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 August 3, 2011. |
Zynex, Inc. |
||||
Date: August 3, 2011 | By: | /s/ Thomas Sandgaard | ||
Thomas Sandgaard, | ||||
Chief Executive Officer |
Exhibit No. | Description of Exhibit | |||
99.1 | Press release of Zynex, Inc. dated August 3, 2011. |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net revenue |
$ | 8,395 | $ | 5,742 | $ | 15,028 | $ | 10,617 | ||||||||
Gross profit |
6,668 | 4,520 | 11,857 | 8,399 | ||||||||||||
Income from operations |
899 | 130 | 760 | 162 | ||||||||||||
Income before income tax |
822 | 82 | 625 | 18 | ||||||||||||
Net income (loss) |
484 | 30 | 374 | (37 | ) | |||||||||||
Adjusted EBITDA (1) |
1,148 | 783 | 1,253 | 1,324 | ||||||||||||
Net income per share diluted |
$ | 0.02 | * | $ | 0.01 | $ | ** | |||||||||
Weighted-average number of
common shares outstanding
diluted |
30,756,717 | 30,513,285 | 30,694,216 | 30,505,347 |
* | Less than $0.01 per share |
|
** | Less than $(0.01) per share |
(1) | Reconciliation of unaudited U.S. Generally Accepted Accounting Principles (GAAP) Net income
(loss) to Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (Adjusted-EBITDA) |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net income (loss) |
$ | 484 | $ | 30 | $ | 374 | $ | (37 | ) | |||||||
Interest expense net and loss on extinguishment of debt |
79 | 50 | 137 | 128 | ||||||||||||
Income taxes |
338 | 52 | 251 | 55 | ||||||||||||
Depreciation and amortization |
209 | 210 | 412 | 422 | ||||||||||||
Deferred rent |
(56 | ) | 282 | (111 | ) | 564 | ||||||||||
Loss on disposal of equipment |
| 46 | | 18 | ||||||||||||
Stock-based expense |
94 | 113 | 190 | 174 | ||||||||||||
Adjusted EBITDA |
$ | 1,148 | $ | 783 | $ | 1,253 | $ | 1,324 | ||||||||
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
(UNAUDITED) | ||||||||
ASSETS |
||||||||
Current Assets: |
||||||||
Cash |
$ | 783 | $ | 602 | ||||
Accounts receivable, net |
9,513 | 7,309 | ||||||
Inventory |
3,751 | 3,641 | ||||||
Prepaid expenses |
136 | 145 | ||||||
Deferred tax asset |
917 | 794 | ||||||
Other current assets |
63 | 41 | ||||||
Total current assets |
15,163 | 12,532 | ||||||
Property and equipment, net |
3,239 | 2,906 | ||||||
Deposits |
201 | 174 | ||||||
Deferred financing fees, net |
91 | 89 | ||||||
Total assets |
$ | 18,694 | $ | 15,701 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current Liabilities: |
||||||||
Line of credit |
$ | 3,204 | $ | 1,270 | ||||
Current portion of capital lease obligations |
100 | 93 | ||||||
Accounts payable |
1,458 | 1,313 | ||||||
Income taxes payable |
911 | 1,103 | ||||||
Accrued payroll and payroll taxes |
794 | 572 | ||||||
Deferred rent |
259 | 221 | ||||||
Other accrued liabilities |
1,367 | 980 | ||||||
Total current liabilities |
8,093 | 5,552 | ||||||
Capital lease obligations, less current portion |
274 | 327 | ||||||
Deferred rent |
1,303 | 1,452 | ||||||
Deferred tax liability |
230 | 188 | ||||||
Total liabilities |
9,900 | 7,519 | ||||||
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,
30,775,034 (June 2011) and 30,604,167 (December 2010) shares
issued and outstanding |
31 | 31 | ||||||
Paid-in capital |
4,940 | 4,702 | ||||||
Retained earnings |
3,823 | 3,449 | ||||||
Total stockholders equity |
8,794 | 8,182 | ||||||
Total liabilities and stockholders equity |
$ | 18,694 | $ | 15,701 | ||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net revenue: |
||||||||||||||||
Rental |
$ | 2,447 | $ | 2,335 | $ | 4,895 | $ | 4,606 | ||||||||
Sales |
5,948 | 3,407 | 10,133 | 6,011 | ||||||||||||
8,395 | 5,742 | 15,028 | 10,617 | |||||||||||||
Cost of revenue: |
||||||||||||||||
Rental |
392 | 258 | 726 | 533 | ||||||||||||
Sales |
1,335 | 964 | 2,445 | 1,685 | ||||||||||||
1,727 | 1,222 | 3,171 | 2,218 | |||||||||||||
Gross profit |
6,668 | 4,520 | 11,857 | 8,399 | ||||||||||||
Selling, general and administrative expense |
5,769 | 4,390 | 11,097 | 8,237 | ||||||||||||
Income from operations |
899 | 130 | 760 | 162 | ||||||||||||
Other income (expense): |
||||||||||||||||
Interest income |
1 | 3 | 1 | 4 | ||||||||||||
Interest expense and loss on extinguishment of debt |
(80 | ) | (53 | ) | (138 | ) | (132 | ) | ||||||||
Other income (expense) |
2 | 2 | 2 | (16 | ) | |||||||||||
(77 | ) | (48 | ) | (135 | ) | (144 | ) | |||||||||
Income before income tax |
822 | 82 | 625 | 18 | ||||||||||||
Income tax expense |
(338 | ) | (52 | ) | (251 | ) | (55 | ) | ||||||||
Net income (loss) |
$ | 484 | $ | 30 | $ | 374 | $ | (37 | ) | |||||||
Net income (loss) per share: |
||||||||||||||||
Basic |
$ | 0.02 | $ | * | $ | 0.01 | $ | ** | ||||||||
Diluted |
$ | 0.02 | $ | * | $ | 0.01 | $ | ** | ||||||||
* | Less than $0.01 per share |
|
** | Less than ($0.01) per share |
Weighted average number of common shares outstanding: |
||||||||||||||||
Basic |
30,756,717 | 30,513,285 | 30,694,216 | 30,505,347 | ||||||||||||
Diluted |
31,025,478 | 30,702,944 | 30,957,206 | 30,716,349 | ||||||||||||
Six Months Ended | ||||||||
June 30, | ||||||||
2011 | 2010 | |||||||
Cash flows from operating activities: |
||||||||
Net income (loss) |
$ | 374 | $ | (37 | ) | |||
Adjustments to reconcile net income (loss) to net cash
used in operating activities: |
||||||||
Depreciation expense |
389 | 401 | ||||||
Provision for losses on uncollectible accounts receivable |
630 | 102 | ||||||
Amortization of financing fees |
23 | 21 | ||||||
Issuance of common stock for services |
44 | 48 | ||||||
Provision for obsolete inventory |
| (9 | ) | |||||
Deferred rent |
(111 | ) | 564 | |||||
Net loss on disposal of equipment |
| 18 | ||||||
Employee stock-based compensation expense |
146 | 126 | ||||||
Deferred tax benefit |
(81 | ) | (355 | ) | ||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
(2,834 | ) | (1,257 | ) | ||||
Inventory |
(93 | ) | (868 | ) | ||||
Prepaid expenses |
9 | 107 | ||||||
Other current assets |
(49 | ) | (19 | ) | ||||
Accounts payable |
145 | (25 | ) | |||||
Accrued liabilities |
609 | 177 | ||||||
Income taxes payable |
(192 | ) | (545 | ) | ||||
Net cash used in operating activities |
(991 | ) | (1,551 | ) | ||||
Cash flows from investing activities: |
||||||||
Proceeds received in lease termination |
| 108 | ||||||
Purchases of equipment and inventory used for rental |
(739 | ) | (224 | ) | ||||
Net cash used in investing activities |
(739 | ) | (116 | ) | ||||
Cash flows from financing activities: |
||||||||
Net borrowings from line of credit |
1,934 | 1,087 | ||||||
Issuance of common stock |
48 | | ||||||
Deferred financing fees |
(25 | ) | (90 | ) | ||||
Payments on capital lease obligations |
(46 | ) | (146 | ) | ||||
Net cash provided by financing activities |
1,911 | 851 | ||||||
Net increase (decrease) in cash |
181 | (816 | ) | |||||
Cash at beginning of period |
602 | 863 | ||||||
Cash at end of period |
$ | 783 | 47 | |||||
Supplemental cash flow information: |
||||||||
Interest paid |
$ | 102 | $ | 51 | ||||
Income taxes paid |
$ | 525 | $ | 955 | ||||
Supplemental disclosure of non-cash
investing and financing activities: |
||||||||
Equipment acquired through capital lease |
$ | | $ | 334 |
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