Sensus Healthcare Reports First Quarter 2023 Financial Results Lower demand for SRT systems reflects the impact of inflation on dermatologists' cash flow from fewer elective aesthetic procedures and higher operating cost

Sensus Healthcare Reports First Quarter 2023

Lower demand for SRT systems

reflects the impact of inflation on dermatologists' cash

flow from fewer elective aesthetic procedures and higher operating costs

Sensus expects to ship more than

60 SRT units during 2023 and return to profitability in

the second half of the year

Conference call begins at 4:30 p.m. Eastern

BOCA RATON, Fla. (May 3, 2023) - Sensus

Healthcare, Inc. (Nasdaq: SRTS), a medical device company specializing in highly effective, non-invasive, minimally-invasive and cost-effective

treatments for oncological and non-oncological conditions, announces financial results for the three months ended March 31, 2023.

Highlights from the first quarter of 2023 and

recent weeks include the following (all comparisons are with the first quarter of 2022, unless otherwise indicated):

Management Commentary

"Our first quarter financial results were

disappointing as potential new customers delayed making SRT purchase decisions due to inflation conditions impacting their aesthetic business.

Many dermatologists depend on elective aesthetic procedures as a meaningful source of practice revenue and profit, and inflation has caused

consumers to pull back on these expenditures. Inflation is also impacting operating expenses and cash flow as recruiting costs and staff

salaries continue to rise, while many larger practices are deploying cash for acquisitions," said Joe Sardano, chairman and chief

executive officer of Sensus Healthcare.

"That said, we have prepared for the growth

we expect later this year by building inventory and prepaying for components, and we expect to ship more than 60 SRT systems during 2023.

We are working to regain momentum in China now that the pandemic lockdowns have been lifted, and we shipped two SRT systems there during

the quarter as well as one to Taiwan. We plan to increase our addressable market by entering three to four new international territories

each year, with an initial focus on Southeast Asia and South America. In addition, we continue to make investments in Sentinel IT, our

HIPAA-compliant software solution that not only is capable of storing patient data for multiple clinical purposes, but also is intended

to include artificial intelligence that will allow customers to better manage their practices as well as their patient data. We were delighted

to launch our Sentinel/Sensus Cloud capabilities at last month's American Academy of Dermatology Annual Meeting, which was well

"We are confident we have the right people,

technology and sufficient cash to regain our growth trajectory. Tragically, skin cancer rates continue to rise, with an estimated one

in five Americans, or 70 million people, expected to develop skin cancer during their lifetime. SRT is the No. 1 choice for the non-invasive

treatment of non-melanoma skin cancer, and this trend makes our SRT systems more important than ever. We've seen SRT treatments

rise to over 480,000 in the last two years alone. The return on investment for our premium SRT system under our fair market value leasing

program continues to be compelling, with favorable reimbursement and breakeven at only 2 to 2.5 patients per month. Based on our booth

traffic at important conferences such as the Winter Clinical, the South Beach Symposium and the American Academy of Dermatology Annual

Meeting, interest in SRT remains very strong and will continue to resonate as it contributes towards positive cash flows and productivity

in every practice where it is deployed.

"We are broadening Sensus' reach

into radiation oncology, where SRT systems provide a compelling economic option for treating skin cancer and represent, in many cases,

a new source of revenue for hospitals. Interest from this channel is high and we are optimistic it will become a meaningful component

of revenue, one that is largely insulated from economic factors," he added. "We recently sold and installed an SRT-100 Vision

system complete with our new state-of-the-art, solid-state, high-frequency ultrasound to Beth Israel Deaconess Hospital in Plymouth, Massachusetts.

We are very excited about the potential to provide the most patient-friendly and robust alternative to treating non-melanoma skin cancer

to hospitals as they increasingly recognize this underserved opportunity."

First Quarter Financial Results

Revenues for the first quarter of 2023 were $3.4

million, compared with $10.3 million for the first quarter of 2022. The decrease was primarily due to a lower number of SRT units sold

due to inflation impacting medical practices and lower sales to a large customer.

Cost of sales was $1.8 million for the first

quarter of 2023, compared with $3.2 million for the year-ago quarter. The decrease was primarily due to lower sales in the first quarter

Gross profit for the first quarter of 2023 was

$1.6 million, or 47.1% of revenues, compared with $7.1 million, or 68.9% of revenues, for the first quarter of 2022. The decrease was

primarily due to the lower number of units sold and higher costs charged by vendors in the 2023 quarter, reflecting another impact of

Selling and marketing expense was $2.1 million

for the first quarter of 2023, compared with $1.2 million for the prior-year quarter. The increase was primarily due to higher tradeshow

and advertising expenses.

General and administrative expense was $1.4 million

for the first quarter of 2023, compared with $1.3 million for the first quarter of 2022. The increase was primarily due to higher professional

fees and travel expense offset by a reduction in insurance expense.

Research and development expense was $1.1 million

for the first quarter of 2023, compared with $0.7 million in the comparable 2022 period. The increase was primarily due to expenses related

to an ongoing aesthetic project during 2023 to develop a drug delivery system.

Other income of $0.2 million for the first quarter

of 2023 was related to interest income. Other income of $12.8 million for the year-ago quarter included the gain on the sale of a non-core

Net loss for the first quarter of 2023 was $1.9 million,

or $0.12 per share, compared with net income of $16.1 million, or $0.97 per diluted share, for the first quarter of 2022. Net income for

the 2022 quarter included the gain on the sale of a non-core asset of $12.8 million, or $0.77 per diluted share.

Adjusted EBITDA for the first quarter of 2023 was

negative $2.7 million, compared with positive $16.9 million for the first quarter of 2022. Adjusted EBITDA, a non-GAAP financial measure,

is defined as earnings before interest, taxes, depreciation, amortization and stock-compensation expense. Please see below for a reconciliation

between GAAP and non-GAAP financial measures, and the specific reasons these non-GAAP financial measures are provided.

Cash and cash equivalents were $19.3 million as of

March 31, 2023, compared with $25.5 million as of December 31, 2022. The Company had no outstanding borrowings under its revolving line

of credit as of March 31, 2023 or December 31, 2022. Prepaid and other current assets were $10.7 million as of March 31, 2023, compared

with $6.9 million as of December 31, 2022. Inventories were $6.3 million as of March 31, 2023, compared with $3.5 million as of December

Use of Non-GAAP Financial Information

This press release contains supplemental financial

information determined by methods other than in accordance with accounting principles generally accepted in the United States (GAAP).

Sensus Healthcare management uses Adjusted EBITDA, a non-GAAP financial measure, in its analysis of the Company's performance. Adjusted

EBITDA should not be considered a substitute for GAAP basis measures, nor should it be viewed as a substitute for operating results determined

in accordance with GAAP. Management believes the presentation of Adjusted EBITDA, which excludes the impact of interest, income taxes,

depreciation, amortization and stock-compensation expense, provides useful supplemental information that is essential to a proper understanding

of the financial results of Sensus Healthcare. Non-GAAP financial measures are not formally defined by GAAP, and other entities may use

calculation methods that differ from those used by Sensus Healthcare. As a complement to GAAP financial measures, management believes

that Adjusted EBITDA assists investors who follow the practice of some investment analysts who adjust GAAP financial measures to exclude

items that may obscure underlying performance and distort comparability. A reconciliation of the GAAP net loss to Adjusted EBITDA is provided

in the schedule below.

SENSUS HEALTHCARE, INC.

GAAP TO NON-GAAP RECONCILIATION

Conference Call and Webcast

Sensus Healthcare will host an investment community

conference call today beginning at 4:30 p.m. Eastern time during which management will discuss financial results for the 2023 first quarter,

provide a business update and answer questions. To access the conference call, dial 844-481-2811 (U.S. and Canada Toll Free) or 412-317-0676

(International). The call will be webcast live and can be accessed at this link, or in the Investors section of the Company's website

at www.sensushealthcare.com.

Following the conclusion of the conference call,

a replay will be available until June 3, 2023 and can be accessed by dialing 877-344-7529 (U.S. Toll Free), 855-669-9658 (Canada Toll

Free) or 412-317-0088 (International), using replay code 1356425. An archived webcast of the call will also be available in the Investors

section of the Company's website.