Sensus Healthcare, Inc. · NASDAQ:SRTS
Sensus Healthcare — IPO Roadshow (March 2016)
43 slides from Sensus Healthcare's IPO roadshow presentation, Mar 10, 2016
Slide 1: Issuer Free Writing Prospectus
Issuer Free Writing Prospectus Filed Pursuant to Rule 433 Registration No. 333 - 209451
Slide 2: Safe Harbor Forward-Looking Statements
Safe Harbor Forward - Looking Statements This presentation includes statements that are, or may be deemed, ‘‘forward - looking statements.’’ In some cases, these forward - looking statements can be identified by the use of forward - looking terminology, including the terms “believes,” “estimates,” “
Slide 3: Free Writing Prospectus
Free Writing Prospectus This presentation highlights basic information about the Company and the offering. Because it is a summary, it does not contain all of the information that you should consider before investing. This offering may only be made by means of a prospectus. We have filed a registrat
Slide 4: Offering Summary
Offering Summary Issuer Sensus Healthcare, Inc. Offering Size 1,818,182 Shares (100% Primary) Over - Allotment Option 272,727 Shares (100% Primary) Expected Price Range $10.00 - $12.00 per Share Listing / Symbol NASDAQ / SRTS Use of Proceeds • Approximately $3.0 million for the expansion of sales an
Slide 5: Overview
Overview ▪ Design and manufacture FDA - approved Superficial Radiation Therapy (SRT) technology » Strong IP portfolio (3 FDA clearances, 8 new patent applications in the process of being submitted) » Over 200 installations worldwide » Over 200,000 patients treated to date » Key markets: Dermatology,
Slide 6: Management Team
Management Team Joseph C. Sardano, President and CEO ▪ Elscint Medical Imaging – Vice President driving Sales & Marketing, led to joint acquisition between General Electric and Picker Medical (Philips) Imaging totaling approximately $650M. ▪ GE Healthcare – GSM, Functional Imaging (Positron Emission
Slide 7: Our Technology: Superficial Radiation Therapy
SRT - 100 ™ Our Technology Superficial Radiation Therapy (SRT) – ▪ Proven technology » Orthovoltage was first developed in the mid - 1900s ▪ Low energy photon radiotherapy » 100% of the energy is focused directly onto the surface of the skin using custom applicators » Penetrates no deeper than 5mm b
Slide 8: Value Proposition
Value Proposition Practice Benefits Patient Benefits ▪ Cost effective ▪ Increased productivity ▪ Excellent ROI ▪ Existing CPT codes ▪ Improved cash flow ▪ Additional treatment choices ▪ No anesthesia, cutting, stitching, or scarring ▪ Painless ▪ Comparable cure rates as Mohs Surgery (95%+) ▪ Recurre
Slide 9: Skin Cancer: Large & Growing Market
Skin Cancer: Large & Growing Market Source: American Cancer Society; Cancer Facts and Figures 2011 ▪ Fastest growing cancer indication with 6M+ new cases/year by 2020 ▪ 3X greater than all other cancers combined ▪ 80% of skin cancers occur on head/neck regions ▪ 31% on tip of nose 0.00 0.50 1.00 1.5
Slide 10: Skin Cancer: Treatment Challenges
▪ Current gold standard treatment for non - melanoma skin cancer (NMSC) ▪ Invasive & complicated ▪ Requires highly - skilled surgeon ▪ Often results in poor cosmetic outcomes in facial areas, forcing patients to consider reconstructive surgery and wound care ▪ Pre existing conditions (diabetes, hear
Slide 11: Skin Cancer: SRT Treatment
Representative SRT Treatment: Before / During / After Skin Cancer: SRT Treatment I. Initial treatment – 300 cGy dose II. Sixth treatment at end of week two – cumulative dose of 1,800 cGy III. Final treatment at end of week four 11 IV. Patient follow - up, 3.5 months post treatment
Slide 12: SRT-100 vs. Mohs Surgery
Parameter SRT Mohs Procedure Time 40 - 55 sec; 10 - 20 treatments 1 - 3 hours Treatment Type Non - Invasive Surgery Modality Therapy Mode Superficial Radiotherapy Invasive Who Rad Onc / Derm / Plastic Surgeon Mohs Surgeon Pain N Y Anesthesia N Y Practice Setup / Cost of Entry Low High Special Provis
Slide 13: Keloids: Large & Growing Market
Keloids: Large & Growing Market ▪ A keloid is an area of irregular fibrous tissue formed at the site of a scar or injury ▪ NIH estimates over 11 million individuals worldwide living with keloid scars » Genetic predisposition to having keloids: African Americans, Latinos, Asians » Incidence is estima
Slide 14: Keloids: SRT Treatment
Representative SRT Treatment: Before / During / After Keloids: SRT Treatment 14
Slide 15: Keloids: Treatment Challenges
▪ Mono - therapeutic treatment methods may reduce the size of the keloid, but are not a permanent solution ▪ Recurrence rates of keloids are very high – up to 90% (50% at best) ▪ Expensive treatments that are often paid out of pocket; insurance does not cover treatment unless combined with SRT ▪ Sig
Slide 16: Key Sales Targets
Mohs Surgeons Dermatologists Plastic Surgeons Hospitals and Surgery Center Procedures Radiation Oncologists 16 Key Sales Targets
Slide 17: SRT Reimbursement
▪ SRT reimbursement coverage available for skin cancer and keloid treatment » Skin cancer: Medicare Part B and most insurance carriers accept SRT treatment » Keloids: Aetna, Humana and other insurance carriers cover excisional surgery with SRT treatment ▪ SRT reimbursement policy changes by CMS make
Slide 18: Go-to-Market Strategy
Go - to - Market Strategy ▪ Expand U.S. Operations » Sales & Marketing • Increase direct sales account reps to 20+ in 2016, 30+ in 2017 • Hire marketing director in Q2 2016 » Add clinical support professional » Add direct regional service engineer ▪ Expand International Market » Increase distributio
Slide 19: China Distribution Partner Chindex
▪ In December 2014, we signed Chindex Medical Limited (a JV of Shanghai Fosun Pharmaceutical (Group) Ltd. and Chindex International) as our exclusive distribution partner in China ▪ Chindex currently distributes aesthetic lasers for Syneron Candella , DaVinci surgical robotics for Intuitive Surgical
Slide 20: Historical Annual Results
Historical Annual Results 20 $000 2013 2014 1 2015 Revenue 10,479 5,810 10,273 Cost of Sales 3,600 2,055 3,699 Gross Profit 6,879 3,755 6,574 Operating Expenses: Sales and Marketing 3,966 4,208 3,743 General & Administrative 1,453 1,650 1,586 Research & Development 1,333 1,577 1,467 Total Operating
Slide 21: Revenue Growth
Revenue Growth 48% 27% 68% 183% 0% 50% 100% 150% 200% $- $1,000 $2,000 $3,000 $4,000 $5,000 Q1 Q2 Q3 Q4 2014 2015 YOY Growth ▪ Accelerating revenue growth in recent quarters » Shipped 17 systems in Q4 2015, including 3 SRT - 100 Vision » Shipped 46 systems in 2015 compared to 24 in 2014 21
Slide 22: Capitalization
Capitalization Common Shares (Pre-IPO) 6,521,217 93.6% Warrants Outstanding 1 396,733 4.5% Options Issued 2 9,131 0.1% Restricted Shares 3 163,632 1.8% Fully Diluted shares 7,090,713 100% 1 Weighted average exercise price $3.84 2 Excluding 86,368 shares reserved for future issuance under our Equity
Slide 23: Investment Considerations
Investment Considerations 23 x Disruptive Technology with Significant Advantages Compared to Existing Treatments x Large, Growing, Underserved Market x Strong IP portfolio (3 FDA clearances, 8 new patent applications in the process of being submitted) x Over 200 Installations Worldwide x Improved Ph
Slide 24: Appendix
Appendix 24
Slide 25: Non-GAAP Financial Measures
Non - GAAP Financial Measures 25 $000 2013 2014 2015 Net Income (Loss), as reported 108 (3,699) (237) Add: Depreciation and amortization 266 273 316 Taxes (1) 49 4 69 Interest, net 19 19 16 Stock compensation expense 1 6 6 Adjusted EBITDA, non-GAAP 443 (3,397) 170 (1) Taxes include all taxes paid by
Slide 26: Skin Cancer: Competitive Landscape
Skin Cancer: Competitive Landscape Type of Procedure Description Challenges Cure Rate Mohs Surgery Tumor is removed with a thin layer of tissues around it. Procedure is repeated until the last layer examined under the microscope is tumor free. Expensive; invasive; painful; often poor cosmetic result
Slide 27: Keloids: Competitive Landscape
Keloids: Competitive Landscape Treatment Anticipated Effects Dosing / Frequency Efficacy in Reducing Keloid Size Hygienic Relief: Washing and Drying Relief of itching, pain, general discomfort As needed N/A Antihistamines Relief of itching, pain, burning sensation As needed N/A Corticosteroid Inject
Slide 28: Intellectual Property
Intellectual Property ▪ Sensus has received two critical patents and trademarks for its initial system design and is aggressively pursuing a portfolio of patents for key features in its SRT - 100 Vision™ system. Current Patents / Trademarks ▪ Patent No. 7372940: Radiation therapy system with risk mi
Slide 29: CPT Codes
CPT Codes CPT® Code Procedure Description 77280 Therapeutic radiology simulation-aided field setting; simple 77285 Therapeutic radiology simulation-aided field setting; intermediate 77290 Therapeutic radiology simulation-aided field setting; complex 77300 Basic radiation dosimetry calculation, centr
Slide 30: SRT Value Proposition
SRT - 100 Value Proposition Design Feature Practice Benefit Clinical Advantage Compact mobile design ▪ Mobility, reduced floor space requirements and lower setup installation costs ▪ Flexible treatment work areas & patient throughput X - ray tube arm range of motion ▪ Fast easy treatment setup for i
Slide 31: SRT-Vision Image-Guided Therapy
The SRT - 100 Vision™ Image - Guided Therapy “SEE & TREAT” ▪ SRT - 100 Vision is designed to: » Track disease progression » Plan treatment » Guide therapy » Administer radiation » Evaluate treatment ▪ Target teaching / research hospitals & larger community hospitals ▪ Multiple energy levels 10kV – 1
Slide 32: Non-Equipment Products & Services
Non - Equipment Products & Services ▪ Applicators to treat various sized lesions in different areas of the body – 3 Pac ▪ Sentry TM Extended Warranty Service Program (years 2 to 5) ▪ EMR system connectivity module ▪ Opportunity for consumables program: » Disposable lead shielding replacements » Disp
Slide 33: Regulatory Approvals
Regulatory Approvals ▪ Sensus has received U.S. FDA 510(k) marketing clearance for its SRT devices in both NMSC and Keloid treatment. ▪ Other regulatory approvals include: ▪ CE Mark (Europe) ▪ CFDA (China) ▪ Health Canada ▪ Russia ▪ Israel ▪ Actively seeking regulatory approvals in: ▪ Argentina ▪ Br
Slide 34: Board of Directors & Medical Advisory Board
Board of Directors & Medical Advisory Board 34 Board of Directors Medical Advisory Board ▪ Joseph Sardano , CEO ▪ John Heinrich, Audit/Comp ▪ Sam O’Rear , Audit ▪ William McCall, Audit/Comp Dermatology – ▪ Clay Cockerell , M.D. - TX ▪ Mark Nestor, M.D. - FL ▪ Armand Cognetta Jr., M.D. - FL ▪ William
Slide 35: Skin Cancer: Clinical Studies
Skin Cancer: Clinical Studies ▪ SRT is proven to be safe with a comparable cure rate to Mohs surgery ▪ Cognetta et al (2012) conducted a retrospective analysis on 1,715 confirmed primary cutaneous basal cell carcinoma (“BCC”) and squamous cell carcinoma (“SCC”) treated with SRT between 2000 and 2010
Slide 36: Keloids: Clinical Studies
Keloids: Clinical Studies ▪ SRT is proven to be safe and the most effective treatment in reducing recurrence of Keloids when combined with excision surgery Study N Results Chaudhry et al (1994) 2.8% recurrence rate with a follow - up period mean of 5.6 years Jones et al (2015) 100% cure rate Doombos
Slide 37: Skin Cancer: SRT Treatment Before / During / After
Skin Cancer: SRT Treatment 37 Before / During / After
Slide 38: Skin Cancer: SRT Treatment Before / During / After
38 Before / During / After Skin Cancer: SRT Treatment
Slide 39: Skin Cancer: SRT Treatment Before / During / After
39 Before / During / After Skin Cancer: SRT Treatment
Slide 40: Skin Cancer: SRT Treatment Before / During / After
300 cGy 2,450 cGy 40 Before / During / After Skin Cancer: SRT Treatment
Slide 41: Skin Cancer: SRT Treatment Before / During / After
300 cGy 2,250 cGy 41 Before / During / After Skin Cancer: SRT Treatment
Slide 42: Keloids: SRT Treatment Before / After
Before / After Keloids: SRT Treatment Before After 42
Slide 43: Keloids: SRT Treatment Before / After
Before / After Keloids: SRT Treatment Before After 43