Nevada | 33-26787-D | 90-0275169 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
9990 Park Meadows Drive Lone Tree, Colorado |
80124 |
|
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1 | Press release of Zynex, Inc. dated March 10, 2011. |
Zynex, Inc. |
||||
Date: March 10, 2011 | By: | /s/ Thomas Sandgaard | ||
Thomas Sandgaard, | ||||
Chief Executive Officer |
Exhibit No. | Description of Exhibit | |||
99.1 | Press release of Zynex, Inc. dated March 10, 2011. |
Year Ended | ||||||||
December 31, | ||||||||
2010 | 2009 | |||||||
Net revenue |
$ | 24,085 | $ | 18,681 | ||||
Gross profit |
18,883 | 14,888 | ||||||
Income from operations |
1,561 | 3,814 | ||||||
Income before income taxes |
1,335 | 3,823 | ||||||
Net income |
350 | 2,382 | ||||||
Adjusted EBITDA (1) |
3,519 | 4,595 | ||||||
Net income per share diluted |
$ | 0.01 | $ | 0.08 | ||||
Weighted average number of common shares
outstanding diluted |
30,704,737 | 30,374,360 | ||||||
Cash |
$ | 602 | $ | 863 | ||||
Total stockholders equity |
$ | 8,182 | $ | 7,486 |
(1) | Reconciliation of unaudited U.S. Generally Accepted Accounting Principles (GAAP) Net income
to Adjusted Earnings Before Interest Taxes Depreciation Amortization (EBITDA) |
Year Ended | ||||||||
December 31, | ||||||||
2010 | 2009 | |||||||
Net income |
$ | 350 | $ | 2,382 | ||||
Interest and loss on extinguishment of debt |
210 | 161 | ||||||
Taxes |
985 | 1,441 | ||||||
Depreciation and amortization |
845 | 738 | ||||||
Non-cash deferred rent |
1,129 | 44 | ||||||
Gain on value of derivative liability |
| (171 | ) | |||||
Adjusted EBITDA |
$ | 3,519 | $ | 4,595 | ||||
December 31, | December 31, | |||||||
2010 | 2009 | |||||||
ASSETS |
||||||||
Current Assets: |
||||||||
Cash |
$ | 602 | $ | 863 | ||||
Accounts receivable, net |
7,309 | 5,039 | ||||||
Inventory |
3,641 | 2,140 | ||||||
Prepaid expenses |
145 | 139 | ||||||
Deferred tax asset |
794 | 864 | ||||||
Other current assets |
41 | 77 | ||||||
Total current assets |
12,532 | 9,122 | ||||||
Property and equipment, net |
2,906 | 2,612 | ||||||
Deposits |
174 | 166 | ||||||
Deferred financing fees, net |
89 | 30 | ||||||
$ | 15,701 | $ | 11,930 | |||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current Liabilities: |
||||||||
Line of credit |
$ | 1,270 | $ | | ||||
Current portion of capital lease obligations |
93 | 95 | ||||||
Accounts payable |
1,313 | 1,127 | ||||||
Income taxes payable |
1,103 | 905 | ||||||
Accrued payroll and payroll taxes |
572 | 426 | ||||||
Deferred rent liability |
221 | | ||||||
Other accrued liabilities |
980 | 788 | ||||||
Total current liabilities |
5,552 | 3,341 | ||||||
Capital lease obligations, less current portion |
327 | 20 | ||||||
Deferred rent liability |
1,452 | 544 | ||||||
Deferred tax liability |
188 | 539 | ||||||
Total liabilities |
7,519 | 4,444 | ||||||
Stockholders Equity: |
||||||||
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,
30,604,167 (2010) and 30,497,318 (2009) shares issued and outstanding |
31 | 30 | ||||||
Paid-in capital |
4,702 | 4,357 | ||||||
Retained earnings |
3,449 | 3,099 | ||||||
Total stockholders equity |
8,182 | 7,486 | ||||||
$ | 15,701 | $ | 11,930 | |||||
2010 | 2009 | |||||||
Net revenue: |
||||||||
Rental |
$ | 8,533 | $ | 10,534 | ||||
Sales |
15,552 | 8,147 | ||||||
24,085 | 18,681 | |||||||
Cost of revenue: |
||||||||
Rental |
802 | 1,564 | ||||||
Sales |
4,400 | 2,229 | ||||||
5,202 | 3,793 | |||||||
Gross profit |
18,883 | 14,888 | ||||||
Selling, general and administrative expense |
17,322 | 11,074 | ||||||
Income from operations |
1,561 | 3,814 | ||||||
Other income (expense): |
||||||||
Interest income |
5 | 4 | ||||||
Interest expense and loss on extinguishment of debt |
(215 | ) | (165 | ) | ||||
Other expense |
(16 | ) | (1 | ) | ||||
Gain on value of derivative liability |
| 171 | ||||||
(226 | ) | 9 | ||||||
Income before income taxes |
1,335 | 3,823 | ||||||
Income tax expense |
985 | 1,441 | ||||||
Net income |
$ | 350 | $ | 2,382 | ||||
Net income per share: |
||||||||
Basic |
$ | 0.01 | $ | 0.08 | ||||
Diluted |
$ | 0.01 | $ | 0.08 | ||||
Weighted average number of common
shares outstanding: |
||||||||
Basic |
30,546,070 | 30,122,486 | ||||||
Diluted |
30,704,737 | 30,374,360 | ||||||
2010 | 2009 | |||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 350 | $ | 2,382 | ||||
Adjustments to reconcile net income to net cash (used in) provided by
operating activities: |
||||||||
Depreciation expense |
774 | 677 | ||||||
Provision for losses in accounts receivable (uncollectibility) |
317 | 149 | ||||||
Amortization of deferred consulting and financing fees |
71 | 61 | ||||||
Gain on value of derivative liability |
| (171 | ) | |||||
Issuance of stock for consulting services |
79 | 188 | ||||||
Provision for obsolete inventory |
23 | 267 | ||||||
Deferred rent expense |
1,129 | 44 | ||||||
Loss on disposal of equipment |
18 | | ||||||
Employee stock based compensation expense |
267 | 169 | ||||||
Deferred tax benefit |
(281 | ) | (105 | ) | ||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
(2,586 | ) | 427 | |||||
Inventory |
(1,559 | ) | (91 | ) | ||||
Prepaid expenses |
(6 | ) | (66 | ) | ||||
Other current assets |
17 | (17 | ) | |||||
Accounts payable |
186 | 89 | ||||||
Accrued liabilities |
338 | (590 | ) | |||||
Income taxes payable |
198 | 235 | ||||||
Net cash (used in) provided by operating activities |
(665 | ) | 3,648 | |||||
Cash flows from investing activities: |
||||||||
Proceeds received in lease termination |
108 | | ||||||
Deposits |
| 11 | ||||||
Purchases of equipment |
(672 | ) | (955 | ) | ||||
Net cash used in investing activities |
(564 | ) | (944 | ) | ||||
Cash flows from financing activities: |
||||||||
Decrease in bank overdraft |
| (113 | ) | |||||
Net borrowings from (payments on) line of credit |
1,270 | (1,781 | ) | |||||
Deferred financing fees |
(120 | ) | (30 | ) | ||||
Payments on notes payable and capital lease obligations |
(182 | ) | (37 | ) | ||||
Repayments of loans from stockholder |
| (25 | ) | |||||
Issuance of common stock |
| 145 | ||||||
Net cash provided by (used in) financing activities |
968 | (1,841 | ) | |||||
Net (decrease) increase in cash |
(261 | ) | 863 | |||||
Cash at the beginning of the period |
863 | | ||||||
Cash at the end of the period |
$ | 602 | $ | 863 | ||||
Supplemental cash flow information: |
||||||||
Interest paid |
$ | 112 | $ | 103 | ||||
Income taxes paid (including interest and penalties) |
$ | 1,068 | $ | 1,311 | ||||
Supplemental disclosure of non-cash investing and financing activities: |
||||||||
Equipment acquired through capital lease |
$ | 441 | $ | | ||||
Increase in deposit and deferred rent |
$ | | $ | 156 | ||||
Increase in leasehold improvements and deferred rent |
$ | | $ | 344 | ||||
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