Sensus Healthcare Reports Fourth Quarter and Full Year 2023 Financial Results Fourth quarter revenues of $12.6 million up three-fold sequentially, reflect ongoing customer adjustment to macroeconomic conditions Introduce

Sensus Healthcare Reports Fourth Quarter and

Full Year 2023 Financial Results

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

BOCA RATON, Fla. (February 8, 2024) -

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 and 12 months

ended December 31, 2023.

Highlights from the fourth quarter of 2023 and

recent weeks include the following:

Management Commentary

"The strength of our fourth quarter resulted

in positive net income not only for the quarter, but also for the full year. This performance reflects the practice benefits of SRT to

our customers and the treatment benefits to their patients, as well as our customers' ongoing adjustment to prolonged higher inflation,"

said Joe Sardano, Chairman and Chief Executive Officer of Sensus.

"During 2023 we embarked on several

important initiatives to position Sensus for long-term growth," he continued. "We built inventory throughout the year

and used cash judiciously to ensure sufficient resources to offer the SRT-100 Vision (IG-SRT) under a recurring revenue

model. For years our customers and prospects alike have been asking for new ways to add SRT to their practices, and we're

delighted to meet their needs with a highly-competitive offering that makes the most economic sense for them. This new option

complements our capital equipment sales and fair market value lease models, provides recurring revenue to Sensus and expands our

market as utilization of SRT to treat non-melanoma skin cancer continues to increase. During the fourth quarter we made our first

placement under this model and have several more in the pipeline."

Mr. Sardano added, "We were delighted to

enter into a collaboration with CureRays whereby they will provide oversight for our customers to ensure the utmost efficiency and effectiveness

of the dermatology practice. In addition, CureRays will begin clinical studies that are intended to expand the use of SRT into areas beyond

skin cancer and keloids. While this is a longer-term goal, it presents enormous growth opportunities for Sensus. We know the leaders of

CureRays very well from their work at Emory University, investigating low-dose radiation as a treatment for COVID-19 pneumonia. This collaboration

provides our customers with unprecedented world-class support.

"During the quarter we continued to focus

on international opportunities as we sold three SRT systems outside the U.S. We reaffirm our goal to enter three to four new geographies

over the coming years, building upon our success in international markets where we sold 13 systems in 2023, and our recently added opportunities

in Latin America, the UK and Ireland," Mr. Sardano concluded.

Fourth Quarter Financial Results

Revenues for the fourth quarter of 2023 were $12.6

million, compared with $13.1 million for the fourth quarter of 2022. The decrease reflects fewer SRT units sold.

Cost of sales was $4.7 million for the fourth

quarter of 2023, compared with $4.8 million for the prior-year quarter. The decrease was primarily related to fewer SRT units sold.

Gross profit for the fourth quarter of 2023 was

$7.8 million, or 62.3% of revenues, compared with $8.4 million, or 63.7% of revenues, for the fourth quarter of 2022. The decrease was

primarily due to the lower number of units sold.

Selling and marketing expense was $0.6 million

for the fourth quarter of 2023, compared with $1.6 million for the prior-year quarter. The decrease was primarily attributable to lower

compensation expense, offset by higher tradeshow expense.

General and administrative expense was $1.0 million

for the fourth quarter of 2023, compared with $1.4 million for the fourth quarter of 2022. The decrease was primarily due to lower compensation

expense in the 2023 quarter and higher bad debt expense in the prior-year quarter.

Research and development expense was $0.7 million

for the fourth quarter of 2023, compared with $1.2 million for the fourth quarter of 2022. The decrease was primarily due to the completion

of development of a drug delivery system for the aesthetic market.

Other income of $0.2 million for the fourth quarter

of 2023 was mostly related to interest income and was unchanged from the prior-year quarter.

Net income for the fourth quarter of 2023 was

$4.2 million, or $0.26 per diluted share, compared with net income of $2.8 million, or $0.17 per diluted share, for the fourth quarter

Adjusted EBITDA for the fourth quarter of 2023

was $5.7 million, compared with $4.3 million for the fourth 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 reasons these non-GAAP financial measures are provided.

Cash and cash equivalents were $23.1 million as

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

line of credit. Prepaid inventory was $3.0 million as of December 31, 2023, compared with $6.3 million as of December 31, 2022. Inventories

were $11.9 million as of December 31, 2023, compared with $3.5 million as of December 31, 2022, with the increase reflecting preparations

for higher expected unit sales for 2024.

Full-Year Financial Results

Revenues for 2023 were $24.4 million,

compared with $44.5 million for 2022, reflecting a lower number of SRT units sold as customers deferred purchases due to

macroeconomic conditions and lower sales to a large customer in 2023.

Cost of sales was $10.3 million for 2023, compared

with $14.9 million for 2022. The decrease was primarily related to lower sales in 2023.

Gross profit was $14.1 million for 2023, or 57.6%

of revenues, compared with $29.6 million, or 66.5% of revenues, for 2022. The decrease was primarily driven by the lower number of units

sold and higher costs charged by vendors in 2023.

Selling and marketing expense was $5.6 million

for 2023, compared with $6.3 million for 2022. The decrease was primarily attributable to the Company lower compensation expense offset

by an increase in tradeshow expense.

General and administrative expense for 2023 was

$5.2 million, compared with $5.0 million for 2022. The increase was primarily due to higher professional fees and compensation expense.

Research and development expense was $3.7 million

for 2023, compared with $3.5 million for 2022. The increase was primarily due to expenses related to a project to develop a drug-delivery

system for the aesthetic market during 2023.

Other income, net of $1.0 million in 2023 was

mostly related to interest income. Other income, net of $13.2 million for 2022 was primarily related to the gain on the sale of a non-core

Net income for 2023 was $0.5 million, or $0.03

per diluted share, compared with net income of $24.2 million, or $1.46 per diluted share, for 2022. Net income for 2022 excluding the gain

on the sale of a non-core asset was $11.5 million, or $0.69 per diluted share.

Adjusted EBITDA for 2023 was $0.3 million, compared

with $28.1 million for 2022.

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