Q4 2024 Sensus Healthcare Inc Earnings Call
Good day, and welcome to the Sensus healthcare fourth quarter, 2024, and our financial results Conference call.
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Speaker Change: Please note. This event is being recorded I would now like to turn the conference over to Turf Hotel Alliance Advisors IR. Please go ahead.
Speaker Change: Good afternoon. This is starting to tell with the lives of advisers IR. Thank you all for joining today's call to discuss sensus healthcare fourth quarter and full year 2024 financial results.
Speaker Change: Joining me from Sensus are Joseph Donahoe, Chairman and Chief Executive Officer, Michael Stewart, Dano, President and General Counsel, and Javier <unk> Chief Financial Officer.
Speaker Change: As a reminder, some of the matters that will be discussed during today's call contain forward looking statements within the meaning of federal securities laws. All statements other than historical facts that address activities Sensus healthcare assumes plans expects believes intends or anticipates and other similar expressions will should or may occur.
Speaker Change: For the future are forward looking statements. The word looking statements are management's beliefs based upon currently available information as of the date of this conference call February 5th 2025.
Sensus healthcare undertakes no obligation to revise or update any forward looking statements, except as required by law. All forward looking statements are subject to risks and uncertainties as described in the company's forms 10-K, 10-Q and other SEC filings.
Speaker Change: During today's call references will be made to certain non-GAAP financial measures Sensus believes these measures provide useful information for investors yet they should not be considered as a substitute for GAAP, nor should they be viewed as a substitute for operating results determined in accordance with GAAP a reconciliation of non-GAAP to GAAP results is.
Speaker Change: Included in today's financial results press release with that I'd like to turn the call over to Joseph Dano Joe.
Speaker Change: Thank you.
Joseph Dano: Good afternoon, everyone and thank you for joining us today, reflecting on our performance over the past year since in self care experience strong business momentum as we continue to expand our customer base refine our product offering and reinforce our company's position as a leader in superficial radiotherapy top.
Joseph Dano: Wine results demonstrate the market's growing acceptance of our SRT 100 platforms, especially in dermatology practices the value non surgical treatment options for non melanoma skin cancer and keywords.
Joseph Dano: I'd like to start by highlighting our major accomplishments we built upon many of the themes that we've discussed throughout the year, specifically strong execution of our sales strategy expansion of our share deal agreement program and ongoing enhancements to our research and development pipeline.
Joseph Dano: The third deal agreement or F. D. A initiated initiative has gained significant traction over the past year and is evolving into an important strategic growth drivers, particularly for large dermatology groups and private equity backed practices looking for both clinical value and financial flexibility.
Joseph Dano: During our sales calls we emphasize the importance of delivering solutions that align with customer goals and we continue to see heightened enthusiasm for agreements with attractive economics.
Joseph Dano: Overall, our focused strategy and ongoing innovations are driving the results we're reporting today on.
Joseph Dano: I am proud of our team's execution and look forward to capitalizing on new opportunities in 2025.
Joseph Dano: From a financial perspective, I am pleased to report that our fourth quarter performance capped an outstanding year, we recorded revenue of $13 1 million for the quarter and $41.8 million for the year, which is up 71% compared to 2023.
Joseph Dano: These results reflect higher unit sales of our flagship SRT 100 systems, driven by expanding clinical awareness and broadening reimbursement for superficial radiation therapy.
Joseph Dano: We delivered accordingly brokerage 39 systems in the fourth quarter and 115 for the full year increases of 18% and 74% respectively.
Joseph Dano: It's important to note that within these shipments to international customers in the quarter and 10 were shipped internationally during the year.
Joseph Dano: Dancing the approach we outlined in our Q2 call.
Joseph Dano: We continue to deepen relationships with established distributors and prospective partners across multiple geographies, where there remains significant unmet need for non invasive treatment options.
Joseph Dano: Profitability remains central to our strategy and I'm proud to share that we achieved our fifth consecutive quarter of profitability with net income of $1 4 million for the quarter.
Joseph Dano: We also ended the year with $22 1 million in cash and cash equivalents with no debt, reflecting our ability to maintain a strong capital position.
Joseph Dano: We believe this level of liquidity provides the flexibility to support ongoing R&D fund potential partnership opportunities and further invest in sales and marketing initiatives that will drive the company's next phase of growth.
Joseph Dano: I would like now to turn the call over to Michael to discuss the growth trajectory for our FBA program another upcoming strategic goals Michael.
Michael: Thanks, Joe a significant driver of our expected growth is the third deal agreement program the.
Michael: The flexibility of these agreements accommodates a wide range of potential customers yet interest among corporate accounts has been particularly strong surpassing our expectations and reflecting growing acceptance for a program that we launched almost exactly one year ago.
These agreements typically include a structured tiered revenue sharing component with no capital outlay by the customer.
Michael: Our sense is they create recurring revenue streams. Once SRT is incorporated into the practice workflow. We expect these agreements to begin contributing meaningfully to our top line in the second half of 2025.
The smart deal agreement at its core allows providers to acquire SRT systems through an operating lease like structure. This alleviant capital purchase barriers, making it easier for practices to implement cutting edge technology and enhance their competitive position all without significant upfront cash outlays.
Michael: Or the financial impact of entering into a lease.
Michael: This program offers our customers flexibility and aligns our success with theirs.
Michael: This shared revenue option also differentiates us from typical equipment financing models in the industry and positions our treatment solutions as more accessible and scalable, which we're seeing in terms of growing demand.
Michael: Under these programs, it's less about selling a unit and more about forming a lasting partnership.
Michael: That deeper relationship opens the door to greater service and support interactions, which is not only beneficial for patient outcomes, but also fosters loyalty and long term growth.
Michael: At the recent medical conferences, including the 2025 winter clinical Dermatology conference in January we showcased our SRT systems to a broad audience of dermatologist and health care decision makers.
Michael: We plan to continue building on this momentum at the 2025 American Academy of Dermatology annual meeting in March further elevating our brand and introducing our noninvasive treatment solutions to new clinicians and potential partners.
Michael: I mentioned, a moment ago that we surpassed our expectations for the number of fair deal agreement signed in 2024.
Michael: With our focus on corporate accounts, which may operate dozens or even hundreds of clinics. The number of fair deal agreement signed is not the key metric for future revenues.
What matters is the number of clinics, where an SRT is installed and most importantly, the number of patients who are being treated with our SRT technology.
Michael: We support our largest customers to prioritize the rollout of S. R. Ts within their network by utilizing the extensive data analytics gathered from across our installed base, our vast resources regarding non melanoma skin cancer and our unmatched experience.
Michael: Through this partnership we help ensure customer success with their early SRT experiences.
Michael: We also aim to ensure that resources are allocated efficiently and that success is evident for the dermatology practice, the corporate entity and four centers.
SRT, a diversity titled Technology, and we achieved a milestone this past quarter with the sale of an SRT system to a veterinary clinic here in South Florida.
Michael: This sale demonstrates the long term potential for SRT, a new specialized verticals such as animal health.
Michael: It's still early in our exploration of the veterinary market and we see a growing interest from veterinary hospitals seeking noninvasive treatment options for superficial tumors in animals.
Michael: This diversification underscores the versatility of our platform a topic, we've touched on repeatedly throughout the year and it fuels our optimism for finding additional niche markets in the future.
Michael: Lastly, we are making meaningful progress with our product innovation pipeline.
Michael: After refining our approach in collaboration with regulatory consultants, we are preparing to resubmit, our <unk> five 10-K application in the first half of 2025.
Michael: We believe that the enhancements we've made in response to FDA feedback along with our track record of successful clearances put us in a stronger position for a successful submission and advances our goal of diversifying the sensus healthcare product line and further solidify our footprint in the dermatology market.
Speaker Change: With that overview I'd like to turn the call over to Javier Ram Polak, who will provide more details on our financial performance Javier.
Speaker Change: Thanks, Michael and good afternoon, everyone.
Speaker Change: Joe mention of our revenues for the fourth quarter totaled $13 1 million up from $12 6 million a year ago, driven by an increase in the number of US are two units sold.
Speaker Change: Gross profit came in at $7 1 million or 54, 4% of revenue down from $7 8 million or 62, 3% of revenue in the prior year quarter. Most of that decline was due to a one time discount to a new large group customer and higher service cost.
Speaker Change: On operating expenses general and administrative expenses increased to $2 4 million compared with <unk> 9 million last year, mainly because of higher compensation and professional fees.
Speaker Change: Selling and marketing expenses were $1 4 million in the quarter up from <unk> 6 million last year, mostly reflecting higher commissions.
Speaker Change: This was offset by lower marketing and trade show spending.
Speaker Change: Research and development expenses rose to $1 6 million from $4 7 million a year ago, driven by a higher compensation, our ongoing product development cost.
Speaker Change: Other income, which is largely interest income was 42 million both this quarter and the same quarter last year.
Speaker Change: Net income for Q4, 2024 was $1 5 million or <unk> <unk> per diluted share compared with $4 2 million or <unk> 26 cents per diluted share a year ago.
Speaker Change: Adjusted EBITDA, which excludes interest taxes, depreciation amortization and stock compensation expense was $1 9 million compared with $5 7 million in the fourth quarter of 2023. The difference between the two quarters is attributable to higher net income and income tax expense in the 2009.
Speaker Change: 'twenty three period.
Speaker Change: For the full year revenues came in at $41 8 million a sizable seven 1% increased from $24 4 million in 2023.
Speaker Change: That reflects a higher number of SRT and units sold partly because some customers deferred purchases in 2023, given the macro environment and also because sales to a large customer in 2024.
Speaker Change: Gross profit for 2024 rolls through $24 4 million or 58, 6% of revenue up from $14 1 million or 57, 8% of revenue in 2023.
Speaker Change: Looking at operating expenses for the year.
Speaker Change: General and administrative expenses increased to $7 1 million from $5 2 million, which is partly due to higher compensation professional fees and some bad debt expense balance by a reduction in bank fees and insurance costs.
Speaker Change: Selling and marketing expenses decreased to $5 million from $5 6 million, mainly due to lower agency fees travel and payroll.
Speaker Change: Research and development expenses were $4 2 million up from $3 7 million a year ago, driven mostly by compensation on product development. Although we did have a decrease in expenses tied to our drug delivery project.
Speaker Change: Other income net which again is primarily interest income was <unk> 9 million in 2024 versus $1 million in 2023.
Speaker Change: As a result of all these factors we reported a net income for 2024 up $6 6 million or <unk> 41 per diluted share compared with a net income of <unk> 5 million or <unk> <unk> per diluted share for 2023.
Speaker Change: Adjusted EBITDA was $8 7 million in 2024, compared with <unk> 3 million in 2023, which represents a very strong improvement on that metric.
Speaker Change: Moving to our balance sheet.
Speaker Change: We ended 2024 week $22 1 million in cash and cash equivalents compared with $23 1 million Afghan up to document and 23, and we had no outstanding borrowings under our revolving credit line at either at year end <unk>.
Speaker Change: Inventories totaled $10 1 million as of December 31 down from $11 9 million a year ago, and prepaid inventory was $3 3 million up slightly from $3 million.
Speaker Change: From a cash perspective, we continue to spend prudently and focus on investments that will drive our long term growth.
Speaker Change: Our balance sheet remains healthy, which positions us to pursue strategic opportunities as they arise whether deskpro partnership expanded RMB or all their initiative, we believe can accelerate our business in the coming quarters and years.
Speaker Change: Please see the table in the news release, we issued earlier today for a reconciliation of GAAP to non-GAAP measures.
Speaker Change: As a final comment as mentioned in this afternoon's earnings release, the first and the third quarters are our seasonally softest and three of this year's four largest medical comprehensive arent in the first quarter. These events impact sales.
Speaker Change: Plastic customers under staff are out of their office and also the impact expanses, we leverage these important opportunities.
Speaker Change: <unk> sales, we expect that first quarter of 2025 cells could be considerably lower than the first quarter of 2024 sales with full year sales growth in 2025 burst of 'twenty to 'twenty four.
Speaker Change: I also like to point out that the first quarter of 2024 is a tough itself comp our various factor contributing to a particularly strong quarter with <unk>.
Speaker Change: That I will turn the call back to Joe.
Speaker Change: Thanks, Javier and Michael for those updates.
Speaker Change: We remain particularly encouraged by the opportunities to deepen ties with large medical practices. These organizations value comprehensive cost effective solutions that enhance patient care without requiring significant upfront capital, which is exactly what our fair deal agreement model delivers at the same time, we are broadening our international.
Speaker Change: National footprint exploring specialized markets like veterinary medicine, and delivering SRT in new ways each of which holds promise for further diversification, we look forward to engaging with more clinicians and health care leaders at the important AAD annual meeting in March where we plan to highlight clinical outcomes.
Speaker Change: <unk> best practices for implementing SRT in high volume settings, and discuss how flexible are our financial models can empower more practices to adopt non invasive therapies I'd.
Speaker Change: I'd like to conclude.
Speaker Change: By reiterating how proud we are of the progress you've made over the course of 2024 as both sensus and our customers adapted to the macroeconomic environment.
Speaker Change: The highlights we've shared today, including a record number of units shipped ongoing profitability, new FTA agreements added veterinary applications in steps towards the TDI re submission all underscore our momentum and set the stage for what we anticipate dissipate to be another productive and rewarding year ahead.
Speaker Change: We have concluded a great Q4, and 2024, we continue to direct many potential customers from an outright sale to the fair deal agreement, which will as we have said repeatedly provides significant revenue from the <unk>.
Speaker Change: Second half of 2025, we will continue this trend throughout the first half of this year.
Speaker Change: Largest customer continues to grow as they provided us with the P. O 450 units of which 25 were delivered in Q4 with the next 25 slated for delivery in 2025.
Speaker Change: We expect this trend to continue as we work together and bringing a market the very best noninvasive technology for Iga SRT for non melanoma skin cancer.
Speaker Change: While we arent providing formal financial guidance for 2025 at this time, we remain optimistic about our growth trajectory. We anticipate continued momentum from both direct system sales and a fair deal agreement pipeline.
Speaker Change: Our objective remains to drive sustainable profitable growth, while bringing beneficial technology to patients in need of effective treatment alternatives. As we look ahead. We believe we have the right team the right strategy and the right products to achieve these goals.
Speaker Change: We appreciate your continued support and look forward to reporting on our progress throughout 2025.
Speaker Change: Thank you for joining us today and now we'd be happy to take your questions operator.
Speaker Change: Thank you we will now begin the question and answer session.
Speaker Change: I ask a question you May press Star then one on your Touchtone phone.
Speaker Change: If youre using a speakerphone please pick up your handset before pressing the keys.
Speaker Change: If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
Speaker Change: At this time, we will pause momentarily to assemble our roster.
Speaker Change: Good.
Speaker Change: And of her first question comes from Jeremy Pearlman with Maxim Group. Please go ahead.
Jeremy Pearlman: Hi, good afternoon, congrats on a great quarter and a great year.
Speaker Change: Questions from our team yeah. So just a couple questions from our team are firstly on the I don't know did you give or provide a breakout it and see it in the press release of the number of units that were shipped in the fourth quarter. How many of those were part of a fair deal agreement or and then just.
Jeremy Pearlman: I'll piggyback off that looking at 2025.
Jeremy Pearlman: And as you're dealing with new customers what percentage do you think are more inclined to.
Jeremy Pearlman: Sign up for the fair deal agreement as opposed to some of your traditional sales or the lease program that you had and is there are there one on one track of you as a company prefer you know I guess maybe.
Jeremy Pearlman: Weather.
Speaker Change: Sorry, I know, there's three questions there.
Javier: Alright, good questions, what I'm Gonna do is I'll ask Javier to go over the and reflect upon the different products that were sold to who and when.
Javier: And then I'll provide a comment afterwards, but they're good questions. Thanks.
Jeremy Pearlman: Alright, so Jeremy the number of units shipped in Q4 was 39, none of that it's.
Speaker Change: Is that fair deal agreement. We don't include that count in the 39 that will ship in Q4.
Jeremy Pearlman: And.
So that's the that's the answer there.
Jeremy Pearlman: Okay, great. Thanks.
Jeremy Pearlman: The comment that I have Jeremy is that it's a it's a delicate.
Speaker Change: Transfer of opinion in a lot of cases, we have a lot of customers and prospects that are deciding between purchasing and or the fair deal agreement and as we direct customers towards the fair deal agreement. If you look at the number of units that we are.
Speaker Change: Applied to the fair deal agreement versus the sale. If we didn't have before a deal agreement our revenues would probably.
Speaker Change: <unk> be a lot higher but for the sake of driving share deal agreement for the long term benefits to the company.
Speaker Change: We're gaining a lot of access to these contracts and putting in a lot of a lot of installations because of the fair deal agreement. Michael do you have a comment yeah. I was just going to say I just wanted to make sure. We clarify here of the 39 hardware is absolutely correct that we did not account for the SBA is that a fair deal agreements in that number it's not to say that we do.
Speaker Change: Did not ship out any fair deal agreements. However, we're getting away from that that number as you may have heard me say in my statement.
Speaker Change: It's not about how many contracts signed in the third deal agreement. It's about how many patients are actually put through in our lives setting once those <unk>.
Speaker Change: Operations tick up so we wanted to get away from setting expectations with just how many visions went out under the fair deal agreement because that's actually not a good way to track revenue does that makes sense Jeremy.
Jeremy Pearlman: Yeah, no 100% I understand you have to just actually a segue from that.
Jeremy Pearlman: One of my questions was you know as you move into 2025, I know you mentioned towards the back half of the year. The fair deal agreement placements are going to start contributing to the top line is there from your perspective from a company perspective, the metric you hope to link that to the average utilization of the placements are you going to be how are you going to be monitoring that.
Jeremy Pearlman: And at what point do you say, let's say an underperforming unit would have to get either pulled back into the company in.
Jeremy Pearlman: To another clinic.
Joseph Dano: Yeah. That's a great question go ahead Joe.
Joseph Dano: Well, let me answer that because that is a very good question first of all I can tell you that the customers that we're installing these first units are these first bunch of units are customers that are looking at the same types of volumes that we want to have and that's high volumes. So we're we're targeting all of the higher volume.
Installations first so that we can gain hit the ground running here. So we're expecting a good start to this.
Joseph Dano: Everybody wants to wants to be able to make money with this so they are looking for those volumes to continue to grow each and every month. The initial installations that we have we're showing increased revenues from each and every month and once we have a significant amount are numbers that are significant enough that.
Joseph Dano: We'll be able to demonstrate and show you what those revenues are which will be accumulated and put together for the second half of the year. We just don't have enough sample right now that's going to give us enough revenue that's going to be significant but we heal as these installations grow and the volumes continue to grow each and every month I think we're going to have significant.
Joseph Dano: Revenue growth for the second half of the year, which everybody will understand.
Joseph Dano: Alright, Okay, great alright, Thank you for taking my questions and I'll hop I can hop back in the queue.
Speaker Change: Thanks, Jeremy.
Joseph Dano: Take care.
Our next question comes from our Swan Cameron with Roth Capital Partners. Please go ahead.
Joseph Dano: Okay.
Arsenal: Hi, My name is Arsenal on online for dish and varies from Roth Capital Partners I had a couple of questions before that congrats on the quarter.
Speaker Change: My questions are are there any new competitors emerging in this space have any competitors dropped out as well as how quickly do you anticipate new FDA sites to be able to get up and running and how long to reach full capacity and what is the average expected full capacity.
Arsenal: And my last question is for.
Arsenal: For these larger centers can you provide some color on what customers are more likely to go with the F D a versus purchase.
Arsenal: Michael.
Michael: Yes, sure so as far as.
Speaker Change: Your first question again, I apologize it was cutting in and out.
Speaker Change: Sure are there any new competitors are emerging into the space and competitors dropping out.
Speaker Change: Got it so no. There's the same competitors that had always been in it really the main competitor in the dermatology market has always been really most surgery.
Speaker Change: That's the alternative again with 6 million new skin cancers, a year in United States, which is four times larger than all other cancers combined Unfortunately theres enough cancer to go around so when you talk about competitors SRT is a very very unique way of treatment.
Speaker Change: Dermatology and it's here to stay so it's.
Speaker Change: There's not much competitive nature.
Speaker Change: In Asia, there are no competitors have dropped out either.
Speaker Change: That's your question and then you touched on.
Speaker Change: Fair deal agreement large groups I think that the likely been saying the private equity backed rollout groups. This program that we have the third is really geared for them. It allows these large rollouts to utilize their cash in buying more practices and thats what their goal is thats what the <unk>.
Speaker Change: Private equity backed golub skull.
Get more practices under there.
Speaker Change: Tier geography, and expand that way. So this it targets then and we're always in discussions with that and we're really excited about 2025 and are getting more interest from those types of groups.
Speaker Change: Joe you want anything to add.
Speaker Change: Yeah.
Speaker Change: Regarding the interest in the installations that again each center each group is evaluating where they would put these placements because we want to maximize the revenues as well so based on the analytics that we're able to provide them along with the analytics that they have for themselves and for each one of those sites, we're able to calculate where the best places to start.
Speaker Change: And we've already begun that process.
Speaker Change: Installing some of these sites based on those analytics. So again I think that the volumes are going to take care of themselves and I think it's going to provide significant revenue again for a second half of the year.
Speaker Change: Thank you for that just a follow up what percent of sales came from your largest customer and do you anticipate them continuing to purchase in 2025 and would it be at a similar pace.
Speaker Change: Yes.
Bob: Bob here.
Bob: Let me let me actually just real quick we had 39 units delivered 25 came from our largest customer they continue to buy we expect them to continue to buy throughout the year and so we look forward to again another successful year.
Bob: Thank you I appreciate it I'll jump back in queue.
Caroline: Thanks Caroline.
Caroline: Again, if you have a question. Please press Star then one hour.
Speaker Change: Our next question comes from Ben Hayner with Lake Street Capital markets. Please go ahead.
Ben Hayner: Hey, good afternoon, gentlemen, thanks for taking the questions.
Ben Hayner: First one for me I was wondering on the interest level that you're seeing from the private equity groups are our largest large.
Ben Hayner: Okay.
Ben Hayner: Customers.
Speaker Change: Can you provide a little bit more color on how advanced some of these discussions.
Ben Hayner: <unk> gotten anything that.
Might be might help investors gauge on renal how many how many clinics to kind of pencil in for the future.
Speaker Change: Sure Joe you want that one is I'm going to take yeah. Let me, let me give you an overview Ben and thanks for being on the call and thanks for the question.
Speaker Change: There is between 12 and 15 major private equity back roll ups that are out there.
Speaker Change: Currently represent are closing in on about 20% of the overall.
Speaker Change: Clinics that belong to dermatology, that's about 90000 clinics in those clinics keep growing every day, there's new clinics being opened up everyday and.
Speaker Change: So if youre looking at 20% about 1800 clinics and so.
Speaker Change: Progression is looked at being over the next two to three years growing to 25% of the overall.
Speaker Change: Number of clinics that exist out there. So you can see that the market is vast it's large it's long and so we feel that the products that we have the best suits their needs.
Speaker Change: And we think that it's going to accelerate during the course of 2025, we have several of these customers that are now considering the third deal agreement and so hopefully we'll be able to see some progress as the year continues to.
Speaker Change: Our progress and we will be able to talk about about gaining access to a lot of those a lot of those private equity backed groups and gaining access to the number of installations that they have but as Michael previously mentioned the most important thing here is how many patients can we process, we want to try to focus on the patient.
Speaker Change: That are being treated by by SRT within those customers and we will start focusing on that because in the end. That's what produces the most money for both sides and that's going to be what's most important.
Michael: Yes, Dan just to add around the edges to that answer Joe is absolutely right.
Speaker Change: If you remember in November we announced that we already signed a large groups. So that we do have a large group that signed and I can happily tell you that they've already start rolling some of the products out there where in plans to roll a few sites out. So that's exciting for all of US in addition.
Speaker Change: We've given three or four major presentations, two Ceos and medical advisory boards of other very large dermatology private equity backed roll-up groups. So that's the that's where we're at as far as progression I think that with the fact that three out of our four large.
Speaker Change: Just shows and dermatology happen to be in Q1, it really really is and could be a slingshot approach like we typically see.
Speaker Change: With our sales.
Speaker Change: From a history standpoint, our capital sales I think the FDA has I.
Iran sales, so I'm looking at it and it's been an easier sales process when convincing physicians and private equity backed groups to sign on to the fair deal agreement.
Speaker Change: Okay.
Speaker Change: That's exactly what I was looking for and very helpful.
Speaker Change: You mentioned the number of.
Speaker Change: <unk> signed is not the right metric do you plan on.
Speaker Change: In the future given sort of a patients treated metric or anything like that.
Speaker Change: I think thats, what we would want to do once we have significant numbers to be able to show the progress of it I think that's very very important and I think we'll get there.
Speaker Change: Okay got it.
Speaker Change: And then.
Speaker Change: You mentioned all the ones that you have gotten out there the volumes have ramped month over month over month, you have a sense yet of.
Speaker Change: Where those level out at or do they continue to ramp and I would imagine that if folks are ready to.
Treat patients that are in high volume they already believe that <unk> is the solution for these patients.
Speaker Change: But is there kind of a waiting around like let's do.
Speaker Change: The number of patients and see how they do and then do another X or is that kind of.
Speaker Change: I think it is a proven technology that they know that it works I think the biggest factor is the analysis and the time it takes to work together with these organizations and keep in mind, they're big organizations. They don't want to make any missteps any mistakes. So the devaluation of the data and the analytics allows for us to really target there.
Speaker Change: Right centers to kick things off so that everything is productive and cost effective as well as profitable right off the bat nobody wants to make a mistake, especially them, they're very very good at what they do they're very well managed organizations and so we're very appreciative of the process that they've implemented now is that as fast as we wanted to go nuts.
Speaker Change: Never as fast we want things installed yesterday, but I'd rather have the right units installed at the beginning so that we don't have to think about replacing anything and I think that's the way we're going I think we're going to have a real good receptivity for the for the sites that they're going into so we're going to have a real good success right off the bat.
Speaker Change: Yeah, two things just to add if I may Joe.
Speaker Change: I want to remind everyone about our inventory we have well over 50 paid for units.
Speaker Change: Ready to go as far as visions, just just including visions, so that gives us a leg up.
Speaker Change: From a fair deal agreement standpoint, we can.
Speaker Change: Immediately get those units out there and then just to remind everyone as far as the process. We've been doing a 15 years the capital equipment side of things. It's the same process in setting up the site.
Speaker Change: Some training to state regulatory it takes up to about eight weeks from the time they sign to the time that unit is installed and trained and everyone's ready to go.
Speaker Change: And then in addition to that now that we're receiving 50% of all of the revenues from the sites right from insurance standpoint. It takes another 45 to 60 days from first patient treatment to collect.
Speaker Change: Money. So that's true I want to set the expectation, that's where you're going to start seeing the revenues from go live on the first day of patient treating to collection. It's 45 to 60 days and that's very normal in the industry from an insurance standpoint.
Speaker Change: So bill than three months once once its side effectively to see the biggest $1 outdoor.
Speaker Change: Exactly and so that's the delay in receiving some of the revenues.
Speaker Change: Okay.
Speaker Change: Perfect and then lastly for me can't believe Javier out of this.
Speaker Change: Can you just give me quantify how much the step up in kind of professional fees.
Speaker Change: And compensation impacting G&A.
Speaker Change: Was more one time ish in nature or is this kind of a new.
Speaker Change: Higher level run rate.
Speaker Change: Now on the professional fees.
Speaker Change: As a one time.
Speaker Change: All different projects that we were you know.
Speaker Change: The winter in Q4 are their compensation.
Speaker Change: It was also a one time adjustment.
Speaker Change: And I expect G&A to increase a little bit in 2025, but not as much as we saw in Q4.
Speaker Change: Okay perfect very helpful. Thank you very much gentlemen, and congrats on the progress. Thank you I appreciate it.
Speaker Change: With no further questions. This concludes our question and answer session I would like to turn the conference back over to Joe Giordano for any closing remarks.
Joe Giordano: Well, great listen thank everyone for joining us today again, we're very proud of the performance that we've had for the last quarter and for the entire year 2024, we look forward to updating you on our progress in the coming quarters and if you have any additional questions don't hesitate to reach out to our investor.
Speaker Change: Relations team headed up by tariff.
Speaker Change: Our alliance partners and so thank you again for joining us today and for continued support of Sensus healthcare operator.
Speaker Change: Thank you. The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Speaker Change: Okay.
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Speaker Change: Okay.
Speaker Change: Yes.
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