Sensus Healthcare, Inc. (NASDAQ:SRTS) Q2 2023 Earnings Call Transcript

Anthony Vendetti: Okay. Great. And then, you did mention, I think, some sales in Asia, specifically China. And then, I was wondering if you could talk about what you’re seeing in that market and then also just an update on Beacon Hospital in Ireland?

Michael Sardano: Anthony, it’s Mike. So with regard to China, that seems to be very consistent. As I stated, the lockdowns are pretty much done even in China. Benson has been our VP of International Sales, has been in touch with our distributors in China and is a Chinese national himself. So he’s very well connected in that area. So, we’re seeing a lot of consistency. And like I said, there’ll be over 10 systems sent to China throughout the entirety of 2023. With regard to Beacon Hospital, I went over there myself. I met with the contingency there, and it’s in the dermatology and radiation oncology facility there, and they’re very, very excited to have it. Beacon Hospital is probably the premier private hospital in Dublin. So they have a high net worth individual client base, and they’re very excited to start treating there.

Anthony Vendetti: Good. Good. Okay. So, great. So, you’re there – and what do you see as the opportunity, not just in Ireland with this as a sort of a premier hospital in Dublin. But what’s the opportunity do you believe, Michael, to use this sort of as like a platform, hospital and scale the opportunity for Sensus throughout Europe.

Joseph Sardano: Anthony, let me answer that 1, because that’s a very, very good question. If you – I would invite anybody to go to the Beacon website and look up the hospital and look at the services that they provide. Like every other hospital, they list orthopedics, cancer care, parts, they have them all listed. One of the neat things that you see is dermatology. And it’s a collaboration between radiation oncology and dermatology to treat skin cancer and this being one of the premier private hospitals in the British aisle, they’ve deemed SRT from Sensus to be the best device to treat that disease. And I think that, that’s something that is a model that I think we’re going to start seeing in the U.S. If you go to most of the U.S. hospitals and look at their websites, whether it’s private or nonprofit, they don’t have dermatology listed in their scope of services, all the other big ones are.

But I think you’re going to start seeing that coming about, just like we saw with Beacon Hospital. So, I think that’s a good – it’s a good beacon for us to follow for the U.S. market and for beyond. It exists everywhere else in the world, I think it’s going to grow to the U.S. market as well.

Anthony Vendetti: Yes, very good. All right. Great. Thanks. I’ll hop back in the queue. Appreciate you guys.

Joseph Sardano: Thank you.

Operator: [Operator Instructions] Our next question comes from Alex Nowak with Craig-Hallum. Please go ahead.

Unidentified Analyst: This is [indiscernible] on for Alex. So, with the 2023 draft physician schedule coming out, have there been any changes to reimbursement for superficial radiation therapy?

Joseph Sardano: Nothing has been indicated. Michael, you’re…

Michael Sardano: No, there was no mention of SRT and the physician fee schedule.

Unidentified Analyst: Got it. Got it. Okay. Can you walk us through how the sales team is adapting their process in this tough capital environment. I know you mentioned some lease programs, but can you just further expand on that a bit?

Joseph Sardano: Well, the lease program that we have is, we’ve been talking about for quite a while now, the fair market value lease is something that’s very encouraging for the customer to adapt. So, it’s just another tool for the customer to gain access to our technology. And it’s a very inexpensive way of doing it, much like a car lease, as I’ve described it, where there’s a hefty residual value, if you will, left on the equipment. So they’re only paying for a certain portion of it. That will continue to grow, although most of our customers pay cash for the system. We’re also coming up with some other derivatives of opportunities to allow our customers to acquire our product in these tough times. You’ve got rentals, you’ve got shared service programs.