Marvelous Microcaps

Sensus Healthcare, Inc. (SRTS)

INTRO:

At Perritt Capital Management, we take focused positions in companies where we have a high conviction in their success; companies that are out of the mainstream of small cap investing. To highlight our process, we are pleased to present the newest installment in our ongoing series “Marvelous Microcaps – Big Ideas on Small Companies.”  This series profiles companies that we believe have a niche in their existing markets or are launching a product that could disrupt their marketplace.

THE COMPANY:

Sensus Healthcare, Inc. (SRTS) is a non-invasive treatment for non-melanoma skin cancer and keloids.  Superficial Radiotherapy (SRT) provides a non-surgical treatment.  SRT involves low-energy radiation to destroy cancer cells and prevent them from growing.  It delivers a precise dose of radiation to an affected area while not damaging the surrounding healthy cells.  There is no need for surgery or incisions.  The success rate is over 95%, there is little pain and less downtime.

WHY WE OWN: THE PERRITT ADVANTAGE

SRTS’ most recent quarter was driven by a large spike in SRT-100 system sales.  This resulted from educating their clientele on the clinical advantages of SRT and favorable reimbursement policies aided by an aging population.  SRTS recently implemented a new recurring revenue model which will be beneficial for clients who do not want substantial capital expenditures on equipment.  The company is also waiting for FDA approval of the TDI system in the first half of this year.  Sensus announced a new collaboration with CureRays, a radiation oncology specialist organization providing SRTS customers with oversight and supervision and conducting clinical trials for potential new indications for SRT.  The company has a $62M market cap, virtually no debt, and trades at 1.3x tangible book value.