Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 13, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | ZYNEX INC | |
Entity Central Index Key | 846,475 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Trading Symbol | ZYXI | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 31,271,234 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash | $ 24 | $ 8 |
Accounts receivable, net | 3,157 | 2,426 |
Inventory, net | 173 | 305 |
Prepaid expenses | 20 | 27 |
Total current assets | 3,374 | 2,766 |
Property and equipment, net | 704 | 801 |
Deposits | 55 | 55 |
Intangible assets, net | 64 | 74 |
Total assets | 4,197 | 3,696 |
Current Liabilities: | ||
Line of credit | 3,362 | 4,002 |
Current portion of capital leases | 109 | 109 |
Accounts payable | 2,750 | 2,477 |
Deferred revenue | 366 | 89 |
Income taxes payable | 79 | 79 |
Accrued payroll and payroll taxes | 614 | 484 |
Deferred insurance reimbursement | 880 | 0 |
Accrued expenses | 186 | 299 |
Total current liabilities | 8,346 | 7,539 |
Capitalized leases, less current portion | 196 | 216 |
Warranty liability | 12 | 12 |
Total liabilities | 8,554 | 7,767 |
Stockholders’ Deficit: | ||
Preferred stock; $.001 par value, 10,000,000 shares authorized, no shares issued or outstanding | 0 | |
Common stock, $.001 par value, 100,000,000 shares authorized, 31,271,234 shares issued and outstanding | 31 | 31 |
Paid-in capital | 5,990 | 5,832 |
Accumulated deficit | (10,289) | (9,845) |
Total Zynex, Inc. stockholders’ deficit | (4,268) | (3,982) |
Non-controlling interest | (89) | (89) |
Total stockholders’ deficit | (4,357) | (4,071) |
Total liabilities and stockholders’ deficit | $ 4,197 | $ 3,696 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 31,271,234 | 31,271,234 |
Common Stock, Shares, Outstanding | 31,271,234 | 31,271,234 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net revenue: | ||
Rental | $ 1,079 | $ 327 |
Product and supply | 2,371 | 2,320 |
Pharmacy and other | 27 | 536 |
Net revenue | 3,477 | 3,183 |
Operating expenses: | ||
Cost of revenue - rental, product and supply | 983 | 1,245 |
Selling, general and administrative expense | 2,844 | 2,710 |
Loss from operations | (350) | (772) |
Other income (expense): | ||
Interest expense | (94) | (132) |
Other income (expense) | (94) | (132) |
Loss before income taxes | (444) | (904) |
Income taxes | 0 | 0 |
Net loss | (444) | (904) |
Plus: Net loss - non-controlling interest | 0 | 8 |
Net loss - attributable to Zynex, Inc. | $ (444) | $ (896) |
Net loss per share - attributable to Zynex, Inc.: | ||
Basic | $ (0.01) | $ (0.03) |
Diluted | $ (0.01) | $ (0.03) |
Weighted - average number of common shares outstanding: | ||
Basic | 31,271,234 | 31,271,234 |
Diluted | 31,271,234 | 31,271,234 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | Retained Deficit | Noncontrolling Interest |
Balance at Dec. 31, 2015 | $ (4,071) | $ 31 | $ 5,832 | $ (9,845) | $ (89) |
Balance, shares at Dec. 31, 2015 | 31,271,234 | 31,271,234 | |||
Employee stock-based compensation expense | $ 143 | 143 | |||
Service provider warrant expense | 15 | 15 | |||
Net loss | (444) | (444) | |||
Balance at Mar. 31, 2016 | $ (4,357) | $ 31 | $ 5,990 | $ (10,289) | $ (89) |
Balance, shares at Mar. 31, 2016 | 31,271,234 | 31,271,234 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net cash provided by operating activities | $ 666 | $ 163 |
Cash flows from investing activities: | ||
Change in inventory used for rental | 10 | 40 |
Net cash provided by investing activities | 10 | 40 |
Cash flows from financing activities: | ||
Net borrowings (repayments) on line of credit | (640) | 96 |
Payments on capital leases and other obligations | (20) | (14) |
Net cash (used in) provided by financing activities | (660) | 82 |
Net increase in cash | 16 | 285 |
Cash at the beginning of the period | 8 | 63 |
Cash at the end of the period | 24 | 348 |
Supplemental cash flow information: | ||
Interest paid | 94 | 132 |
Income taxes paid (including interest and penalties) | $ 0 | $ 0 |
ORGANIZATION, NATURE OF BUSINES
ORGANIZATION, NATURE OF BUSINESS AND UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION, NATURE OF BUSINESS AND UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | (1) ORGANIZATION, NATURE OF BUSINESS AND UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Organization Zynex, Inc. (a Nevada corporation) has its headquarters in Lone Tree, Colorado. The Company operates in one primary business segment, Electrotherapy and Pain Management Products. As of December 31, 2015, the Company’s active subsidiaries are Zynex Medical, Inc. (“ZMI,” a wholly-owned Colorado corporation), Zynex Europe, ApS (“ZEU,” a wholly-owned Denmark corporation) and Zynex Monitoring Solutions, Inc. (“ZMS,” a wholly-owned Colorado corporation). Its inactive subsidiaries include Zynex NeuroDiagnostics, Inc. (“ZND,” a wholly-owned Colorado corporation), Zynex Billing and Consulting, LLC (“ZBC,” an 80% owned Colorado limited liability company) and Pharmazy, Inc. (“Pharmazy”), which was incorporated in June 2015 as a wholly-owned Colorado corporation. The Company’s compound pharmacy operated as a division of ZMI dba as Pharmazy through January 2016. The term “the Company” refers to Zynex, Inc. and its active and inactive subsidiaries. Nature of Business ZMI designs, manufactures and markets U.S. Food and Drug Administration (FDA) cleared medical devices that treat chronic and acute pain, as well as activate and exercise muscles for rehabilitative purposes with electrical stimulation. ZEU was formed in 2012 to conduct international sales and marketing for Company products. ZEU produced minimal revenues during 2016 and 2015. In addition, ZMI dba Pharmazy, which sold compound transdermal pain cream, began operations in early 2014 and was closed in January 2016. ZMS was formed to develop and market medical devices for non-invasive cardiac monitoring, the products of which are under development. The Company is currently developing a blood volume monitoring device (Blood Volume Monitor). ZMS produced no revenues during 2016 or 2015. ZND was formed in 2011 to market electromyography (“EMG”), electroencephalography (“EEG”), sleep pattern, auditory and nerve conductivity neurological diagnosis devices to hospitals and clinics worldwide. In 2014, the Company decided to no longer focus on selling this product line. ZBC was formed in 2012 to provide medical billing and consulting services. The Company stopped offering billing and consulting services in April 2015. No significant revenue was generated from ZND or ZBC in 2015. In 2016 and 2015, the Company generated substantially all of its revenue in North America from sales and rentals of its products to patients, dealers and health care providers. Unaudited Condensed Consolidated Financial Statements The unaudited condensed consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures included herein are adequate to make the information presented not misleading. A description of the Company’s accounting policies and other financial information is included in the audited consolidated financial statements as filed with the SEC in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Amounts as of December 31, 2015, are derived from those audited consolidated financial statements. These interim condensed consolidated financial statements should be read in conjunction with the annual audited financial statements, accounting policies and notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, which has previously been filed with the SEC. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly the financial position of the Company as of March 31, 2016 and the results of its operations and its cash flows for the periods presented. The results of operations for the three months ended March 31, 2016, are not necessarily indicative of the results that may be achieved for a full fiscal year and cannot be used to indicate financial performance for the entire year. Reclassifications Certain reclassifications have been made to the prior years’ condensed consolidated financial statements to conform to the current year presentation. These reclassifications had no effect on previously reported results of operations or cash flows. Recent Accounting Pronouncements In July 2015, the Financial Accounting Standards Board ( Accounting Standards Update ( In August 2014, the FASB issued ASU 2014-15 “Presentation of Financial StatementsGoing Concern (Subtopic 205-40) Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The amendments in this update provide guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this update are effective for the annual period ending after December 15, 2016 and for interim periods thereafter. Early application is permitted. The Company is evaluating the effect of this updated guidance on the disclosures in the footnotes to the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09“Revenue from Contracts with Customers (Topic 606)” which amended revenue recognition guidance to clarify the principles for recognizing revenue from contracts with customers. The guidance requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This accounting guidance is effective for the Company beginning in the first quarter of fiscal year 2018, using one of two prescribed retrospective methods. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016. The Company is evaluating the impact of the amended revenue recognition guidance on the Company’s consolidated financial statements. Management has evaluated other recently issued accounting pronouncements and does not believe that any of these pronouncements will have a material impact on the Company’s consolidated financial statements. |
BACKGROUND AND MANAGEMENT'S PLA
BACKGROUND AND MANAGEMENT'S PLANS | 3 Months Ended |
Mar. 31, 2016 | |
Back Ground And Managements Plans [Abstract] | |
BACKGROUND AND MANAGEMENT’S PLANS | (2) BACKGROUND AND MANAGEMENT’S PLANS Background For the years ended December 31, 2015 and 2014, the Company reported net losses of $2,911 and $6,199, respectively. As of March 31, 2016 the Company had no available borrowing under its line of credit although, based on an interim agreement with the bank, the lender continues to make additional loans to the Company based on the Company’s cash collections. The Company’s working capital deficit at March 31, 2016 totaled $ (4,972) The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. The Company’s operating plans for 2015 and moving forward through 2016 emphasize revenue growth and cash flow; focusing its attention on increasing the number of sales representatives, promoting its EZ Rx Prescribe program (see description below), continued improvements to its billing organization and processes and reducing and controlling its administrative expenses. Total net revenue for the years ended December 31, 2015 and 2014 was approximately $ 11.6 11.1 21.7 39.7 During 2015 and throughout 2014, in an effort to minimize the impact of the challenges discussed above, the Company restructured its internal operations, including manufacturing, billing and customer service; and made reductions in its fixed expenses by cutting its administrative costs by approximately $ 2.2 9.7 During the fourth quarter of 2015, the electrotherapy industry experienced a significant development when the Company’s largest competitor (DJO/Empi) announced the closure of their Empi electrotherapy division. Empi previously held a large share of the electrotherapy market. Management believes this presents a significant growth opportunity for the Company. The Company has recruited many former Empi sales representatives, including those in areas where we had no previous representation. In addition, during 2016, Company orders have been steadily increasing as compared to 2015. To focus on growth and the potential for future positive cash flow, the Company has committed its limited resources to the new salesforce, including the supporting product production and supporting administrative (customer service and billing) personnel. The Company is not in compliance with the financial covenants under the terms of its line of credit with TBK Bank, SSB (the “Lender”). See Note 7 to the Unaudited Condensed Consolidated Financial Statements in this Quarterly Report for further discussion Management’s Plans The Company’s business plan for 2016 focuses on the Company’s effort to attain external financing, the Lender’s continued support, the continued support of the Company’s vendors on the slow payment of past due invoices The Company is actively seeking additional financing through the issuance of debt or sale of equity. The additional capital is to refinance or replace the line of credit and to provide the additional working capital necessary to continue the Company’s business operations. The net losses and negative working capital may make it difficult to raise any new capital and any such capital raised (if any) may result in significant dilution to existing stockholders. The Company is not certain whether any such financing would be available to the Company on acceptable terms, or at all. Any additional debt would require the approval of the Lender. A significant component of our negative working capital at March 31, 2016 is the amount due under our line of credit and past due accounts payable, all of which is considered a current liability. In addition to seeking external financing, the There can be no assurance that the Company will be able to secure additional external financing, the Lender will continue to make loan advances, the vendors will continue to work with slow repayment terms, and the sales and cash flow growth are attainable and sustainable. The Company’s dependence on operating cash flows means that risks involved in the Company’s business can significantly affect the Company’s liquidity. Contingencies such as unanticipated shortfalls in revenues or increases in expenses could affect the Company’s projected revenues, cash flows from operations and liquidity, which may force the Company to curtail its operating plan or impede the Company’ growth. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | (3) PROPERTY AND EQUIPMENT March 31, December 31, Useful 2016 2015 lives (UNAUDITED) Office furniture and equipment $ 911 $ 911 3-7 years Rental inventory 1,207 1,216 5 years Vehicles 76 76 5 years Leasehold improvements 104 104 2-6 years Assembly equipment 125 125 7 years 2,423 2,432 Less accumulated depreciation (1,719) (1,631) $ 704 $ 801 |
LOSS PER SHARE
LOSS PER SHARE | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | (4) LOSS PER SHARE Basic loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding and the number of dilutive potential common share equivalents during the period, calculated using the treasury-stock method. For the three months ended March 31, 2016 and 2015, the potential common stock equivalents totaled 2,218,250 1,267,500 Three months ended March 31, 2016 2015 Basic: Net loss applicable to common stockholders $ (444) $ (896) Weighted average shares outstanding basic 31,271,234 31,271,234 Net loss per share basic $ (0.01) $ (0.03) Diluted: Net loss applicable to common stockholders $ (444) $ (896) Weighted average shares outstanding basic 31,271,234 31,271,234 Dilutive securities - - Weighted average shares outstanding diluted 31,271,234 31,271,234 Net loss per share diluted $ (0.01) $ (0.03) |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION PLANS | (5) STOCK-BASED COMPENSATION PLANS The Company previously reserved 3,000,000 December 31, 2014 In the three months ended March 31, 2016 and 2015, the Company recorded compensation expense related to stock options of $ 143 15 0 2 143 13 During the three months ended March 31, 2016, the Company granted options to purchase up to 484,000 0.25 2016 Weighted average expected term 6.23 years Weighted average volatility 121.85 % Weighted average risk-free interest rate 1.67 % Dividend yield 0% Weighted Weighted Average Shares Average Remaining Aggregate Under Exercise Contractual Intrinsic Option Price Life Value Outstanding at January 1, 2016 1,685,250 $ 0.46 Granted 484,000 $ 0.25 Exercised - Forfeited (1,000) $ 0.43 Outstanding at March 31, 2016 2,168,250 $ 0.41 7.31 years $ - Exercisable at March 31, 2016 1,391,204 $ 0.47 6.66 years $ - Nonvested Shares Weighted Average Under Option Grant Date Fair Value Non-vested at January 1, 2016 672,155 $ 0.31 Granted 484,000 $ 0.25 Vested (378,109) $ 0.23 Forfeited (1,000) $ 0.43 Non-vested at March 31, 2016 777,046 $ 0.31 As of March 31, 2016, the Company had approximately $ 259 5 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | (6) INCOME TAXES The provision for income taxes is recorded at the end of each interim period based on the Company’s best estimate of its effective income tax rate expected to be applicable for the full fiscal year. The Company’s effective income tax rate was 0% for both the three months ended March 31, 2016 and 2015 as the realization of any deferred tax assets is not more likely than not. The Company paid no income taxes during the three months ended March 31, 2016 and 2015. |
LINE OF CREDIT
LINE OF CREDIT | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
LINE OF CREDIT | (7) LINE OF CREDIT The Company has an asset-backed revolving credit facility under a Loan and Security Agreement as amended, (the “Triumph Agreement”) with Triumph Healthcare Finance, a division of TBK Bank, SSB (formerly known as Triumph Community Bank (the “Lender”). The Triumph Agreement contains certain customary restrictive and financial covenants for asset-backed credit facilities. The Company has not been in compliance with the financial covenants under the Triumph Agreement since July 2014. On July 14, 2014, the Company received notice from the Lender of an event of default under the Triumph Agreement. The notice relates to the Company’s default under the minimum debt service coverage ratio requirement for the quarter ended March 31, 2014 and certain other alleged defaults. The Lender notified the Company that it was exercising its default remedies under the Triumph Agreement, including, among others, accelerating the repayment of all outstanding obligations under the Triumph Agreement (outstanding principal and accrued interest) and collecting the Company’s bank deposits to apply towards the outstanding obligations. The Company and the Lender are negotiating the terms of an accelerated repayment of the amounts outstanding under the Triumph Agreement and the Lender has continued to make additional loans to the Company based on cash collections. However, no assurance can be given that the Lender will continue to make such additional loans or that the parties will agree on a repayment plan acceptable to the Company. If the Lender insists upon immediate repayment, the Company will be insolvent and may be forced to seek protection from creditors. As of March 31, 2016 $ 3,362 11.0 6.75 3 1.25 December 19, 2014 85 250 50,000 Contractual term 5.0 years Volatility 122.44 % Risk-free interest rate 1.00 % Dividend yield 1.44 % During the three months ended March 31, 2016, the Company recorded bank fee expense related to this stock warrant of $ 15 |
DEFERRED INSURANCE REIMBURSEMEN
DEFERRED INSURANCE REIMBURSEMENT | 3 Months Ended |
Mar. 31, 2016 | |
Insurance [Abstract] | |
DEFERRED INSURANCE REIMBURSEMENT | (8) DEFERRED INSURANCE REIMBURSEMENT During the first quarter of 2016, the Company collected $ 880 880 |
CAPITAL LEASES AND OTHER OBLIGA
CAPITAL LEASES AND OTHER OBLIGATIONS | 3 Months Ended |
Mar. 31, 2016 | |
Leases, Capital [Abstract] | |
CAPITAL LEASES AND OTHER OBLIGATIONS | (9) CAPITAL LEASES AND OTHER OBLIGATIONS On October 31, 2014 ⋅ The term of the LA is two years commencing on January 1, 2015 December 31, 2016 ⋅ Fixed rental payments of $ 49 ⋅ The Company and landlord shall each have the right to terminate the lease at any time, without liability to the other, with six months prior written notice to the Company and three months written notice to the Landlord. The Company also leases certain equipment under capital leases which expire on various dates through 2018. Imputed interest rates on the leases range from approximately 5 10 461 218 |
CONCENTRATIONS
CONCENTRATIONS | 3 Months Ended |
Mar. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | (10) CONCENTRATIONS The Company sourced approximately 35 40 The Company had receivables from a private health insurance carrier at March 31, 2016 and December 31, 2015, that made up approximately 15 5 |
LITIGATION
LITIGATION | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION | (11) LITIGATION From time to time, the Company may become party to litigation and other claims in the ordinary course of business. To the extent that such claims and litigation arise, management would provide for them if losses are determined to be both probable and estimable. The Company is currently not a party to any material pending legal proceedings. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | Property and equipment as of March 31, 2016 and December 31, 2015, consist of the following: March 31, December 31, Useful 2016 2015 lives (UNAUDITED) Office furniture and equipment $ 911 $ 911 3-7 years Rental inventory 1,207 1,216 5 years Vehicles 76 76 5 years Leasehold improvements 104 104 2-6 years Assembly equipment 125 125 7 years 2,423 2,432 Less accumulated depreciation (1,719) (1,631) $ 704 $ 801 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings (Loss) Per Share | The calculation of basic and diluted loss per share for the three months ended March 31, 2016 and 2015 is as follows: Three months ended March 31, 2016 2015 Basic: Net loss applicable to common stockholders $ (444) $ (896) Weighted average shares outstanding basic 31,271,234 31,271,234 Net loss per share basic $ (0.01) $ (0.03) Diluted: Net loss applicable to common stockholders $ (444) $ (896) Weighted average shares outstanding basic 31,271,234 31,271,234 Dilutive securities - - Weighted average shares outstanding diluted 31,271,234 31,271,234 Net loss per share diluted $ (0.01) $ (0.03) |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Fair Value of Stock Options Grants | The Company used the Black Scholes option pricing model to determine the fair value of stock option grants, using the following assumptions during the three months ended March 31, 2016: 2016 Weighted average expected term 6.23 years Weighted average volatility 121.85 % Weighted average risk-free interest rate 1.67 % Dividend yield 0% |
Summary of Stock Option Activity Under the Option Plan | A summary of stock option activity under all equity compensation plans for the three months ended March 31, 2016, is presented below: Weighted Weighted Average Shares Average Remaining Aggregate Under Exercise Contractual Intrinsic Option Price Life Value Outstanding at January 1, 2016 1,685,250 $ 0.46 Granted 484,000 $ 0.25 Exercised - Forfeited (1,000) $ 0.43 Outstanding at March 31, 2016 2,168,250 $ 0.41 7.31 years $ - Exercisable at March 31, 2016 1,391,204 $ 0.47 6.66 years $ - |
Summary of Status of the Company's Non-Vested Shares Under Option | Nonvested Shares Weighted Average Under Option Grant Date Fair Value Non-vested at January 1, 2016 672,155 $ 0.31 Granted 484,000 $ 0.25 Vested (378,109) $ 0.23 Forfeited (1,000) $ 0.43 Non-vested at March 31, 2016 777,046 $ 0.31 |
LINE OF CREDIT (Tables)
LINE OF CREDIT (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
LINE OF CREDIT | The Company used the Black Scholes option pricing model to determine the fair value of the stock warrant, using the following assumptions: Contractual term 5.0 years Volatility 122.44 % Risk-free interest rate 1.00 % Dividend yield 1.44 % |
ORGANIZATION, NATURE OF BUSIN22
ORGANIZATION, NATURE OF BUSINESS AND UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Details Textual) | 3 Months Ended |
Mar. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Number of Operating Segments | 1 |
ZBC [Member] | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 80.00% |
BACKGROUND AND MANAGEMENT'S P23
BACKGROUND AND MANAGEMENT'S PLANS (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
BACKGROUND AND MANAGEMENT’S PLANS [Line Items] | ||||||
Net Income (loss) | $ (444,000) | $ (896,000) | $ (2,911,000) | $ (6,199,000) | ||
Line of credit current borrowing capacity | 0 | |||||
Total net revenue | 3,477,000 | $ 3,183,000 | 11,600,000 | 11,100,000 | $ 21,700,000 | $ 39,700,000 |
Increase (decrease) in working capital | $ (4,972,000) | (4,773,000) | ||||
Fixed expenses reduced by cutting administrative costs through cutting headcount and facilities rent | $ 2,200,000 | $ 9,700,000 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 2,423 | $ 2,432 |
Less accumulated depreciation | (1,719) | (1,631) |
Property and Equipment, Net | 704 | 801 |
Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 911 | 911 |
Furniture and Fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Useful Life | 3 years | |
Furniture and Fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Useful Life | 7 years | |
Rental Inventory | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 1,207 | 1,216 |
Property and Equipment, Useful Life | 5 years | |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 76 | 76 |
Property and Equipment, Useful Life | 5 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 104 | 104 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Useful Life | 2 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Useful Life | 6 years | |
Assembly equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 125 | $ 125 |
Property and Equipment, Useful Life | 7 years |
LOSS PER SHARE (Details)
LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Basic: | ||||
Net loss applicable to common stockholders | $ (444) | $ (896) | $ (2,911) | $ (6,199) |
Weighted average shares outstanding - basic | 31,271,234 | 31,271,234 | ||
Net loss per share - basic | $ (0.01) | $ (0.03) | ||
Diluted: | ||||
Net loss applicable to common stockholders | $ (444) | $ (896) | $ (2,911) | $ (6,199) |
Weighted average shares outstanding - basic | 31,271,234 | 31,271,234 | ||
Dilutive securities | 0 | 0 | ||
Weighted average shares outstanding - diluted | 31,271,234 | 31,271,234 | ||
Net loss per share - diluted | $ (0.01) | $ (0.03) |
LOSS PER SHARE (Details Textual
LOSS PER SHARE (Details Textual) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Antidilutive securities excluded from | 2,218,250 | 1,267,500 |
STOCK-BASED COMPENSATION PLAN27
STOCK-BASED COMPENSATION PLANS (Details) | 3 Months Ended |
Mar. 31, 2016 | |
Fair value of stock option grants | |
Weighted average expected term | 6 years 2 months 23 days |
Weighted average volatility | 121.85% |
Weighted average risk-free interest rate | 1.67% |
Dividend yield | 0.00% |
STOCK-BASED COMPENSATION PLAN28
STOCK-BASED COMPENSATION PLANS (Details 1) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($)$ / sharesshares | |
Summary of stock option activity under the option Plan | |
Shares Under Option, Outstanding beginning balance | 1,685,250 |
Shares under option, granted | 484,000 |
Shares under option, Exercised | 0 |
Shares Under Option, Forfeited | (1,000) |
Shares Under Option, Outstanding ending balance | 2,168,250 |
Shares Under Option, Exercisable ending balance | 1,391,204 |
Weighted Average Exercise Price, Outstanding beginning balance | $ / shares | $ 0.46 |
Weighted average exercise price, granted | $ / shares | 0.25 |
Weighted Average Exercise Price, Forfeited | $ / shares | 0.43 |
Weighted Average Exercise Price, Outstanding ending balance | $ / shares | 0.41 |
Weighted Average Exercise Price, Exercisable ending balance | $ / shares | $ 0.47 |
Weighted Average Remaining Contractual Life, Outstanding | 7 years 3 months 22 days |
Weighted Average Remaining Contractual Life, Exercisable | 6 years 7 months 28 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ | $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 0 |
STOCK-BASED COMPENSATION PLAN29
STOCK-BASED COMPENSATION PLANS (Details 2) | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Summary of status of the Company's non-vested share awards | |
Non-vested Shares Under Option at January 1, 2016 | shares | 672,155 |
Shares under option, granted | shares | 484,000 |
Non-vested Shares Under Option, Vested | shares | (378,109) |
Non-vested Shares Under Option, Forfeited | shares | (1,000) |
Non-vested Shares Under Option at March 31, 2016 | shares | 777,046 |
Weighted Average Grant Date Fair Value at January 1, 2016 | $ / shares | $ 0.31 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 0.23 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 0.43 |
Weighted Average Grant Date Fair Value at March 31, 2016 | $ / shares | $ 0.31 |
STOCK-BASED COMPENSATION PLAN30
STOCK-BASED COMPENSATION PLANS (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee stock-based compensation expense | $ 143 | $ 15 |
Shares under option, granted | 484,000 | |
Weighted average exercise price, granted | $ 0.25 | |
Unrecognized compensation expense related to stock options | $ 259 | |
Stock options under option plan maximum expiry period | 10 years | |
Weighted-average period of unrecognized compensation expense related to stock options | 5 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Dec. 31, 2014 | |
Cost Of Sales | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee stock-based compensation expense | $ 0 | 2 |
Selling, General And Administrative Expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee stock-based compensation expense | $ 143 | $ 13 |
Two Thousand And Five Stock Option Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,000,000 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Taxes [Line Items] | ||
Statutory rate | 3.00% | 3.00% |
Income taxes paid (including interest and penalties) | $ 0 | $ 0 |
LINE OF CREDIT (Details)
LINE OF CREDIT (Details) | 3 Months Ended |
Mar. 31, 2016 | |
Contractual term | 6 years 2 months 23 days |
Volatility | 121.85% |
Risk-free interest rate | 1.67% |
Dividend yield | 0.00% |
Warrant [Member] | |
Contractual term | 5 years |
Volatility | 122.44% |
Risk-free interest rate | 1.00% |
Dividend yield | 1.44% |
LINE OF CREDIT (Details Textual
LINE OF CREDIT (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Mar. 28, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Line of Credit Facility [Abstract] | |||
Line of Credit, Current | $ 3,362 | $ 4,002 | |
Date of Maturity | Dec. 19, 2014 | ||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 50,000 | ||
Obligation to reduce loan balance | $ 85 | ||
Extended date of forbearance | Jun. 30, 2016 | ||
Class Of Stock Warrants Or Rights Warrants Issuance Cost | 15 | ||
Revolving Credit Facility | |||
Line of Credit Facility [Abstract] | |||
Line of Credit, Current | 3,362 | ||
Remaining amount available for borrowing | $ 0 | ||
Effective interest rate under the Credit Agreement | 11.00% | ||
Interest Rate | 6.75% | ||
Additional default interest rate | 3.00% | ||
Fees include in effective interest rate under the credit agreement | 1.25% | ||
Revolving Credit Facility | Maximum | |||
Line of Credit Facility [Abstract] | |||
Aggregate periodic cap payment suspended | $ 250 |
DEFERRED INSURANCE REIMBURSEM34
DEFERRED INSURANCE REIMBURSEMENT (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Proceeds from Insurance Settlement, Operating Activities | $ 880 | |
Liability for Claims and Claims Adjustment Expense, Total | $ 880 | $ 0 |
CAPITAL LEASES AND OTHER OBLI35
CAPITAL LEASES AND OTHER OBLIGATIONS (Details Textual) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Lease Termination Agreement And New Lease Agreement | |
Debt Instrument [Line Items] | |
Lease Commencement Date | Jan. 1, 2015 |
Lease term | 2 years |
Fixed rental payments for each month | $ 49 |
Lease Initiation Date | Oct. 31, 2014 |
Lease agreement written notice to company, terms | 6 months |
Lease agreement written notice to landlord, terms | 3 months |
Maximum | |
Debt Instrument [Line Items] | |
Imputed interest rate on lease | 10.00% |
Maximum | Lease Termination Agreement And New Lease Agreement | |
Debt Instrument [Line Items] | |
Lease termination date | Dec. 31, 2016 |
Minimum | |
Debt Instrument [Line Items] | |
Imputed interest rate on lease | 5.00% |
Assembly Equipment | |
Debt Instrument [Line Items] | |
Cost of assets under capital lease | $ 461 |
Accumulated depreciation | $ 218 |
CONCENTRATIONS (Details Textual
CONCENTRATIONS (Details Textual) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Raw materials | Electrotherapy products | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 35.00% | 40.00% |
Net Accounts Receivable | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 15.00% | 5.00% |