Sensus Healthcare, Inc. (NASDAQ:SRTS) Q4 2022 Earnings Call Transcript

Javier Rampolla: Yes, we have to. We have to.

Scott Henry: Okay. At what rate would you advise for that time period?

Javier Rampolla: I will say that at least we should forecast a bit maybe like a 20%. . Yes, we’re working at.

Scott Henry: And then again, for clarity, it sounds like when we look for growth in 2023 over 2022 on the bottom line, should we be thinking on a fully tax basis to a fully tax basis? So otherwise, you started at a disadvantage.

Javier Rampolla: Correct.

Scott Henry: Okay. Great. And then final question just with regards to — I was just hoping to understand kind of the process a little bit because the lease program is important to your revenue model. We get higher interest rates. Obviously, someone has to pick up the cost of those higher interest rates, not that it’s a huge amount, but does that come from the customer? Or do you kind of shrink margins a little to accommodate that? I’m just curious the nuts and bolts of what you do with the lease program when the rates increase?

Joseph Sardano: Yes, it’s coming directly from the customer, okay? So just to give you some idea behind that. The rates have gone up this year, and we’ve always tried to tell the customer that your breakeven with the SRT-100 Vision based under those fair market value leases is approximately 2 patients a month. Well, the realization of it at the beginning, before all these rate hikes, it was probably somewhere around one in the quarter patients, but you can’t breakup a patient into a quarter. So we just said 2 patients a month. As the rates have gone up, it — you could say now that it’s really 2 patients a month. So it’s not over 2 patients a month, it’s really 2 patients a month, and we’re still fairly safe in having it just under the 2 patients a month.

But you have to keep in mind that what the real opportunity is for our physicians is that we’re offering a nonrecourse off-balance sheet program that doesn’t take away from the customer or the doctor’s regular credit line, okay? So that in itself is worth a whole lot of money to these doctors where they don’t have to put their credit in any other way. So this is a great program for them, and it gives them all of the things that they need to be able to afford the Vision product, which is what they want because it has all the tools and benefits. Let me go also to the previous question that you pose to Javier. This quarter alone for the fourth quarter, we paid $1.6 million in — to the IRS. Our goal is to continue to pay to the IRS, all right?

And it’s probably going to be more than $1.6 million and probably closer to $1.8 million to $2 million, but it’s going to be a lot of money, and we want to continue to pay to the IRS. So that’s an objective that we have because we’re making money, but it wasn’t accounted for by whoever derived whatever our earnings per share were, but I think that we’re happy to pay that, and we look forward to paying even more for 2023.

Scott Henry: Well, at least you’re based down in a low tax date.

Operator: . Our next question will come from Anthony Vendetti of Maxim Group.