LONE TREE, Colo., August 22, 2016 /PRNEWSWIRE/ — Zynex (OTCQB: ZYXI), an innovative medical technology company specializing in the manufacture and sale of non-invasive medical devices for pain management, stroke rehabilitation, neuro diagnostics, cardiac and blood volume monitoring, announced today its second quarter 2016 financial results.

President and CEO Commentary:

Thomas Sandgaard, CEO commented: “Revenue came in at $3.3 million, 7% above the second quarter last year. We came closer to a breakeven result with a net loss of $227,000, a significant improvement compared with the second quarter 2015 loss of $501,000.

“Our orders are currently running at a level twice of the same time last year and since our revenue is mostly recurring from monthly rentals and monthly supplies sent to our patients we expect to see higher revenues later this year as more patients continue to use our electrotherapy products, primarily the NexWave device. It is also worth noting that our lack of liquidity has made it difficult to keep up with order volume in production and has slowed down sales growth. We have paid down the balance on our line of credit from the beginning of the year from $4,002,000 to $3,284,000 by the close of second quarter 2016. Our revenue expectation for 2016 remains around $16 million and with positive net income.”

Summary of Financial Results:

The Company’s net revenue was $3,286,000 for the second quarter of 2016, compared to $3,073,000 for the second quarter of 2015. Gross profit margin in the quarter was 71%.

The Company reported Selling, General and Administrative (“SG&A”) expenses of $2,495,000 for the second quarter of 2016, compared to $2,270,000 for the quarter ended June 30, 2015, an increase of $225,000 primarily attributed to an increase in sales commissions.

For the second quarter 2016, the Company reported a net loss of $227,000, or $0.01 per share, compared to a net loss of $501,000, or $0.02 per share in the same period of 2015. For the six months ended June 30, 2016, the Company reported a net loss of $672,000, or $0.02 per share, compared to a net loss of $1,389,000, or $0.04 per share in the first half of 2015.

Cash provided by operations in the first half 2016 was $953,000 versus uses of negative $194,000 in the first half of 2015.

The Company’s line of credit balance as of June 30, 2016 was $3,284,000, a reduction of $718,000 since December 31, 2015.

The company holds it second quarter 2016 on Monday, August 22 at 9:00am MT (11:00am ET).

To register and participate in the webcast, interested parties should click on the following link approximately 10-15 minutes prior to the webcast:

https://www.webcaster4.com/Webcast/Page/1487/16775

Phone Access Details:

US Participant Toll Free Dial-In Number:
1-877-870-4263
International Dial-In Number:
1-412-317-0790

About Zynex

Zynex, founded in 1996, markets and sells its own design of electrotherapy medical devices used for pain management and rehabilitation; and the company’s proprietary NeuroMove device designed to help recovery of stroke and spinal cord injury patients. Zynex is also developing a new blood volume monitor for use in hospitals and surgery centers. For additional information, please visit: Zynex.com.

Safe Harbor Statement

Statements made in this presentation include financial estimates and forward-looking statements that are not historical facts. Each of these estimates and forward-looking statements involves risk and uncertainties. These estimates are based on present circumstances, information currently available, and assumptions about future revenues, industry growth, and general economic conditions. Estimates are inherently uncertain as they are based on assumptions concerning future events. No representations can be made as to the accuracy of such information or the reliability of such assumptions. Accordingly, actual revenues and expenditures may vary significantly from the Company’s estimates, and actual results or developments may differ materially from those expressed or implied by the forward-looking statements. Factors that could cause actual results to differ from the financial estimates and forward-looking statements in this presentation include those described in the Company’ s filings with the Securities and Exchange Commission, including the Risk Factors section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Therefore, neither the Company’s estimates nor the assumptions upon which they are based are to be interpreted as a guarantee or promise of the Company or management. The Company has no obligation to modify, amend, update, alter, or change the estimates contained herein.

Contact:
Zynex, Inc.
(303) 703-4906

ZYNEX,
INC.

CONDENSED
CONSOLIDATED BALANCE SHEETS

(AMOUNTS
IN THOUSANDS, EXCEPT NUMBER OF SHARES)

 

 

 

June
30,

 

 

December 31,

 

 

 

2016

 

 

2015

 

 

 

(UNAUDITED)

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash

 

$

29

 

 

$

8

 

Accounts receivable, net

 

 

3,237

 

 

 

2,426

 

Inventory, net

 

 

164

 

 

 

305

 

Prepaid expenses

 

 

123

 

 

 

27

 

Total current assets

 

 

3,553

 

 

 

2,766

 

Property and equipment, net

 

 

611

 

 

 

801

 

Deposits

 

 

55

 

 

 

55

 

Intangible assets, net

 

 

54

 

 

 

74

 

Total assets

 

$

4,273

 

 

$

3,696

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Line of credit

 

$

3,284

 

 

$

4,002

 

Current portion of capital leases

 

 

109

 

 

 

109

 

Accounts payable

 

 

2,947

 

 

 

2,477

 

Deferred revenue

 

 

370

 

 

 

89

 

Income taxes payable

 

 

79

 

 

 

79

 

Accrued payroll and payroll taxes

 

 

765

 

 

 

484

 

Deferred insurance reimbursement

 

 

880

 

 

 

 

Accrued expenses

 

 

214

 

 

 

299

 

Total current liabilities

 

 

8,648

 

 

 

7,539

 

Capitalized leases, less current portion

 

 

181

 

 

 

216

 

Warranty liability

 

 

12

 

 

 

12

 

Total liabilities

 

 

8,841

 

 

 

7,767

 

Stockholders’ Deficit:

 

 

 

 

 

 

 

 

Preferred
stock; $.001 par value, 10,000,000 shares authorized, no shares issued or
outstanding

 

 

 

 

 

 

 

Common
stock, $.001 par value, 100,000,000 shares authorized, 31,271,234 shares
issued and outstanding

 

 

31

 

 

 

31

 

Paid-in capital

 

 

6,006

 

 

 

5,832

 

Accumulated deficit

 

 

(10,516

)

 

 

(9,845

)

Total Zynex, Inc. stockholders’ deficit

 

 

(4,479

)

 

 

(3,982

)

Non-controlling interest

 

 

(89

)

 

 

(89

)

Total stockholders’ deficit

 

 

(4,568

)

 

 

(4,071

)

Total liabilities and stockholders’ deficit

 

$

4,273

 

 

$

3,696

 

 

 

 

 

ZYNEX, INC.

CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS

(UNAUDITED, AMOUNTS IN THOUSANDS,
EXCEPT SHARE AND PER SHARE DATA)

 

 

Three months ended

 

 

Six months ended

 

 

June 30,

 

 

June 30,

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Net revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

$

823

 

 

$

517

 

 

$

1,902

 

 

$

844

 

Sales

 

2,463

 

 

 

2,556

 

 

 

4,861

 

 

 

5,412

 

 

 

3,286

 

 

 

3,073

 

 

 

6,763

 

 

 

6,256

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue – rental,
product & supply

 

941

 

 

 

1,166

 

 

 

1,924

 

 

 

2,411

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and
administrative expense

 

2,495

 

 

 

2,270

 

 

 

5,340

 

 

 

4,980

 

Income (loss) from operations

 

(150

)

 

 

(363

)

 

 

(500

)

 

 

(1,135

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(77

)

 

 

(138

)

 

 

(172

)

 

 

(270

)

Other income:

 

 

 

 

 

 

 

 

 

 

 

Total other income (expense)

 

(77

)

 

 

(138

)

 

 

(172

)

 

 

(270

)

Loss before income taxes

 

(227

)

 

 

(501

)

 

 

(672

)

 

 

(1,405

)

Income tax benefit

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

(227

)

 

 

(501

)

 

 

(672

)

 

 

(1,405

)

Plus: Net loss –
noncontrolling interest

 

 

 

 

 

8

 

 

 

 

 

 

 

16

 

Net loss – attributable to Zynex, Inc.

$

(227

)

 

$

(493

)

 

$

(672

)

 

$

(1,389

)

Net loss per share – attributable to Zynex, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.01

)

 

$

(0.02

)

 

$

(0.02

)

 

$

(0.04

)

Diluted

$

(0.01

)

 

$

(0.02

)

 

$

(0.02

)

 

$

(0.04

)

Weighted – average number of common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

31,271,234

 

 

 

31,271,234

 

 

 

31,271,234

 

 

 

31,271,234

 

Diluted

 

31,271,234

 

 

 

31,271,234

 

 

 

31,271,234

 

 

 

31,271,234

 

 

 

 

ZYNEX, INC.

CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS

(UNAUDITED, AMOUNTS IN THOUSANDS) 

 

 

 

 

 

Six
months ended

 

 

 

June
30,

 

 

 

2016

 

 

2015

 

Cash flows from operating
activities:

 

 

 

 

 

 

 

 

Net cash provided by (used in)
operating activities

 

$

953

 

 

$

(194

Cash flows from investing
activities:

 

 

 

 

 

 

 

 

Change in inventory used for
rental

 

 

(178)

 

 

 

73

 

Net cash (used in) provided by
investing activities

 

 

(178)

 

 

 

73

 

Cash flows from financing
activities:

 

 

 

 

 

 

 

 

Net (repayments) borrowings  on line of credit

 

 

(718

)

 

 

178

 

Payments on capital leases and
other obligations

 

 

(36

)

 

 

(33

)

Net cash (used in) provided by
financing activities

 

 

(754

)

 

 

145

 

Net increase in cash

 

 

21

 

 

 

24

 

Cash at the beginning of the
period

 

 

8

 

 

 

63

 

Cash at the end of the period

 

$

29

 

 

$

87

 

Supplemental cash flow
information:

 

 

 

 

 

 

 

 

Interest paid

 

$

172

 

 

$

258

 

Income taxes paid (including
interest and penalties)

 

$

 

 

$

 

 

SOURCE Zynex

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