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)) |
Zynex, Inc. |
||||
Date: November 3, 2011 | By: | /s/ Thomas Sandgaard | ||
Thomas Sandgaard, | ||||
Chief Executive Officer |
Exhibit No. | Description of Exhibit | |||
99.1 | Press release of Zynex, Inc. dated November 3, 2011. |
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net revenue |
$ | 9,427 | $ | 6,657 | $ | 24,455 | $ | 17,274 | ||||||||
Gross profit |
7,492 | 5,231 | 19,349 | 13,630 | ||||||||||||
Income from operations |
1,103 | 625 | 1,863 | 788 | ||||||||||||
Income before income tax |
1,016 | 582 | 1,641 | 600 | ||||||||||||
Net income |
591 | 368 | 965 | 330 | ||||||||||||
Adjusted EBITDA (1) |
1,345 | 1,197 | 2,598 | 2,522 | ||||||||||||
Net income per share diluted |
$ | 0.02 | $ | 0.01 | $ | 0.03 | $ | 0.01 | ||||||||
Weighted-average number of
common shares outstanding
diluted |
30,794,268 | 30,569,441 | 30,727,720 | 30,555,778 |
(1) | Reconciliation of unaudited U.S. Generally Accepted Accounting Principles (GAAP) Net income
to Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (Adjusted-EBITDA) |
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net income |
$ | 591 | $ | 368 | $ | 965 | $ | 330 | ||||||||
Interest expense net and
loss on extinguishment of
debt |
87 | 43 | 224 | 172 | ||||||||||||
Income taxes |
425 | 214 | 676 | 270 | ||||||||||||
Depreciation and amortization |
219 | 200 | 631 | 622 | ||||||||||||
Deferred rent |
(55 | ) | 282 | (166 | ) | 846 | ||||||||||
Loss on disposal of equipment |
| | | 18 | ||||||||||||
Stock-based expense |
78 | 90 | 268 | 264 | ||||||||||||
Adjusted EBITDA |
$ | 1,345 | $ | 1,197 | $ | 2,598 | $ | 2,522 | ||||||||
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
(UNAUDITED) | ||||||||
ASSETS |
||||||||
Current Assets: |
||||||||
Cash |
$ | 761 | $ | 602 | ||||
Accounts receivable, net |
10,756 | 7,309 | ||||||
Inventory |
4,320 | 3,641 | ||||||
Prepaid expenses |
146 | 145 | ||||||
Deferred tax asset |
1,072 | 794 | ||||||
Other current assets |
52 | 41 | ||||||
Total current assets |
17,107 | 12,532 | ||||||
Property and equipment, net |
3,490 | 2,906 | ||||||
Deposits |
210 | 174 | ||||||
Deferred financing fees, net |
78 | 89 | ||||||
Total assets |
$ | 20,885 | $ | 15,701 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current Liabilities: |
||||||||
Line of credit |
$ | 3,380 | $ | 1,270 | ||||
Current portion of capital lease obligations |
128 | 93 | ||||||
Accounts payable |
2,161 | 1,313 | ||||||
Income taxes payable |
1,245 | 1,103 | ||||||
Accrued payroll and payroll taxes |
759 | 572 | ||||||
Deferred rent |
277 | 221 | ||||||
Other accrued liabilities |
1,699 | 980 | ||||||
Total current liabilities |
9,649 | 5,552 | ||||||
Capital lease obligations, less current portion |
292 | 327 | ||||||
Deferred rent |
1,230 | 1,452 | ||||||
Deferred tax liability |
250 | 188 | ||||||
Total liabilities |
11,421 | 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,
30,794,479 (September 30, 2011) and 30,604,167 (December 31,
2010) shares issued and outstanding |
31 | 31 | ||||||
Paid-in capital |
5,019 | 4,702 | ||||||
Retained earnings |
4,414 | 3,449 | ||||||
Total stockholders equity |
9,464 | 8,182 | ||||||
Total liabilities and stockholders equity |
$ | 20,885 | $ | 15,701 | ||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net revenue: |
||||||||||||||||
Rental |
$ | 2,482 | $ | 2,032 | $ | 7,377 | $ | 6,639 | ||||||||
Sales |
6,945 | 4,625 | 17,078 | 10,635 | ||||||||||||
9,427 | 6,657 | 24,455 | 17,274 | |||||||||||||
Cost of revenue: |
||||||||||||||||
Rental |
465 | 169 | 1,191 | 702 | ||||||||||||
Sales |
1,470 | 1,257 | 3,915 | 2,942 | ||||||||||||
1,935 | 1,426 | 5,106 | 3,644 | |||||||||||||
Gross profit |
7,492 | 5,231 | 19,349 | 13,630 | ||||||||||||
Selling, general and administrative expense |
6,389 | 4,606 | 17,486 | 12,842 | ||||||||||||
Income from operations |
1,103 | 625 | 1,863 | 788 | ||||||||||||
Other income (expense): |
||||||||||||||||
Interest income |
| 2 | 1 | 5 | ||||||||||||
Interest expense and loss on extinguishment of debt |
(87 | ) | (45 | ) | (225 | ) | (177 | ) | ||||||||
Other income (expense) |
| | 2 | (16 | ) | |||||||||||
(87 | ) | (43 | ) | (222 | ) | (188 | ) | |||||||||
Income before income tax |
1,016 | 582 | 1,641 | 600 | ||||||||||||
Income tax expense |
(425 | ) | (214 | ) | (676 | ) | (270 | ) | ||||||||
Net income |
$ | 591 | $ | 368 | $ | 965 | $ | 330 | ||||||||
Net income per share: |
||||||||||||||||
Basic |
$ | 0.02 | $ | 0.01 | $ | 0.03 | $ | 0.01 | ||||||||
Diluted |
$ | 0.02 | $ | 0.01 | $ | 0.03 | $ | 0.01 | ||||||||
Weighted average number of common shares
outstanding: |
||||||||||||||||
Basic |
30,794,268 | 30,569,441 | 30,727,720 | 30,555,778 | ||||||||||||
Diluted |
31,013,012 | 30,667,064 | 30,977,933 | 30,744,764 | ||||||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2011 | 2010 | |||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 965 | $ | 330 | ||||
Adjustments to reconcile net income to net cash
used in operating activities: |
||||||||
Depreciation expense |
594 | 591 | ||||||
Provision for losses on uncollectible accounts receivable |
1,190 | 118 | ||||||
Amortization of financing fees |
36 | 31 | ||||||
Issuance of common stock for services |
61 | 61 | ||||||
Provision for obsolete inventory |
134 | (2 | ) | |||||
Deferred rent |
(166 | ) | 846 | |||||
Net loss on disposal of equipment |
| 18 | ||||||
Employee stock-based compensation expense |
207 | 203 | ||||||
Deferred tax benefit |
(216 | ) | (331 | ) | ||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
(4,637 | ) | (1,707 | ) | ||||
Inventory |
(791 | ) | (1,389 | ) | ||||
Prepaid expenses |
(1 | ) | 100 | |||||
Other current assets |
(47 | ) | (19 | ) | ||||
Accounts payable |
848 | 358 | ||||||
Accrued liabilities |
906 | 331 | ||||||
Income taxes payable |
142 | (364 | ) | |||||
Net cash used in operating activities |
(775 | ) | (825 | ) | ||||
Cash flows from investing activities: |
||||||||
Proceeds received in lease termination |
| 108 | ||||||
Purchases of equipment and inventory used for rental |
(1,123 | ) | (271 | ) | ||||
Net cash used in investing activities |
(1,123 | ) | (163 | ) | ||||
Cash flows from financing activities: |
||||||||
Net borrowings from line of credit |
2,110 | 972 | ||||||
Issuance of common stock |
49 | | ||||||
Deferred financing fees |
(25 | ) | (90 | ) | ||||
Payments on capital lease obligations |
(77 | ) | (164 | ) | ||||
Net cash provided by financing activities |
2,057 | 718 | ||||||
Net increase (decrease) in cash |
159 | (270 | ) | |||||
Cash at beginning of period |
602 | 863 | ||||||
Cash at end of period |
$ | 761 | 593 | |||||
Supplemental cash flow information: |
||||||||
Interest paid |
$ | 175 | $ | 83 | ||||
Income taxes paid |
$ | 750 | $ | 955 | ||||
Supplemental disclosure of non-cash
investing and financing activities: |
||||||||
Equipment acquired through capital lease |
$ | | $ | 334 |