10-Q

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 March 31, 2025

OR

☐ 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 May 6, 2025, there were 16,445,036 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	21
Item 4.	Controls and Procedures	22
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	24
Item 5.	Other Information	24
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 of this report, 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

(in thousands, except shares and per share data)	As of March 31, 2025			As of December 31,  2024
		(unaudited)
Assets
Current assets
Cash and cash equivalents	$	19,072		$	22,056
Accounts receivable, net		18,018			19,731
Inventories		9,923			10,097
Prepaid inventory		5,650			3,347
Other current assets		1,533			1,507
Total current assets		54,196			56,738
Property and equipment, net		2,678			1,997
Deferred tax asset		2,087			2,197
Operating lease right-of-use assets, net		633			581
Other noncurrent assets		616			652
Total assets	$	60,210		$	62,165
Liabilities and stockholders’ equity
Current liabilities
Accounts payable and accrued expenses	$	5,635		$	4,811
Product warranties		294			329
Operating lease liabilities, current portion		246			204
Deferred revenue, current portion		550			541
Total current liabilities		6,725			5,885
Operating lease liabilities		408			398
Deferred revenue, net of current portion		43			55
Total liabilities		7,176			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; 17,036,845 issued and 16,445,036 outstanding at March 31, 2025; 17,036,845 issued and 16,495,396 outstanding at December 31, 2024		169			169
Additional paid-in capital		45,874			45,795
Treasury stock, 591,809 and 541,449 shares at cost, at March 31, 2025 and December 31, 2024, respectively		(3,871	)		(3,571	)
Retained earnings		10,862			13,434
Total stockholders’ equity		53,034			55,827
Total liabilities and stockholders’ equity	$	60,210		$	62,165

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

1 

SENSUS HEALTHCARE, INC.

 CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(unaudited)

	For the Three Months Ended March 31,
(in thousands, except shares and per share data)	2025			2024
Revenues	$	8,344		$	10,663
Cost of sales		3,990			4,001
Gross profit		4,354			6,662
Operating expenses
General and administrative		2,208			1,579
Selling and marketing		2,186			1,270
Research and development		2,606			926
Total operating expenses		7,000			3,775
Income (loss) from operations		(2,646	)		2,887
Other income:
Interest income, net		184			214
Other income, net		184			214
Income (loss) before income tax		(2,462	)		3,101
Provision for income taxes		110			827
Net income (loss)	$	(2,572	)	$	2,274
Net income (loss) per share – basic	$	(0.16	)	$	0.14
diluted	$	(0.16	)	$	0.14
Weighted average number of shares used in
computing net income (loss) per share – basic		16,341,867			16,294,970
diluted		16,341,867			16,318,047

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

2 

SENSUS HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(unaudited)

	Common Stock					Additional 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
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

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

3 

SENSUS HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	For the Three Months Ended March 31,
(in thousands)	2025			2024
Cash flows from operating activities
Net income (loss)	$	(2,572	)	$	2,274
Adjustments to reconcile net income (loss) to net cash and cash equivalents used in operating activities:
Depreciation		86			70
Amortization of right-of-use asset		59			48
Provision for product warranties		45			150
Stock-based compensation		79			91
Deferred income taxes		110			827
Changes in operating assets and liabilities:
Accounts receivable		1,713			(8,980	)
Inventories		(586	)		(2,865	)
Prepaid inventory		(2,303	)		(685	)
Other current assets		(26	)		(281	)
Other noncurrent assets		36			116
Accounts payable and accrued expenses		824			910
Operating lease liability		(59	)		(39	)
Deferred revenue		(3	)		271
Product warranties		(80	)		(94	)
Net cash used in operating activities		(2,677	)		(8,187	)
Cash flows from investing activities
Acquisition of property and equipment		(7	)		(233	)
Net cash used in investing activities		(7	)		(233	)
Cash flows from financing activities
Repurchase of common stock		(300	)		—
Net cash used in financing activities		(300	)		—
Net decrease in cash and cash equivalents		(2,984	)		(8,420	)
Cash and cash equivalents – beginning of period		22,056			23,148
Cash and cash equivalents – end of period	$	19,072		$	14,728
Supplemental disclosure of cash flow information:
Interest paid	$	—		$	—
Income tax paid	$	—		$	—
Supplemental schedule of noncash investing and financing transactions:
Transfer of inventory to property and equipment	$	760		$	6
Lease liability arising from obtaining right-of-use-assets	$	111		$	—

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

4 

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 months ended March 31, 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.

5

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 months ended March 31, 2025 and 2024 were as follows:

	For the Three Months Ended
	March 31,
(in thousands)	2025		2024
Product Revenue - recognized at a point in time	$	6,708	$	9,493
Product Revenue - recognized over time		199		—
Service Revenue - recognized at a point in time		624		371
Service Revenue - recognized over time		813		799
Total Revenue	$	8,344	$	10,663

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.

6

Deferred revenue activity as of March 31, 2025 was as follows:

(in thousands)	Product		Service			Total
December 31, 2024	$	81	$	515		$	596
Revenue recognized		—		(813	)		(813	)
Amounts invoiced		—		810			810
March 31, 2025	$	81	$	512		$	593

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 March 31, 2025 is as follows:

Year	Service Revenue
2025 (April 1 - December 31, 2025)		436
2026		66
2027		10
Total	$	512

For the three months ended March 31, 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 69% and 71% of revenue for the three months ended March 31, 2025 and 2024, respectively, and 87% and 86% of the accounts receivable as of March 31, 2025 and December 31, 2024, respectively.

Geographical Information

The following table illustrates total revenue for the three months ended March 31, 2025 and 2024 by country.

	For the Three Months Ended
	March 31,
(in thousands)	2025				2024
United States	$	8,151	98	%	$	10,479	98	%
China		176	2	%		155	2	%
Other		17	0	%		29	0	%
Total Revenue	$	8,344	100	%	$	10,663	100	%

7

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 March 31, 2025 and December 31, 2024. There was no credit loss for the three months ended March 31, 2025 and 2024.

8

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
	March 31,
(in thousands)	2025			2024
Basic
Net income (loss)	$	(2,572	)	$	2,274
Weighted average number of shares used in computing net income (loss) per share – basic		16,342			16,295
Net income (loss) per share - basic	$	(0.16	)	$	0.14
Diluted
Net income (loss)	$	(2,572	)	$	2,274
Weighted average number of shares used in computing net income (loss) per share – basic		16,342			16,295
Dilutive effects of:
Restricted stock awards		—			23
Weighted average number of shares used in computing net income (loss) per share – diluted		16,342			16,318
Net income (loss) per share - diluted	$	(0.16	)	$	0.14
The shares in full amount listed below were not included in the computation of diluted net income (loss) per share because to do so would have been antidilutive for the periods presented:
Restricted stock awards		125,000			53,250
Stock options		77,550			89,550

Diluted net loss per share for the three months ended March 31, 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 months ended March 31, 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 months ended March 31,2024 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 months ended March 31, 2024 also excludes the 53,250 shares issued under restricted stock awards in December 2022 to our officer and employees, as the average price of our shares of common stock during the three months ended March 31, 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.

9

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 $147 thousand and $27 thousand for the three months ended March 31, 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.

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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:

(in thousands)	As of March 31, 2025			As of December 31, 2024			Estimated Useful Lives
Operations equipment	$	943		$	940		3-10 years
Equipment leased to customers		2,356			1,597		10 years
Tradeshow and demo equipment		1,182			1,184		3 years
Computer equipment		170			168		3 years
Subtotal		4,651			3,889
Construction in progress		228			228
Less accumulated depreciation		(2,201	)		(2,120	)
Property and Equipment, Net	$	2,678		$	1,997

Depreciation expense was $86 thousand and $70 thousand for the three months ended March 31, 2025 and 2024, respectively.

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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 March 31, 2025, the available borrowings under this facility were $15 million. Any borrowings bear interest at the Secured Overnight Financing Rate plus 2.50% (or 6.91% at March 31, 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 March 31, 2025 and December 31, 2024. There were no borrowings outstanding under the facility at March 31, 2025 and December 31, 2024.

Note 4 — Product Warranties

Changes in product warranty liability were as follows for the three months ended March 31, 2025:

(in thousands)	Amount
Balance, December 31, 2024	$	329
Warranties accrued during the period		45
Payments on warranty claims		(80	)
Balance, March 31, 2025	$	294

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 March 31, 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 sublease is effective from January 2025 to 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 March 31, 2025.

Maturity of Operating Lease Liability	Amount
2025 (April 1 - December 31, 2025)	$	206
2026		281
2027		214
Total undiscounted operating leases payments	$	701
Less: Imputed interest		(47	)
Present Value of Operating Lease Liability	$	654
Operating lease liability, current portion	$	246
Operating lease liability, net of current portion	$	408
Other Information
Weighted-average remaining lease term		2.5 years
Weighted-average discount rate		5.32	%

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Cash paid for amounts included in the measurement of the operating lease liability was $59 thousand and $38 thousand for the three months ended March 31, 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 March 31, 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 months ended March 31, 2025 is as follows:

(in thousands)	For the Three Months Ended March 31, 2025
Lease income - operating leases - fixed payments	$	64
Lease income - operating leases - variable payments		135
Total	$	199

The future minimum fixed lease payments to be received under the lease agreements as of March 31, 2025 are as follows:

(in thousands)	Amount
2025 (April 1 - December 31, 2025)	$	192
2026		256
2027		256
2028		256
2029		256
Thereafter		87
Total	$	1,303

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 $3.6 million and $5.7 million for finished goods for the three months ended March 31, 2025 and 2024, respectively. Finished goods of $2.2 million and $5.0 million were received from this manufacturer for the three months ended March 31, 2025 and 2024, respectively. As of March 31, 2025 and December 31, 2024, a prepayment related to these finished goods of $5.7 million and $3.3 million, respectively, was presented in prepaid inventory in the accompanying condensed consolidated balance sheets. 

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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 involvements 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 March 31, 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 March 31, 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 months ended March 31, 2025 and 2024. During the three months ended March 31, 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 March 31, 2025 and December 31, 2024, 195,223 shares were available to be granted under the Plans.

On February 1, 2020, a total of 35,000 shares of restricted stock were issued to employees. The restricted shares vest 25% per year over a four-year period. The grant date fair value of $4.11 per share was recognized as expense on a straight-line basis over the vesting period. As of March 31, 2025, the shares issued on February 1, 2020 were fully vested.

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On July 21, 2021, a total of 130,000 shares of restricted stock were issued to employees and board members. The restricted shares vest 25% at grant date and 25% per year over a three-year period. The grant date fair value of $3.84 per share was recognized as expense on a straight-line basis over the vesting period. As of March 31, 2025, the shares issued on July 21, 2021 were fully vested.

On December 19, 2022, a total of 77,000 shares of restricted stock were issued to employees. The restricted shares vest 25% per year over a four-year period. The fair value of $6.40 per share, the stock price on grant date, is being recognized as expense on a straight-line basis over the vesting period. During the three months ended March 31, 2025, none of the restricted stock had vested or been forfeited. As of March 31, 2025, 42,000 of the shares issued on December 19, 2022 were vested or forfeited.

On January 26, 2023, 10,000 shares of common stock were issued to an employee and were recorded at the fair value of $8.96 per share, the stock price on the grant date. The shares issued on January 26, 2023 were fully vested on the grant date.

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 March 31, 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 three months ended March 31, 2025, none of the common stock were vested or forfeited. As of March 31, 2025, 10,000 of the shares issued on December 17, 2024 were vested.

Restricted Stock

Restricted stock activity for the three months ended March 31, 2025 is summarized below:

Outstanding at	Restricted Stock			Weighted- Average Grant Date Fair Value
December 31, 2024		135,000		$	7.04
Granted		—			—
Vested		(10,000	)		2.65
Forfeited		—			—
March 31, 2025		125,000		$	7.39

The Company recognizes forfeitures as they occur. The reduction of stock compensation expense related to the forfeitures was $0 and $1 thousand for the three months ended March 31, 2025 and 2024, respectively.

Stock compensation expense related to restricted stock, excluding the recognition of forfeitures, was $79 thousand and $92 thousand for the three months ended March 31, 2025 and 2024, respectively.

Unrecognized stock compensation expense was $0.8 million as of March 31, 2025, which will be recognized over a weighted-average period of 3.2 years.

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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:

	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 - March 31, 2025		77,550	$	5.55		2.83
Outstanding - March 31, 2025		77,550	$	5.55		2.83

No stock compensation expense related to stock options was incurred for the three months ended March 31, 2025 and 2024. The stock options outstanding had an intrinsic value of $0 and $0.1 million as of March 31, 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 March 31, 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 expense was $110 thousand and $827 thousand for the three months ended March 31, 2025 and 2024, respectively.

The effective tax rates for the three months ended March 31, 2025 and 2024 were (4.5%) and 26.7%, respectively. The decrease in the effective tax rate for the three months ended March 31, 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 months ended March 31, 2025, primarily due to nondeductible expenses, state income taxes and the favorable impact of tax credits.

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As of March 31, 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.

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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 March 31,
(in thousands, except shares and per share data)	2025			2024
Revenues	$	8,344		$	10,663
Cost of sales		3,990			4,001
Gross profit		4,354			6,662
Operating expenses
General and administrative		2,208			1,579
Selling and marketing		2,186			1,270
Research and development		2,606			926
Total operating expenses		7,000			3,775
Income (loss) from operations		(2,646	)		2,887
Other income:
Interest income		184			214
Other income, net		184			214
Income (loss) before income tax		(2,462	)		3,101
Provision for income taxes		110			827
Net income (loss)	$	(2,572	)	$	2,274

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Three months ended March 31, 2025 compared to the three months ended March 31, 2024

Revenues. Revenues were $8.3 million for the three months ended March 31, 2025 compared to $10.7 million for the three months ended March 31, 2024, a decrease of $2.4 million, or 22.4%. The decrease was primarily driven by a lower number of units sold to a large customer in the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

Cost of sales. Cost of sales was $4.0 million for the three months ended March 31, 2025 and 2024.

Gross profit. Gross profit was $4.4 million for the three months ended March 31, 2025 compared to $6.7 million for the three months ended March 31, 2024, a decrease of $2.3 million, or 34.3%. Our overall gross profit percentage was 53.0% in the three months ended March 31, 2025 compared to 62.6% in the corresponding period in 2024. The decrease in gross profit was primarily driven by lower sales and higher costs of service in the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

Selling and marketing. Selling and marketing expense was $2.2 million for the three months ended March 31, 2025 compared to $1.3 million for the three months ended March 31, 2024, an increase of $0.9 million, or 69.2%. The increase was primarily driven by an increase in tradeshow costs, costs related to clinical studies, and payroll cost due to increase in headcount.

General and administrative. General and administrative expense was $2.2 million for the three months ended March 31, 2025 compared to $1.6 million for the three months ended March 31, 2024, an increase of $0.6 million, or 37.5%. The net increase in general and administrative expense was primarily due to higher professional fees and compensation.

Research and development. Research and development expense was $2.6 million for the three months ended March 31, 2025 compared to $0.9 million for the three months ended March 31, 2024, an increase of $1.7 million, or 188.9%. The increase was primarily due to significant lobbying costs related to billing code reimbursement, increased headcount and existing product development cost.

Other income. Other income of $0.2 million for the three months ended March 31, 2025 and 2024 relates primarily to interest income.

Income taxes. The effective tax rates for the three months ended March 31, 2025 and 2024 were (4.5%) and 26.7%, respectively. The significant decrease in the effective tax rate in the current period primarily reflects an increase in estimated tax credits expected to be generated and utilized during the year. These credits, which include federal incentives for research and development and other qualifying activities, are large in proportion to our income before taxes, resulting in a negative effective tax rate for the quarter. Looking ahead, we anticipate that our effective tax rate for the full year 2025 will continue to differ materially from the U.S. federal statutory rate of 21.0%, driven largely by the favorable impact of these tax credits relative to our pre-tax income.

Financial Condition

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

Assets

Cash and cash equivalents were $19.1 million at March 31, 2025 compared to $22.1 million at December 31, 2024, a decrease of $3.0 million. See Cash Flows for details on the change in cash and cash equivalents during the three months ended March 31, 2025.

Accounts receivable was $18.0 million at March 31, 2025 compared to $19.7 million at December 31, 2024, a decrease of $1.7 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.

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Inventories was $9.9 million at March 31, 2025 compared to $10.1 million at December 31, 2024, a decrease of $0.2 million. The decrease was primarily due to reclassification of inventory to property and equipment to lease the equipment to dermatology clinics in the quarter ended March 31, 2025.

Liabilities

There were no borrowings outstanding under our revolving line of credit with Comerica Bank at March 31, 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 three months ended March 31, 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.

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 Three Months Ended March 31
(in thousands)	2025			2024
Net cash used in:
Operating activities	$	(2,677	)	$	(8,187	)
Investing activities		(7	)		(233	)
Financing activities		(300	)		—
Total	$	(2,984	)	$	(8,420	)

Cash flows from operating activities

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 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, 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 $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.

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Cash flows from investing activities

Net cash used in investing activities for the three months ended March 31, 2025 reflected $7 thousand of purchases of property and equipment. Net cash used in investing activities for the three months ended March 31, 2024 reflected $0.2 million of purchases of property and equipment.

Cash flows from financing activities

Net cash used in financing activities for the three months ended March 31, 2025 reflected $0.3 million of repurchases of common stock. No cash was provided by or used in financing activities for the three months ended March 31, 2024.

Inflation

During the first quarter 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 certain accounting 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.

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Item 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Control and Procedures

As of March 31, 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 March 31, 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. 

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

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. See Note 6, Commitments and Contingencies.

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 March 31, 2025.

(b) Use of Proceeds from the Sale of Registered Securities

None.

(c) Purchases of Equity Securities by the Registrant and Affiliated Purchasers.

In August 2023, the Company’s Board of Directors authorized a program to purchase up to $3,000,000 of shares of the Company’s common stock. Purchases may be made from time to time in a variety of methods, including open market purchases, depending upon market conditions, including the market price of the common stock, and other factors. The program (i) does not obligate the Company to acquire any particular amount of its common stock, (ii) has no time limit, and (iii) may be modified, suspended, or discontinued at any time at the Company’s discretion. 

The following table contains information about all purchases made during the three months ended March 31, 2025 by, or on behalf of, us and any affiliated purchaser (as defined in Rule 10b-18(a)(3) under the Exchange Act) of shares or other units of any class of our equity securities that is registered pursuant to Section 12 of the Exchange Act.

	Total number of shares repurchased		Average price paid per share		Total number of shares (or units) purchased as part of publicly announced plans or programs		Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs
January 1, 2025 to January 31, 2025		—	$	—		—	$	2,972,812
February 1, 2025 to February 28, 2025		50,360	$	5.90		50,360	$	2,672,816
March 1, 2025 to March 31, 2025		—	$	—		—	$	2,672,816
Total		50,360	$	5.90		50,360

Item 3. Defaults Upon Senior Securities

None.

23

Item 4. Mine Safety Disclosure

Not applicable.

Item 5. Other Information

(c) Rule 10b5-1 Trading Plans

During the three months ended March 31, 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: May 15, 2025	/s/ Joseph C. Sardano
	Joseph C. Sardano
	Chief Executive Officer
	(Principal Executive Officer)
Date: May 15, 2025	/s/ Javier Rampolla
	Javier Rampolla
	Chief Financial Officer
	(Principal Financial Officer and Principal Accounting Officer)

EX-31.1

Exhibit 31.1

Certification of CEO Pursuant to Securities Exchange Act

Rule 13a-14(a)/15d-14(a) as Adopted Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Joseph C. Sardano, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Sensus Healthcare, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 15, 2025	/s/ Joseph C. Sardano
	Joseph C. Sardano
	Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of CFO Pursuant to Securities Exchange Act

Rule 13a-14(a)/15d-14(a) as Adopted Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Javier Rampolla, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Sensus Healthcare, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 15, 2025	/s/ Javier Rampolla
	Javier Rampolla
	Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification of CEO Pursuant to 18 U.S.C. Section 1350

Pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned certifies that:

(1) the Quarterly Report for Sensus Healthcare, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (this “Report”), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods covered therein.

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

/s/ Joseph C. Sardano

Joseph C. Sardano

Chairman and Chief Executive Officer

May 15, 2025

EX-32.2

Exhibit 32.2

Certification of CFO Pursuant to 18 U.S.C. Section 1350

Pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned certifies that:

(1) the Quarterly Report for Sensus Healthcare, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (this “Report”), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods covered therein.

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

/s/ Javier Rampolla

Javier Rampolla

Chief Financial Officer

May 15, 2025

XML

Cover - shares	3 Months Ended
	Mar. 31, 2025	May 06, 2025
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2025
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2025
Current Fiscal Year End Date	--12-31
Entity File Number	001-37714
Entity Registrant Name	Sensus Healthcare, Inc.
Entity Central Index Key	0001494891
Entity Tax Identification Number	27-1647271
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	851 Broken Sound Pkwy.
Entity Address, Address Line Two	NW #215
Entity Address, City or Town	Boca Raton
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33487
City Area Code	(561)
Local Phone Number	922-5808
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	SRTS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		16,445,036

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Current assets
Cash and cash equivalents	$ 19,072	$ 22,056
Accounts receivable, net	18,018	19,731
Inventories	9,923	10,097
Prepaid inventory	5,650	3,347
Other current assets	1,533	1,507
Total current assets	54,196	56,738
Property and equipment, net	2,678	1,997
Deferred tax asset	2,087	2,197
Operating lease right-of-use assets, net	633	581
Other noncurrent assets	616	652
Total assets	60,210	62,165
Current liabilities
Accounts payable and accrued expenses	5,635	4,811
Product warranties	294	329
Operating lease liabilities, current portion	246	204
Deferred revenue, current portion	550	541
Total current liabilities	6,725	5,885
Operating lease liabilities	408	398
Deferred revenue, net of current portion	43	55
Total liabilities	7,176	6,338
Stockholders’ equity
Preferred stock, 5,000,000 shares authorized and none issued and outstanding
Common stock, $0.01 par value – 50,000,000 authorized; 17,036,845 issued and 16,445,036 outstanding at March 31, 2025; 17,036,845 issued and 16,495,396 outstanding at December 31, 2024	169	169
Additional paid-in capital	45,874	45,795
Treasury stock, 591,809 and 541,449 shares at cost, at March 31, 2025 and December 31, 2024, respectively	(3,871)	(3,571)
Retained earnings	10,862	13,434
Total stockholders’ equity	53,034	55,827
Total liabilities and stockholders’ equity	$ 60,210	$ 62,165

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2025	Dec. 31, 2024
Statement of Financial Position [Abstract]
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized	50,000,000	50,000,000
Common stock, issued	17,036,845	17,036,845
Common stock, outstanding	16,445,036	16,495,396
Treasury Stock, Common, Shares	591,809	541,449

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Income Statement [Abstract]
Revenues	$ 8,344	$ 10,663
Cost of sales	3,990	4,001
Gross profit	4,354	6,662
Operating expenses
General and administrative	2,208	1,579
Selling and marketing	2,186	1,270
Research and development	2,606	926
Total operating expenses	7,000	3,775
Income (loss) from operations	(2,646)	2,887
Other income:
Interest income, net	184	214
Other income, net	184	214
Income (loss) before income tax	(2,462)	3,101
Provision for income taxes	110	827
Net income (loss)	$ (2,572)	$ 2,274
Net income (loss) per share - basic	$ (0.16)	$ 0.14
Net income (loss) per share - diluted	$ (0.16)	$ 0.14
Weighted average number of shares used in computing net income (loss) per share - basic	16,341,867	16,294,970
Weighted average number of shares used in computing net income (loss) per share - diluted	16,341,867	16,318,047

XML

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock, Common [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2023	$ 169	$ 45,405	$ (3,519)	$ 6,787	$ 48,842
Beginning balance (in shares) at Dec. 31, 2023	16,907,095		(532,924)
Stock-based compensation		92			92
Stock-Based Compensation (in shares)	20,000
Forfeiture of restricted stock units		(1)			(1)
Forfeiture of restricted stock units (in shares)	(1,500)
Net loss				2,274	$ 2,274
Stock repurchase (in shares)					0
Ending balance, value at Mar. 31, 2024	$ 169	45,496	$ (3,519)	9,061	$ 51,207
Ending balance (in shares) at Mar. 31, 2024	16,925,595		(532,924)
Beginning balance, value at Dec. 31, 2024	$ 169	45,795	$ (3,571)	13,434	55,827
Beginning balance (in shares) at Dec. 31, 2024	17,036,845		(541,449)
Stock-based compensation		79			79
Net loss				(2,572)	(2,572)
Stock repurchase			$ (300)		$ (300)
Stock repurchase (in shares)			(50,360)		50,360
Ending balance, value at Mar. 31, 2025	$ 169	$ 45,874	$ (3,871)	$ 10,862	$ 53,034
Ending balance (in shares) at Mar. 31, 2025	17,036,845		(591,809)

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Cash flows from operating activities
Net income (loss)	$ (2,572)	$ 2,274
Adjustments to reconcile net income (loss) to net cash and cash equivalents used in operating activities:
Depreciation	86	70
Amortization of right-of-use asset	59	48
Provision for product warranties	45	150
Stock-based compensation	79	91
Deferred income taxes	110	827
Changes in operating assets and liabilities:
Accounts receivable	1,713	(8,980)
Inventories	(586)	(2,865)
Prepaid inventory	(2,303)	(685)
Other current assets	(26)	(281)
Other noncurrent assets	36	116
Accounts payable and accrued expenses	824	910
Operating lease liability	(59)	(39)
Deferred revenue	(3)	271
Product warranties	(80)	(94)
Net cash used in operating activities	(2,677)	(8,187)
Cash flows from investing activities
Acquisition of property and equipment	(7)	(233)
Net cash used in investing activities	(7)	(233)
Cash flows from financing activities
Repurchase of common stock	(300)
Net cash used in financing activities	(300)
Net decrease in cash and cash equivalents	(2,984)	(8,420)
Cash and cash equivalents – beginning of period	22,056	23,148
Cash and cash equivalents – end of period	19,072	14,728
Supplemental disclosure of cash flow information:
Interest paid
Income tax paid
Supplemental schedule of noncash investing and financing transactions:
Transfer of inventory to property and equipment	760	6
Lease liability arising from obtaining right-of-use-assets	$ 111

XML

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Pay vs Performance Disclosure [Table]
Net Income (Loss)	$ (2,572)	$ 2,274

XML

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2025
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

XML

Organization and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2025

Accounting Policies [Abstract]

Organization and Summary of Significant Accounting Policies

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 months ended March 31, 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 months ended March 31, 2025 and 2024 were as follows:

	For the Three Months Ended
	March 31,
(in thousands)	2025		2024
Product Revenue - recognized at a point in time	$	6,708	$	9,493
Product Revenue - recognized over time		199		—
Service Revenue - recognized at a point in time		624		371
Service Revenue - recognized over time		813		799
Total Revenue	$	8,344	$	10,663

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 March 31, 2025 was as follows:

(in thousands)	Product		Service			Total
December 31, 2024	$	81	$	515		$	596
Revenue recognized		—		(813	)		(813	)
Amounts invoiced		—		810			810
March 31, 2025	$	81	$	512		$	593

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 March 31, 2025 is as follows:

Year	Service Revenue
2025 (April 1 - December 31, 2025)		436
2026		66
2027		10
Total	$	512

For the three months ended March 31, 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 69% and 71% of revenue for the three months ended March 31, 2025 and 2024, respectively, and 87% and 86% of the accounts receivable as of March 31, 2025 and December 31, 2024, respectively.

Geographical Information

The following table illustrates total revenue for the three months ended March 31, 2025 and 2024 by country.

	For the Three Months Ended
	March 31,
(in thousands)	2025				2024
United States	$	8,151	98	%	$	10,479	98	%
China		176	2	%		155	2	%
Other		17	0	%		29	0	%
Total Revenue	$	8,344	100	%	$	10,663	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 March 31, 2025 and December 31, 2024. There was no credit loss for the three months ended March 31, 2025 and 2024.

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
	March 31,
(in thousands)	2025			2024
Basic
Net income (loss)	$	(2,572	)	$	2,274
Weighted average number of shares used in computing net income (loss) per share – basic		16,342			16,295
Net income (loss) per share - basic	$	(0.16	)	$	0.14
Diluted
Net income (loss)	$	(2,572	)	$	2,274
Weighted average number of shares used in computing net income (loss) per share – basic		16,342			16,295
Dilutive effects of:
Restricted stock awards		—			23
Weighted average number of shares used in computing net income (loss) per share – diluted		16,342			16,318
Net income (loss) per share - diluted	$	(0.16	)	$	0.14
The shares in full amount listed below were not included in the computation of diluted net income (loss) per share because to do so would have been antidilutive for the periods presented:
Restricted stock awards		125,000			53,250
Stock options		77,550			89,550

Diluted net loss per share for the three months ended March 31, 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 months ended March 31, 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 months ended March 31,2024 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 months ended March 31, 2024 also excludes the 53,250 shares issued under restricted stock awards in December 2022 to our officer and employees, as the average price of our shares of common stock during the three months ended March 31, 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 $147 thousand and $27 thousand for the three months ended March 31, 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.

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Property and Equipment

3 Months Ended

Mar. 31, 2025

Property, Plant and Equipment [Abstract]

Property and Equipment

Note 2 — Property and Equipment

Property and equipment consist of the following:

(in thousands)	As of March 31, 2025			As of December 31, 2024			Estimated Useful Lives
Operations equipment	$	943		$	940		3-10 years
Equipment leased to customers		2,356			1,597		10 years
Tradeshow and demo equipment		1,182			1,184		3 years
Computer equipment		170			168		3 years
Subtotal		4,651			3,889
Construction in progress		228			228
Less accumulated depreciation		(2,201	)		(2,120	)
Property and Equipment, Net	$	2,678		$	1,997

Depreciation expense was $86 thousand and $70 thousand for the three months ended March 31, 2025 and 2024, respectively.

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Debt

3 Months Ended

Mar. 31, 2025

Debt Disclosure [Abstract]

Debt

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 March 31, 2025, the available borrowings under this facility were $15 million. Any borrowings bear interest at the Secured Overnight Financing Rate plus 2.50% (or 6.91% at March 31, 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 March 31, 2025 and December 31, 2024. There were no borrowings outstanding under the facility at March 31, 2025 and December 31, 2024.

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Product Warranties

3 Months Ended

Mar. 31, 2025

Guarantees and Product Warranties [Abstract]

Product Warranties

Note 4 — Product Warranties

Changes in product warranty liability were as follows for the three months ended March 31, 2025:

(in thousands)	Amount
Balance, December 31, 2024	$	329
Warranties accrued during the period		45
Payments on warranty claims		(80	)
Balance, March 31, 2025	$	294

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Leases

3 Months Ended

Mar. 31, 2025

Leases

Leases

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 March 31, 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 sublease is effective from January 2025 to 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 March 31, 2025.

Maturity of Operating Lease Liability	Amount
2025 (April 1 - December 31, 2025)	$	206
2026		281
2027		214
Total undiscounted operating leases payments	$	701
Less: Imputed interest		(47	)
Present Value of Operating Lease Liability	$	654
Operating lease liability, current portion	$	246
Operating lease liability, net of current portion	$	408
Other Information
Weighted-average remaining lease term		2.5 years
Weighted-average discount rate		5.32	%

Cash paid for amounts included in the measurement of the operating lease liability was $59 thousand and $38 thousand for the three months ended March 31, 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 March 31, 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 months ended March 31, 2025 is as follows:

(in thousands)	For the Three Months Ended March 31, 2025
Lease income - operating leases - fixed payments	$	64
Lease income - operating leases - variable payments		135
Total	$	199

The future minimum fixed lease payments to be received under the lease agreements as of March 31, 2025 are as follows:

(in thousands)	Amount
2025 (April 1 - December 31, 2025)	$	192
2026		256
2027		256
2028		256
2029		256
Thereafter		87
Total	$	1,303

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2025

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

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 $3.6 million and $5.7 million for finished goods for the three months ended March 31, 2025 and 2024, respectively. Finished goods of $2.2 million and $5.0 million were received from this manufacturer for the three months ended March 31, 2025 and 2024, respectively. As of March 31, 2025 and December 31, 2024, a prepayment related to these finished goods of $5.7 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 involvements 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 March 31, 2025, the Company was unable to estimate the cost, if any, associated with this matter. 

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Stockholders’ Equity

3 Months Ended

Mar. 31, 2025

Equity [Abstract]

Stockholders’ Equity

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 March 31, 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 months ended March 31, 2025 and 2024. During the three months ended March 31, 2025 and 2024, the Company repurchased 50,360 and zero shares in open market transactions, respectively.

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Equity-based Compensation

3 Months Ended

Mar. 31, 2025

Share-Based Payment Arrangement [Abstract]

Equity-based Compensation

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 March 31, 2025 and December 31, 2024, 195,223 shares were available to be granted under the Plans.

On February 1, 2020, a total of 35,000 shares of restricted stock were issued to employees. The restricted shares vest 25% per year over a four-year period. The grant date fair value of $4.11 per share was recognized as expense on a straight-line basis over the vesting period. As of March 31, 2025, the shares issued on February 1, 2020 were fully vested.

On July 21, 2021, a total of 130,000 shares of restricted stock were issued to employees and board members. The restricted shares vest 25% at grant date and 25% per year over a three-year period. The grant date fair value of $3.84 per share was recognized as expense on a straight-line basis over the vesting period. As of March 31, 2025, the shares issued on July 21, 2021 were fully vested.

On December 19, 2022, a total of 77,000 shares of restricted stock were issued to employees. The restricted shares vest 25% per year over a four-year period. The fair value of $6.40 per share, the stock price on grant date, is being recognized as expense on a straight-line basis over the vesting period. During the three months ended March 31, 2025, none of the restricted stock had vested or been forfeited. As of March 31, 2025, 42,000 of the shares issued on December 19, 2022 were vested or forfeited.

On January 26, 2023, 10,000 shares of common stock were issued to an employee and were recorded at the fair value of $8.96 per share, the stock price on the grant date. The shares issued on January 26, 2023 were fully vested on the grant date.

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 March 31, 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 three months ended March 31, 2025, none of the common stock were vested or forfeited. As of March 31, 2025, 10,000 of the shares issued on December 17, 2024 were vested.

Restricted Stock

Restricted stock activity for the three months ended March 31, 2025 is summarized below:

Outstanding at	Restricted Stock			Weighted- Average Grant Date Fair Value
December 31, 2024		135,000		$	7.04
Granted		—			—
Vested		(10,000	)		2.65
Forfeited		—			—
March 31, 2025		125,000		$	7.39

The Company recognizes forfeitures as they occur. The reduction of stock compensation expense related to the forfeitures was $0 and $1 thousand for the three months ended March 31, 2025 and 2024, respectively.

Stock compensation expense related to restricted stock, excluding the recognition of forfeitures, was $79 thousand and $92 thousand for the three months ended March 31, 2025 and 2024, respectively.

Unrecognized stock compensation expense was $0.8 million as of March 31, 2025, which will be recognized over a weighted-average period of 3.2 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:

	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 - March 31, 2025		77,550	$	5.55		2.83
Outstanding - March 31, 2025		77,550	$	5.55		2.83

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

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Income Taxes

3 Months Ended

Mar. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

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 March 31, 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 expense was $110 thousand and $827 thousand for the three months ended March 31, 2025 and 2024, respectively.

The effective tax rates for the three months ended March 31, 2025 and 2024 were (4.5%) and 26.7%, respectively. The decrease in the effective tax rate for the three months ended March 31, 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 months ended March 31, 2025, primarily due to nondeductible expenses, state income taxes and the favorable impact of tax credits.

As of March 31, 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.

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Segment Reporting

3 Months Ended

Mar. 31, 2025

Segment Reporting

Segment Reporting

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.

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Subsequent Events

3 Months Ended

Mar. 31, 2025

Subsequent Events [Abstract]

Subsequent Events

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.

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Organization and Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2025

Accounting Policies [Abstract]

Description of the Business

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

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 months ended March 31, 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

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

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 months ended March 31, 2025 and 2024 were as follows:

	For the Three Months Ended
	March 31,
(in thousands)	2025		2024
Product Revenue - recognized at a point in time	$	6,708	$	9,493
Product Revenue - recognized over time		199		—
Service Revenue - recognized at a point in time		624		371
Service Revenue - recognized over time		813		799
Total Revenue	$	8,344	$	10,663

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 March 31, 2025 was as follows:

(in thousands)	Product		Service			Total
December 31, 2024	$	81	$	515		$	596
Revenue recognized		—		(813	)		(813	)
Amounts invoiced		—		810			810
March 31, 2025	$	81	$	512		$	593

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 March 31, 2025 is as follows:

Year	Service Revenue
2025 (April 1 - December 31, 2025)		436
2026		66
2027		10
Total	$	512

For the three months ended March 31, 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

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 69% and 71% of revenue for the three months ended March 31, 2025 and 2024, respectively, and 87% and 86% of the accounts receivable as of March 31, 2025 and December 31, 2024, respectively.

Geographical Information

Geographical Information

The following table illustrates total revenue for the three months ended March 31, 2025 and 2024 by country.

	For the Three Months Ended
	March 31,
(in thousands)	2025				2024
United States	$	8,151	98	%	$	10,479	98	%
China		176	2	%		155	2	%
Other		17	0	%		29	0	%
Total Revenue	$	8,344	100	%	$	10,663	100	%

Fair Value of Financial Instruments

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

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

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

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 March 31, 2025 and December 31, 2024. There was no credit loss for the three months ended March 31, 2025 and 2024.

Inventories

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

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
	March 31,
(in thousands)	2025			2024
Basic
Net income (loss)	$	(2,572	)	$	2,274
Weighted average number of shares used in computing net income (loss) per share – basic		16,342			16,295
Net income (loss) per share - basic	$	(0.16	)	$	0.14
Diluted
Net income (loss)	$	(2,572	)	$	2,274
Weighted average number of shares used in computing net income (loss) per share – basic		16,342			16,295
Dilutive effects of:
Restricted stock awards		—			23
Weighted average number of shares used in computing net income (loss) per share – diluted		16,342			16,318
Net income (loss) per share - diluted	$	(0.16	)	$	0.14
The shares in full amount listed below were not included in the computation of diluted net income (loss) per share because to do so would have been antidilutive for the periods presented:
Restricted stock awards		125,000			53,250
Stock options		77,550			89,550

Diluted net loss per share for the three months ended March 31, 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 months ended March 31, 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 months ended March 31,2024 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 months ended March 31, 2024 also excludes the 53,250 shares issued under restricted stock awards in December 2022 to our officer and employees, as the average price of our shares of common stock during the three months ended March 31, 2024 was less than average unrecognized compensation expense.

Leases

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 $147 thousand and $27 thousand for the three months ended March 31, 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

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

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.

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Organization and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2025

Accounting Policies [Abstract]

Schedule of Total Revenue

The components of disaggregated revenue for the three months ended March 31, 2025 and 2024 were as follows:

	For the Three Months Ended
	March 31,
(in thousands)	2025		2024
Product Revenue - recognized at a point in time	$	6,708	$	9,493
Product Revenue - recognized over time		199		—
Service Revenue - recognized at a point in time		624		371
Service Revenue - recognized over time		813		799
Total Revenue	$	8,344	$	10,663

Schedule of Deferred Revenue

Deferred revenue activity as of March 31, 2025 was as follows:

(in thousands)	Product		Service			Total
December 31, 2024	$	81	$	515		$	596
Revenue recognized		—		(813	)		(813	)
Amounts invoiced		—		810			810
March 31, 2025	$	81	$	512		$	593

Schedule of Remaining Performance Obligations

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 March 31, 2025 is as follows:

Year	Service Revenue
2025 (April 1 - December 31, 2025)		436
2026		66
2027		10
Total	$	512

Schedule of Total Revenue

The following table illustrates total revenue for the three months ended March 31, 2025 and 2024 by country.

	For the Three Months Ended
	March 31,
(in thousands)	2025				2024
United States	$	8,151	98	%	$	10,479	98	%
China		176	2	%		155	2	%
Other		17	0	%		29	0	%
Total Revenue	$	8,344	100	%	$	10,663	100	%

Schedule of Earnings Per Share Computation

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

	For the Three Months Ended
	March 31,
(in thousands)	2025			2024
Basic
Net income (loss)	$	(2,572	)	$	2,274
Weighted average number of shares used in computing net income (loss) per share – basic		16,342			16,295
Net income (loss) per share - basic	$	(0.16	)	$	0.14
Diluted
Net income (loss)	$	(2,572	)	$	2,274
Weighted average number of shares used in computing net income (loss) per share – basic		16,342			16,295
Dilutive effects of:
Restricted stock awards		—			23
Weighted average number of shares used in computing net income (loss) per share – diluted		16,342			16,318
Net income (loss) per share - diluted	$	(0.16	)	$	0.14
The shares in full amount listed below were not included in the computation of diluted net income (loss) per share because to do so would have been antidilutive for the periods presented:
Restricted stock awards		125,000			53,250
Stock options		77,550			89,550

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Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2025

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment consist of the following:

(in thousands)	As of March 31, 2025			As of December 31, 2024			Estimated Useful Lives
Operations equipment	$	943		$	940		3-10 years
Equipment leased to customers		2,356			1,597		10 years
Tradeshow and demo equipment		1,182			1,184		3 years
Computer equipment		170			168		3 years
Subtotal		4,651			3,889
Construction in progress		228			228
Less accumulated depreciation		(2,201	)		(2,120	)
Property and Equipment, Net	$	2,678		$	1,997

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Product Warranties (Tables)

3 Months Ended

Mar. 31, 2025

Guarantees and Product Warranties [Abstract]

Schedule of Changes in Product Warranty Liability

Changes in product warranty liability were as follows for the three months ended March 31, 2025:

(in thousands)	Amount
Balance, December 31, 2024	$	329
Warranties accrued during the period		45
Payments on warranty claims		(80	)
Balance, March 31, 2025	$	294

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Leases (Tables)

3 Months Ended

Mar. 31, 2025

Leases

Schedule of Received Lease Agreements

The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s operating leases as of March 31, 2025.

Maturity of Operating Lease Liability	Amount
2025 (April 1 - December 31, 2025)	$	206
2026		281
2027		214
Total undiscounted operating leases payments	$	701
Less: Imputed interest		(47	)
Present Value of Operating Lease Liability	$	654
Operating lease liability, current portion	$	246
Operating lease liability, net of current portion	$	408
Other Information
Weighted-average remaining lease term		2.5 years
Weighted-average discount rate		5.32	%

Schedule of Operating Lease Income

The component of lease income for the three months ended March 31, 2025 is as follows:

(in thousands)	For the Three Months Ended March 31, 2025
Lease income - operating leases - fixed payments	$	64
Lease income - operating leases - variable payments		135
Total	$	199

Schedule of Received Lease Agreements

The future minimum fixed lease payments to be received under the lease agreements as of March 31, 2025 are as follows:

(in thousands)	Amount
2025 (April 1 - December 31, 2025)	$	192
2026		256
2027		256
2028		256
2029		256
Thereafter		87
Total	$	1,303

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Equity-based Compensation (Tables)

3 Months Ended

Mar. 31, 2025

Share-Based Payment Arrangement [Abstract]

Schedule of Restricted Stock Activity

Restricted stock activity for the three months ended March 31, 2025 is summarized below:

Outstanding at	Restricted Stock			Weighted- Average Grant Date Fair Value
December 31, 2024		135,000		$	7.04
Granted		—			—
Vested		(10,000	)		2.65
Forfeited		—			—
March 31, 2025		125,000		$	7.39

Schedule of Stock Option Activity

The following table summarizes the Company’s stock options 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 - March 31, 2025		77,550	$	5.55		2.83
Outstanding - March 31, 2025		77,550	$	5.55		2.83

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Schedule of Total Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Product Information [Line Items]
Revenues	$ 8,344	$ 10,663
Total Revenue Percentage	100.00%	100.00%
UNITED STATES
Product Information [Line Items]
Revenues	$ 8,151	$ 10,479
Total Revenue Percentage	98.00%	98.00%
CHINA
Product Information [Line Items]
Revenues	$ 176	$ 155
Total Revenue Percentage	2.00%	2.00%
Other [Member]
Product Information [Line Items]
Revenues	$ 17	$ 29
Total Revenue Percentage	0.00%	0.00%
Product [Member]
Product Information [Line Items]
Revenues	$ 6,708	$ 9,493
Product Revenue [Member]
Product Information [Line Items]
Revenues	199
Service [Member]
Product Information [Line Items]
Revenues	624	371
Service Revenue [Member]
Product Information [Line Items]
Revenues	$ 813	$ 799

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Schedule of Deferred Revenue (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2025 USD ($)
Product Information [Line Items]
Beginning Balance	$ 596
Revenue recognized	(813)
Amounts invoiced	810
Ending Balance	593
Product [Member]
Product Information [Line Items]
Beginning Balance	81
Revenue recognized
Amounts invoiced
Ending Balance	81
Service [Member]
Product Information [Line Items]
Beginning Balance	515
Revenue recognized	(813)
Amounts invoiced	810
Ending Balance	$ 512

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Schedule of Remaining Performance Obligations (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Product Information [Line Items]
Total	$ 593	$ 596
Service Revenue [Member]
Product Information [Line Items]
2025 (April 1 - December 31, 2025)	436
2026	66
2027	10
Total	$ 512

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Schedule of Earnings Per Share Computation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net loss	$ (2,572)	$ 2,274
Weighted Average Number of Shares Outstanding, Basic	16,341,867	16,294,970
Earnings Per Share, Basic	$ (0.16)	$ 0.14
Weighted Average Number of Shares Outstanding, Diluted	16,341,867	16,318,047
Earnings Per Share, Diluted	$ (0.16)	$ 0.14
Earnings Per Share [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net loss	$ (2,572)	$ 2,274
Weighted Average Number of Shares Outstanding, Basic	16,342,000	16,295,000
Earnings Per Share, Basic	$ (0.16)	$ 0.14
Stock Issued During Period, Shares, Restricted Stock Award, Gross		23,000
Weighted Average Number of Shares Outstanding, Diluted	16,342,000	16,318,000
Earnings Per Share, Diluted	$ (0.16)	$ 0.14
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	125,000,000	53,250,000
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	77,550,000	89,550,000

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Organization and Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Product Information [Line Items]
Allowance for expected credit losses	$ 100		$ 100
Credit loss	$ 0	$ 0
Restricted Stock [Member]
Product Information [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	53,250
Customer [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member]
Product Information [Line Items]
Concentration Risk, Percentage	69.00%	71.00%
Customer [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member]
Product Information [Line Items]
Concentration Risk, Percentage	87.00%		86.00%

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Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 4,651	$ 3,889
Construction in Progress, Gross	228	228
Property, Plant and Equipment, Net	2,678	1,997
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	943	940
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	(2,201)	(2,120)
Property, Plant and Equipment, Net	$ 2,678	1,997
Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	10 years
F D A Program Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 2,356	1,597
Property, Plant and Equipment, Useful Life	10 years
Tradeshow And Demo Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 1,182	1,184
Property, Plant and Equipment, Useful Life	3 years
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 170	$ 168
Property, Plant and Equipment, Useful Life	3 years

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Property and Equipment (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Depreciation	$ 86	$ 70

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Debt (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2025	Oct. 31, 2024	Sep. 11, 2023
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity	$ 15,000,000
Line of Credit Facility, Interest Rate During Period	6.91%
Line of Credit [Member]
Line of Credit Facility [Line Items]
Unencumbered Liquid Assets	$ 10,000,000.0
Minimum Profitability Granted	$ 1
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate During Period	2.50%
Maximum [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity		$ 15,000,000
Comerica Bank [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 10,000,000

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Schedule of Changes in Product Warranty Liability (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2025 USD ($)
Guarantees and Product Warranties [Abstract]
Product Warranty Accrual, Current	$ 329
Products Warranty Accrual	45
Standard and Extended Product Warranty Accrual, Decrease for Payments	(80)
Product Warranty Accrual, Current	$ 294

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Schedule of Received Lease Agreements (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Leases
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year	$ 206
Lessee, Operating Lease, Liability, to be Paid, Year One	281
Lessee, Operating Lease, Liability, to be Paid, Year Two	214
Lessee, Operating Lease, Liability, to be Paid	701
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	(47)
Operating Lease, Liability	654
Operating Lease, Liability, Current	246	$ 204
Operating Lease, Liability, Noncurrent	$ 408	$ 398
Operating Lease, Weighted Average Remaining Lease Term	2 years 6 months
Operating Lease, Weighted Average Discount Rate, Percent	5.32%
Lessor, Operating Lease, Payment to be Received, Remainder of Fiscal Year	$ 192
Lessor, Operating Lease, Payment to be Received, Year One	256
Lessor, Operating Lease, Payment to be Received, Year Two	256
Lessor, Operating Lease, Payment to be Received, Year Three	256
Lessor, Operating Lease, Payment to be Received, Year Four	256
Lessor, Operating Lease, Payment to be Received, after Year Five	87
Lessor, Operating Lease, Payment to be Received	$ 1,303

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Schedule of Operating Lease Income (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2025 USD ($)
Leases
Lease income - operating leases - fixed payments	$ 64
Lease income - operating leases - variable payments	135
Lease Income	$ 199

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Leases (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Related Party Transaction [Line Items]
Operating Lease, Right-of-Use Asset, Periodic Reduction	$ 59	$ 48
Operating Lease, Payments, Use	59	38
Operating Lease, Cost	68	57
Unrelatedthirdparty [Member]
Related Party Transaction [Line Items]
Operating Lease, Right-of-Use Asset, Periodic Reduction	$ 59	$ 48

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Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Paymentof Inventory Finished Goods	$ 3,600	$ 5,700
Finished Goods Received	2,200	$ 5,000
Prepaid inventory	$ 5,650		$ 3,347

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Stockholders’ Equity (Details Narrative) - shares	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Equity [Abstract]
Preferred Stock, Shares Authorized	5,000,000		5,000,000
Stock Repurchased During Period, Shares	50,360	0

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Schedule of Restricted Stock Activity (Details) - Restricted Stock [Member] - $ / shares	3 Months Ended
	Mar. 31, 2025	Dec. 31, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number	125,000	135,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 7.39	$ 7.04
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period	(10,000)
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 2.65
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Forfeited in Period
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value

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Schedule of Stock Option Activity (Details) - Equity Option [Member] - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2025	Dec. 31, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Beginning Balance	77,550
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance	$ 5.55
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	2 years 9 months 29 days	3 years 29 days
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Net of Forfeitures
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Expirations in Period
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance	77,550	77,550
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance	$ 5.55	$ 5.55
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number	77,550	77,550
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 5.55	$ 5.55

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Equity-based Compensation (Details Narrative) - USD ($)								3 Months Ended
	Jan. 31, 2025	Dec. 17, 2024	Jan. 11, 2024	Jan. 26, 2023	Dec. 19, 2022	Jul. 21, 2021	Feb. 01, 2020	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant								195,223		195,223
Stock Issued During Period, Shares, Employee Benefit Plan							35,000
Restricted Vest Percentage		25.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested, Number of Shares		10,000			42,000
Share-Based Payment Arrangement, Expense								$ 0	$ 1,000
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount								$ 800,000
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition								3 years 2 months 12 days
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value								$ 0		$ 100,000
Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value								$ 2.65
Share-Based Payment Arrangement, Expense								$ 79,000	$ 92,000
Equity Incentive Plans [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Issued in Period								397,473
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term								10 years
Equity Incentives Plan1 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Issued in Period								750,000
Equity Incentive Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock Issued During Period, Shares, Employee Benefit Plan		100,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value			$ 2.65
Equity Incentive Plan [Member] | Equity Incentive Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested, Number of Shares		10,000	10,000
Sharebased Arrangementby Reamaining Shares	10,000
Equity Incentive Plan [Member] | Common Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Sharebased Arrangementby Reamaining Shares		30,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value		$ 7.78
Equity Incentive Plan [Member] | Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock Issued During Period, Shares, Employee Benefit Plan			20,000	10,000	77,000
Restricted Vest Percentage							25.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value		$ 7.78	$ 2.65	$ 8.96	$ 6.40	$ 3.84	$ 4.11
Equity Incentive Plan [Member] | Restricted Stock [Member] | Board of Directors Chairman [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock Issued During Period, Shares, Employee Benefit Plan						130,000
Restricted Vest Percentage					25.00%	25.00%
Restricted Grant Percentage						25.00%

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Income Taxes (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Tax Expense (Benefit)	$ 110	$ 827
Effective Income Tax Rate Reconciliation, Percent	4.50%	26.70%