025, an increase of $1.9 million. The increase was primarily due to the anticipation of increasing future sales.
Current wording
Inventories were $18.5 million at June 30, 2026 compared to $14.6 million at December 31, 2025, an increase of $3.9 million. The increase was primarily due to the anticipation of increasing future sales.
Previous wording
There were no borrowings outstanding under our revolving line of credit with Comerica Bank at March 31, 2026 and December 31, 2025.
Current wording
There were no borrowings outstanding under the revolving line of credit with City National Bank of Florida at June 30, 2026 or under the Company’s former revolving line of credit with Fifth Third at December 31, 2025.
Previous wording
In general terms, liquidity is a measurement of the Company’s ability to meet its cash needs. For the three months ended March 31, 2026, funding was derived primarily from cash generated by the sale of equipment to our customers in the ordinary course of business and existing cash reserves. The Company believes that proceeds from maturing cash equivalents, as well as cash on hand are sufficient to meet operating capital and funding requirements for the next 12 months from the date this Quarterly Report was issued. 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 six months ended June 30, 2026, funding was derived primarily from cash generated by the sale of equipment to our customers in the ordinary course of business and existing cash reserves. The Company believes that proceeds from maturing cash equivalents, as well as cash on hand are sufficient to meet operating capital and funding requirements for the next 12 months from the date this Quarterly Report was issued. 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 $3.8 million for the three months ended March 31, 2026, consisting of net loss of $2.6 million and non-cash activity of $1.3 million, offset by a decrease in net operating liabilities of $0.1 million. Cash flows used in 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 of property and equipment. Net cash used in operating activities was $2.7 million for the three months ended March 31, 2025, consisting of net loss of $2.6 million and an increase in net operating assets of $0.5 million, offset by non-cash charges of $0.4 million. Cash flows used in 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, provision for product warranties, amortization of right-of-use asset and depreciation of property and equipment.
Current wording
Net cash used in operating activities was $6.9 million for the six months ended June 30, 2026, consisting of net loss of $11.4 million and a decrease in net operating liabilities of $0.2 million, offset by non-cash activity of $4.7 million. Cash flows used in 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 of property and equipment. 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 charges of $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.
Previous wording
Net cash used in investing activities for the three months ended March 31, 2026 reflected $3 thousand of purchases of property and equipment. Net cash used in investing activities for the three months ended March 31, 2025 reflected $7 thousand of purchases of property and equipment.
Current wording
Net cash used in investing activities for the six months ended June 30, 2026 reflected $11 thousand of purchases of property and equipment. Net cash used in investing activities for the six months ended June 30, 2025 reflected $34 thousand of purchases of property and equipment.
Previous wording
No cash was used in financing activities for the three months ended March 31, 2026. Net cash used in financing activities for the three months ended March 31, 2025 reflected $0.3 million of repurchases of common stock.
Current wording
No cash was used in financing activities for the six months ended June 30, 2026 . Net cash used in financing activities for the six months ended June 30, 2025 reflected $0.3 million of repurchases of common stock.
Previous wording
During the first quarter of 2026, we continued to experience some increase in commodity and shipping prices and energy and labor costs which resulted in minor 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 second quarter of 2026, we continued to experience some increase in commodity and shipping prices and energy and labor costs which resulted in minor 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.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Research and development. Research and development expense was $1.1 million for the three months ended June 30, 2026 compared to $1.5 million for the three months ended June 30, 2025, a decrease of $0.4 million, or 26.7%. The decrease was primarily due to a decrease in product development costs related to next-generation systems, and reduced headcount.
Current report — wording carried from elsewhere
Revenues. Revenues were $5.7 million for the six months ended June 30, 2026 compared to $15.7 million for the six months ended June 30, 2025, a decrease of $10.0 million, or 63.7%. The decrease in revenue was primarily driven by a lower number of units sold (16 in the six months ended June 30, 2026, compared to 40 in the six months ended June 30, 2025), reflecting no sales in the current period to a historically large customer. Further, some systems placed during the quarter were under the Fair Deal Agreement program and rental arrangements, for which revenue is recognized over the term of the agreement rather than at the time of shipment.
Current report — wording carried from elsewhere
Gross profit. Gross profit was $1.8 million for the six months ended June 30, 2026 compared to $7.3 million for the six months ended June 30, 2025, a decrease of $5.5 million, or 75.3%. Our overall gross profit percentage was 31.6% in the six months ended June 30, 2026 compared to 46.5% in the corresponding period in 2025. The decrease in gross profit was primarily driven by product mix, including a higher proportion of international shipments, which carry lower average selling prices, and costs associated with new system placements pursuant to the Fair Deal Agreements, which are recognized upfront while related revenue is recognized over the term of the agreement.
Current report — wording carried from elsewhere
Other income. Other income of $0.2 million and $0.4 million for the six months ended June 30, 2026 and 2025, respectively, relates primarily to interest income.