Sensus Healthcare, Inc. (NASDAQ:SRTS), a medical device company, has appointed Berkowitz Pollack Brant Advisors + CPAs, LLP (BPB) as its new independent registered public accounting firm, effective immediately, as disclosed in its recent SEC filing.
This change occurred after the company's previous auditor, Marcum LLP, resigned due to independence concerns related to its upcoming merger with CBIZ (NYSE:CBZ) Inc., which provides services to Sensus Healthcare.
The company's relationship with Marcum was free of disagreements on accounting principles or practices, financial statement disclosure, or auditing scope or procedure during the fiscal years ended December 31, 2022, and 2023, and the subsequent interim period through September 5, 2024.
However, a material weakness was identified in Sensus Healthcare's internal control over financial reporting as of June 30, 2024, specifically related to information technology general controls. Despite this, there were no material misstatements in the company's financial statements for that period.
The Audit Committee of Sensus Healthcare has discussed the material weakness with Marcum and has authorized them to respond fully to any inquiries from BPB, the company's successor auditor.
Additionally, Sensus Healthcare confirmed that during the fiscal years 2022 and 2023 and the subsequent interim period up to the date of the filing, it had not consulted BPB on any accounting or auditing matters that could have influenced their financial reporting.
In other recent news, Sensus Healthcare reported a substantial increase in its Q2 2024 revenue, which more than doubled to $9.2 million compared to the same period last year. The company's net income also reached $1.6 million, a significant improvement from a previous net loss.
This financial turnaround has been attributed to factors such as the introduction of the Fair Deal Agreement, a new recurring revenue model, and the sale of the first image-guided SRT-100 Vision system in Asia.
Sensus Healthcare shipped 23 systems, including three to international markets, demonstrating strong sales momentum. The company also sold its first image-guided SRT-100 Vision system in Asia. With a cash position of $26.4 million and no outstanding borrowings, Sensus Healthcare is in a healthy financial position.
Looking ahead, the company expects significant contributions from recurring revenue streams beginning in the second half of 2025 and plans to expand into two to three new international territories per year. Finally, Sensus Healthcare is currently awaiting FDA approval for its TDI product, which is forecasted to have a gross margin of around 60%.
InvestingPro Insights
As Sensus Healthcare, Inc. (NASDAQ:SRTS) navigates through its transition of auditors and addresses internal control over financial reporting, investors may find it useful to consider recent financial metrics and analysts' expectations. According to InvestingPro, Sensus Healthcare holds a market capitalization of $96.2 million, reflecting its current valuation in the market. The company's P/E ratio stands at 14.53, which may offer insight into how investors are valuing its earnings relative to its peers.
InvestingPro data also highlights that Sensus Healthcare has experienced a significant revenue growth rate of 20.99% over the last twelve months as of Q2 2024, with an even more impressive quarterly revenue growth of 104.09% in Q2 2024. This suggests a robust expansion in the company's business activities during this period. Moreover, the company's gross profit margin of 60.23% indicates a strong ability to control costs relative to its revenue generation.
InvestingPro Tips further reveal that analysts predict Sensus Healthcare will be profitable this year, with a high return over the last year signaling positive investor sentiment. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a solid financial position for managing short-term liabilities. For those considering investment opportunities, it's notable that Sensus Healthcare does not pay a dividend to shareholders, which may influence the investment strategy for income-focused investors. For more in-depth analysis and additional tips, there are 7 more InvestingPro Tips available for Sensus Healthcare.
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