Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 25, 2015 | Mar. 19, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | ZYNEX INC | ||
Entity Central Index Key | 846475 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $1,766,191 | ||
Entity Common Stock, Shares Outstanding | 31,271,234 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash | $63 | $323 |
Accounts receivable, net | 3,189 | 7,033 |
Inventory, net | 1,935 | 5,002 |
Prepaid expenses | 250 | 346 |
Deferred tax assets, net | 72 | |
Income tax receivable | 268 | 893 |
Other current assets | 35 | |
Total current assets | 5,705 | 13,704 |
Property and equipment, net | 1,276 | 2,891 |
Deposits | 2 | 400 |
Deferred financing fees, net | 48 | |
Intangible assets, net | 131 | 178 |
Total assets | 7,114 | 17,221 |
Current Liabilities: | ||
Line of credit | 4,442 | 5,820 |
Current portion of notes payable and other obligations | 78 | 92 |
Accounts payable | 2,544 | 2,743 |
Deferred revenue | 112 | 0 |
Income taxes payable | 79 | 96 |
Accrued payroll and payroll taxes | 342 | 607 |
Current portion of contingent consideration | 4 | 7 |
Other accrued liabilities | 456 | 319 |
Total current liabilities | 8,057 | 9,684 |
Notes payable and other obligations, less current portion | 311 | 150 |
Deferred rent | 2,454 | |
Deferred tax liabilities, net | 72 | |
Warranty liability | 13 | 13 |
Total liabilities | 8,381 | 12,373 |
Stockholders’ (Deficit) Equity: | ||
Preferred stock; $.001 par value, 10,000,000 shares authorized, no shares issued or outstanding | ||
Common stock, $.001 par value, 100,000,000 shares authorized, 31,271,234 (2014) and 31,171,234 (2013) shares issued and outstanding | 31 | 31 |
Paid-in capital | 5,702 | 5,586 |
Accumulated deficit | -6,934 | -735 |
Total Zynex, Inc. stockholders’ (deficit) equity | -1,201 | 4,882 |
Noncontrolling interest | -66 | -34 |
Total Stockholders’ (deficit) equity | -1,267 | 4,848 |
Total liabilities and stockholders' equity | $7,114 | $17,221 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $0.00 | $0.00 |
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 value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 31,271,234 | 31,171,234 |
Common stock, shares outstanding | 31,271,234 | 31,171,234 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Net revenue: | ||
Rental | $2,191 | $5,270 |
Sales | 8,926 | 16,414 |
Total net revenue | 11,117 | 21,684 |
Operating Expenses | ||
Cost of revenue - Rental | 772 | 1,373 |
Cost of revenue - Sales | 4,185 | 6,767 |
Cost of revenue - write-off of noncore inventory | 2,655 | |
Selling, general and administrative expenses | 11,397 | 21,144 |
Net gain on lease termination | -2,195 | |
Loss from operations | -5,697 | -7,600 |
Other income (expense): | ||
Interest expense | -536 | -607 |
Other income (expense) | -47 | 77 |
Total other income (expense) | -583 | -530 |
Loss before income taxes | -6,280 | -8,130 |
Income tax benefit | 49 | 790 |
Net loss | -6,231 | -7,340 |
Plus: Net loss – noncontrolling interest | 32 | 39 |
Net loss – attributable to Zynex, Inc. | ($6,199) | ($7,301) |
Net loss per share – attributable to Zynex, Inc.: | ||
Basic | ($0.20) | ($0.23) |
Diluted | ($0.20) | ($0.23) |
Weighted average number of common shares outstanding: | ||
Basic | 31,207,672 | 31,152,015 |
Diluted | 31,207,672 | 31,152,015 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash flows from operating activities: | ||
Net loss | ($6,231) | ($7,340) |
Adjustments to reconcile net loss to net cash provided (used) in operating activities: | ||
Depreciation expense | 613 | 708 |
Write-off non-core inventory | 2,005 | 1,340 |
Write-off rental units | 650 | |
Net gain on lease termination | -2,195 | |
Change in the value of contingent consideration | -94 | |
Provision for losses on accounts receivable | 1,406 | 469 |
Amortization of intangible assets | 47 | 131 |
Impairment of intangible assets | 160 | |
Impairment of goodwill | 251 | |
Amortization of financing fees | 48 | 50 |
Issuance of common stock for services | 23 | |
Provision for obsolete inventory | 336 | 97 |
Deferred rent | 391 | 1,299 |
Employee stock-based compensation expense | 93 | 133 |
Deferred tax expense (benefit) | 1,069 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,436 | 4,722 |
Inventory | 726 | -279 |
Prepaid expenses | 96 | -103 |
Income tax receivable | 625 | -893 |
Deposits and other current assets | 122 | -207 |
Deferred revenue | 112 | |
Accounts payable | -199 | 686 |
Accrued liabilities | -126 | -1,247 |
Income taxes payable | -17 | -1,334 |
Net cash used in operating activities | 961 | -382 |
Cash flows from investing activities: | ||
Purchases of equipment and inventory used for rental | -272 | -644 |
Change in inventory used for rental | 285 | 764 |
Payments on contingent consideration | -3 | -3 |
Net cash provided by investing activities | 10 | 117 |
Cash flows from financing activities: | ||
Net repayments on line of credit | -1,378 | -86 |
Proceeds from notes payable and capital leases | 207 | |
Payments on notes payable and capital lease obligations | -60 | -149 |
Net cash used by financing activities | -1,231 | -235 |
Net decrease in cash | -260 | -500 |
Cash at the beginning of the period | 323 | 823 |
Cash at the end of the period | 63 | 323 |
Supplemental cash flow information: | ||
Interest paid | 536 | 561 |
Income taxes paid (including interest and penalties) | 399 | |
Supplemental disclosure of non-cash investing and financing activities: | ||
Deposit used to purchase leasehold improvements | $311 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' (Deficit) Equity (USD $) | Total | Common Stock | Paid-in Capital | Accumulated Deficit | Noncontrolling Interest |
In Thousands, except Share data | |||||
Balance at Dec. 31, 2012 | $12,055 | $31 | $5,453 | $6,566 | $5 |
Balance, shares at Dec. 31, 2012 | 31,148,234 | ||||
Issuance of common stock for cashless option exercise | 23,000 | ||||
Employee stock-based compensation expense | 133 | 133 | |||
Net loss | -7,340 | -7,301 | -39 | ||
Balance at Dec. 31, 2013 | 4,848 | 31 | 5,586 | -735 | -34 |
Balance, shares at Dec. 31, 2013 | 31,171,234 | 31,171,234 | |||
Value, Issued for Services | 23 | 23 | |||
Shares issued for services | 100,000 | ||||
Employee stock-based compensation expense | 93 | 93 | |||
Net loss | -6,231 | -6,199 | -32 | ||
Balance at Dec. 31, 2014 | ($1,267) | $31 | $5,702 | ($6,934) | ($66) |
Balance, shares at Dec. 31, 2014 | 31,271,234 | 31,271,234 |
Organization_Nature_of_Busines
Organization, Nature of Business and Management's Plans | 12 Months Ended |
Dec. 31, 2014 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization, Nature of Business and Management's Plans | |
(1) ORGANIZATION, NATURE OF BUSINESS AND MANAGEMENT’S PLANS | |
ORGANIZATION | |
Zynex, Inc. (a Nevada corporation) and its subsidiaries, Zynex Medical, Inc. (ZMI) (a Colorado corporation, wholly-owned), Zynex NeuroDiagnostics, Inc. (ZND) (a Colorado corporation, wholly-owned), Zynex Monitoring Solutions Inc. (ZMS) (a Colorado corporation, wholly-owned), Zynex Billing and Consulting, LLC (ZBC) (a Colorado limited liability company, 80% majority-owned) and Zynex Europe, ApS (ZEU) (a Denmark corporation, wholly-owned), are collectively referred to as the “Company”. The Company’s headquarters are located in Lone Tree, Colorado. | |
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. In addition, ZMI sells compound transdermal pain creams. ZND was formed 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. ZND did not produce significant revenue during 2014 or 2013. ZMS was formed to develop and market medical devices for non-invasive cardiac monitoring. ZMS did not produce any revenue during 2014 or 2013. ZEU was formed in 2012 to conduct international sales and marketing for Company products. ZEU did not produce significant revenue in 2014 or 2013. ZBC was formed in 2012 to provide medical billing and consulting services. ZBC produced revenue in 2014 of $411 and $262 in 2013. | |
In 2014 and 2013, 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’S 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, 2014 and 2013, the Company reported net losses of $6,199 and $7,301, respectively, and had no available borrowing under its line of credit at December 31, 2014. These losses raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to to continue as a going concern. The Company developed its operating plans for 2014 to emphasize cash flow, under which management made operational billing changes to increase cash collections and implemented various cost modifications to reduce expenses. However, the Company continued to encounter the industry challenges related to health care reform, including the Affordable Care Act and coverage and reimbursement changes from government and third-party payors, which has caused uncertainty to exist at the medical practitioner level causing a delay and decline in demand for the Company’s ZMI electrotherapy products. In an effort to minimize the impact of these challenges, the Company made reductions in its fixed expenses by cutting its annual employee costs by approximately $7,000 through headcount reductions. These headcount reductions began in the second quarter of 2013 and continued in 2014. In addition, in October 2014, the Company negotiated a termination agreement for its existing building lease and a new lease agreement with its landlord relating to its headquarters located in Lone Tree, Colorado. Under the terms of the termination agreement, among other things, the existing headquarters building lease terminated on December 31, 2014; the Company agreed to consolidate its operations into approximately one-third of the total square footage it occupied previously; monthly rental payments were reduced from approximately $129 to $43 for the period from September 1, 2014 through December 31, 2014; and, the terms of the new lease took effect January 1, 2015. The terms of the new lease agreement include, among other things, a term of two years, fixed monthly base rental payments of approximately $49. The Company is monitoring the demand for its ZMI electrotherapy products and will make additional expense adjustments as necessary in future periods. Additionally, in 2014 the Company added the sale of compound topical and transdermal pain creams. | |
(1) ORGANIZATION, NATURE OF BUSINESS AND MANAGEMENT’S PLANS (continued) | |
The Company believes that as a result of the restructuring activities over the past two years, the Company’s cash flows from operating activities, assuming its lender, Triumph Healthcare Finance (the “Lender”) continues to make loan advances, will be sufficient to fund cash requirements through the next twelve months. However, there is no guarantee that the Company will be able to meet the requirements of our 2015 financial plan. The Company is not in compliance with the financial covenants under the terms of its line of credit. In July 2014, the Lender notified the Company that it would no longer make additional loans under the credit agreement and that it was exercising its default remedies under the Credit Agreement, including, among others, accelerating the repayment of all outstanding obligations under the credit agreement and collecting the Company’s bank deposits to apply towards the outstanding obligations. As of March 19, 2015, the Company had approximately $4,497 of outstanding borrowings under the credit agreement. The Company and the Lender continue to negotiate the terms of an accelerated repayment of the amounts outstanding under the credit agreement and the Lender has continued to make additional loans to the Company. However, no assurance can be given that the Lender will continue to make such additional loans or that the parties will agree on a repayment plan acceptable to the Company. The Lender agreed to forbear from the exercise of its rights and remedies under the terms of the credit agreement through June 30, 2015 pursuant to the terms of an extension to the Forbearance Agreement dated March 27, 2015. The Company’s long-term business plan contemplates organic growth in revenues, through the addition of new products such as the ZMS Blood Volume Monitor that could mitigate the decline in sales of the ZMI electrotherapy products. Management believes that its cash flow projections for 2015 are achievable and that sufficient cash will be generated to meet the Company’s operating requirements for the remainder of 2015, assuming that the Lender continues to make additional loans. However, there is no guarantee that the Company will be able to meet the requirements of its 2015 cash flow projection. | |
The Company is actively seeking external financing through the issuance of debt or sale of equity, and the Company is not certain whether any such financing would be available to the Company on acceptable terms, or at all. Any additional debt would require the approval of the Lender. The Company’s dependence on operating cash flow 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’s ability to grow. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | (2) SIGNIFICANT ACCOUNTING POLICIES |
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. | |
NONCONTROLLING INTEREST | |
Noncontrolling interest in the equity of a subsidiary is accounted for and reported as equity. Noncontrolling interest represents the 20% ownership in the Company’s majority-owned subsidiary, ZBC. | |
USE OF ESTIMATES | |
Preparation of financial statements in conformity with generally accepted accounting principles in the United States of America (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 contractual adjustments and uncollectible accounts receivable, the reserve for obsolete and damaged inventory, stock-based compensation, valuation of goodwill and other long-lived assets, and income taxes. | |
(2) SIGNIFICANT ACCOUNTING POLICIES (continued) | |
REVENUE RECOGNITION AND ALLOWANCES FOR PROVIDER DISCOUNTS 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. Accordingly, the Company recognizes revenue, both rental and sales, when products have been delivered to the patient and the patient’s insurance (if the patient has insurance) has been verified. For medical products that are sold from inventories consigned at clinic locations, the Company recognizes revenue when it receives notice that the product has been prescribed and delivered to the patient and the patient’s insurance coverage has been verified or preauthorization has been obtained from the insurance company, when required. 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, which fulfills its order and transfers title. Revenue is reported net, after adjustments for estimated insurance company or governmental agency (collectively “Third-party Payors”) reimbursement deductions. The deductions are known throughout the health care industry as “contractual 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 this 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 contractual adjustments and records additions to the allowance to account for the risk of nonpayment. Contractual adjustments result from reimbursements from Third-party Payors that are less than amounts claimed or 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. Accordingly, changes to the allowance for contractual adjustments, 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. | |
Due to the nature of the 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. 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 an unanticipated requirement 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 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. | |
(2) SIGNIFICANT ACCOUNTING POLICIES (continued) | |
As of December 31, 2014, the Company believes it has an adequate allowance for contractual adjustments relating to all known insurance disputes and refund requests. 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 contractual adjustments, the Company records an allowance for uncollectible accounts receivable. 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, 2014 and 2013, the allowance for uncollectible accounts receivable is $936 and $1,837, respectively. | |
At December 31, 2014, the Company recorded a liability for deferred revenue of $112, which represents amounts paid by third party payors for consumable supplies that were not shipped as of December 31, 2014. There was no such liability at December 31, 2013. | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
The Company’s financial instruments at December 31, 2014, include cash, accounts receivable and accounts payable, for which current carrying amounts approximate fair value due to their short-term nature. Financial instruments at December 31, 2014, also include the line of credit and notes payable, 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. | |
INVENTORY | |
Inventories, which primarily represent finished goods, are valued at the lower of cost (average) or market. In the second quarter of 2014, the Company narrowed its focus to the NexWave, InWave and NeuroMove electrotherapy products and building the sales representative group for its TENS and compound pain cream solutions. As a result, the Company wrote-off all inventory unrelated to those specific product lines and recorded a charge to cost of revenue – write-off of noncore inventory in the amount of $2,005 during the year ended December 31, 2014. Finished goods include products held at the Company’s headquarters and at different locations by health care providers or other third parties for rental or sale to patients. Total (gross) inventories at December 31, 2014, included $2,364 of finished goods, $171 of parts and $316 of supplies. Total (gross) inventories at December 31, 2013 included $5,120 of finished goods, $310 of parts and $850 of supplies. | |
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. To fulfill orders faster, the Company places a large amount of its inventory with field sales representatives. This increases the sensitivity of these products to obsolescence reserve estimates. As this inventory is not in the Company’s possession, management maintains additional reserves for estimated shrinkage of these inventories based on the Company’s aging. At December 31, 2014 and 2013, the Company had an allowance for obsolete and damaged inventory of approximately $916 and $1,278 respectively. In addition, during the years ended December 31, 2014 and 2013, the Company wrote off a portion of its inventory totaling approximately $2,005 and $1,340, respectively, as a result of changes in market focus and industry conditions driven primarily by health care reform. These changes caused a reduction in the Company’s field sales force which negatively impacted its field inventory. . In the second quarter of 2014, the Company changed its method of estimation for determining allowances for obsolete and damaged inventory. The Company now estimates that finished units held for sale will be reserved beginning in year three and fully reserved after four years compared to five years previously. This change in estimate had the effect of increasing the allowances for obsolete and damaged inventory by approximately $414 at December 31, 2014 and increasing cost of revenue – sales by approximately $460 ($0.02 per share) for the year ended December 31, 2014, respectively. | |
The Company had $270 of open purchase commitments at December 31, 2014. | |
(2) SIGNIFICANT ACCOUNTING POLICIES (continued) | |
PROPERTY AND EQUIPMENT | |
Property and equipment are stated at cost. Products on rental contracts 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 gains or losses are included in the results of operations. Depreciation is computed using the straight-line method. As rental inventory contributes directly to the revenue generating process, the Company classifies the depreciation of rental inventory to cost of revenue. As a result of the Company’s change in product focus discussed above, the Company wrote off all rental inventory unrelated to those specific product lines and recorded a charge to cost of revenue – write-off of non-core inventory of $650 in the second quarter of 2014. | |
Repairs and maintenance costs are charged to expense as incurred. | |
SHIPPING COSTS | |
Shipping costs are included in cost of sales and rentals. | |
INTANGIBLE ASSETS | |
Intangible assets with estimable lives are amortized in a pattern consistent with the asset’s identifiable cash flows or using a straight- line method over their remaining estimated benefit periods if the pattern of cash flows is not estimable. The Company reviews the carrying value of intangible and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets is measured by comparison of their carrying amounts to the undiscounted cash flows that the asset or asset group is expected to generate. If the carrying amount of the assets exceeds the undiscounted cash flows the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. Intangible assets primarily include capitalized software. The Company capitalizes software development costs incurred during the application development stage related to new software or major enhancements to the functionality of existing software that is developed solely to meet the entity’s internal operational needs and when no substantive plans exist or are being developed to market the software externally. Costs capitalized include external direct costs of materials and services and internal payroll and payroll-related costs. Any costs during the preliminary project stage or related to training or maintenance are expensed as incurred. Capitalization ceases when the software project is substantially complete and ready for its intended use. The capitalization and ongoing assessment of recoverability of development costs requires considerable judgment by management with respect to certain external factors, including, but not limited to, technological and economic feasibility, and estimated economic life. When the projects are ready for their intended use, the Company amortizes such costs over their estimated useful lives of five years. | |
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 expense is generally 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 condition will be achieved. | |
ADVERTISING | |
The Company expenses advertising costs as they are incurred. Advertising expense for the years ended December 31, 2014 and 2013 was approximately $47 and $115, respectively. | |
(2) SIGNIFICANT ACCOUNTING POLICIES (continued) | |
RESEARCH AND DEVELOPMENT | |
Research and development costs are expensed when incurred. Research and development expense for the years ended December 31, 2014 and 2013 was approximately $394 and $754, respectively. Research and development costs as well as salaries related to research and development are included in selling, general and administrative expenses. | |
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 deferred rent. 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 in accordance with the accounting standard related to income taxes. The Company reports 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, 2014 and 2013, the Company had accrued unrecognized tax benefits, penalties and interest of $250 and $194, respectively. The Company files income tax returns in the U.S. and various state jurisdictions, and there are open statutes of limitations for taxing authorities to audit our tax returns from 2010 through the current period. | |
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, 2014 and 2013 were insignificant. | |
RECLASSIFICATIONS | |
Certain reclassifications have been made to the prior years’ consolidated financial statements to conform to the current year presentation. These reclassifications had no effect on previously reported results of operations. | |
(2) SIGNIFICANT ACCOUNTING POLICIES (continued) | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
In August 2014 the FASB issued Accounting Standards Update 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 evaluating the effect of this updated guidance on the disclosures in the footnotes to the Company’s consolidated financial statements. | |
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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. | |
In July 2013, the FASB issued ASU No. 2013-11 “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” Under ASU 2013-11, an entity is required to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. If a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance affects presentation only and, therefore, did not have a material impact on the Company's financial condition, results of operations or cash flows. | |
Management has evaluated other recently issued accounting pronouncements and does not believe that any of these pronouncements will have an impact on the Company’s consolidated financial statements. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Property Plant And Equipment [Abstract] | |||||||||||
Property and Equipment | (3) PROPERTY AND EQUIPMENT | ||||||||||
Cost, accumulated depreciation, and the related estimated useful lives of property and equipment as of December 31, 2014 and 2013 are as follows: | |||||||||||
2014 | 2013 | Useful lives | |||||||||
Office furniture and equipment | $ | 917 | $ | 2,073 | 3-7 years | ||||||
Rental inventory | 1,314 | 2,142 | 5 years | ||||||||
Vehicles | 76 | 76 | 5 years | ||||||||
Leasehold improvements | 104 | 486 | 2-6 years | ||||||||
Assembly equipment | 125 | 171 | 7 years | ||||||||
2,536 | 4,948 | ||||||||||
Less accumulated depreciation | (1,260 | ) | (2,057 | ) | |||||||
$ | 1,276 | $ | 2,891 | ||||||||
Depreciation expense recorded on property and equipment was $613 and $708 for 2014 and 2013, respectively. |
Intangible_Assets
Intangible Assets | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||
Intangible Assets | (4) INTANGIBLE ASSETS | ||||||||||
At December 31, 2014 and 2013, intangible assets consist of the following | |||||||||||
Amortization | 2014 | 2013 | |||||||||
Life Years | |||||||||||
Software and development costs | 5 | $ | 325 | $ | 325 | ||||||
Less: accumulated amortization | (194 | ) | (147 | ) | |||||||
Total intangible assets, net | $ | 131 | $ | 178 | |||||||
Amortization expense totaled $47 for 2014 and $131 for 2013, respectively. |
Loss_Per_Share
Loss Per Share | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
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 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 if-converted and treasury-stock methods. | |||||||||
The calculation of basic and diluted loss per share for 2014 and 2013 is as follows: | |||||||||
2014 | 2013 | ||||||||
BASIC | |||||||||
Net loss attributable to common stockholders | $ | (6,199 | ) | $ | (7,301 | ) | |||
Weighted average shares outstanding—basic | 31,207,672 | 31,152,015 | |||||||
Net loss per share—basic | $ | (0.20 | ) | $ | (0.23 | ) | |||
DILUTED | |||||||||
Net loss attributable to common stockholders | $ | (6,199 | ) | $ | (7,301 | ) | |||
Weighted average shares outstanding—basic | 31,207,672 | 31,152,015 | |||||||
Dilutive securities | — | — | |||||||
Weighted average shares outstanding, diluted | 31,207,672 | 31,152,015 | |||||||
Net loss per share, diluted | $ | (0.20 | ) | $ | (0.23 | ) | |||
The effects of potential common stock equivalents, related to outstanding options for the years ended December 31, 2014 and 2013 totaling 1,735,519 and 2,472,205, respectively, have not been included in the computation of diluted net loss per share because the impact of the potential shares would decrease the loss per share. |
StockBased_Compensation_Plans
Stock-Based Compensation Plans | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||
Stock-Based Compensation Plans | (6) STOCK-BASED COMPENSATION PLANS | ||||||||||||||
The Company has a 2005 Stock Option Plan (the “Option Plan”) and has reserved 3,000,000 shares of common stock for issuance under the Option Plan. Vesting terms are determined by the Board of Directors. All stock options under the Option Plan expire no later than ten years from the date of grant. | |||||||||||||||
For the years ended December 31, 2014 and 2013, the Company recorded compensation expense related to stock options of $93 and $133, respectively. Stock-based compensation recorded in the accompanying consolidated statements of operations for the years ended December 31, 2014 and 2013 included $8 and $11, respectively, in cost of goods sold and $85 and $122, respectively, in selling, general and administrative expenses. | |||||||||||||||
For the year ended December 31, 2014, the Company granted options to purchase up to 410,000 shares of common stock to employees at exercise prices that ranged from $0.18 to $0.26 per share. During the year ended December 31, 2013, the Company granted options to purchase up to 1,424,216 shares of common stock at exercise prices that ranged from $0.22 to $0.48 per share. | |||||||||||||||
(6) STOCK-BASED COMPENSATION PLANS (continued) | |||||||||||||||
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, 2014 and 2013: | |||||||||||||||
2014 | 2013 | ||||||||||||||
Weighted average expected term | 6.25 years | 6.25 years | |||||||||||||
Weighted average volatility | 121 | % | 111 | % | |||||||||||
Weighted average risk-free interest rate | 1.67 | % | 1.54 | % | |||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||
(6) STOCK-BASED COMPENSATION PLANS (continued) | |||||||||||||||
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. The estimated average forfeiture rate for the years ended December 31, 2014 and 2013 was 40% for both years. | |||||||||||||||
A summary of stock option activity under the Option Plan for the years ended December 31, 2014 and 2013, are presented below: | |||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||
Under | Average | Average | Intrinsic | ||||||||||||
Option | Exercise | Remaining | Value | ||||||||||||
Price | Contractual | ||||||||||||||
Life | |||||||||||||||
Outstanding at January 1, 2013 | 1,501,500 | $ | 0.95 | ||||||||||||
Granted | 1,424,216 | $ | 0.26 | ||||||||||||
Exercised | (23,000 | ) | $ | 0.63 | |||||||||||
Forfeited | (430,500 | ) | $ | 0.87 | |||||||||||
Outstanding at December 31, 2013 | 2,472,216 | $ | 0.57 | 8.1 Years | $ | — | |||||||||
Exercisable at December 31, 2013 | 808,623 | $ | 1.05 | 5.4 Years | $ | — | |||||||||
Outstanding at January 1, 2014 | 2,472,216 | $ | 0.57 | ||||||||||||
Granted | 410,000 | $ | 0.25 | ||||||||||||
Exercised | — | ||||||||||||||
Forfeited | (1,146,697 | ) | $ | 0.45 | |||||||||||
Outstanding at December 31, 2014 | 1,735,519 | $ | 0.59 | 7.2 Years | $ | — | |||||||||
Exercisable at December 31, 2014 | 789,579 | $ | 0.93 | 5.5 Years | $ | — | |||||||||
A summary of status of the Company’s non-vested shares under option as of and for the year ended December 31, 2014 is presented below: | |||||||||||||||
Non-vested | Weighted | ||||||||||||||
Shares | Average | ||||||||||||||
Under | Grant Date | ||||||||||||||
Option | Fair Value | ||||||||||||||
Non-vested at January 1, 2014 | 1,663,593 | $ | 0.29 | ||||||||||||
Granted | 410,000 | $ | 0.22 | ||||||||||||
Vested | (300,956 | ) | $ | 0.38 | |||||||||||
Forfeited | (826,697 | ) | $ | 0.38 | |||||||||||
Non-vested at December 31, 2014 | 945,940 | $ | 0.29 | ||||||||||||
As of December 31, 2014, the Company had approximately $157 of unrecognized compensation expense related to stock options that will be recognized over a weighted-average period of approximately 3.0 years. In addition, the Company issued 23,000 shares of common stock in 2013 through a cashless exercise of 46,000 common stock options, pursuant to a separation agreement dated November 1, 2013 (Note 15 ). |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Income Taxes | (7) INCOME TAXES | ||||||||
Income tax (benefit) expense consists of the following for the years ended December 31, 2014 and 2013: | |||||||||
2014 | 2013 | ||||||||
Current tax (benefit) expense: | |||||||||
Federal | $ | (49 | ) | $ | (1,835 | ) | |||
State | — | (79 | ) | ||||||
Penalties and interest | — | 55 | |||||||
(49 | ) | (1,859 | ) | ||||||
Deferred tax (benefit) expense: | |||||||||
Federal | (1,994 | ) | (806 | ) | |||||
State | (131 | ) | (60 | ) | |||||
Valuation allowance | 2,125 | 1,935 | |||||||
— | 1,069 | ||||||||
$ | (49 | ) | $ | (790 | ) | ||||
A reconciliation of income tax computed at the U.S. statutory rate of 34% to the effective income tax rate is as follows: | |||||||||
2014 | 2013 | ||||||||
Statutory rate | (34 | )% | (34 | )% | |||||
State taxes | (2 | ) | (3 | ) | |||||
Permanent differences and other | 2 | 3 | |||||||
Change in valuation allowance | 34 | 24 | |||||||
Effective rate | 0 | % | (10 | )% | |||||
The tax effects of temporary differences that give rise to deferred tax assets (liabilities) at December 31, 2014 and 2013 are as follows: | |||||||||
2014 | 2013 | ||||||||
Current deferred tax assets (liabilities): | |||||||||
Accrued expenses | $ | 114 | $ | 65 | |||||
Accounts receivable | 1,185 | 671 | |||||||
Inventory | 1,603 | 970 | |||||||
Amortization | — | 135 | |||||||
Prepaid expenses | (90 | ) | (99 | ) | |||||
Stock based compensation | 23 | 23 | |||||||
Tax credits and NOL carryforward | — | 233 | |||||||
Other | 9 | 9 | |||||||
2,844 | 2,007 | ||||||||
Less: Valuation allowance | (2,844 | ) | (1,935 | ) | |||||
Net current deferred tax assets | $ | — | $ | 72 | |||||
Long-term deferred tax assets (liabilities): | |||||||||
Amortization | $ | 125 | $ | — | |||||
Property and equipment | (553 | ) | (969 | ) | |||||
Deferred rent | — | 897 | |||||||
Tax credits and NOL carryforward | 1,644 | — | |||||||
Net long-term deferred tax liabilities | 1,216 | (72 | ) | ||||||
Less: valuation allowance | (1,216 | ) | — | ||||||
Net deferred tax assets | $ | — | $ | — | |||||
(7) INCOME TAXES (continued) | |||||||||
The Company generated a net loss for income tax purposes of approximately $3,200 for 2014, which is available to offset taxable income in the future. The Company also has available NOL carryforwards of approximately $6,700 for State purposes, which expire at various dates ranging from five to seven years. | |||||||||
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. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||
2014 | 2013 | ||||||||
Unrecognized tax benefits at the beginning of the period | $ | 194 | $ | 67 | |||||
Gross increases for State income tax liabilities | 56 | 127 | |||||||
Unrecognized tax benefits at the end of the period | $ | 250 | $ | 194 | |||||
Line_of_Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2014 | |
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 Triumph Community Bank (the “Lender”). The Triumph Agreement contains certain customary restrictive and financial covenants for asset-backed credit facilities. As of December 31, 2014, the Company was not in compliance with the financial covenants under the Triumph Agreement. On July 14, 2014, the Company received notice from ther Lender of an event of default under the Triumph Agreement. The notice relates to the Company’s default under the minimum debt service coverage ratio requirement for the quarter ended March 31, 2014 and certain other alleged defaults. The Lender notified the Company that it was exercising its default remedies under the Triumph Agreement, including, among others, accelerating the repayment of all outstanding obligations under the Triumph Agreement (outstanding principal and accrued interest) and collecting the Company’s bank deposits to apply towards the outstanding obligations. The Company and the Lender are negotiating the terms of an accelerated repayment of the amounts outstanding under the Triumph Agreement and the Lender has continued to make additional loans to the Company based on cash collections. However, no assurance can be given that the Lender will continue to make such additional loans or that the parties will agree on a repayment plan acceptable to the Company. If the Lender insists upon immediate repayment, the Company will be insolvent and may be forced to seek protection from creditors. As of December 31, 2014, $4,442 was outstanding under the Triumph Agreement and zero was available for borrowing based on the default status and demand for accelerated payment. Borrowings under the Triumph Agreement bear interest at the default interest rate. As of December 31, 2014, the effective interest rate under the Triumph Agreement was 11.00% (6.75% interest rate plus 3% additional default interest rate and 1.25% fees). The Triumph Agreement requires monthly interest payments in arrears on the first date of each month. The Triumph Agreement matured on December 19, 2014, however, on December 22, 2014 Triumph agreed to forbear from the exercise of its rights and remedies under the terms of the Credit Agreement through March 31, 2015, pursuant to the terms of a Forbearance Agreement. On March 27, 2015 the Lender agreed to extend the date of forbearance to June 30, 2015. The Triumph Agreement requires a lockbox arrangement whereby all receipts are swept daily to reduce borrowings outstanding. | |
Other_Obligations
Other Obligations | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables And Accruals [Abstract] | |||||||||
Capital Leases and Other Obligations | (9) CAPITAL LEASES AND OTHER OBLIGATIONS | ||||||||
On October 31, 2014, the Company 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. The following is a summary of the key terms of the LTA: | |||||||||
•Monthly rental payments of $43 from September 1, 2014 through December 31, 2014; | |||||||||
•The Company vacated the unleased portion of the property on or before December 31, 2014; | |||||||||
(9) CAPITAL LEASES AND OTHER OBLIGATIONS (continued) | |||||||||
•The existing lease terminated as of December 31, 2014; | |||||||||
• | The Company surrendered to the Landlord substantially all of the furniture and fixtures and leasehold improvements in the portion of the building vacated at no cost to the landlord; and | ||||||||
• | Effective upon termination of the existing lease (December 31, 2014), all amounts due to the landlord for deferred rent and any other charges were forgiven. | ||||||||
The following is a summary of the key terms of the new LA: | |||||||||
•The term of the LA is two years commencing on January 1, 2015 and to end, unless sooner terminated December 31, 2016; | |||||||||
•Fixed rental payments of $49 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 six months prior written notice to the Company and three months written notice to the Landlord. | ||||||||
As a result of the above agreements, during the fourth quarter of 2014, the Company recorded a gain of $2,195, reflecting the foregiveness of the liability for deferred rent of $2,845, which was partially offset by the write-off of certain office furniture and fixtures, and leasehold improvements amounting to $650 which were surrendered 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 6% to 18%. At December 31, 2014, the total recorded cost of assets under capital leases was approximately $461. Accumulated depreciation related to these assets totals approximately $105. | |||||||||
As of December 31, 2014, future minimum lease payments under non-cancelable notes payable, operating and capital leases are as follows: | |||||||||
Notes and | Operating | ||||||||
Capital | Leases | ||||||||
Leases | |||||||||
2015 | $ | 153 | $ | 583 | |||||
2016 | 115 | 583 | |||||||
2017 | 114 | — | |||||||
2018 | 79 | — | |||||||
Thereafter | 18 | — | |||||||
Total future minimum lease payments | 479 | $ | 1,166 | ||||||
Less amount representing interest | (90 | ) | |||||||
Present value of net minimum lease payments | 389 | ||||||||
Less current portion | (78 | ) | |||||||
Notes payable and other obligations | $ | 311 | |||||||
Rent expense under all operating leases for 2014 and 2013 was approximately $1,158 and $1,716, respectively. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
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. | ||||||||
(10) FAIR VALUE MEASUREMENTS (continued) | |||||||||
The following table presents information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2014, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value: | |||||||||
December 31, | Significant Unobservable Inputs | ||||||||
2014 | (Level 3) | ||||||||
Liabilities: | |||||||||
Contingent consideration | $ | 4 | $ | 4 | |||||
The fair value of the contingent consideration was determined using a discounted cash flow model at the acquisition date and is revalued at each reporting date or more frequently if circumstances dictate based on changes in the discount periods and rates, changes in the timing and amount of the revenue estimates and changes in probability assumptions with respect to the likelihood of achieving the obligations. The change in the fair value of this obligation and the accretion expense related to the net increase in the net present value of the contingent liability totaled $0 and $97, respectively, for the years ended December 31, 2014 and 2013. Contingent payments of $3 were made during the years ended December 31, 2014 and 2013. | |||||||||
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, 2014, were not significant. | |||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Stockholders' Equity | (11) STOCKHOLDERS’ EQUITY |
On August 20, 2014 the Company issued 100,000 shares of its common stock to a consultant in exchange for services valued at $23,000. | |
On November 1, 2013, an employee entered into a separation agreement with the Company that, among other things, converted 46,000 common stock options into 23,000 common shares at a cashless exercise price of $0.50 per share. (Note 15) | |
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, 2014 | |
Risks And Uncertainties [Abstract] | |
Concentrations | (12) CONCENTRATIONS |
The Company sourced approximately 21% of its electrotherapy products from one contract manufacturer in 2014 and in 2013. Management believes that its relationships with suppliers are strong; however, if necessary these relationships can be replaced. If the relationships were to be replaced, there may be a short-term disruption to operations, a period of time in which products may not be available and additional expenses may be incurred. | |
The Company had receivables from one private health insurance carrier at December 31, 2014 and 2013 of approximately 10% and 7%, respectively. |
Retirement_Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2014 | |
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 years of age and have completed at least three months of employment. The 401(k) plan provides for contributions by the Company at management’s discretion. The Company made no contributions to this plan in 2014 or 2013. |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2014 | |
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 upon the advice of counsel, 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, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (15) RELATED PARTY TRANSACTIONS |
On November 1, 2013, Mr. Joachim Sandgaard, son of Mr. Thomas Sandgaard, entered into a separation agreement with the Company, which provided him with a $42 lump sum payment and converted 46,000 common stock options into 23,000 common shares at a cashless exercise price of $0.50. |
Segment_Reporting
Segment Reporting | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Segment Reporting [Abstract] | ||||
Segment Reporting | (16) SEGMENT REPORTING | |||
At December 31, 2014, the Company determined that it has one reporting segment, the Electrotherapy and Pain Management segment, which includes the ZMI TENS units and compound pain creams that accounted for 96% of total net revenue for the year ended December 31, 2014. The determination was made based on the fact that the products are marketed through the same sales representatives and to the same medical providers whether the provider writes a prescription for a TENS device or compound pain cream. As discussed in Note 1, during the second quarter ended June 30, 2014, the Company narrowed it focus on these products. The revenue generated from the sale of other products and services is not significant. | ||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
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. | |
Noncontrolling Interest | NONCONTROLLING INTEREST |
Noncontrolling interest in the equity of a subsidiary is accounted for and reported as equity. Noncontrolling interest represents the 20% ownership in the Company’s majority-owned subsidiary, ZBC. | |
Use of Estimates | USE OF ESTIMATES |
Preparation of financial statements in conformity with generally accepted accounting principles in the United States of America (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 contractual adjustments and uncollectible accounts receivable, the reserve for obsolete and damaged inventory, stock-based compensation, valuation of goodwill and other long-lived assets, and income taxes. | |
Revenue Recognition and Allowances for Provider Discounts and Collectability | REVENUE RECOGNITION AND ALLOWANCES FOR PROVIDER DISCOUNTS 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. Accordingly, the Company recognizes revenue, both rental and sales, when products have been delivered to the patient and the patient’s insurance (if the patient has insurance) has been verified. For medical products that are sold from inventories consigned at clinic locations, the Company recognizes revenue when it receives notice that the product has been prescribed and delivered to the patient and the patient’s insurance coverage has been verified or preauthorization has been obtained from the insurance company, when required. 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, which fulfills its order and transfers title. Revenue is reported net, after adjustments for estimated insurance company or governmental agency (collectively “Third-party Payors”) reimbursement deductions. The deductions are known throughout the health care industry as “contractual 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 this 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 contractual adjustments and records additions to the allowance to account for the risk of nonpayment. Contractual adjustments result from reimbursements from Third-party Payors that are less than amounts claimed or 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. Accordingly, changes to the allowance for contractual adjustments, 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. | |
Due to the nature of the 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. 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 an unanticipated requirement 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 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. | |
(2) SIGNIFICANT ACCOUNTING POLICIES (continued) | |
As of December 31, 2014, the Company believes it has an adequate allowance for contractual adjustments relating to all known insurance disputes and refund requests. 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 contractual adjustments, the Company records an allowance for uncollectible accounts receivable. 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, 2014 and 2013, the allowance for uncollectible accounts receivable is $936 and $1,837, respectively. | |
At December 31, 2014, the Company recorded a liability for deferred revenue of $112, which represents amounts paid by third party payors for consumable supplies that were not shipped as of December 31, 2014. There was no such liability at December 31, 2013. | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS |
The Company’s financial instruments at December 31, 2014, include cash, accounts receivable and accounts payable, for which current carrying amounts approximate fair value due to their short-term nature. Financial instruments at December 31, 2014, also include the line of credit and notes payable, 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. | |
Inventory | INVENTORY |
Inventories, which primarily represent finished goods, are valued at the lower of cost (average) or market. In the second quarter of 2014, the Company narrowed its focus to the NexWave, InWave and NeuroMove electrotherapy products and building the sales representative group for its TENS and compound pain cream solutions. As a result, the Company wrote-off all inventory unrelated to those specific product lines and recorded a charge to cost of revenue – write-off of noncore inventory in the amount of $2,005 during the year ended December 31, 2014. Finished goods include products held at the Company’s headquarters and at different locations by health care providers or other third parties for rental or sale to patients. Total (gross) inventories at December 31, 2014, included $2,364 of finished goods, $171 of parts and $316 of supplies. Total (gross) inventories at December 31, 2013 included $5,120 of finished goods, $310 of parts and $850 of supplies. | |
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. To fulfill orders faster, the Company places a large amount of its inventory with field sales representatives. This increases the sensitivity of these products to obsolescence reserve estimates. As this inventory is not in the Company’s possession, management maintains additional reserves for estimated shrinkage of these inventories based on the Company’s aging. At December 31, 2014 and 2013, the Company had an allowance for obsolete and damaged inventory of approximately $916 and $1,278 respectively. In addition, during the years ended December 31, 2014 and 2013, the Company wrote off a portion of its inventory totaling approximately $2,005 and $1,340, respectively, as a result of changes in market focus and industry conditions driven primarily by health care reform. These changes caused a reduction in the Company’s field sales force which negatively impacted its field inventory. . In the second quarter of 2014, the Company changed its method of estimation for determining allowances for obsolete and damaged inventory. The Company now estimates that finished units held for sale will be reserved beginning in year three and fully reserved after four years compared to five years previously. This change in estimate had the effect of increasing the allowances for obsolete and damaged inventory by approximately $414 at December 31, 2014 and increasing cost of revenue – sales by approximately $460 ($0.02 per share) for the year ended December 31, 2014, respectively. | |
The Company had $270 of open purchase commitments at December 31, 2014. | |
Property and Equipment | PROPERTY AND EQUIPMENT |
Property and equipment are stated at cost. Products on rental contracts 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 gains or losses are included in the results of operations. Depreciation is computed using the straight-line method. As rental inventory contributes directly to the revenue generating process, the Company classifies the depreciation of rental inventory to cost of revenue. As a result of the Company’s change in product focus discussed above, the Company wrote off all rental inventory unrelated to those specific product lines and recorded a charge to cost of revenue – write-off of non-core inventory of $650 in the second quarter of 2014. | |
Repairs and maintenance costs are charged to expense as incurred. | |
Shipping Costs | SHIPPING COSTS |
Shipping costs are included in cost of sales and rentals. | |
Intangible Assets | INTANGIBLE ASSETS |
Intangible assets with estimable lives are amortized in a pattern consistent with the asset’s identifiable cash flows or using a straight- line method over their remaining estimated benefit periods if the pattern of cash flows is not estimable. The Company reviews the carrying value of intangible and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets is measured by comparison of their carrying amounts to the undiscounted cash flows that the asset or asset group is expected to generate. If the carrying amount of the assets exceeds the undiscounted cash flows the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. Intangible assets primarily include capitalized software. The Company capitalizes software development costs incurred during the application development stage related to new software or major enhancements to the functionality of existing software that is developed solely to meet the entity’s internal operational needs and when no substantive plans exist or are being developed to market the software externally. Costs capitalized include external direct costs of materials and services and internal payroll and payroll-related costs. Any costs during the preliminary project stage or related to training or maintenance are expensed as incurred. Capitalization ceases when the software project is substantially complete and ready for its intended use. The capitalization and ongoing assessment of recoverability of development costs requires considerable judgment by management with respect to certain external factors, including, but not limited to, technological and economic feasibility, and estimated economic life. When the projects are ready for their intended use, the Company amortizes such costs over their estimated useful lives of five years. | |
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 expense is generally 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 condition will be achieved. | |
Advertising | ADVERTISING |
The Company expenses advertising costs as they are incurred. Advertising expense for the years ended December 31, 2014 and 2013 was approximately $47 and $115, respectively. | |
Research and Development | (2) SIGNIFICANT ACCOUNTING POLICIES (continued) |
RESEARCH AND DEVELOPMENT | |
Research and development costs are expensed when incurred. Research and development expense for the years ended December 31, 2014 and 2013 was approximately $394 and $754, respectively. Research and development costs as well as salaries related to research and development are included in selling, general and administrative expenses. | |
Income Taxes | |
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 deferred rent. 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 in accordance with the accounting standard related to income taxes. The Company reports 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, 2014 and 2013, the Company had accrued unrecognized tax benefits, penalties and interest of $250 and $194, respectively. The Company files income tax returns in the U.S. and various state jurisdictions, and there are open statutes of limitations for taxing authorities to audit our tax returns from 2010 through the current period. | |
Foreign Currency Transactions | 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, 2014 and 2013 were insignificant. | |
Reclassifications | RECLASSIFICATIONS |
Certain reclassifications have been made to the prior years’ consolidated financial statements to conform to the current year presentation. These reclassifications had no effect on previously reported results of operations. | |
Recent Accounting Pronouncements | (2) SIGNIFICANT ACCOUNTING POLICIES (continued) |
RECENT ACCOUNTING PRONOUNCEMENTS | |
In August 2014 the FASB issued Accounting Standards Update 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 evaluating the effect of this updated guidance on the disclosures in the footnotes to the Company’s consolidated financial statements. | |
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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. | |
In July 2013, the FASB issued ASU No. 2013-11 “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” Under ASU 2013-11, an entity is required to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. If a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance affects presentation only and, therefore, did not have a material impact on the Company's financial condition, results of operations or cash flows. | |
Management has evaluated other recently issued accounting pronouncements and does not believe that any of these pronouncements will have an impact on the Company’s consolidated financial statements. |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Property Plant And Equipment [Abstract] | |||||||||||
Property and Equipment | Cost, accumulated depreciation, and the related estimated useful lives of property and equipment as of December 31, 2014 and 2013 are as follows: | ||||||||||
2014 | 2013 | Useful lives | |||||||||
Office furniture and equipment | $ | 917 | $ | 2,073 | 3-7 years | ||||||
Rental inventory | 1,314 | 2,142 | 5 years | ||||||||
Vehicles | 76 | 76 | 5 years | ||||||||
Leasehold improvements | 104 | 486 | 2-6 years | ||||||||
Assembly equipment | 125 | 171 | 7 years | ||||||||
2,536 | 4,948 | ||||||||||
Less accumulated depreciation | (1,260 | ) | (2,057 | ) | |||||||
$ | 1,276 | $ | 2,891 | ||||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||
Acquisition of Intangible Assets | At December 31, 2014 and 2013, intangible assets consist of the following | ||||||||||
Amortization | 2014 | 2013 | |||||||||
Life Years | |||||||||||
Software and development costs | 5 | $ | 325 | $ | 325 | ||||||
Less: accumulated amortization | (194 | ) | (147 | ) | |||||||
Total intangible assets, net | $ | 131 | $ | 178 | |||||||
Loss_Per_Share_Tables
Loss Per Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Calculation of Basic and Diluted Loss Per Share | The calculation of basic and diluted loss per share for 2014 and 2013 is as follows: | ||||||||
2014 | 2013 | ||||||||
BASIC | |||||||||
Net loss attributable to common stockholders | $ | (6,199 | ) | $ | (7,301 | ) | |||
Weighted average shares outstanding—basic | 31,207,672 | 31,152,015 | |||||||
Net loss per share—basic | $ | (0.20 | ) | $ | (0.23 | ) | |||
DILUTED | |||||||||
Net loss attributable to common stockholders | $ | (6,199 | ) | $ | (7,301 | ) | |||
Weighted average shares outstanding—basic | 31,207,672 | 31,152,015 | |||||||
Dilutive securities | — | — | |||||||
Weighted average shares outstanding, diluted | 31,207,672 | 31,152,015 | |||||||
Net loss per share, diluted | $ | (0.20 | ) | $ | (0.23 | ) | |||
StockBased_Compensation_Plans_
Stock-Based Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||
Fair Value of Stock Options Grants | (6) STOCK-BASED COMPENSATION PLANS (continued) | ||||||||||||||
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, 2014 and 2013: | |||||||||||||||
2014 | 2013 | ||||||||||||||
Weighted average expected term | 6.25 years | 6.25 years | |||||||||||||
Weighted average volatility | 121 | % | 111 | % | |||||||||||
Weighted average risk-free interest rate | 1.67 | % | 1.54 | % | |||||||||||
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, 2014 and 2013, are presented below: | ||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||
Under | Average | Average | Intrinsic | ||||||||||||
Option | Exercise | Remaining | Value | ||||||||||||
Price | Contractual | ||||||||||||||
Life | |||||||||||||||
Outstanding at January 1, 2013 | 1,501,500 | $ | 0.95 | ||||||||||||
Granted | 1,424,216 | $ | 0.26 | ||||||||||||
Exercised | (23,000 | ) | $ | 0.63 | |||||||||||
Forfeited | (430,500 | ) | $ | 0.87 | |||||||||||
Outstanding at December 31, 2013 | 2,472,216 | $ | 0.57 | 8.1 Years | $ | — | |||||||||
Exercisable at December 31, 2013 | 808,623 | $ | 1.05 | 5.4 Years | $ | — | |||||||||
Outstanding at January 1, 2014 | 2,472,216 | $ | 0.57 | ||||||||||||
Granted | 410,000 | $ | 0.25 | ||||||||||||
Exercised | — | ||||||||||||||
Forfeited | (1,146,697 | ) | $ | 0.45 | |||||||||||
Outstanding at December 31, 2014 | 1,735,519 | $ | 0.59 | 7.2 Years | $ | — | |||||||||
Exercisable at December 31, 2014 | 789,579 | $ | 0.93 | 5.5 Years | $ | — | |||||||||
Summary of Status of the Company's Non-Vested Shares Under Option | A summary of status of the Company’s non-vested shares under option as of and for the year ended December 31, 2014 is presented below: | ||||||||||||||
Non-vested | Weighted | ||||||||||||||
Shares | Average | ||||||||||||||
Under | Grant Date | ||||||||||||||
Option | Fair Value | ||||||||||||||
Non-vested at January 1, 2014 | 1,663,593 | $ | 0.29 | ||||||||||||
Granted | 410,000 | $ | 0.22 | ||||||||||||
Vested | (300,956 | ) | $ | 0.38 | |||||||||||
Forfeited | (826,697 | ) | $ | 0.38 | |||||||||||
Non-vested at December 31, 2014 | 945,940 | $ | 0.29 | ||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Schedule of Income Tax (Benefit) Expense | Income tax (benefit) expense consists of the following for the years ended December 31, 2014 and 2013: | ||||||||
2014 | 2013 | ||||||||
Current tax (benefit) expense: | |||||||||
Federal | $ | (49 | ) | $ | (1,835 | ) | |||
State | — | (79 | ) | ||||||
Penalties and interest | — | 55 | |||||||
(49 | ) | (1,859 | ) | ||||||
Deferred tax (benefit) expense: | |||||||||
Federal | (1,994 | ) | (806 | ) | |||||
State | (131 | ) | (60 | ) | |||||
Valuation allowance | 2,125 | 1,935 | |||||||
— | 1,069 | ||||||||
$ | (49 | ) | $ | (790 | ) | ||||
Schedule of Reconciliation of Income Tax | A reconciliation of income tax computed at the U.S. statutory rate of 34% to the effective income tax rate is as follows: | ||||||||
2014 | 2013 | ||||||||
Statutory rate | (34 | )% | (34 | )% | |||||
State taxes | (2 | ) | (3 | ) | |||||
Permanent differences and other | 2 | 3 | |||||||
Change in valuation allowance | 34 | 24 | |||||||
Effective rate | 0 | % | (10 | )% | |||||
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, 2014 and 2013 are as follows: | ||||||||
2014 | 2013 | ||||||||
Current deferred tax assets (liabilities): | |||||||||
Accrued expenses | $ | 114 | $ | 65 | |||||
Accounts receivable | 1,185 | 671 | |||||||
Inventory | 1,603 | 970 | |||||||
Amortization | — | 135 | |||||||
Prepaid expenses | (90 | ) | (99 | ) | |||||
Stock based compensation | 23 | 23 | |||||||
Tax credits and NOL carryforward | — | 233 | |||||||
Other | 9 | 9 | |||||||
2,844 | 2,007 | ||||||||
Less: Valuation allowance | (2,844 | ) | (1,935 | ) | |||||
Net current deferred tax assets | $ | — | $ | 72 | |||||
Long-term deferred tax assets (liabilities): | |||||||||
Amortization | $ | 125 | $ | — | |||||
Property and equipment | (553 | ) | (969 | ) | |||||
Deferred rent | — | 897 | |||||||
Tax credits and NOL carryforward | 1,644 | — | |||||||
Net long-term deferred tax liabilities | 1,216 | (72 | ) | ||||||
Less: valuation allowance | (1,216 | ) | — | ||||||
Net deferred tax assets | $ | — | $ | — | |||||
Schedule of Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits | 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. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||
2014 | 2013 | ||||||||
Unrecognized tax benefits at the beginning of the period | $ | 194 | $ | 67 | |||||
Gross increases for State income tax liabilities | 56 | 127 | |||||||
Unrecognized tax benefits at the end of the period | $ | 250 | $ | 194 | |||||
Other_Obligations_Tables
Other Obligations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables And Accruals [Abstract] | |||||||||
Future Minimum Lease Payments Under Non-Cancelable Notes Payable, Operating and Capital Leases | As of December 31, 2014, future minimum lease payments under non-cancelable notes payable, operating and capital leases are as follows: | ||||||||
Notes and | Operating | ||||||||
Capital | Leases | ||||||||
Leases | |||||||||
2015 | $ | 153 | $ | 583 | |||||
2016 | 115 | 583 | |||||||
2017 | 114 | — | |||||||
2018 | 79 | — | |||||||
Thereafter | 18 | — | |||||||
Total future minimum lease payments | 479 | $ | 1,166 | ||||||
Less amount representing interest | (90 | ) | |||||||
Present value of net minimum lease payments | 389 | ||||||||
Less current portion | (78 | ) | |||||||
Notes payable and other obligations | $ | 311 | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Fair Value Disclosures [Abstract] | |||||||||
Fair Value of Assets and Liabilities on a Recurring Basis | (10) FAIR VALUE MEASUREMENTS (continued) | ||||||||
The following table presents information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2014, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value: | |||||||||
December 31, | Significant Unobservable Inputs | ||||||||
2014 | (Level 3) | ||||||||
Liabilities: | |||||||||
Contingent consideration | $ | 4 | $ | 4 | |||||
Organization_Nature_of_Busines1
Organization, Nature of Business and Management's Plans (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2014 | Mar. 19, 2015 | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Percentage of limited liability | 80.00% | |||
Total net revenue | $11,117,000 | $21,684,000 | ||
Net (loss) income | -6,199,000 | -7,301,000 | ||
Line of credit current borrowing capacity | 0 | |||
Fixed expenses reduced by cutting annual employee costs through headcount reduction | 7,000,000 | |||
Operating Leases Rent Expense Minimum Rentals | 129,000 | |||
Line of Credit | 4,497,000 | |||
Current Lease Agreement | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Future monthly base rental payments | 43,000 | |||
Lease agreement description | Under the terms of the termination agreement, among other things, the existing headquarters building lease terminated on December 31, 2014; the Company agreed to consolidate its operations into approximately one-third of the total square footage it occupied previously; monthly rental payments were reduced from approximately $129 to $43 for the period from September 1, 2014 through December 31, 2014 | |||
Revised from September 1, 2014 through December 31, 2014 | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Future monthly base rental payments | 49,000 | |||
Lease term | 2 years | 2 years | ||
Lease Commencement Date | 1-Jan-15 | 1-Jan-15 | ||
Lease agreement description | the terms of the new lease took effect January 1, 2015. The terms of the new lease agreement include, among other things, a term of two years, fixed monthly base rental payments of approximately $49. The Company is monitoring the demand for its ZMI electrotherapy products and will make additional expense adjustments as necessary in future periods. | |||
Zynex Billing and Consulting, LLC | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Total net revenue | $411,000 | $262,000 |
Significant_Accounting_Policie2
Significant Accounting Policies (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule Of Significant Accounting Policies [Line Items] | |||
Equity and Noncontrolling interest | 20.00% | ||
Allowance for uncollectible accounts receivable | $936 | $1,837 | |
Deferred revenue | 112 | 0 | |
Write-off non-core inventory | 2,005 | 1,340 | |
Inventory finished goods | 2,364 | 5,120 | |
Inventory parts | 171 | 310 | |
Inventory supplies | 316 | 850 | |
Reserve for obsolete and damaged inventory | 916 | 1,278 | |
Increase in reserve for obsolete and damaged inventory | The Company now estimates that finished units held for sale will be reserved beginning in year three and fully reserved after four years compared to five years previously. | ||
Increase in reserve for obsolete and damaged inventory | 414 | ||
Cost of revenue - Sales | 4,185 | 6,767 | |
Open purchase commitments | 270 | ||
Write-off rental units | 650 | 650 | |
Advertising expense | 47 | 115 | |
Research and development expense | 394 | 754 | |
Company accrued unrecognized tax benefits, penalties and interest | 250 | 194 | |
Software and development costs | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Amortization Life Years | 5 years | ||
Inventory Valuation and Obsolescence | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Cost of revenue - Sales | $460 | ||
Increase in cost of revenue per share | $0.02 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Gross | $2,536 | $4,948 |
Less accumulated depreciation | -1,260 | -2,057 |
Property and Equipment, Net | 1,276 | 2,891 |
Office furniture and equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Gross | 917 | 2,073 |
Office furniture and equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Useful Life | 3 years | |
Office furniture and equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Useful Life | 7 years | |
Rental inventory | ||
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Gross | 1,314 | 2,142 |
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 | 486 |
Leasehold improvements | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Useful Life | 2 years | |
Leasehold improvements | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Useful Life | 6 years | |
Assembly equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and Equipment, Gross | $125 | $171 |
Property and Equipment, Useful Life | 7 years |
Property_and_Equipment_Details1
Property and Equipment (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $613 | $708 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Acquisition of intangible assets | ||
Less: accumulated amortization | ($194) | ($147) |
Intangible assets, net | 131 | 178 |
Software and development costs | ||
Acquisition of intangible assets | ||
Amortization Life Years | 5 years | |
Total intangible assets, gross | $325 | $325 |
Intangible_Assets_Details_Text
Intangible Assets (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $47 | $131 |
Loss_Per_Share_Details
Loss Per Share (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
BASIC | ||
Net loss attributable to common stockholders | ($6,199) | ($7,301) |
Weighted average shares outstanding—basic | 31,207,672 | 31,152,015 |
Net loss per share—basic | ($0.20) | ($0.23) |
DILUTED | ||
Net loss attributable to common stockholders | ($6,199) | ($7,301) |
Weighted average shares outstanding—basic | 31,207,672 | 31,152,015 |
Diluted | 31,207,672 | 31,152,015 |
Net loss per share, diluted | ($0.20) | ($0.23) |
Loss_Per_Share_Details_Textual
Loss Per Share (Details Textual) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share | 1,735,519 | 2,472,205 |
StockBased_Compensation_Plans_1
Stock-Based Compensation Plans (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Nov. 01, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
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 | ||
Stock Options Under Option Plan Maximum Expiry Period | 10 years | ||
Employee stock-based compensation expense | $93 | $133 | |
Granted options to purchase of common stock | 410,000 | 1,424,216 | |
Minimum Exercise price of options to purchase | $0.18 | $0.22 | |
Maximum Exercise price of options to purchase | $0.26 | $0.48 | |
Estimated average forfeiture rate | 40.00% | 40.00% | |
Unrecognized compensation expense related to stock options | 157 | ||
Weighted-average period of unrecognized compensation expense related to stock option | 3 years | ||
Number of converted common stock options to common shares | 23,000 | 23,000 | |
Common Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of converted common stock options to common shares | 46,000 | ||
Cost of Sales | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Employee stock-based compensation expense | 8 | 11 | |
Selling, General and Administrative Expenses | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Employee stock-based compensation expense | $85 | $122 |
StockBased_Compensation_Plans_2
Stock-Based Compensation Plans (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Fair value of stock option grants | ||
Weighted average expected term | 6 years 3 months | 6 years 3 months |
Weighted average volatility | 121.00% | 111.00% |
Weighted average risk-free interest rate | 1.67% | 1.54% |
Dividend yield | 0.00% | 0.00% |
StockBased_Compensation_Plans_3
Stock-Based Compensation Plans (Details 1) (USD $) | 0 Months Ended | 12 Months Ended | |
Nov. 01, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of stock option activity under the option Plan | |||
Shares under option outstanding beginning balance | 2,472,216 | 1,501,500 | |
Shares under option, granted | 410,000 | 1,424,216 | |
Shares under option, exercised | -23,000 | -23,000 | |
Shares under option, forfeited | -1,146,697 | -430,500 | |
Shares under option outstanding ending balance | 1,735,519 | 2,472,216 | |
Shares under option, exercisable ending balance | 789,579 | 808,623 | |
Weighted average exercise price outstanding beginning balance | $0.57 | $0.95 | |
Weighted average exercise price, granted | $0.25 | $0.26 | |
Weighted average exercise price, exercised | $0.63 | ||
Weighted average exercise price, forfeited | $0.45 | $0.87 | |
Weighted average exercise price outstanding ending balance | $0.59 | $0.57 | |
Weighted average exercise price, exercisable ending balance | $0.93 | $1.05 | |
Outstanding, weighted average exercise remaining contractual life | 7 years 2 months 12 days | 8 years 1 month 6 days | |
Exercisable, weighted average exercise remaining contractual life | 5 years 6 months | 5 years 4 months 24 days |
StockBased_Compensation_Plans_4
Stock-Based Compensation Plans (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of status of the Company's non-vested share awards | ||
Non-vested shares under option at January 1, 2014 | 1,663,593 | |
Granted options to purchase of common stock | 410,000 | 1,424,216 |
Non-vested share under option, vested | -300,956 | |
Non-vested share under option, forfeited | -826,697 | |
Non-vested shares under option at December 31, 2014 | 945,940 | 1,663,593 |
Weighted average grant date fair value at January 1, 2014 | $0.29 | |
Weighted average grant date fair value, granted | $0.22 | |
Weighted average grant date fair value, vested | $0.38 | |
Weighted average grant date fair value, forfeited | $0.38 | |
Weighted average grant date fair value at December 31, 2014 | $0.29 | $0.29 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Federal | ($49) | ($1,835) |
State | -79 | |
Penalties and interest | 55 | |
Total current tax expense | -49 | -1,859 |
Federal | -1,994 | -806 |
State | -131 | -60 |
Valuation allowance | 2,125 | 1,935 |
Total deferred tax benefit | 1,069 | |
Income tax (benefit) expense | ($49) | ($790) |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Taxes [Line Items] | ||
Statutory rate | -34.00% | -34.00% |
Net loss for income tax purpose | $3,200 | |
State | ||
Income Taxes [Line Items] | ||
Net operating loss carry forwards | $6,700 | |
Minimum | ||
Income Taxes [Line Items] | ||
Net operating loss carry forwards, expiration period (in years) | 5 years | |
Maximum | ||
Income Taxes [Line Items] | ||
Net operating loss carry forwards, expiration period (in years) | 7 years |
Income_Taxes_Details_1
Income Taxes (Details 1) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of reconciliation of income tax | ||
Statutory rate | -34.00% | -34.00% |
State taxes | -2.00% | -3.00% |
Permanent differences and other | 2.00% | 3.00% |
Change in valuation allowance | 34.00% | 24.00% |
Effective rate | 0.00% | -10.00% |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current deferred tax assets (liabilities): | ||
Accrued expenses | $114 | $65 |
Accounts receivable | 1,185 | 671 |
Inventory | 1,603 | 970 |
Amortization | 135 | |
Prepaid expenses | -90 | -99 |
Stock based compensation | 23 | 23 |
Tax credits and NOL carryforward | 233 | |
Other | 9 | 9 |
Gross current deferred tax assets | 2,844 | 2,007 |
Less: Valuation allowance | -2,844 | -1,935 |
Net current deferred tax assets | 72 | |
Long-term deferred tax assets (liabilities): | ||
Amortization | 135 | |
Property and equipment | -553 | -969 |
Tax credits and NOL carryforward | 233 | |
Net long-term deferred tax liabilities | 1,216 | -72 |
Less: valuation allowance | -1,216 | |
Other Noncurrent Assets | ||
Current deferred tax assets (liabilities): | ||
Amortization | 125 | |
Tax credits and NOL carryforward | 1,644 | |
Long-term deferred tax assets (liabilities): | ||
Amortization | 125 | |
Deferred rent | 897 | |
Tax credits and NOL carryforward | $1,644 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | ||
Unrecognized tax benefits at the beginning of the period | $194 | $67 |
Gross increases for State income tax liabilities | 56 | 127 |
Unrecognized tax benefits at the end of the period | $250 | $194 |
Line_of_Credit_Details_Textual
Line of Credit (Details Textual) (USD $) | 12 Months Ended | 0 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Mar. 27, 2015 | Dec. 31, 2013 |
Line of Credit Facility [Abstract] | |||
Line of credit | $4,442 | $5,820 | |
Date of Maturity | 19-Dec-14 | ||
Subsequent Event | |||
Line of Credit Facility [Abstract] | |||
Extended date of forbearance | 30-Jun-15 | ||
Revolving Credit Facility | |||
Line of Credit Facility [Abstract] | |||
Line of credit | 4,442 | ||
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% |
Capital_Leases_and_Other_Oblig
Capital Leases and Other Obligations (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 4 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2014 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||||
Net gain on lease termination | $2,195 | ||||
Deferred Rent Credit Current | 2,845 | ||||
Write-off rental units | 650 | 650 | |||
Annual rental expense | 1,158 | 1,716 | |||
Assembly equipment | |||||
Debt Instrument [Line Items] | |||||
Cost of assets under capital lease | 461 | 461 | |||
Accumulated depreciation | 105 | 105 | |||
Maximum | |||||
Debt Instrument [Line Items] | |||||
Imputed interest rate on lease | 18.00% | ||||
Minimum | |||||
Debt Instrument [Line Items] | |||||
Imputed interest rate on lease | 6.00% | ||||
Revised from September 1, 2014 through December 31, 2014 | |||||
Debt Instrument [Line Items] | |||||
Lease Initiation Date | 31-Oct-14 | ||||
Lease Commencement Date | 1-Jan-15 | 1-Jan-15 | |||
Lease term | 2 years | 2 years | |||
Fixed rental payments for each month | 49 | ||||
Lease agreement written notice to company, terms | 6 months | ||||
Lease agreement written notice to landlord, terms | 3 months | ||||
Revised from September 1, 2014 through December 31, 2014 | Maximum | |||||
Debt Instrument [Line Items] | |||||
Lease termination date | 31-Dec-16 | ||||
Terminating Lease Agreement | |||||
Debt Instrument [Line Items] | |||||
Monthly rental payments | $43 | ||||
Lease Commencement Date | 1-Sep-14 | ||||
Lease termination date | 31-Dec-14 |
Capital_Leases_and_Other_Oblig1
Capital Leases and Other Obligations (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Future minimum lease payments under non-cancelable notes payable and capital leases | ||
2015 Notes and Capital Leases | $153 | |
2016 Notes and Capital Leases | 115 | |
2017 Notes and Capital Leases | 114 | |
2018 Notes and Capital Leases | 79 | |
Thereafter Notes and Capital Leases | 18 | |
Total future minimum lease payments, Notes and Capital Leases | 479 | |
Less amount representing interest | -90 | |
Present value of net minimum lease payments | 389 | |
Less current portion | -78 | -92 |
Notes payable and other obligations | 311 | 150 |
Future minimum lease payments under non-cancelable operating leases | ||
2015 Operating Leases | 583 | |
2016 Operating Leases | 583 | |
Total future minimum lease payments, Operating Lease | $1,166 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Fair Value, Measurements, Recurring, Contingent Consideration, USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Liabilities: | |
Contingent consideration | $4 |
Fair Value, Inputs, Level 3 | |
Liabilities: | |
Contingent consideration | $4 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value Disclosures [Abstract] | ||
Contingent payments | $3 | $3 |
Changes in fair value obligation and accretion expenses | $0 | $97 |
Stockholders_Equity_Details_Te
Stockholders' Equity (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Nov. 01, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 20, 2014 |
Class Of Stock [Line Items] | ||||
Value, Issued for Services | $23 | |||
Number of converted common stock options to common shares | 23,000 | 23,000 | ||
Weighted average exercise price, exercised | $0.63 | |||
Immediate Family Member of Management or Principal Owner | ||||
Class Of Stock [Line Items] | ||||
Number of converted common stock options to common shares | 46,000 | |||
Weighted average exercise price, exercised | 0.5 | |||
Common Stock | ||||
Class Of Stock [Line Items] | ||||
Shares issued for services | 100,000 | 100,000 | ||
Value, Issued for Services | $23,000 | |||
Common Stock | Immediate Family Member of Management or Principal Owner | ||||
Class Of Stock [Line Items] | ||||
Issuance of common stock for option exercise, shares | 23,000 |
Concentrations_Details_Textual
Concentrations (Details Textual) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Raw materials | Electrotherapy products | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 21.00% | 21.00% |
Net accounts receivable | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 10.00% | 7.00% |
Retirement_Plan_Details
Retirement Plan (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Compensation And Retirement Disclosure [Abstract] | ||
Defined contribution plan eligibility age | 18 years | |
Defined contribution plan period of employment for eligibility | 3 months | |
Contribution by the company towards the plan | $0 | $0 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 0 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Nov. 01, 2013 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ||
Number of converted common stock options to common shares | 23,000 | 23,000 |
Sale of stock, price per share | $0.63 | |
Immediate Family Member of Management or Principal Owner | ||
Related Party Transaction [Line Items] | ||
Number of converted common stock options to common shares | 46,000 | |
Sale of stock, price per share | 0.5 | |
Immediate Family Member of Management or Principal Owner | Separation agreement | ||
Related Party Transaction [Line Items] | ||
Lump sum payment made under retirement agreement | 42 | |
Common Stock | Immediate Family Member of Management or Principal Owner | ||
Related Party Transaction [Line Items] | ||
Issuance of common stock for option exercise, shares | 23,000 |
Segment_Reporting_Details_Text
Segment Reporting (Details Textual) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
Segment Reporting Information [Line Items] | |
Number of reporting segments | 1 |
Total net revenue | ZMI Tens units and compound pain creams | |
Segment Reporting Information [Line Items] | |
Concentration Risk, Percentage | 96.00% |