Zynex (ZYXI) 10-K 17 Apr 17 2016 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 26, 2017
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Entity Registrant Name	ZYNEX INC
Entity Central Index Key	846,475
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float		$ 4,576,370
Trading Symbol	ZYXI
Entity Common Stock, Shares Outstanding		32,048,484

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current Assets:
Cash	$ 247	$ 8
Accounts receivable, net	3,028	2,426
Inventory, net	107	305
Prepaid expenses	40	27
Total current assets	3,422	2,766
Property and equipment, net	580	801
Deposits	55	55
Intangible assets, net	34	74
Total assets	4,091	3,696
Current Liabilities:
Line of credit	2,771	4,002
Current portion of capital leases	118	109
Accounts payable	2,879	2,477
Deferred revenue	54	89
Deferred insurance reimbursement	880
Income taxes payable	94	79
Accrued payroll and payroll taxes	732	484
Other accrued liabilities	217	299
Total current liabilities	7,745	7,539
Capitalized leases, less current portion	136	216
Warranty liability	12	12
Total liabilities	7,893	7,767
Stockholders’ (Deficit) :
Preferred stock; $.001 par value, 10,000,000 shares authorized, no shares issued or outstanding	0	0
Common stock, $.001 par value, 100,000,000 shares authorized, 31,271,234 shares issued and outstanding	31	31
Paid-in capital	6,032	5,832
Accumulated deficit	(9,776)	(9,845)
Total Zynex, Inc. stockholders’ deficit	(3,713)	(3,982)
Non-controlling interest	(89)	(89)
Total stockholders’ deficit	(3,802)	(4,071)
Total liabilities and stockholders’ deficit	$ 4,091	$ 3,696

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 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

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Net revenue:
Rental	$ 4,409	$ 2,480
Product and supply	8,886	7,989
Pharmacy and other	18	1,172
Net revenue	13,313	11,641
Operating Expenses
Cost of revenue - rental, product and supply	(3,517)	(4,937)
Selling, general and administrative expenses	(9,156)	(9,185)
Income (loss) from operations	640	(2,481)
Other income (expense):
Interest expense	(352)	(503)
Other income (expense)	(204)	(7)
Total other income (expense)	(556)	(510)
Income (loss) before income taxes	84	(2,991)
Income tax benefit (expense)	(15)	57
Net income (loss)	69	(2,934)
Plus: Net loss - non-controlling interest	0	23
Net income (loss) - attributable to Zynex, Inc.	$ 69	$ (2,911)
Net income (loss) per share - attributable to Zynex, Inc.:
Basic	$ 0	$ (0.09)
Diluted	$ 0	$ (0.09)
Weighted average number of common shares outstanding:
Basic	31,271,234	31,271,234
Diluted	31,271,234	31,271,234

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income (loss)	$ 69	$ (2,934)
Adjustments to reconcile net loss to net cash provided by in operating activities:
Depreciation expense	395	367
Write-off rental units	30	0
Loss on the disposal of property and equipment	22
Provision for losses on accounts receivable	1,433	1,040
Amortization of intangible assets	40	57
Provision for obsolete inventory	0	28
Employee stock-based compensation and warrant expense	200	130
Changes in operating assets and liabilities:
Accounts receivable	(2,018)	(277)
Inventory	198	1,602
Prepaid expenses	(14)	223
Income tax receivable	0	268
Deposits and other current assets	0	(53)
Deferred revenue	845	(23)
Accounts payable	402	(67)
Accrued liabilities	167	(20)
Net cash provided by operating activities	1,769	341
Cash flows from investing activities:
Net disposals of equipment	0	9
Change in inventory used for rental	0	99
Purchases used for rental	(226)
Net cash (used in) provided by investing activities	(226)	108
Cash flows from financing activities:
Net repayments on line of credit	(1,232)	(440)
Payments on notes payable and capital lease obligations	(72)	(64)
Net cash used in financing activities	(1,304)	(504)
Net increase (decrease) in cash	239	(55)
Cash at the beginning of the period	8	63
Cash at the end of the period	247	8
Supplemental cash flow information:
Interest paid	$ 351	$ 503

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ (DEFICIT) EQUITY - USD ($) $ in Thousands	Total	Common Stock	Paid-in Capital	Retained Deficit	Noncontrolling Interest
Balance at Dec. 31, 2014	$ (1,267)	$ 31	$ 5,702	$ (6,934)	$ (66)
Balance, shares at Dec. 31, 2014		31,171,234
Employee stock-based compensation expense	130	$ 0	130	0	0
Net income (loss)	(2,934)	0	0	(2,911)	(23)
Balance at Dec. 31, 2015	(4,071)	$ 31	5,832	(9,845)	(89)
Balance, shares at Dec. 31, 2015		31,271,234
Employee stock-based compensation expense	185	$ 0	185	0	0
Service provider warrant expense	15		15
Net income (loss)	69	0	0	69
Balance at Dec. 31, 2016	$ (3,802)	$ 31	$ 6,032	$ (9,776)	$ (89)
Balance, shares at Dec. 31, 2016		31,271,234

ORGANIZATION, NATURE OF BUSINES

ORGANIZATION, NATURE OF BUSINESS AND MANAGEMENT’S PLANS	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION, NATURE OF BUSINESS AND MANAGEMENT’S PLANS	ORGANIZATION, NATURE OF BUSINESS AND MANAGEMENT’S PLANS 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, 2016, 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 During 2016 and 2015 revenues earned by ZMI totaled 99.7 99.6 0.1 9.7 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. 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 (no significant revenue was generated during 2015 or 2014). 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 in 2016 and 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. Management Plans 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. For the years ended December 31, 2016 and 2015, the Company reported net income of $ 69 2,911 (which expired March 31, 2017), release cash collateral (4,323) 450 significant Total net revenue for the year ended December 31, 2016 was $ 13,313 11,641 21.7 39.7 During the second quarter of 2014, the Company narrowed its focus to the NexWave, InWave and NeuroMove electrotherapy products and continued to build the sales representative group for its TENS solutions. The Company continued to narrow its focus during 2015 by closing its billing consulting services in April 2015 and closing its compound pain cream operations in January 2016. During 2015 and throughout 2014, in an effort to minimize the impact of these challenges, 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 $ 2,200 9,700 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 over many former Empi sales representatives, including those in areas where we had no previous representation. In addition, during 2016, Company orders steadily increased 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”). In July 2014, the Lender notified the Company that it would no longer make additional loans release cash collateral 100 2,200 , and proceeds from a private placement completed through Newbridge Securities Corporation in February 2017 release cash collateral 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. In addition, any additional debt would require the approval of the Lender. A significant component of our negative working capital at December 31, 2015 is the amount due under our line of credit and past due accounts payable, all of which is considered a current liability. The Company’s business plan for 2017 focuses on the Company’s effort to attain external financing, the Lender’s continued support, the vendors continued support and attaining positive cash flow from organic growth. The accomplishment of organic growth in revenues and cash flows is dependent on taking advantage of the Empi opportunity and the increased number of sales representatives, using its EZ Rx Prescription program and continued improvements to its billing organization and processes. The Company’s long-term business plan contemplates organic growth in revenues through an increase in the electrotherapy market share and the addition of new products such as the ZMS Blood Volume Monitor. The Company has and will continue to seek external financing and monitor and control its sales growth, product production needs and administrative costs going forward. If the Company continues to increase its revenue while controlling its administrative costs, the Company will return to profitability in future years as of appears in 2016. The Company believes that as a result of the growth opportunities coupled the reduced administrative expenses, the securing of additional capital, the continued support of our Lender, and the continued support of our vendors to work with Company on the slow payment of past due bills; that the Company’s cash flows from operating activities will be sufficient to fund the Company’s cash requirements through the next twelve months. Management believes that its cash flow projections for 2017 are achievable and that sufficient cash will be generated to meet the Company’s currently restrained operating requirements. Such cash is projected to be generated by securing external financing, retaining the continued support of the Lender and vendors, and increasing cash flow from operations generated from organic growth. There is no guarantee that the Company will be able to meet the requirements of its 2017 cash flow projections or that it will be able to address its working capital shortages; the principal component of which is the negative working capital (principally the line of credit and past due accounts payable which are considered a current liability in their entirety). There can be no assurance that the Company will be able to secure additional external financing, the Lender will continue to release cash collateral, 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.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	(2) SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated financial statements include the accounts of Zynex, Inc. and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Non-controlling interest in the equity of a subsidiary is accounted for and reported as stockholders’ (deficit) equity. Non-controlling interest represents the 20 Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The most significant management estimates used in the preparation of the accompanying consolidated financial statements are associated with the allowance for billing adjustments and uncollectible accounts receivable, the reserve for obsolete and damaged inventory, the life of its rented equipment, stock-based compensation, and valuation of long-lived assets and realizability of deferred tax assets. Revenue Recognition, Allowance for Billing Adjustments and Collectability The Company recognizes revenue when each of the following four conditions are met: 1) a contract or sales arrangement exists, 2) products have been shipped and title has transferred, or rental services have been rendered, 3) the price of the products or services is fixed or determinable, and 4) collectability is reasonably assured. The Company recognizes revenue when medical units and supplies are shipped or, for medical units sold from consigned inventory, when it receives notice that the product has been prescribed and delivered to the patient. The Company, prior to recognizing revenue verifies the patient’s insurance coverage or obtained the insurance company preauthorization, when required. Revenue from supplies is recognized upon shipment. Revenue from the rental of products is normally on a month-to-month basis and is recognized ratably over the products’ rental period. Revenue from sales to distributors is recognized when the Company ships its products. Revenue is reported net, after adjustments for estimated insurance company or governmental agency (collectively “Third-party Payors”) reimbursement deductions and, for wholesale customers and patient billings, an allowance for uncollectible accounts. The Third-party Payor reimbursement deductions are known throughout the health care industry as “billing adjustments” whereby the Third-party Payors unilaterally reduce the amount they reimburse for the Company’s products. A significant portion of the Company’s revenues are derived, and the related receivables are due, from Third-party Payors. The nature of these receivables within the medical industry has typically resulted in long collection cycles. The process of determining what products will be reimbursed by Third-party Payors and the amounts that they will reimburse is complex and depends on conditions and procedures that vary among providers and may change from time to time. The Company maintains an allowance for billing adjustments and an allowance for doubtful accounts. Billing adjustments result from reimbursements from Third-party Payors that are less than amounts claimed and from where the amount claimed by the Company exceeds the Third-party Payors usual, customary and reasonable reimbursement rate. The Company determines the amount of the allowance and adjusts it at the end of each reporting period, based on a number of factors, including historical rates of collection, the aging of the receivables, trends in the historical rates of collection and current relationships and experience with the Third-party Payors. If the rates of collection of past-due receivables recorded for previous fiscal periods changes, or if there is a trend in the rates of collection on those receivables, the Company may be required to change the rate at which it provides for additions to the allowance. A change in the rates of the Company’s collections can result from a number of factors, including experience and training of billing personnel, changes in the reimbursement policies or practices of Third-party Payors, or changes in industry rates of reimbursement. We believe we have a sufficient history of collection experience to estimate the net collectible amounts by payor. However, changes to the allowance for billing adjustments and uncollectible accounts, which are recorded in the income statement as a reduction of revenue, have historically fluctuated and may continue to fluctuate significantly from quarter to quarter and year to year. Due to the nature of the medical industry and the reimbursement environment in which the Company operates, estimates are required to record net revenues and accounts receivable at their net realizable values (also known as net collectible value). Inherent in these estimates is the risk that they will have to be revised or updated as additional information becomes available. Specifically, the complexity of third-party billing arrangements and the uncertainty of reimbursement amounts for certain products or services from payors or unanticipated requirements to refund payments previously received may result in adjustments to amounts originally recorded. Due to continuing changes in the health care industry and third-party reimbursement, as well as changes in our billing practices to increase cash collections, it is possible that management’s estimates could change in the near term, which could have an impact on our results of operations and cash flows. Any differences between estimated settlements and final determinations are reflected as an increase or a reduction to revenue in the period when such final determinations are known. The Company frequently receives refund requests from insurance providers relating to specific patients and dates of service. Billing and reimbursement disputes are very common in the Company’s industry. These requests are sometimes related to a limited number of patients or products; at other times, they include a significant number of refund claims in a single request. The Company reviews and evaluates these requests and determines if any refund request is appropriate. The Company also reviews these refund claims when it is rebilling or pursuing reimbursement from that insurance provider. The Company frequently has significant offsets against such refund requests, and sometimes amounts are due to the Company in excess of the amounts of refunds requested by the insurance providers. Therefore, at the time of receipt of such refund requests, the Company is generally unable to determine if a refund request is valid and should be accrued. Such refunds are accrued when the amount is fixed and determinable. However, no assurances can be given with respect to such estimates of reimbursements and offsets or the ultimate outcome of any refund requests. In addition to the allowance for billing adjustments, the Company records an allowance for uncollectible accounts receivable for wholesale (sales to distributors) sales and certain patient billings. Uncollectible accounts receivable are primarily a result of non-payment from patients who have been direct billed for co-payments or deductibles, lack of appropriate insurance coverage and disallowances of charges by Third-party Payors. If there is a change to a material insurance provider contract or policy, application by a provider, a decline in the economic condition of providers or a significant turnover of Company billing personnel resulting in diminished collection effectiveness, the estimate of the allowance for uncollectible accounts receivable may not be adequate and may result in an increase in the future. At December 31, 2016 and 2015, the allowance for uncollectible accounts receivable on commercial and wholesale accounts and patient billings total $ 2,481 1,996 As of December 31, 2016, the Company believes its accounts receivable is reasonably stated at its net realizable / collectible value and has an adequate allowance for billing adjustments relating to all known insurance disputes and refund requests. At December 31, 2016 and 2015, the Company recorded a liability for deferred revenue in the amount of $ 54 89 The Company’s financial instruments at December 31, 2016, include cash, accounts receivable, accounts payable and income taxes, for which current carrying amounts approximate fair value due to their short-term nature. Financial instruments at December 31, 2016, also include the line of credit and capitalized leases, the carrying value of which approximates fair value because the interest rates on the outstanding borrowings are at rates that approximate market rates for borrowings with similar terms and average maturities. During the first quarter of 2016, the Company collected $ 880 880 Inventory, which primarily represents finished goods, are valued at the lower of cost (average) or market. The Company monitors inventory for turnover and obsolescence and records losses for excess and obsolete inventory, as appropriate. The Company provides reserves for estimated excess and obsolete inventories equal to the difference between the costs of inventories on hand and the estimated market value based upon assumptions about future demand. If future demand is less favorable than currently projected by management, additional inventory write-downs may be required. Finished goods at December 31, 2016 and 2015 includes products (finished goods, parts and supplies) held at the Company’s headquarters and, at December 31, 2014, finished goods at different locations by health care providers or other third parties for rental or sale to patients (field inventory). During 2015 the Company ramped up the EZ Rx Prescribe program, whereby the NexWave electrotherapy device is sold by prescription and is shipped from the Company manufacturing facilities. In 2016, 99.9% of Company sales use the EZ Rx Prescription program. As a result, the Company is no longer holding substantial field inventory at different locations by healthcare or third party providers. During 2014 and 2015, in conjunction with the introduction and ramp up of the EZ Rx Prescribe program, industry conditions driven by health care reforms and the ongoing evaluation of field inventory, the Company provided significant allowances for field inventory. During the fourth quarter of 2015 the Company wrote off the remaining non-productive field inventory, resulting in writing-off and/or providing an allowance field inventory of $ 1,256 Total gross inventories at December 31, 2016 included $ 17 90 102 231 On December 31, 2016, the Company did not have open inventory purchase commitments due to prepayment requirements with vendors. Property and equipment are stated at cost. Products being rented are placed in property and equipment and depreciated over their estimated useful life. The Company removes the cost and the related accumulated depreciation from the accounts of assets sold or retired, and the resulting net gains or losses are included in the results of operations. Depreciation is computed using the straight-line method over the useful life of the asset. As rental inventory contributes directly to the revenue generating process, the Company classifies the depreciation of rental inventory in cost of revenue. Repairs and maintenance costs are charged to expense as incurred. The Company accounts for stock-based compensation through recognition of the cost of employee services received in exchange for an award of equity instruments, which is measured based on the grant date fair value of the award that is ultimately expected to vest during the period. The stock-based compensation expenses are recognized over the period during which an employee is required to provide service in exchange for the award (the requisite service period, which in the Company’s case is the same as the vesting period). For awards subject to the achievement of performance metrics, stock-based compensation expense is recognized when it becomes probable that the performance conditions will be achieved. The Company expenses advertising costs as they are incurred. Advertising expense for the years ended December 31, 2016 and 2015 was approximately $ 116 78 Research and development costs are expensed when incurred. Research and development expense for the years ended December 31, 2016 and 2015 was approximately $ 256 256 The provision for income taxes includes taxes payable or refundable for the current period and the deferred tax consequences of transactions that have been recognized in the Company’s consolidated financial statements or income tax returns. Temporary differences result primarily from basis differences in property and equipment, accounts receivable, inventory and accrued expenses. The carrying value of deferred tax assets is determined based on an evaluation of whether the Company is more likely than not to realize the assets. A valuation allowance is established, when considered necessary, to reduce deferred tax assets to the amounts expected to be realized. The Company accounts for uncertain tax positions through recognition of a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. As of December 31, 2016 and 2015, the Company had accrued unrecognized tax benefits, penalties and interest of $ 129 250 Foreign currency transaction gains and losses are included in other income (expense) in the accompanying consolidated statements of operations. Foreign currency transaction gains for the years ended December 31, 2016 and 2015 were insignificant. In June 2016, FASB issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326) ("ASU 2016-13"), Measurement of Credit Losses on Financial Instruments. The standard significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren't measured at fair value through net income. The standard will replace today's "incurred loss" approach with an "expected loss" model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. This ASU is effective for annual periods beginning after December 15, 2019, and interim periods therein. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. We are currently evaluating the impact that the adoption of ASU 2016-13 will have on our financial condition, results of operations and cash flows. In March 2016, FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) ("ASU2016-09"), Improvements to Employee Share-Based Payment Accounting. The amendments in ASU 2016-09 address multiple aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liability, and classification on the statements of cash flows. This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted in any interim or annual period. An entity that elects early adoption must adopt all of the amendments in the same period, and any adjustments should be reflected as of the beginning of the fiscal year that includes the interim period. We are currently evaluating the impact that the adoption of ASU 2016-09 will have on our financial condition, results of operations and cash flows. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). These amendments require the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases under ASC 840 “Leases”. These amendments also require qualitative disclosures along with specific quantitative disclosures. These amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. Entities are required to apply the amendments at the beginning of the earliest period presented using a modified retrospective approach. We are currently evaluating the impact that the adoption of ASU 2016-02 will have on our financial condition, results of operations and cash flows. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes - Balance Sheet Classification of Deferred Taxes (Topic 740) In August 2014, the FASB issued ASU 2014-15 “Presentation of Financial Statements—Going 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 annual periods and interim periods thereafter. Early application is permitted. The Company is adopting 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 not permitted. 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.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	(3) PROPERTY AND EQUIPMENT 2016 2015 Useful lives Office furniture and equipment $ 911 $ 911 3-7 years Rental inventory 1,411 1,216 5 years Vehicles 76 76 5 years Leasehold improvements 104 2-6 years Assembly equipment 125 125 7 years 2,523 2,432 Less accumulated depreciation (1,943) (1,631) $ 580 $ 801 Depreciation expense recorded on property and equipment for 2016 and 2015 totaled $ 395 367 251 142

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	(4) INTANGIBLE ASSETS Amortization Life Years 2016 2015 Software and development costs 5 $ 325 $ 325 Less: accumulated amortization (291) (251) Total intangible assets, net $ 34 $ 74 The software and development costs are amortized over 5 40 57

LOSS PER SHARE

LOSS PER SHARE	12 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
LOSS PER SHARE	(5) 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 earnings (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. The effects of potential common stock equivalents, related to outstanding options for the years ended December 31, 2016 and 2015, totaling 2,190,250 1,685,250 2016 2015 BASIC Net earnings (loss) attributable to common stockholders $ 69 $ (2,911) Weighted average shares outstanding—basic 31,271,234 31,271,234 Net earnings (loss) per share—basic $ 0.00 $ (0.09) DILUTED Net earnings (loss) attributable to common stockholders $ 69 $ (2,911) Weighted average shares outstanding—basic 31,271,234 31,271,234 Weighted average shares outstanding, diluted 31,271,234 31,271,234 Net earnings (loss) per share, diluted $ 0.00 $ (0.09)

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION PLANS	(6) STOCK-BASED COMPENSATION PLANS The Company previously reserved 3,000,000 December 31, 2014 For the years ended December 31, 2016 and 2015, the Company recorded compensation expense related to stock options of $ 200 130 During the years ended December 31, 2016 and 2015, the Company granted options to purchase up to 879,000 2016 2015 Weighted average expected term 6.25 years 4.71 years Weighted average volatility 122 % 132 % Weighted average risk-free interest rate 1.48 % 1.25 % Dividend yield 0 % 0 % The weighted average expected term of stock options represents the period of time that the stock options granted are expected to be outstanding based on historical exercise trends. The weighted average expected volatility is based on the historical price volatility of the Company’s common stock. The weighted average risk-free interest rate represents the U.S. Treasury bill rate for the expected term of the related stock options. The dividend yield represents the Company’s anticipated cash dividend over the expected term of the stock options. Forfeitures of share-based payment awards are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Weighted Weighted Average Shares Average Remaining Aggregate Under Exercise Contractual Intrinsic Option Price Life Value Outstanding at January 1, 2015 1,841,769 $ 0.59 Granted 629,000 $ 0.43 Exercised — Forfeited (785,519) $ 0.74 Outstanding at December 31, 2015 1,685,250 $ 0.46 6.8 Years $ — Exercisable at December 31, 2015 1,013,095 $ 0.55 6.2 Years $ — Outstanding at January 1, 2016 1,685,250 $ 0.46 Granted 879,000 $ 0.26 Exercised (1,000) $ 0.15 Forfeited (373,000) $ 0.33 Outstanding at December 31, 2016 2,190,250 $ 0.40 6.7 Years $ — Exercisable at December 31, 2016 1,617,797 $ 0.45 6.1 Years $ — Non-vested Weighted Shares Average Under Grant Date Option Fair Value Non-vested at January 1, 2016 672,155 $ 0.31 Granted 879,000 $ 0.26 Vested (652,702) $ 0.26 Exercised (1,000) $ 0.15 Forfeited (326,000) $ 0.36 Non-vested at December 31, 2016 571,453 $ 0.27 As of December 31, 2016, the Company had approximately $ 79

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	(7) INCOME TAXES 2016 2015 Current tax (benefit) expense: Federal $ 15 $ (57) State — — Penalties and interest — — 15 (57) Deferred tax (benefit) expense: Federal (558) (992) State (38) (68) Valuation allowance 596 1,060 — — $ 15 $ (57) 34 2016 2015 Statutory rate 34 % (34) % State taxes 3 (3) Permanent differences and other 2 2 Change in valuation allowance (21) 35 Effective rate 18 % 0 % 2016 2015 Current deferred tax assets (liabilities): Accrued expenses $ 51 $ 22 Deferred insurance reimbursement 322 — Accounts receivable 907 730 Inventory 20 32 Prepaid expenses (15) — Stock based compensation 108 23 Other 9 9 1,402 816 Less: Valuation allowance (1,402) (816) Net current deferred tax assets $ — $ — Long-term deferred tax assets (liabilities): Amortization $ 105 $ 115 Property and equipment (115) (293) Tax credits and NOL carryforward 4,314 4,482 Net long-term deferred tax liabilities 4,304 4,304 Less: valuation allowance (4,304) (4,304) Net deferred tax assets $ — $ — The Company has generated a net operating loss carryforward (NOL) for federal income tax purposes of approximately $ 10,362 2035 19,332 As of December 31, 2016 and 2015, the Company has a valuation allowance of approximately $ 5.7 5.1 The accounting standard related to income taxes applies to all tax positions and defines the confidence level that a tax position must meet in order to be recognized in the financial statements. This accounting standard requires that the tax effects of a position be recognized only if it is “more-likely-than-not” to be sustained by the taxing authority as of the reporting date. If a tax position is not considered “more-likely-than-not” to be sustained, then no benefits of the position are to be recognized. This accounting standard requires additional disclosures. The recognition of uncertain tax benefits are not expected to have a material impact on the Company’s effective tax rate or results of operations. These uncertain tax benefits relate primarily to taxes potentially due in state where the Company has nexus, but has not yet filed tax returns. 2016 2015 Uncertain tax benefits at the beginning of the period $ 250 $ 250 Gross decreases for State income tax liabilities (121) 0 Uncertain tax benefits at the end of the period $ 129 $ 250

LINE OF CREDIT

LINE OF CREDIT	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
LINE OF CREDIT	(8) 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 release cash collateral to the Company based on cash collections. However, no assurance can be given that the Lender will continue to release cash collateral 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 December 31, 2016 $ 2,771 11.0 6.75 3 1.25 December 19, 2014 100 250 50,000 Contractual term 5.0 years Volatility 122.64 % Risk-free interest rate 1.48 % Dividend yield 1.44 % During the twelve months ended December 31, 2016, the Company recorded bank fee expense related to this stock warrant of $ 15

CAPITAL LEASES AND OTHER OBLIGA

CAPITAL LEASES AND OTHER OBLIGATIONS	12 Months Ended
	Dec. 31, 2016
Leases, Capital [Abstract]
CAPITAL LEASES AND OTHER OBLIGATIONS	(9) CAPITAL LEASES AND OTHER OBLIGATIONS The Company had previously entered into a Lease Termination Agreement (“LTA”) and new Lease Agreement (“LA”) with its landlord relating to the Company’s headquarters location in Lone Tree, Colorado, under which the Company reduced the amount of space leased at its headquarters. Subsequently, on August 12, 2016, the Company entered into an amended Lease Agreement to extend and amend the terms and conditions of the LA. The following is a summary of the key terms of the LA, as amended: · The original term of the LA term was extended by two years and as amended is to end, unless sooner terminated, on December 31, 2018; · Fixed rental payments were decreased from $49 to $38 per month; and · The Company and landlord shall each have the right to terminate the lease at any time, without liability to the other, with ninety days (originally six months) prior written notice to the Company and ninety days 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 10 254 461 287 195 The Company entered into a settlement agreement with a vendor and note payable agreement with a former employee totaling $ 187 15 18 Capital Operating Leases Leases 2017 $ 118 $ 457 2018 136 457 2019 — — 2020 — — Thereafter — — Total future minimum lease payments 254 $ 914 Less current portion (118) Notes payable and other obligations $ 136 Rent expense under all operating leases for 2016 and 2015 was approximately $ 457 598

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	(10) FAIR VALUE MEASUREMENTS The Company measures certain assets and liabilities pursuant to accounting guidance which establishes a three-tier fair value hierarchy and prioritizes the inputs used in measuring fair value. These tiers include: · Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. · Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. · Level 3: Unobservable inputs are used when little or no market data is available. The Company’s financial assets and liabilities that are measured at fair value on a recurring basis include contingent consideration which as of December 31, 2016 and 2015 totaled none. 0 4 Changes in the fair value of these obligations are recorded as income or expense within the line item “Other income (expense)” in the Company’s consolidated statements of operations. Accretion expense related to the increase in the net present value of the contingent liabilities is also included in the line item “Other income (expense)” in the Company’s consolidated statements of operations. The fair value measurement is based on significant inputs not observable in the market, which are referred to as Level 3 inputs. Changes in the fair value of the Level 3 liabilities for the year ended December 31, 2016, were none.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
STOCKHOLDERS’ EQUITY	(11) STOCKHOLDERS’ EQUITY For stock warrants or options granted to non-employees, the Company measures fair value of the equity instruments utilizing the Black-Scholes method if that valuation method results in a more reliable measurement than the fair value of the consideration or the services received. For stock granted, the Company measures fair value of the shares issued utilizing the market price of the shares on the date the transaction takes place. The Company amortizes such costs over the related period of service.

CONCENTRATIONS

CONCENTRATIONS	12 Months Ended
	Dec. 31, 2016
Risks and Uncertainties [Abstract]
CONCENTRATIONS	(12) CONCENTRATIONS The Company sourced approximately 42 The Company had gross receivables from a private health insurance carrier at December 31, 2016 and 2015 that made up approximately 10 5

RETIREMENT PLAN

RETIREMENT PLAN	12 Months Ended
	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
RETIREMENT PLAN	(13) RETIREMENT PLAN The Company has adopted a retirement plan with a 401(k) deferred compensation provision effective July 1, 2012. Substantially all full-time employees are eligible to participate in the 401(k) plan as long as they are at least 18

LITIGATION

LITIGATION	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
LITIGATION	(14) 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.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	(15) RELATED PARTY TRANSACTIONS The Company employs Mr. Martin Sandgaard and Mr. Joachim Sandgaard, both sons of Thomas Sandgaard. Compensation for 2016 and 2015 totaled $ 154 75 3 100,000 The related party payable primarily consisted of advances made to the Company and inventory purchases made on behalf of the Company. During the year ended December 31, 2016, Thomas Sandgaard and an employee advanced the Company and purchased inventory totaling $192 and $148, respectively. During the year ended December 31, 2016, the Company reimbursed Thomas Sandgaard and an employee on advances and purchases totaling $171 and $59, respectively Accrued liabilities as of December 31, 2016 and 2015 include a net payable to Thomas Sandgaard of $75 and 23 respectively, and $112 payable to an employee as of December 31, 2016.

SEGMENT REPORTING

SEGMENT REPORTING	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
SEGMENT REPORTING	(16) SEGMENT REPORTING The Company has one reporting segment, the Electrotherapy and Pain Management segment, which includes the ZMI electrotherapy units and compound pain creams operations that accounted for 99 99

SIGNIFICANT ACCOUNTING POLICI23

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include the accounts of Zynex, Inc. and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Non-controlling Interest	Non-controlling Interest Non-controlling interest in the equity of a subsidiary is accounted for and reported as stockholders’ (deficit) equity. Non-controlling interest represents the 20
Use of Estimates	Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The most significant management estimates used in the preparation of the accompanying consolidated financial statements are associated with the allowance for billing adjustments and uncollectible accounts receivable, the reserve for obsolete and damaged inventory, the life of its rented equipment, stock-based compensation, and valuation of long-lived assets and realizability of deferred tax assets.
Revenue Recognition, Allowance for Contractual Adjustments and Collectability	Revenue Recognition, Allowance for Billing Adjustments and Collectability The Company recognizes revenue when each of the following four conditions are met: 1) a contract or sales arrangement exists, 2) products have been shipped and title has transferred, or rental services have been rendered, 3) the price of the products or services is fixed or determinable, and 4) collectability is reasonably assured. The Company recognizes revenue when medical units and supplies are shipped or, for medical units sold from consigned inventory, when it receives notice that the product has been prescribed and delivered to the patient. The Company, prior to recognizing revenue verifies the patient’s insurance coverage or obtained the insurance company preauthorization, when required. Revenue from supplies is recognized upon shipment. Revenue from the rental of products is normally on a month-to-month basis and is recognized ratably over the products’ rental period. Revenue from sales to distributors is recognized when the Company ships its products. Revenue is reported net, after adjustments for estimated insurance company or governmental agency (collectively “Third-party Payors”) reimbursement deductions and, for wholesale customers and patient billings, an allowance for uncollectible accounts. The Third-party Payor reimbursement deductions are known throughout the health care industry as “billing adjustments” whereby the Third-party Payors unilaterally reduce the amount they reimburse for the Company’s products. A significant portion of the Company’s revenues are derived, and the related receivables are due, from Third-party Payors. The nature of these receivables within the medical industry has typically resulted in long collection cycles. The process of determining what products will be reimbursed by Third-party Payors and the amounts that they will reimburse is complex and depends on conditions and procedures that vary among providers and may change from time to time. The Company maintains an allowance for billing adjustments and an allowance for doubtful accounts. Billing adjustments result from reimbursements from Third-party Payors that are less than amounts claimed and from where the amount claimed by the Company exceeds the Third-party Payors usual, customary and reasonable reimbursement rate. The Company determines the amount of the allowance and adjusts it at the end of each reporting period, based on a number of factors, including historical rates of collection, the aging of the receivables, trends in the historical rates of collection and current relationships and experience with the Third-party Payors. If the rates of collection of past-due receivables recorded for previous fiscal periods changes, or if there is a trend in the rates of collection on those receivables, the Company may be required to change the rate at which it provides for additions to the allowance. A change in the rates of the Company’s collections can result from a number of factors, including experience and training of billing personnel, changes in the reimbursement policies or practices of Third-party Payors, or changes in industry rates of reimbursement. We believe we have a sufficient history of collection experience to estimate the net collectible amounts by payor. However, changes to the allowance for billing adjustments and uncollectible accounts, which are recorded in the income statement as a reduction of revenue, have historically fluctuated and may continue to fluctuate significantly from quarter to quarter and year to year. Due to the nature of the medical industry and the reimbursement environment in which the Company operates, estimates are required to record net revenues and accounts receivable at their net realizable values (also known as net collectible value). Inherent in these estimates is the risk that they will have to be revised or updated as additional information becomes available. Specifically, the complexity of third-party billing arrangements and the uncertainty of reimbursement amounts for certain products or services from payors or unanticipated requirements to refund payments previously received may result in adjustments to amounts originally recorded. Due to continuing changes in the health care industry and third-party reimbursement, as well as changes in our billing practices to increase cash collections, it is possible that management’s estimates could change in the near term, which could have an impact on our results of operations and cash flows. Any differences between estimated settlements and final determinations are reflected as an increase or a reduction to revenue in the period when such final determinations are known. The Company frequently receives refund requests from insurance providers relating to specific patients and dates of service. Billing and reimbursement disputes are very common in the Company’s industry. These requests are sometimes related to a limited number of patients or products; at other times, they include a significant number of refund claims in a single request. The Company reviews and evaluates these requests and determines if any refund request is appropriate. The Company also reviews these refund claims when it is rebilling or pursuing reimbursement from that insurance provider. The Company frequently has significant offsets against such refund requests, and sometimes amounts are due to the Company in excess of the amounts of refunds requested by the insurance providers. Therefore, at the time of receipt of such refund requests, the Company is generally unable to determine if a refund request is valid and should be accrued. Such refunds are accrued when the amount is fixed and determinable. However, no assurances can be given with respect to such estimates of reimbursements and offsets or the ultimate outcome of any refund requests. In addition to the allowance for billing adjustments, the Company records an allowance for uncollectible accounts receivable for wholesale (sales to distributors) sales and certain patient billings. Uncollectible accounts receivable are primarily a result of non-payment from patients who have been direct billed for co-payments or deductibles, lack of appropriate insurance coverage and disallowances of charges by Third-party Payors. If there is a change to a material insurance provider contract or policy, application by a provider, a decline in the economic condition of providers or a significant turnover of Company billing personnel resulting in diminished collection effectiveness, the estimate of the allowance for uncollectible accounts receivable may not be adequate and may result in an increase in the future. At December 31, 2016 and 2015, the allowance for uncollectible accounts receivable on commercial and wholesale accounts and patient billings total $ 2,481 1,996 As of December 31, 2016, the Company believes its accounts receivable is reasonably stated at its net realizable / collectible value and has an adequate allowance for billing adjustments relating to all known insurance disputes and refund requests. At December 31, 2016 and 2015, the Company recorded a liability for deferred revenue in the amount of $ 54 89
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s financial instruments at December 31, 2016, include cash, accounts receivable, accounts payable and income taxes, for which current carrying amounts approximate fair value due to their short-term nature. Financial instruments at December 31, 2016, also include the line of credit and capitalized leases, the carrying value of which approximates fair value because the interest rates on the outstanding borrowings are at rates that approximate market rates for borrowings with similar terms and average maturities.
Deferred Insurance Reimbursement	Deferred Insurance Reimbursement During the first quarter of 2016, the Company collected $ 880 880
Inventory	Inventory, which primarily represents finished goods, are valued at the lower of cost (average) or market. The Company monitors inventory for turnover and obsolescence and records losses for excess and obsolete inventory, as appropriate. The Company provides reserves for estimated excess and obsolete inventories equal to the difference between the costs of inventories on hand and the estimated market value based upon assumptions about future demand. If future demand is less favorable than currently projected by management, additional inventory write-downs may be required. Finished goods at December 31, 2016 and 2015 includes products (finished goods, parts and supplies) held at the Company’s headquarters and, at December 31, 2014, finished goods at different locations by health care providers or other third parties for rental or sale to patients (field inventory). During 2015 the Company ramped up the EZ Rx Prescribe program, whereby the NexWave electrotherapy device is sold by prescription and is shipped from the Company manufacturing facilities. In 2016, 99.9% of Company sales use the EZ Rx Prescription program. As a result, the Company is no longer holding substantial field inventory at different locations by healthcare or third party providers. During 2014 and 2015, in conjunction with the introduction and ramp up of the EZ Rx Prescribe program, industry conditions driven by health care reforms and the ongoing evaluation of field inventory, the Company provided significant allowances for field inventory. During the fourth quarter of 2015 the Company wrote off the remaining non-productive field inventory, resulting in writing-off and/or providing an allowance field inventory of $ 1,256 Total gross inventories at December 31, 2016 included $ 17 90 102 231 On December 31, 2016, the Company did not have open inventory purchase commitments due to prepayment requirements with vendors.
Property and Equipment	Property and Equipment Property and equipment are stated at cost. Products being rented are placed in property and equipment and depreciated over their estimated useful life. The Company removes the cost and the related accumulated depreciation from the accounts of assets sold or retired, and the resulting net gains or losses are included in the results of operations. Depreciation is computed using the straight-line method over the useful life of the asset. As rental inventory contributes directly to the revenue generating process, the Company classifies the depreciation of rental inventory in cost of revenue. Repairs and maintenance costs are charged to expense as incurred.
Stock-based Compensation	Stock-based Compensation The Company accounts for stock-based compensation through recognition of the cost of employee services received in exchange for an award of equity instruments, which is measured based on the grant date fair value of the award that is ultimately expected to vest during the period. The stock-based compensation expenses are recognized over the period during which an employee is required to provide service in exchange for the award (the requisite service period, which in the Company’s case is the same as the vesting period). For awards subject to the achievement of performance metrics, stock-based compensation expense is recognized when it becomes probable that the performance conditions will be achieved.
Advertising	Advertising The Company expenses advertising costs as they are incurred. Advertising expense for the years ended December 31, 2016 and 2015 was approximately $ 116 78
Research and Development	Research and Development Research and development costs are expensed when incurred. Research and development expense for the years ended December 31, 2016 and 2015 was approximately $ 256 256
Income Taxes	The provision for income taxes includes taxes payable or refundable for the current period and the deferred tax consequences of transactions that have been recognized in the Company’s consolidated financial statements or income tax returns. Temporary differences result primarily from basis differences in property and equipment, accounts receivable, inventory and accrued expenses. The carrying value of deferred tax assets is determined based on an evaluation of whether the Company is more likely than not to realize the assets. A valuation allowance is established, when considered necessary, to reduce deferred tax assets to the amounts expected to be realized. The Company accounts for uncertain tax positions through recognition of a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. As of December 31, 2016 and 2015, the Company had accrued unrecognized tax benefits, penalties and interest of $ 129 250
Foreign Currency Transactions	Foreign currency transaction gains and losses are included in other income (expense) in the accompanying consolidated statements of operations. Foreign currency transaction gains for the years ended December 31, 2016 and 2015 were insignificant.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, FASB issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326) ("ASU 2016-13"), Measurement of Credit Losses on Financial Instruments. The standard significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren't measured at fair value through net income. The standard will replace today's "incurred loss" approach with an "expected loss" model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. This ASU is effective for annual periods beginning after December 15, 2019, and interim periods therein. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. We are currently evaluating the impact that the adoption of ASU 2016-13 will have on our financial condition, results of operations and cash flows. In March 2016, FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) ("ASU2016-09"), Improvements to Employee Share-Based Payment Accounting. The amendments in ASU 2016-09 address multiple aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liability, and classification on the statements of cash flows. This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted in any interim or annual period. An entity that elects early adoption must adopt all of the amendments in the same period, and any adjustments should be reflected as of the beginning of the fiscal year that includes the interim period. We are currently evaluating the impact that the adoption of ASU 2016-09 will have on our financial condition, results of operations and cash flows. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). These amendments require the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases under ASC 840 “Leases”. These amendments also require qualitative disclosures along with specific quantitative disclosures. These amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. Entities are required to apply the amendments at the beginning of the earliest period presented using a modified retrospective approach. We are currently evaluating the impact that the adoption of ASU 2016-02 will have on our financial condition, results of operations and cash flows. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes - Balance Sheet Classification of Deferred Taxes (Topic 740) In August 2014, the FASB issued ASU 2014-15 “Presentation of Financial Statements—Going 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 annual periods and interim periods thereafter. Early application is permitted. The Company is adopting 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 not permitted. 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.

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Cost, accumulated depreciation, and the related estimated useful lives of property and equipment as of December 31, 2016 and 2015 are as follows: 2016 2015 Useful lives Office furniture and equipment $ 911 $ 911 3-7 years Rental inventory 1,411 1,216 5 years Vehicles 76 76 5 years Leasehold improvements 104 2-6 years Assembly equipment 125 125 7 years 2,523 2,432 Less accumulated depreciation (1,943) (1,631) $ 580 $ 801

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Acquisition of Intangible Assets	At December 31, 2016 and 2015, intangible assets consist of the following Amortization Life Years 2016 2015 Software and development costs 5 $ 325 $ 325 Less: accumulated amortization (291) (251) Total intangible assets, net $ 34 $ 74

LOSS PER SHARE (Tables)

LOSS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Calculation of Basic and Diluted Earnings (Loss) Per Share	The calculation of basic and diluted earnings (loss) per share for the years ended December 31, 2016 and 2015 is as follows: 2016 2015 BASIC Net earnings (loss) attributable to common stockholders $ 69 $ (2,911) Weighted average shares outstanding—basic 31,271,234 31,271,234 Net earnings (loss) per share—basic $ 0.00 $ (0.09) DILUTED Net earnings (loss) attributable to common stockholders $ 69 $ (2,911) Weighted average shares outstanding—basic 31,271,234 31,271,234 Weighted average shares outstanding, diluted 31,271,234 31,271,234 Net earnings (loss) per share, diluted $ 0.00 $ (0.09)

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS (Tables)	12 Months Ended
	Dec. 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 years ended December 31, 2016 and 2015: 2016 2015 Weighted average expected term 6.25 years 4.71 years Weighted average volatility 122 % 132 % Weighted average risk-free interest rate 1.48 % 1.25 % Dividend yield 0 % 0 %
Summary of Stock Option Activity Under the Option Plan	A summary of stock option activity under the Option Plan for the years ended December 31, 2016 and 2015 are presented below: Weighted Weighted Average Shares Average Remaining Aggregate Under Exercise Contractual Intrinsic Option Price Life Value Outstanding at January 1, 2015 1,841,769 $ 0.59 Granted 629,000 $ 0.43 Exercised — Forfeited (785,519) $ 0.74 Outstanding at December 31, 2015 1,685,250 $ 0.46 6.8 Years $ — Exercisable at December 31, 2015 1,013,095 $ 0.55 6.2 Years $ — Outstanding at January 1, 2016 1,685,250 $ 0.46 Granted 879,000 $ 0.26 Exercised (1,000) $ 0.15 Forfeited (373,000) $ 0.33 Outstanding at December 31, 2016 2,190,250 $ 0.40 6.7 Years $ — Exercisable at December 31, 2016 1,617,797 $ 0.45 6.1 Years $ —
Summary of Status of the Company's Non-Vested Shares Under Option	A summary of status of the Company’s non-vested share awards as of and for the years ended December 31, 2016 are presented below: Non-vested Weighted Shares Average Under Grant Date Option Fair Value Non-vested at January 1, 2016 672,155 $ 0.31 Granted 879,000 $ 0.26 Vested (652,702) $ 0.26 Exercised (1,000) $ 0.15 Forfeited (326,000) $ 0.36 Non-vested at December 31, 2016 571,453 $ 0.27

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of Income Tax (Benefit) Expense	Income tax (benefit) expense consists of the following for the years ended December 31, 2016 and 2015: 2016 2015 Current tax (benefit) expense: Federal $ 15 $ (57) State — — Penalties and interest — — 15 (57) Deferred tax (benefit) expense: Federal (558) (992) State (38) (68) Valuation allowance 596 1,060 — — $ 15 $ (57)
Schedule of Reconciliation of Income Tax	A reconciliation of income tax computed at the U.S. statutory rate of 34 2016 2015 Statutory rate 34 % (34) % State taxes 3 (3) Permanent differences and other 2 2 Change in valuation allowance (21) 35 Effective rate 18 % 0 %
Schedule of the Tax Effects of Temporary Differences That Give Rise to Deferred Tax Assets (Liabilities)	The tax effects of temporary differences that give rise to deferred tax assets (liabilities) at December 31, 2016 and 2015 are as follows: 2016 2015 Current deferred tax assets (liabilities): Accrued expenses $ 51 $ 22 Deferred insurance reimbursement 322 — Accounts receivable 907 730 Inventory 20 32 Prepaid expenses (15) — Stock based compensation 108 23 Other 9 9 1,402 816 Less: Valuation allowance (1,402) (816) Net current deferred tax assets $ — $ — Long-term deferred tax assets (liabilities): Amortization $ 105 $ 115 Property and equipment (115) (293) Tax credits and NOL carryforward 4,314 4,482 Net long-term deferred tax liabilities 4,304 4,304 Less: valuation allowance (4,304) (4,304) Net deferred tax assets $ — $ —
Schedule of Unrecognized Tax Benefits Roll Forward	A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2016 2015 Uncertain tax benefits at the beginning of the period $ 250 $ 250 Gross decreases for State income tax liabilities (121) 0 Uncertain tax benefits at the end of the period $ 129 $ 250

LINE OF CREDIT (Tables)

LINE OF CREDIT (Tables)	12 Months Ended
	Dec. 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 122.64 % Risk-free interest rate 1.48 % Dividend yield 1.44 %

CAPITAL LEASES AND OTHER OBLI30

CAPITAL LEASES AND OTHER OBLIGATIONS (Tables)	12 Months Ended
	Dec. 31, 2016
Leases, Capital [Abstract]
Future Minimum Lease Payments Under Non-Cancelable Notes Payable, Operating and Capital Leases	The Company entered into a settlement agreement with a vendor and note payable agreement with a former employee totaling $ 187 15 18 Capital Operating Leases Leases 2017 $ 118 $ 457 2018 136 457 2019 — — 2020 — — Thereafter — — Total future minimum lease payments 254 $ 914 Less current portion (118) Notes payable and other obligations $ 136

ORGANIZATION, NATURE OF BUSIN31

ORGANIZATION, NATURE OF BUSINESS AND MANAGEMENT’S PLANS (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Mar. 31, 2017
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Revenue, Net	$ 13,313	$ 11,641		$ 21,700	$ 39,700
Obligation To Decrease Lines Of Credit Outstanding Balance Per Month	100
Increase Decrease In Working Capital Deficit	450
Net Income (Loss) Attributable to Parent, Total	69	(2,911)
Increase Decrease In Working Capital	$ (4,323)	(4,773)
Effect Of Headcount Reductions And Facilities Rent On Administrative Costs		$ 2,200	$ 9,700
Subsequent Event [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Long-term Line of Credit						$ 2,200
ZBC [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent	80.00%
Zynex Medical Inc [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Percentage Of Revenues	99.70%	99.60%
Pharmazy Inc [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Percentage Of Revenues	0.10%	9.70%
Zynex Monitoring Solutions Inc [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Revenue, Net		$ 0	$ 0

SIGNIFICANT ACCOUNTING POLICI32

SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Schedule Of Significant Accounting Policies [Line Items]
Equity and Non-controlling interest		20.00%
Allowance for uncollectible accounts receivable on commercial and wholesale accounts and patient billings		$ 2,481	$ 1,996
Deferred revenue		54	89
Inventory, Finished Goods, Gross		17	102
Inventory, Raw Materials and Supplies, Gross		90	231
Advertising Expense		116	78
Research and Development Expense		256	256
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued		129	250
Proceeds from Insurance Settlement, Operating Activities	$ 880
Liability for Claims and Claims Adjustment Expense, Total		$ 880
EZ Rx Prescription Program
Schedule Of Significant Accounting Policies [Line Items]
Write-off and/or allowance for field inventory			$ 1,256

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	$ 2,523	$ 2,432
Less accumulated depreciation	(1,943)	(1,631)
Property and Equipment, Net	580	801
Office furniture and equipment
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	$ 911	911
Office furniture and equipment | Maximum
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life	7 years
Office furniture and equipment | Minimum
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life	3 years
Rental inventory
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	$ 1,411	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
Leasehold improvements | Maximum
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life	6 years
Leasehold improvements | Minimum
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life	2 years
Assembly equipment
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	$ 125	$ 125
Property and Equipment, Useful Life	7 years

PROPERTY AND EQUIPMENT (Detai34

PROPERTY AND EQUIPMENT (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Depreciation	$ 395	$ 367
Rental Inventory [Member]
Depreciation	$ 251	$ 142

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Acquisition of intangible assets
Software and development costs amortization life years	5 years
Software and development costs	$ 325	$ 325
Less: accumulated amortization	(291)	(251)
Total intangible assets, net	$ 34	$ 74

INTANGIBLE ASSETS (Details Text

INTANGIBLE ASSETS (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Asset, Useful Life	5 years
Amortization of Intangible Assets	$ 40	$ 57

LOSS PER SHARE (Details)

LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
BASIC
Net earnings (loss) attributable to common stockholders	$ 69	$ (2,911)
Weighted average shares outstanding—basic	31,271,234	31,271,234
Net earnings (loss) per share—basic	$ 0	$ (0.09)
DILUTED
Net earnings (loss) attributable to common stockholders	$ 69	$ (2,911)
Weighted average shares outstanding—basic	31,271,234	31,271,234
Weighted average shares outstanding, diluted	31,271,234	31,271,234
Net earnings (loss) per share, diluted	$ 0	$ (0.09)

LOSS PER SHARE (Details Textual

LOSS PER SHARE (Details Textual) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,190,250	1,685,250

STOCK-BASED COMPENSATION PLAN39

STOCK-BASED COMPENSATION PLANS (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair value of stock option grants
Weighted average expected term	6 years 3 months	4 years 8 months 16 days
Weighted average volatility	122.00%	132.00%
Weighted average risk-free interest rate	1.48%	1.25%
Dividend yield	0.00%	0.00%

STOCK-BASED COMPENSATION PLAN40

STOCK-BASED COMPENSATION PLANS (Details 1) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Summary of stock option activity under the option Plan
Shares Under Option, Outstanding beginning balance	1,685,250	1,841,769
Shares under option, Granted	879,000	629,000
Shares under option, Exercised	(1,000)	0
Shares Under Option, Forfeited	(373,000)	(785,519)
Shares Under Option, Outstanding ending balance	2,190,250	1,685,250
Shares Under Option, Exercisable ending balance	1,617,797	1,013,095
Weighted Average Exercise Price, Outstanding beginning balance	$ 0.46	$ 0.59
Weighted average exercise price, Granted	0.26	0.43
Weighted Average Exercise Price, Exercised	0.15
Weighted Average Exercise Price, Forfeited	0.33	0.74
Weighted Average Exercise Price, Outstanding ending balance	0.4	0.46
Weighted Average Exercise Price, Exercisable ending balance	$ 0.45	$ 0.55
Weighted Average Remaining Contractual Life, Outstanding	6 years 8 months 12 days	6 years 9 months 18 days
Weighted Average Remaining Contractual Life, Exercisable	6 years 1 month 6 days	6 years 2 months 12 days
Aggregate Intrinsic Value, Outstanding	$ 0	$ 0
Aggregate Intrinsic Value, Exercisable	$ 0	$ 0

STOCK-BASED COMPENSATION PLAN41

STOCK-BASED COMPENSATION PLANS (Details 2) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Summary of status of the Company's non-vested share awards
Non-vested Shares Under Option at January 1, 2016	672,155
Non-vested Shares Under Option, Granted	879,000	629,000
Non-vested Shares Under Option, Vested	(652,702)
Non-vested Shares Under Option, Exercised	(1,000)	0
Non-vested Shares Under Option, Forfeited	(326,000)
Non-vested Under Option at December 31, 2016	571,453	672,155
Weighted Average Grant Date Fair Value at January 1, 2016	$ 0.31
Weighted Average Grant Date Fair Value, Granted	0.26
Weighted Average Grant Date Fair Value, Vested	0.26
Weighted Average Grant Date Fair Value, Exercised	0.15
Weighted Average Grant Date Fair Value, Forfeited	0.36
Weighted Average Grant Date Fair Value at December 31, 2016	$ 0.27	$ 0.31

STOCK-BASED COMPENSATION PLAN42

STOCK-BASED COMPENSATION PLANS (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee stock-based compensation expense	$ 200	$ 130
Shares under option, granted	879,000	629,000
Weighted average exercise price, granted	$ 0.26	$ 0.43
Unrecognized compensation expense related to stock options	$ 79
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date	Dec. 31, 2014
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average exercise price, granted	$ 0.39	0.45
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average exercise price, granted	$ 0.14	$ 0.17
Cost Of Sales
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee stock-based compensation expense		$ 0
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)

INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Current tax (benefit) expense:
Federal	$ 15	$ (57)
State	0	0
Penalties and interest	0	0
Current tax (benefit) expense	15	(57)
Deferred tax (benefit) expense:
Federal	(558)	(992)
State	(38)	(68)
Valuation allowance	596	1,060
Deferred tax (benefit) expense	0	0
Income Tax Expense (Benefit)	$ 15	$ (57)

INCOME TAXES (Details 1)

INCOME TAXES (Details 1)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Schedule of reconciliation of income tax
Statutory rate	34.00%	(34.00%)
State taxes	3.00%	(3.00%)
Permanent differences and other	2.00%	2.00%
Change in valuation allowance	(21.00%)	35.00%
Effective rate	18.00%	0.00%

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current deferred tax assets (liabilities):
Accrued expenses	$ 51	$ 22
Deferred insurance reimbursement	322	0
Accounts receivable	907	730
Inventory	20	32
Prepaid expenses	(15)	0
Stock based compensation	108	23
Other	9	9
Gross current deferred tax assets	1,402	816
Less: Valuation allowance	(1,402)	(816)
Net current deferred tax assets	0	0
Long-term deferred tax assets (liabilities):
Amortization	105	115
Property and equipment	(115)	(293)
Tax credits and NOL carryforward	4,314	4,482
Net long-term deferred tax liabilities	4,304	4,304
Less: valuation allowance	(4,304)	(4,304)
Net deferred tax assets	$ 0	$ 0

INCOME TAXES (Details 3)

INCOME TAXES (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Uncertain tax benefits at the beginning of the period	$ 250	$ 250
Gross decreases for State income tax liabilities	(121)	0
Uncertain tax benefits at the end of the period	$ 129	$ 250

INCOME TAXES (Details Textual)

INCOME TAXES (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Taxes [Line Items]
Statutory rate	34.00%	(34.00%)
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Net Income Loss Carry Forward For Income Tax Purpose Offset Period Maximum	2,035
Deferred Tax Assets, Valuation Allowance	$ 5,700	$ 5,100
Domestic Tax Authority [Member]
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Net Income Loss Carryforward For Income Tax Purpose	10,362
State and Local Jurisdiction [Member]
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Operating Loss Carryforwards	$ 19,332
Maximum [Member]
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Net Operating Loss Carry Forwards Expiration Period	7 years
Minimum [Member]
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Net Operating Loss Carry Forwards Expiration Period	5 years

LINE OF CREDIT (Details)

LINE OF CREDIT (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Contractual term	6 years 3 months	4 years 8 months 16 days
Volatility	122.00%	132.00%
Risk-free interest rate	1.48%	1.25%
Dividend yield	0.00%	0.00%
Warrant [Member]
Contractual term	5 years
Volatility	122.64%
Risk-free interest rate	1.48%
Dividend yield	1.44%

LINE OF CREDIT (Details Textual

LINE OF CREDIT (Details Textual) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Mar. 28, 2016	Dec. 31, 2016	Dec. 31, 2015
Line of Credit Facility [Abstract]
Line of Credit, Current		$ 2,771	$ 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	$ 100
Class Of Stock Warrants Or Rights Warrants Issuance Cost		$ 15
Revolving Credit Facility
Line of Credit Facility [Abstract]
Line of Credit, Current		2,771
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

CAPITAL LEASES AND OTHER OBLI50

CAPITAL LEASES AND OTHER OBLIGATIONS (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Capital Leases
2,017	$ 118
2,018	136
2,019	0
2,020	0
Thereafter	0
Total future minimum lease payments	254
Less current portion	118	$ 109
Notes payable and other obligations	136	$ 216
Operating Leases
2,017	457
2,018	457
2,019	0
2,020	0
Thereafter	0
Total future minimum lease payments	$ 914

CAPITAL LEASES AND OTHER OBLI51

CAPITAL LEASES AND OTHER OBLIGATIONS (Details Textual) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Dec. 31, 2016	Jul. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Operating Leases, Rent Expense, Net			$ 457	$ 598
Other Commitment	$ 187		$ 187
Lease Termination Agreement And New Lease Agreement
Debt Instrument [Line Items]
Lease term			2 years
Fixed rental payments for each month	38	$ 49
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 | Accounts Payable [Member]
Debt Instrument [Line Items]
Concentration Risk, Percentage			18.00%
Minimum
Debt Instrument [Line Items]
Imputed interest rate on lease			5.00%
Minimum | Accounts Payable [Member]
Debt Instrument [Line Items]
Concentration Risk, Percentage			15.00%
Assembly Equipment
Debt Instrument [Line Items]
Cost of assets under capital lease	254		$ 254	461
Accumulated depreciation	$ 287		$ 287	$ 195

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent payments	$ 0	$ 4
Fair Value, Measurements, Recurring [Member] | Business Acquisition Contingent Consideration [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	$ 0	$ 0

CONCENTRATIONS (Details Textual

CONCENTRATIONS (Details Textual)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Raw materials | Electrotherapy products
Concentration Risk [Line Items]
Concentration Risk, Percentage	42.00%	42.00%
Net Accounts Receivable | Credit Concentration Risk
Concentration Risk [Line Items]
Concentration Risk, Percentage	10.00%	5.00%

RETIREMENT PLAN (Details Textua

RETIREMENT PLAN (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Defined Contribution Plan Eligibility Age	18 years
Defined Contribution Plan Period Of Employment For Eligibility	3 months
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 0	$ 0

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Textual) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Immediate Family Members of Management or Principal Owner
Related Party Transaction [Line Items]
Compensation paid		$ 154	$ 75
Employment Arrangement
Related Party Transaction [Line Items]
Net payable to related party included in accrued liabilities		112
Proceeds from Related Party Debt		148
Repayments of Related Party Debt		59
Employment Arrangement | Immediate Family Members of Management or Principal Owner
Related Party Transaction [Line Items]
Lump sum payment	$ 100,000
Agreement term	3 years
Thomas Sandgaard [Member]
Related Party Transaction [Line Items]
Net payable to related party included in accrued liabilities	$ 23	75	$ 23
Proceeds from Related Party Debt		192
Repayments of Related Party Debt		$ 171

SEGMENT REPORTING (Details Text

SEGMENT REPORTING (Details Textual)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Number of Reportable Segments	1
Sales Revenue, Net [Member] | ZMI electrotherapy units and compound pain creams | Customer concentration risk
Segment Reporting Information [Line Items]
Concentration Risk, Percentage	99.00%	99.00%