Zynex (ZYXI) 10-K 31 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Mar. 22, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	ZYNEX INC
Entity Central Index Key	846,475
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Trading Symbol	ZYXI
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float		$ 4,195,570
Entity Common Stock, Shares Outstanding		31,271,234

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current Assets:
Cash	$ 8	$ 63
Accounts receivable, net	2,426	3,189
Inventory, net	305	1,935
Prepaid expenses	27	250
Income tax receivable		268
Total current assets	2,766	5,705
Property and equipment, net	801	1,276
Deposits	55	2
Intangible assets, net	74	131
Total assets	3,696	7,114
Current Liabilities:
Line of credit	4,002	4,442
Current portion of capital leases	109	78
Accounts payable	2,477	2,544
Deferred revenue	89	112
Income taxes payable	79	79
Accrued payroll and payroll taxes	484	342
Other accrued liabilities	299	460
Total current liabilities	7,539	8,057
Capitalized leases, less current portion	216	311
Warranty liability	12	13
Total liabilities	$ 7,767	$ 8,381
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 shares issued and outstanding	$ 31	$ 31
Paid-in capital	5,832	5,702
Accumulated deficit	(9,845)	(6,934)
Total Zynex, Inc. stockholders’ deficit	(3,982)	(1,201)
Non-controlling interest	(89)	(66)
Total Stockholders’ deficit	(4,071)	(1,267)
Total liabilities and stockholders' equity	$ 3,696	$ 7,114

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	31,271,234	31,271,234
Common stock, shares outstanding	31,271,234	31,271,234

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Net revenue:
Rental	$ 2,480	$ 2,191
Product and supply	7,989	7,381
Pharmacy and other	1,172	1,545
Net revenue	11,641	11,117
Operating Expenses
Cost of revenue – rental, product and supply	(4,937)	(4,957)
Cost of revenue – noncore inventory write-off		(2,655)
Selling, general and administrative expenses	(9,185)	(11,397)
Net gain on lease termination		2,195
Loss from operations	(2,481)	(5,697)
Other income (expense):
Interest expense	(503)	(536)
Other income (expense)	(7)	(47)
Total other income (expense)	(510)	(583)
Loss before income taxes	(2,991)	(6,280)
Income tax benefit	57	49
Net loss	(2,934)	(6,231)
Plus: Net loss – non-controlling interest	23	32
Net loss – attributable to Zynex, Inc.	$ (2,911)	$ (6,199)
Net loss per share – attributable to Zynex, Inc.:
Basic	$ (0.09)	$ (0.20)
Diluted	$ (0.09)	$ (0.20)
Weighted average number of common shares outstanding:
Basic	31,271,234	31,207,672
Diluted	31,271,234	31,207,672

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net loss	$ (2,934)	$ (6,231)
Adjustments to reconcile net loss to net cash provided (used) in operating activities:
Depreciation expense	367	613
Noncore inventory write-off		2,005
Write-off rental units		650
Net gain on lease termination		(2,195)
Provision for losses on accounts receivable	1,040	1,406
Amortization of intangible assets	57	47
Amortization of financing fees		48
Issuance of common stock for services		23
Provision for obsolete inventory	28	(580)
Deferred rent		391
Employee stock-based compensation expense	130	93
Changes in operating assets and liabilities:
Accounts receivable	(277)	2,436
Inventory	1,602	1,642
Prepaid expenses	223	96
Income tax receivable	268	625
Deposits and other current assets	(53)	122
Deferred revenue	(23)	112
Accounts payable	(67)	(199)
Accrued liabilities	(20)	(126)
Income taxes payable		(17)
Net cash provided by operating activities	341	961
Cash flows from investing activities:
Net disposals (purchases) of equipment	9	(272)
Change in inventory used for rental	99	285
Payments on contingent consideration	(4)	(3)
Net cash provided by investing activities	108	10
Cash flows from financing activities:
Net repayments on line of credit	(440)	(1,378)
Proceeds from notes payable and capital leases		207
Payments on notes payable and capital lease obligations	(64)	(60)
Net cash used in financing activities	(504)	(1,231)
Net decrease in cash	(55)	(260)
Cash at the beginning of the period	63	323
Cash at the end of the period	8	63
Supplemental cash flow information:
Interest paid	$ 503	536
Supplemental disclosure of non-cash investing and financing activities:
Deposit used to purchase leasehold improvements		$ 311

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' (Deficit) Equity - USD ($) $ in Thousands	Total	Common Stock	Paid-in Capital	Accumulated Deficit	Noncontrolling Interest
Balance at Dec. 31, 2013	$ 4,848	$ 31	$ 5,586	$ (735)	$ (34)
Balance, shares at Dec. 31, 2013		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
Employee stock-based compensation expense	$ 130		130
Net loss	(2,934)			(2,911)	(23)
Balance at Dec. 31, 2015	$ (4,071)	$ 31	$ 5,832	$ (9,845)	$ (89)
Balance, shares at Dec. 31, 2015	31,271,234	31,271,234

Organization, Nature of Busines

Organization, Nature of Business and Management's Plans	12 Months Ended
	Dec. 31, 2015
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) has its headquarters in Lone Tree, Colorado. The Company operates in one primary business segment, Electrotherapy and Pain Management Products. As of December 31, 2015, the Company’s active subsidiaries are Zynex Medical, Inc. (“ZMI,” a wholly-owned Colorado corporation), Zynex Europe, ApS (“ZEU,” a wholly-owned Denmark corporation) and Zynex Monitoring Solutions, Inc. (“ZMS,” a wholly-owned Colorado corporation). Its inactive subsidiaries include Zynex NeuroDiagnostics, Inc. (“ZND,” a wholly-owned Colorado corporation), Zynex Billing and Consulting, LLC (“ZBC,” an 80% owned Colorado limited liability company) and Pharmazy, Inc. (“Pharmazy”), which was incorporated in June 2015 as a wholly-owned Colorado corporation. The Company’s compound pharmacy operated as a division of ZMI dba as Pharmazy through January 2016. During 2015 and 2014 revenues earned by ZMI totaled 99.6% and 96.2%, respectively. The ZMI dba Pharmazy operations represented 9.7% and 10.0% of revenues during 2015 and 2014, respectively. The term “the Company” refers to Zynex, Inc. and its active and inactive subsidiaries. Nature of Business ZMI designs, manufactures and markets U.S. Food and Drug Administration (FDA) cleared medical devices that treat chronic and acute pain, as well as activate and exercise muscles for rehabilitative purposes with electrical stimulation. ZEU was formed in 2012 to conduct international sales and marketing for Company products. ZEU produced minimal revenues during 2015 and 2014. In addition, ZMI dba Pharmazy, which sold compound transdermal pain cream, began operations in early 2014 and was closed in January 2016. ZMS was formed to develop and market medical devices for non-invasive cardiac monitoring, the products of which are under development. The Company is currently developing a blood volume monitoring device. ZMS produced no revenues during 2015 or 2014. ZND was formed in 2011 to market electromyography (“EMG”), electroencephalography (“EEG”), sleep pattern, auditory and nerve conductivity neurological diagnosis devices to hospitals and clinics worldwide. In 2014, the Company decided to no longer focus on selling this product line (no significant revenue was generated during 2015 or 2014). ZBC was formed in 2012 to provide medical billing and consulting services. The Company stopped offering billing and consulting services in April 2015. No significant revenue was generated in 2015 and 2014. In 2015 and 2014, the Company generated substantially all of its revenue in North America from sales and rentals of its products to patients, dealers and health care providers. Management Plans The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. For the years ended December 31, 2015 and 2014, the Company reported net losses of $2,911 and $6,199, respectively. As of December 31, 2015 the Company had no available borrowing under its line of credit although, based on an interim agreement with the bank, the lender continues to make additional loans to the Company based on the Company’s cash collections. The Company’s working capital deficit at December 31, 2015 totaled $(4,773) as compared to ($2,352) at December 31, 2014, an increase of $ 2,421. In addition, the Company is in default of its secured line of credit and as a result, if its lender insists upon immediate repayment, the Company will be insolvent and may be forced to seek protection from its creditors. These losses, limited liquidity and increasing working capital deficit 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 continue as a going concern. The Company’s operating plans for 2015 emphasized revenue growth and cash flow; focusing its attention on increasing the number of sales representatives, promoting its EZ Rx Prescription program (see description below), continued improvements to its billing organization and processes and reducing and controlling its administrative expenses. Total net revenue for the year ended December 31, 2015 was $11,641 compared to $11,117 in 2014. This is a significant decline from revenues in 2013 and 2012 of approximately $21.7 million and $39.7 million, respectively. The primary reasons for the decline in revenue were (i) the impact of Medicare and healthcare reform, (ii) a loss of Zynex’s independent sales force to sell transdermal compounded pain cream from competing pharmacies rather than focusing on selling the Company’s Electrotherapy products and (iii) in the latter part of 2012, the elimination of Medicare reimbursement for transcutaneous electrical nerve stimulation (TENS) Electrotherapy products for low-back pain while still covering TENS for other indications. Medicare also continued increasing the requirements for paperwork and documentation in connection with reimbursement requests. As a result, late in 2013 Zynex began declining orders for Medicare and Medicaid patients. Commercial and workers’ compensation insurance plans continue to reimburse at similar levels as in previous years and have not adopted Medicare’s limited coverage. During the second quarter of 2014, the Company narrowed its focus to the NexWave, InWave and NeuroMove electrotherapy products and continued to build the sales representative group for its TENS solutions. The Company continued to narrow its focus during 2015 by closing its billing consulting services in April 2015 and closing its compound pain cream operations in January 2016. During 2015 and throughout 2014, in an effort to minimize the impact of these challenges, the Company restructured its internal operations, including manufacturing, billing and customer service; and During the fourth quarter of 2015, the electrotherapy industry experienced a significant development when the Company’s largest competitor (DJO/Empi) announced the closure of their Empi electrotherapy division. Empi previously held a large share of the electrotherapy market. Management believes this presents a significant growth opportunity for the Company. The Company has recruited over many former Empi sales representatives, including those in areas where we had no previous representation. In addition, during 2016, Company orders have been steadily increasing as compared to 2015. To focus on growth and the potential for future positive cash flow, the Company has committed its limited resources to the new salesforce, including the supporting product production and supporting administrative (customer service and billing) personnel. The Company is not in compliance with the financial covenants under the terms of its line of credit with TBK Bank, SSB (the “Lender”). 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. The Lender agreed to forbear from the exercise of its rights and remedies under the terms of the credit agreement through June 30, 2016 and continues to make additional loans to the Company based on the Company’s cash collections. The Company is obligated to decrease the Lender’s outstanding balance by $85 per month. As of March 22, 2016, the Company had $3,346 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 continued extension of the forbearance agreement. 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 Company is actively seeking additional . The additional The In addition, any In December 2015, the Company entered into a non-binding term sheet with a financial institution to secure a new line of credit, which could replace and expand available borrowings under its current Lender arrangement. The execution of the term sheet is subject to due diligence, legal documentation and the financial institution’s credit committee approval. The Company and the financial institution have scheduled the initial due diligence procedures to begin in early April 2016. The Company’s business plan for 2016 focuses on the Company’s effort to attain external financing, the Lender’s continued support, the vendors continued support and attaining positive cash flow from organic growth. The accomplishment of organic growth in revenues and cash flows is dependent on taking advantage of the Empi opportunity and the increased number of sales representatives, using its EZ Rx Prescription program and continued improvements to its billing organization and processes. The Company has and will continue to seek external financing and monitor and control its sales growth, product production needs and administrative costs going forward. If the Company continues to increase its revenue while controlling its administrative costs, the Company may return to profitability in future years. The Company believes that as a result of the growth opportunities coupled the reduced administrative expenses, the securing of additional capital, the continued support of our Lender, and the continued support of our vendors to work with Company on the slow payment of past due bills; that Management believes that its cash flow projections for 2016 are achievable and that sufficient cash will be generated to meet the Company’s currently restrained operating requirements. Such cash is projected to be generated by securing external financing, retaining the continued support of the Lender and vendors, and increasing cash flow from operations generated from organic growth. There is no guarantee that the Company will be able to meet the requirements of its 2016 cash flow projections or that it will be able to address its working capital shortages; the principal component of which is the negative working capital (principally the line of credit and past due accounts payable which are considered a current liability in their entirety). There can be no assurance that the Company will be able to secure additional external financing, the Lender will continue to make loan advances, the vendors will continue to work with slow repayment terms, and the sales and cash flow growth are attainable and sustainable. The Company’s dependence on operating cash flows means that risks involved in the Company’s business can significantly affect the Company’s liquidity. Contingencies such as unanticipated shortfalls in revenues or increases in expenses could affect the Company’s projected revenues, cash flows from operations and liquidity, which may force the Company to curtail its operating plan or impede the Company’ growth.

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
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. Non-controlling Interest Non-controlling interest in the equity of a subsidiary is accounted for and reported as stockholders’ (deficit) equity. Non-controlling interest represents the 20% ownership in the Company’s majority-owned (but currently inactive) subsidiary, ZBC. Use of Estimates Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The most significant management estimates used in the preparation of the accompanying consolidated financial statements are associated with the allowance for contractual adjustments and uncollectible accounts receivable, the reserve for obsolete and damaged inventory, the life of its rented equipment, stock-based compensation, valuation of long-lived assets and income taxes. Revenue Recognition, Allowance for Contractual Adjustments and Collectability The Company recognizes revenue when each of the following four conditions are met: 1) a contract or sales arrangement exists, 2) products have been shipped and title has transferred, or rental services have been rendered, 3) the price of the products or services is fixed or determinable, and 4) collectability is reasonably assured. The Company recognizes revenue when medical units and supplies are shipped or, for medical units sold from consigned inventory, when it receives notice that the product has been prescribed and delivered to the patient. The Company, prior to recognizing revenue verifies the patient’s insurance coverage or obtained the insurance company preauthorization, when required. Revenue from supplies is recognized upon shipment. Revenue from the rental of products is normally on a month-to-month basis and is recognized ratably over the products’ rental period. Revenue from sales to distributors is recognized when the Company ships its products. Revenue is reported net, after adjustments for estimated insurance company or governmental agency (collectively “Third-party Payors”) reimbursement deductions and, for wholesale customers and patient billings, an allowance for uncollectible accounts. The Third-party Payor reimbursement deductions are known throughout the health care industry as “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 the medical industry has typically resulted in long collection cycles. The process of determining what products will be reimbursed by Third-party Payors and the amounts that they will reimburse is complex and depends on conditions and procedures that vary among providers and may change from time to time. The Company maintains an allowance for contractual adjustments and an allowance for doubtful accounts. Contractual adjustments result from reimbursements from Third-party Payors that are less than amounts claimed and from where the amount claimed by the Company exceeds the Third-party Payors usual, customary and reasonable reimbursement rate. The Company determines the amount of the allowance and adjusts it at the end of each reporting period, based on a number of factors, including historical rates of collection, the aging of the receivables, trends in the historical rates of collection and current relationships and experience with the Third-party Payors. If the rates of collection of past-due receivables recorded for previous fiscal periods changes, or if there is a trend in the rates of collection on those receivables, the Company may be required to change the rate at which it provides for additions to the allowance. A change in the rates of the Company’s collections can result from a number of factors, including experience and training of billing personnel, changes in the reimbursement policies or practices of Third-party Payors, or changes in industry rates of reimbursement. Accordingly, changes to the allowance for contractual adjustments and uncollectible accounts, which are recorded in the income statement as a reduction of revenue, have historically fluctuated and may continue to fluctuate significantly from quarter to quarter and year to year. Due to the nature of the medical industry and the reimbursement environment in which the Company operates, estimates are required to record net revenues and accounts receivable at their net realizable values (also known as net collectible value). Inherent in these estimates is the risk that they will have to be revised or updated as additional information becomes available. Specifically, the complexity of third-party billing arrangements and the uncertainty of reimbursement amounts for certain products or services from payors or unanticipated requirements to refund payments previously received may result in adjustments to amounts originally recorded. Due to continuing changes in the health care industry and third-party reimbursement, as well as changes in our billing practices to increase cash collections, it is possible that management’s estimates could change in the near term, which could have an impact on our results of operations and cash flows. Any differences between estimated settlements and final determinations are reflected as an increase or a reduction to revenue in the period when such final determinations are known. The Company frequently receives refund requests from insurance providers relating to specific patients and dates of service. Billing and reimbursement disputes are very common in the Company’s industry. These requests are sometimes related to a limited number of patients or products; at other times, they include a significant number of refund claims in a single request. The Company reviews and evaluates these requests and determines if any refund request is appropriate. The Company also reviews these refund claims when it is rebilling or pursuing reimbursement from that insurance provider. The Company frequently has significant offsets against such refund requests, and sometimes amounts are due to the Company in excess of the amounts of refunds requested by the insurance providers. Therefore, at the time of receipt of such refund requests, the Company is generally unable to determine if a refund request is valid and should be accrued. Such refunds are accrued when the amount is fixed and determinable. However, no assurances can be given with respect to such estimates of reimbursements and offsets or the ultimate outcome of any refund requests. In addition to the allowance for contractual adjustments, the Company records an allowance for uncollectible accounts receivable for wholesale (sales to distributors) sales and certain patient billings. Uncollectible accounts receivable are primarily a result of non-payment from patients who have been direct billed for co-payments or deductibles, lack of appropriate insurance coverage and disallowances of charges by Third-party Payors. If there is a change to a material insurance provider contract or policy, application by a provider, a decline in the economic condition of providers or a significant turnover of Company billing personnel resulting in diminished collection effectiveness, the estimate of the allowance for uncollectible accounts receivable may not be adequate and may result in an increase in the future. At December 31, 2015 and 2014, the allowance for uncollectible accounts receivable on commercial and wholesale accounts and patient billings total $1,996 and $936, respectively. As of December 31, 2015, the Company believes its accounts receivable is reasonably stated at its net realizable / collectible value and has an adequate allowance for contractual adjustments relating to all known insurance disputes and refund requests. At December 31, 2015 and 2014, the Company recorded a liability for deferred revenue in the amount of $89 and $112, respectively. Deferred revenue represents amounts paid by Third-party Payors for consumable supplies that were not yet shipped to patients as of that date. Fair Value of Financial Instruments The Company’s financial instruments at December 31, 2015, include cash, accounts receivable, accounts payable and income taxes, for which current carrying amounts approximate fair value due to their short-term nature. Financial instruments at December 31, 2015, also include the line of credit and capitalized leases, the carrying value of which approximates fair value because the interest rates on the outstanding borrowings are at rates that approximate market rates for borrowings with similar terms and average maturities. Inventory Inventory, which primarily represents finished goods, are valued at the lower of cost (average) or market. The Company monitors inventory for turnover and obsolescence and records losses for excess and obsolete inventory, as appropriate. The Company provides reserves for estimated excess and obsolete inventories equal to the difference between the costs of inventories on hand and the estimated market value based upon assumptions about future demand. If future demand is less favorable than currently projected by management, additional inventory write-downs may be required. To fulfill orders faster, the Company prior to 2015 placed a large amount of its inventory with field sales representatives and health care providers (field inventory). This increased the sensitivity of these products to reserve estimates. As this inventory is not in the Company’s possession, management maintained additional reserves for these inventories based on the Company’s aging. Finished goods at December 31, 2015 and 2014 includes products (finished goods, parts and supplies) held at the Company’s headquarters and, at December 31, 2014, finished goods at different locations by health care providers or other third parties for rental or sale to patients (field inventory). During 2015 the Company ramped up the EZ Rx Prescribe program, whereby the NexWave electrotherapy device is sold by prescription and is shipped from the Company manufacturing facilities. Company sales using the EZ Rx Prescription program represented 15% and 75% of sales during January and December of 2015, respectively. As a result, the Company is no longer holding substantial field inventory at different locations by healthcare or third party providers. During 2014 and 2015, in conjunction with the introduction and ramp up of the EZ Rx Prescribe program, industry conditions driven by health care reforms and the ongoing evaluation of field In addition, as a result of the change in Company’s market focus during 2014 on the NexWave, InWave and NeuroMove electrotherapy products and industry conditions driven primarily by health care reform These changes had caused a reduction in the Company’s field sales force which negatively impacted its field Total gross inventories at December 31, 2015 included $102 of finished goods and $231 of parts and supplies as compared to December 31, 2014, which included $2,364 of finished goods and $488 of parts and supplies. Inventory has been reduced by an allowance for slow moving and obsolete inventory of $28 at December 31, 2015 and $916 as of December 31, 2014. The Company had $295 of open inventory purchase commitments at December 31, 2015. Property and Equipment Property and equipment are stated at cost. Products being rented are placed in property and equipment and depreciated over their estimated useful life. The Company removes the cost and the related accumulated depreciation from the accounts of assets sold or retired, and the resulting net gains or losses are included in the results of operations. Depreciation is computed using the straight-line method over the useful life of the asset. As rental inventory contributes directly to the revenue generating process, the Company classifies the depreciation of rental inventory in cost of revenue. As a result of the Company’s change in product focus discussed above, the Company recorded a charge to cost of revenue – noncore inventory write-off of $ 650 in the second quarter of 2014. Repairs and maintenance costs are charged to expense as incurred. Intangible Assets – Capitalized Software Intangible assets 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 is 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. 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. Stock-based Compensation The Company accounts for stock-based compensation through recognition of the cost of employee services received in exchange for an award of equity instruments, which is measured based on the grant date fair value of the award that is ultimately expected to vest during the period. The stock-based compensation expenses are recognized over the period during which an employee is required to provide service in exchange for the award (the requisite service period, which in the Company’s case is the same as the vesting period). For awards subject to the achievement of performance metrics, stock-based compensation expense is recognized when it becomes probable that the performance conditions will be achieved. Advertising The Company expenses advertising costs as they are incurred. Advertising expense for the years ended December 31, 2015 and 2014 was approximately $ 78 and $47, respectively. Research and Development Research and development costs are expensed when incurred. Research and development expense for the years ended December 31, 2015 and 2014 was approximately $ 256 and $394, 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 accrued expenses. The carrying value of deferred tax assets is determined based on an evaluation of whether the Company is more likely than not to realize the assets. A valuation allowance is established, when considered necessary, to reduce deferred tax assets to the amounts expected to be realized. The Company accounts for uncertain tax positions 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, 2015 and 2014, the Company had uncertain tax benefits, penalties and interest of $250 and $250, 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, 2015 and 2014 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 or cash flows. Recent Accounting Pronouncements In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-15 “Presentation of Financial Statements—Going Concern (Subtopic 205-40) Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The amendments in this Update provide guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this Update are effective for the annual period ending after December 15, 2016 and for annual periods and interim periods thereafter. Early application is permitted. The Company is evaluating the effect of this updated guidance on the disclosures in the footnotes to the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09—“Revenue from Contracts with Customers” (Topic 606) which amended revenue recognition guidance to clarify the principles for recognizing revenue from contracts with customers. The guidance requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This accounting guidance is effective for the Company beginning in the first quarter of fiscal year 2018, using one of two prescribed retrospective methods. Early adoption is not permitted. The Company is evaluating the impact of the amended revenue recognition guidance on the Company’s consolidated financial statements. Management has evaluated other recently issued accounting pronouncements and does not believe that any of these pronouncements will have a material impact on the Company’s consolidated financial statements.

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2015
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, 2015 and 2014 are as follows: 2015 2014 Useful Office furniture and equipment $ 911 $ 917 3-7 years Rental inventory 1,216 1,314 5 years Vehicles 76 76 5 years Leasehold improvements 104 104 2-6 years Assembly equipment 125 125 7 years 2,432 2,536 Less accumulated depreciation (1,631 ) (1,260 ) $ 801 $ 1,276 Depreciation expense recorded on property and equipment for 2015 and 2014 totaled $

Intangible Assets

Intangible Assets	12 Months Ended
	Dec. 31, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible Assets	(4) INTANGIBLE ASSETS At December 31, 2015 and 2014, intangible assets consist of the following Amortization Life Years 2015 2014 Software and development costs 5 $ 325 $ 325 Less: accumulated amortization (251 ) (194 ) Total intangible assets, net $ 74 $ 131 The software and development costs are amortized over 5 years. Amortization expense totaled $57 and $47 for 2015 and 2014, respectively

Loss Per Share

Loss Per Share	12 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Loss Per Share	(5) LOSS PER SHARE Basic loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing net loss by the weighted-average number of common shares outstanding and the number of dilutive potential common share equivalents during the period, calculated using the treasury-stock method. The effects of potential common stock equivalents, related to outstanding options for the years ended December 31, and totaling 1, and , 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. The calculation of basic and diluted earnings (loss) per share for the years ended December 31, 2015 and 2014 is as follows: 2015 2014 BASIC Net loss attributable to common stockholders $ (2,911 ) $ (6,199 ) Weighted average shares outstanding—basic 31,271,234 31,207,672 Net loss per share—basic $ (0.09 ) $ (0.20 ) DILUTED Net loss attributable to common stockholders $ (2,911 ) $ (6,199 ) Weighted average shares outstanding—basic 31,271,234 31,207,672 Dilutive securities — — Weighted average shares outstanding, diluted 31,271,234 31,207,672 Net loss per share, diluted $ (0.09 ) $ (0.20 )

Stock-Based Compensation Plans

Stock-Based Compensation Plans	12 Months Ended
	Dec. 31, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation Plans	(6) STOCK-BASED COMPENSATION PLANS The Company previously reserved 3,000,000 shares of common stock for issuance under its 2005 Stock Option Plan (the “Option Plan”). The Option Plan expired as of December 31, 2014. Vesting provisions 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. Since the Option Plan expired, the options granted in 2015 have not been approved by the Company’s shareholders and were issued as non-qualified stock options. For the years ended December 31, 2015 and 2014, the Company recorded compensation expense related to stock options of $130 and $ 93, respectively. Stock-based compensation recorded in the accompanying consolidated statement of operations for the years ended December 31, 2015 and 2014, included none and $ 8, respectively, in cost of goods sold and $130 and $ 85, respectively, in selling, general and administrative expenses. During the years ended December 31, 2015 and 2014, the Company granted options to purchase up to 629,000 and 518,750 shares of common stock, respectively, to employees at a weighted average exercise that ranged from $0.17 to $0.45 per share in 2015 and $0.18 to $0.26 per share in 2014. The 2015 grants were issued as non-qualified stock options. 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, 2015 and 2014: 2015 2014 Weighted average expected term 4.71 years 6.25 years Weighted average volatility 132 % 121 % Weighted average risk-free interest rate 1.25 % 1.67 % Dividend yield 0 % 0 % The weighted average expected term of stock options represents the period of time that the stock options granted are expected to be outstanding based on historical exercise trends. The weighted average expected volatility is based on the historical price volatility of the Company’s common stock. The weighted average risk-free interest rate represents the U.S. Treasury bill rate for the expected term of the related stock options. The dividend yield represents the Company’s anticipated cash dividend over the expected term of the stock options. Forfeitures of share-based payment awards are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The average forfeiture rate for the years ended December 31, 2015 and 2014 was 44% and 40%, respectively. A summary of stock option activity under the Option Plan for the years ended December 31, 2015 and 2014 are presented below: Shares Under Option Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at January 1, 2014 2,469,716 $ 0.57 Granted 518,750 $ 0.25 Exercised — Forfeited (1,146,697 ) $ 0.45 Outstanding at December 31, 2014 1,841,769 $ 0.59 7.2 Years $ — Exercisable at December 31, 2014 895,829 $ 0.93 5.5 Years $ — Outstanding at January 1, 2015 1,841,769 $ 0.59 Granted 629,000 $ 0.43 Exercised — Forfeited (785,519 ) $ 0.74 Outstanding at December 31, 2015 1,685,250 $ 0.46 6.8 Years $ — Exercisable at December 31, 2015 1,013,095 $ 0.55 6.2 Years $ — A summary of status of the Company’s non-vested share awards as of and for the years ended December 31, 2015 and 2014 are presented below: Non-vested Shares Under Option Weighted Average Grant Date Fair Value Non-vested at January 1, 2015 945,940 $ 0.29 Granted 629,000 $ 0.43 Vested (619,052 ) $ 0.40 Forfeited (283,733 ) $ 0.74 Non-vested at December 31, 2015 672,155 $ 0.31 As of December 31, 2015, the Company had approximately $ 94 of unrecognized compensation expense related to stock options that will be recognized over a weighted average period of approximately three years.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	(7) INCOME TAXES Income tax (benefit) expense consists of the following for the years ended December 31, 2015 and 2014: 2015 2014 Current tax (benefit) expense: Federal $ (57 ) $ (49 ) State — — Penalties and interest — — (57 ) (49 ) Deferred tax (benefit) expense: Federal (992 ) (1,994 ) State (68 ) (131 ) Valuation allowance 1,060 2,125 — — $ (57 ) $ (49 ) A reconciliation of income tax computed at the U.S. statutory rate of 34% to the effective income tax rate is as follows: 2015 2014 Statutory rate (34 )% (34 )% State taxes (3 ) (2 ) Permanent differences and other 2 2 Change in valuation allowance 35 34 Effective rate 0 % 0 % The tax effects of temporary differences that give rise to deferred tax assets (liabilities) at December 31, 2015 and 2014 are as follows: 2015 2014 Current deferred tax assets (liabilities): Accrued expenses $ 22 $ 114 Accounts receivable 730 1,185 Inventory 32 1,603 Prepaid expenses — (90 ) Stock based compensation 23 23 Other 9 9 816 2,844 Less: Valuation allowance (816 ) (2,844 ) Net current deferred tax assets $ — $ — Long-term deferred tax assets (liabilities): Amortization $ 115 $ 125 Property and equipment (293 ) (553 ) Tax credits and NOL carryforward 4,482 1,644 Net long-term deferred tax liabilities 4,304 1,216 Less: valuation allowance (4,304 ) (1,216 ) Net deferred tax assets $ — $ — The Company has generated a net operating loss carryforward (NOL) for federal income tax purposes of approximately $11,100 as of December 31, 2015, which is available to offset taxable income in the future at various dates through 2035. The Company also has available NOL carryforwards of approximately $19,900 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. These uncertain tax benefits relate primarily to taxes potentially due in state where the Company has nexus, but has not yet filed tax returns. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2015 2014 Uncertain tax benefits at the beginning of the period $ 250 $ 194 Gross increases for State income tax liabilities 56 Uncertain tax benefits at the end of the period $ 250 $ 250

Line of Credit

Line of Credit	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Line of Credit	(8) LINE OF CREDIT The Company has an asset-backed revolving credit facility under a Loan and Security Agreement as amended, (the “Triumph Agreement”) with Triumph Healthcare Finance, a division of TBK Bank, SSB (formerly known as Triumph Community Bank (the “Lender”). The Triumph Agreement contains certain customary restrictive and financial covenants for asset-backed credit facilities. The Company has not been in compliance with the financial covenants under the Triumph Agreement since July 2014. On July 14, 2014, the Company received notice from the Lender of an event of default under the Triumph Agreement. The notice relates to the Company’s default under the minimum debt service coverage ratio requirement for the quarter ended March 31, 2014 and certain other alleged defaults. The Lender notified the Company that it was exercising its default remedies under the Triumph Agreement, including, among others, accelerating the repayment of all outstanding obligations under the Triumph Agreement (outstanding principal and accrued interest) and collecting the Company’s bank deposits to apply towards the outstanding obligations. The Company and the Lender are negotiating the terms of an accelerated repayment of the amounts outstanding under the Triumph Agreement and the Lender has continued to 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, 2015 $4,002 was outstanding under the Triumph Agreement and zero was available for borrowing based on the default status. Borrowings under the Triumph Agreement bear interest at the default interest rate. As of December 31, 2015, the effective interest rate under the Triumph Agreement was approximately 11.0% (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. Triumph has agreed to forbear from the exercise of its rights and remedies under the terms of the Triumph Agreement through March 31, 2016, pursuant to the terms of a the December 15, 2015 forbearance agreement. On March 28, 2016, the Lender agreed to extend the date of forbearance to June 30, 2016. The Triumph Agreement requires a lockbox arrangement whereby all receipts are swept daily to reduce borrowings outstanding. The Company is obligated to reduce the loan balance $85 each month. In connection with the agreement entered into on March 28, 2016, the Lender suspended this monthly payment requirement for February, March and April of 2016 up to an aggregate cap of $250, in exchange for the issuance of a warrant to purchase 50,000 shares of the Company’s common stock.

Capital Leases and Other Obliga

Capital Leases and Other Obligations	12 Months Ended
	Dec. 31, 2015
Leases Capital [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 were adjusted to $43 from September 1, 2014 through December 31, 2014; · The Company vacated the unleased portion of the property on or before December 31, 2014; · 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, on 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 forgiveness 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 5% to 10%. At December 31, 2015 and 2014, the total recorded cost of assets under capital leases was $461 for both years and the accumulated depreciation related to these assets totaled $195 and $105, respectively. As of December 31, 2015, future minimum lease payments under non-cancelable notes payable, operating and capital leases are as follows: Capital Leases Operating Leases 2016 $ 109 $ 583 2017 114 2018 79 — 2019 23 — Thereafter — — Total future minimum lease payments 325 $ 583 Less current portion (109 ) Notes payable and other obligations $ 216 Rent expense under all operating leases for 2015 and 2014 was approximately $598 and $1,158, respectively.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	(10) FAIR VALUE MEASUREMENTS The Company measures certain assets and liabilities pursuant to accounting guidance which establishes a three-tier fair value hierarchy and prioritizes the inputs used in measuring fair value. These tiers include: · Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. · Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. · Level 3: Unobservable inputs are used when little or no market data is available. The Company’s financial assets and liabilities that are measured at fair value on a recurring basis include contingent consideration which as of December 31, 2015 and 2014 totaled none and $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. Contingent payments of $4 and $3 were made during the years ended December 31, 2015 and 2014, respectively. 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, 2015, were not significant.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2015
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 . 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, 2015
Risks And Uncertainties [Abstract]
Concentrations	(12) CONCENTRATIONS The Company sourced approximately 42% and 21% of components for its electrotherapy products from one vendor during the years ended December 31, 2015 and 2014, respectively. Management believes that its relationships with suppliers are good; however, the Company has delayed and extended payments to many of its vendors for cash flow reasons, which has caused many of its vendors to require pre-payment for products or services. 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 a private health insurance carrier at December 31, 2015 and 2014 that made up approximately 5% and 10%, respectively, of the net accounts receivable balance.

Retirement Plan

Retirement Plan	12 Months Ended
	Dec. 31, 2015
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 2015 or .

Litigation

Litigation	12 Months Ended
	Dec. 31, 2015
Commitments And Contingencies Disclosure [Abstract]
Litigation	(14) LITIGATION From time to time, the Company may become party to litigation and other claims in the ordinary course of business. To the extent that such claims and litigation arise, management would provide for them if losses are determined to be both probable and estimable. The Company is currently not a party to any material pending legal proceedings.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
Related Party Transactions	(15) RELATED PARTY TRANSACTIONS The Company employs Mr. Martin Sandgaard and Mr. Joachim Sandgaard, both sons of Thomas Sandgaard. Compensation for 2015 and 2014 totaled $75 and $57, respectively. To meet Mr. Sandgaard’s obligation to his former wife under a settlement agreement, the Company, during the fourth quarter of 2015, entered into 3 year employment arrangement totaling $100,000 per year with Mr. Joachim Sandgaard. Accrued liabilities as of December 31, 2015 include a net payable to Thomas Sandgaard of $23.

Segment Reporting

Segment Reporting	12 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
Segment Reporting	(16) SEGMENT REPORTING At December 31, 2015, the Company determined that it has one reporting segment, the Electrotherapy and Pain Management segment, which includes the ZMI electrotherapy units and compound pain creams operations that accounted for 99% and 96% of total net revenue for the year ended December 31, 2015 and 2014, respectively. 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 an electrotherapy device or compound pain cream. The revenue generated from the sale of other products and services is not significant.

Significant Accounting Polici23

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include the accounts of Zynex, Inc. and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Non-controlling Interest	Non-controlling Interest Non-controlling interest in the equity of a subsidiary is accounted for and reported as stockholders’ (deficit) equity. Non-controlling interest represents the 20% ownership in the Company’s majority-owned (but currently inactive) subsidiary, ZBC.
Use of Estimates	Use of Estimates Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The most significant management estimates used in the preparation of the accompanying consolidated financial statements are associated with the allowance for contractual adjustments and uncollectible accounts receivable, the reserve for obsolete and damaged inventory, the life of its rented equipment, stock-based compensation, valuation of long-lived assets and income taxes.
Revenue Recognition, Allowances for Contractual Adjustments and Collectability	Revenue Recognition, Allowance for Contractual Adjustments and Collectability The Company recognizes revenue when each of the following four conditions are met: 1) a contract or sales arrangement exists, 2) products have been shipped and title has transferred, or rental services have been rendered, 3) the price of the products or services is fixed or determinable, and 4) collectability is reasonably assured. The Company recognizes revenue when medical units and supplies are shipped or, for medical units sold from consigned inventory, when it receives notice that the product has been prescribed and delivered to the patient. The Company, prior to recognizing revenue verifies the patient’s insurance coverage or obtained the insurance company preauthorization, when required. Revenue from supplies is recognized upon shipment. Revenue from the rental of products is normally on a month-to-month basis and is recognized ratably over the products’ rental period. Revenue from sales to distributors is recognized when the Company ships its products. Revenue is reported net, after adjustments for estimated insurance company or governmental agency (collectively “Third-party Payors”) reimbursement deductions and, for wholesale customers and patient billings, an allowance for uncollectible accounts. The Third-party Payor reimbursement deductions are known throughout the health care industry as “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 the medical industry has typically resulted in long collection cycles. The process of determining what products will be reimbursed by Third-party Payors and the amounts that they will reimburse is complex and depends on conditions and procedures that vary among providers and may change from time to time. The Company maintains an allowance for contractual adjustments and an allowance for doubtful accounts. Contractual adjustments result from reimbursements from Third-party Payors that are less than amounts claimed and from where the amount claimed by the Company exceeds the Third-party Payors usual, customary and reasonable reimbursement rate. The Company determines the amount of the allowance and adjusts it at the end of each reporting period, based on a number of factors, including historical rates of collection, the aging of the receivables, trends in the historical rates of collection and current relationships and experience with the Third-party Payors. If the rates of collection of past-due receivables recorded for previous fiscal periods changes, or if there is a trend in the rates of collection on those receivables, the Company may be required to change the rate at which it provides for additions to the allowance. A change in the rates of the Company’s collections can result from a number of factors, including experience and training of billing personnel, changes in the reimbursement policies or practices of Third-party Payors, or changes in industry rates of reimbursement. Accordingly, changes to the allowance for contractual adjustments and uncollectible accounts, which are recorded in the income statement as a reduction of revenue, have historically fluctuated and may continue to fluctuate significantly from quarter to quarter and year to year. Due to the nature of the medical industry and the reimbursement environment in which the Company operates, estimates are required to record net revenues and accounts receivable at their net realizable values (also known as net collectible value). Inherent in these estimates is the risk that they will have to be revised or updated as additional information becomes available. Specifically, the complexity of third-party billing arrangements and the uncertainty of reimbursement amounts for certain products or services from payors or unanticipated requirements to refund payments previously received may result in adjustments to amounts originally recorded. Due to continuing changes in the health care industry and third-party reimbursement, as well as changes in our billing practices to increase cash collections, it is possible that management’s estimates could change in the near term, which could have an impact on our results of operations and cash flows. Any differences between estimated settlements and final determinations are reflected as an increase or a reduction to revenue in the period when such final determinations are known. The Company frequently receives refund requests from insurance providers relating to specific patients and dates of service. Billing and reimbursement disputes are very common in the Company’s industry. These requests are sometimes related to a limited number of patients or products; at other times, they include a significant number of refund claims in a single request. The Company reviews and evaluates these requests and determines if any refund request is appropriate. The Company also reviews these refund claims when it is rebilling or pursuing reimbursement from that insurance provider. The Company frequently has significant offsets against such refund requests, and sometimes amounts are due to the Company in excess of the amounts of refunds requested by the insurance providers. Therefore, at the time of receipt of such refund requests, the Company is generally unable to determine if a refund request is valid and should be accrued. Such refunds are accrued when the amount is fixed and determinable. However, no assurances can be given with respect to such estimates of reimbursements and offsets or the ultimate outcome of any refund requests. In addition to the allowance for contractual adjustments, the Company records an allowance for uncollectible accounts receivable for wholesale (sales to distributors) sales and certain patient billings. Uncollectible accounts receivable are primarily a result of non-payment from patients who have been direct billed for co-payments or deductibles, lack of appropriate insurance coverage and disallowances of charges by Third-party Payors. If there is a change to a material insurance provider contract or policy, application by a provider, a decline in the economic condition of providers or a significant turnover of Company billing personnel resulting in diminished collection effectiveness, the estimate of the allowance for uncollectible accounts receivable may not be adequate and may result in an increase in the future. At December 31, 2015 and 2014, the allowance for uncollectible accounts receivable on commercial and wholesale accounts and patient billings total $1,996 and $936, respectively. As of December 31, 2015, the Company believes its accounts receivable is reasonably stated at its net realizable / collectible value and has an adequate allowance for contractual adjustments relating to all known insurance disputes and refund requests. At December 31, 2015 and 2014, the Company recorded a liability for deferred revenue in the amount of $89 and $112, respectively. Deferred revenue represents amounts paid by Third-party Payors for consumable supplies that were not yet shipped to patients as of that date.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s financial instruments at December 31, 2015, include cash, accounts receivable, accounts payable and income taxes, for which current carrying amounts approximate fair value due to their short-term nature. Financial instruments at December 31, 2015, also include the line of credit and capitalized leases, the carrying value of which approximates fair value because the interest rates on the outstanding borrowings are at rates that approximate market rates for borrowings with similar terms and average maturities.
Inventory	Inventory Inventory, which primarily represents finished goods, are valued at the lower of cost (average) or market. The Company monitors inventory for turnover and obsolescence and records losses for excess and obsolete inventory, as appropriate. The Company provides reserves for estimated excess and obsolete inventories equal to the difference between the costs of inventories on hand and the estimated market value based upon assumptions about future demand. If future demand is less favorable than currently projected by management, additional inventory write-downs may be required. To fulfill orders faster, the Company prior to 2015 placed a large amount of its inventory with field sales representatives and health care providers (field inventory). This increased the sensitivity of these products to reserve estimates. As this inventory is not in the Company’s possession, management maintained additional reserves for these inventories based on the Company’s aging. Finished goods at December 31, 2015 and 2014 includes products (finished goods, parts and supplies) held at the Company’s headquarters and, at December 31, 2014, finished goods at different locations by health care providers or other third parties for rental or sale to patients (field inventory). During 2015 the Company ramped up the EZ Rx Prescribe program, whereby the NexWave electrotherapy device is sold by prescription and is shipped from the Company manufacturing facilities. Company sales using the EZ Rx Prescription program represented 15% and 75% of sales during January and December of 2015, respectively. As a result, the Company is no longer holding substantial field inventory at different locations by healthcare or third party providers. During 2014 and 2015, in conjunction with the introduction and ramp up of the EZ Rx Prescribe program, industry conditions driven by health care reforms and the ongoing evaluation of field In addition, as a result of the change in Company’s market focus during 2014 on the NexWave, InWave and NeuroMove electrotherapy products and industry conditions driven primarily by health care reform These changes had caused a reduction in the Company’s field sales force which negatively impacted its field Total gross inventories at December 31, 2015 included $102 of finished goods and $231 of parts and supplies as compared to December 31, 2014, which included $2,364 of finished goods and $488 of parts and supplies. Inventory has been reduced by an allowance for slow moving and obsolete inventory of $28 at December 31, 2015 and $916 as of December 31, 2014. The Company had $295 of open inventory purchase commitments at December 31, 2015.
Property and Equipment	Property and Equipment Property and equipment are stated at cost. Products being rented are placed in property and equipment and depreciated over their estimated useful life. The Company removes the cost and the related accumulated depreciation from the accounts of assets sold or retired, and the resulting net gains or losses are included in the results of operations. Depreciation is computed using the straight-line method over the useful life of the asset. As rental inventory contributes directly to the revenue generating process, the Company classifies the depreciation of rental inventory in cost of revenue. As a result of the Company’s change in product focus discussed above, the Company recorded a charge to cost of revenue – noncore inventory write-off of $ 650 in the second quarter of 2014. Repairs and maintenance costs are charged to expense as incurred.
Intangible Assets – Capitalized Software	Intangible Assets – Capitalized Software Intangible assets 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 is 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. 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.
Stock-based Compensation	Stock-based Compensation The Company accounts for stock-based compensation through recognition of the cost of employee services received in exchange for an award of equity instruments, which is measured based on the grant date fair value of the award that is ultimately expected to vest during the period. The stock-based compensation expenses are recognized over the period during which an employee is required to provide service in exchange for the award (the requisite service period, which in the Company’s case is the same as the vesting period). For awards subject to the achievement of performance metrics, stock-based compensation expense is recognized when it becomes probable that the performance conditions will be achieved.
Advertising	Advertising The Company expenses advertising costs as they are incurred. Advertising expense for the years ended December 31, 2015 and 2014 was approximately $ 78 and $47, respectively.
Research and Development	Research and Development Research and development costs are expensed when incurred. Research and development expense for the years ended December 31, 2015 and 2014 was approximately $ 256 and $394, 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 accrued expenses. The carrying value of deferred tax assets is determined based on an evaluation of whether the Company is more likely than not to realize the assets. A valuation allowance is established, when considered necessary, to reduce deferred tax assets to the amounts expected to be realized. The Company accounts for uncertain tax positions 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, 2015 and 2014, the Company had uncertain tax benefits, penalties and interest of $250 and $250, 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, 2015 and 2014 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 or cash flows.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-15 “Presentation of Financial Statements—Going Concern (Subtopic 205-40) Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The amendments in this Update provide guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this Update are effective for the annual period ending after December 15, 2016 and for annual periods and interim periods thereafter. Early application is permitted. The Company is evaluating the effect of this updated guidance on the disclosures in the footnotes to the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09—“Revenue from Contracts with Customers” (Topic 606) which amended revenue recognition guidance to clarify the principles for recognizing revenue from contracts with customers. The guidance requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This accounting guidance is effective for the Company beginning in the first quarter of fiscal year 2018, using one of two prescribed retrospective methods. Early adoption is not permitted. The Company is evaluating the impact of the amended revenue recognition guidance on the Company’s consolidated financial statements. Management has evaluated other recently issued accounting pronouncements and does not believe that any of these pronouncements will have a material impact on the Company’s consolidated financial statements.

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2015
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, 2015 and 2014 are as follows: 2015 2014 Useful Office furniture and equipment $ 911 $ 917 3-7 years Rental inventory 1,216 1,314 5 years Vehicles 76 76 5 years Leasehold improvements 104 104 2-6 years Assembly equipment 125 125 7 years 2,432 2,536 Less accumulated depreciation (1,631 ) (1,260 ) $ 801 $ 1,276

Intangible Assets (Tables)

Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Acquisition of Intangible Assets	At December 31, 2015 and 2014, intangible assets consist of the following Amortization Life Years 2015 2014 Software and development costs 5 $ 325 $ 325 Less: accumulated amortization (251 ) (194 ) Total intangible assets, net $ 74 $ 131

Loss Per Share (Tables)

Loss Per Share (Tables)	12 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Calculation of Basic and Diluted Earnings (Loss) Per Share	The calculation of basic and diluted earnings (loss) per share for the years ended December 31, 2015 and 2014 is as follows: 2015 2014 BASIC Net loss attributable to common stockholders $ (2,911 ) $ (6,199 ) Weighted average shares outstanding—basic 31,271,234 31,207,672 Net loss per share—basic $ (0.09 ) $ (0.20 ) DILUTED Net loss attributable to common stockholders $ (2,911 ) $ (6,199 ) Weighted average shares outstanding—basic 31,271,234 31,207,672 Dilutive securities — — Weighted average shares outstanding, diluted 31,271,234 31,207,672 Net loss per share, diluted $ (0.09 ) $ (0.20 )

Stock-Based Compensation Plans

Stock-Based Compensation Plans (Tables)	12 Months Ended
	Dec. 31, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Fair Value of Stock Options Grants	The Company used the Black Scholes option pricing model to determine the fair value of stock option grants, using the following assumptions during the years ended December 31, 2015 and 2014: 2015 2014 Weighted average expected term 4.71 years 6.25 years Weighted average volatility 132 % 121 % Weighted average risk-free interest rate 1.25 % 1.67 % 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, 2015 and 2014 are presented below: Shares Under Option Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at January 1, 2014 2,469,716 $ 0.57 Granted 518,750 $ 0.25 Exercised — Forfeited (1,146,697 ) $ 0.45 Outstanding at December 31, 2014 1,841,769 $ 0.59 7.2 Years $ — Exercisable at December 31, 2014 895,829 $ 0.93 5.5 Years $ — Outstanding at January 1, 2015 1,841,769 $ 0.59 Granted 629,000 $ 0.43 Exercised — Forfeited (785,519 ) $ 0.74 Outstanding at December 31, 2015 1,685,250 $ 0.46 6.8 Years $ — Exercisable at December 31, 2015 1,013,095 $ 0.55 6.2 Years $ —
Summary of Status of the Company's Non-Vested Shares Under Option	A summary of status of the Company’s non-vested share awards as of and for the years ended December 31, 2015 and 2014 are presented below: Non-vested Shares Under Option Weighted Average Grant Date Fair Value Non-vested at January 1, 2015 945,940 $ 0.29 Granted 629,000 $ 0.43 Vested (619,052 ) $ 0.40 Forfeited (283,733 ) $ 0.74 Non-vested at December 31, 2015 672,155 $ 0.31

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Schedule of Income Tax (Benefit) Expense	Income tax (benefit) expense consists of the following for the years ended December 31, 2015 and 2014: 2015 2014 Current tax (benefit) expense: Federal $ (57 ) $ (49 ) State — — Penalties and interest — — (57 ) (49 ) Deferred tax (benefit) expense: Federal (992 ) (1,994 ) State (68 ) (131 ) Valuation allowance 1,060 2,125 — — $ (57 ) $ (49 )
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: 2015 2014 Statutory rate (34 )% (34 )% State taxes (3 ) (2 ) Permanent differences and other 2 2 Change in valuation allowance 35 34 Effective rate 0 % 0 %
Schedule of the Tax Effects of Temporary Differences That Give Rise to Deferred Tax Assets (Liabilities)	The tax effects of temporary differences that give rise to deferred tax assets (liabilities) at December 31, 2015 and 2014 are as follows: 2015 2014 Current deferred tax assets (liabilities): Accrued expenses $ 22 $ 114 Accounts receivable 730 1,185 Inventory 32 1,603 Prepaid expenses — (90 ) Stock based compensation 23 23 Other 9 9 816 2,844 Less: Valuation allowance (816 ) (2,844 ) Net current deferred tax assets $ — $ — Long-term deferred tax assets (liabilities): Amortization $ 115 $ 125 Property and equipment (293 ) (553 ) Tax credits and NOL carryforward 4,482 1,644 Net long-term deferred tax liabilities 4,304 1,216 Less: valuation allowance (4,304 ) (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. These uncertain tax benefits relate primarily to taxes potentially due in state where the Company has nexus, but has not yet filed tax returns. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2015 2014 Uncertain tax benefits at the beginning of the period $ 250 $ 194 Gross increases for State income tax liabilities 56 Uncertain tax benefits at the end of the period $ 250 $ 250

Capital Leases and Other Obli29

Capital Leases and Other Obligations (Tables)	12 Months Ended
	Dec. 31, 2015
Leases Capital [Abstract]
Future Minimum Lease Payments Under Non-Cancelable Notes Payable, Operating and Capital Leases	As of December 31, 2015, future minimum lease payments under non-cancelable notes payable, operating and capital leases are as follows: Capital Leases Operating Leases 2016 $ 109 $ 583 2017 114 2018 79 — 2019 23 — Thereafter — — Total future minimum lease payments 325 $ 583 Less current portion (109 ) Notes payable and other obligations $ 216

Organization, Nature of Busin30

Organization, Nature of Business and Management's Plans (Details Textual)	12 Months Ended
	Dec. 31, 2015USD ($)Segment	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Dec. 31, 2012USD ($)	Mar. 22, 2016USD ($)
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Number of primary business segments | Segment	1
Total net revenue	$ 11,641,000	$ 11,117,000	$ 21,700,000	$ 39,700,000
Net (loss) income	(2,911,000)	(6,199,000)
Line of credit current borrowing capacity	0
Increase in working capital deficit	2,421,000
Increase (decrease) in working capital	(4,773,000)	(2,352,000)
Fixed expenses reduced by cutting administrative costs through cutting headcount and facilities rent	2,200,000	$ 9,700,000
Obligation to decrease lender's outstanding balance per month	$ 85,000
Subsequent Event
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Line of credit					$ 3,346,000
ZBC
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Noncontrolling interest, ownership percentage	80.00%
ZMI
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Percentage of revenues earned	99.60%	96.20%
Pharmazy
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Percentage of revenues earned	9.70%	10.00%
ZMS
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Total net revenue	$ 0	$ 0

Significant Accounting Polici31

Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		9 Months Ended	12 Months Ended
	Dec. 31, 2015	Jan. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Sep. 30, 2015	Dec. 31, 2015	Dec. 31, 2014
Schedule Of Significant Accounting Policies [Line Items]
Equity and Non-controlling interest	20.00%					20.00%
Allowance for uncollectible accounts receivable on commercial and wholesale accounts and patient billings	$ 1,996		$ 936			$ 1,996	$ 936
Deferred revenue	89		112			89	112
Write-off non-core inventory				$ 2,005			2,005
Inventory finished goods	102		2,364			102	2,364
Inventory parts and supplies	231		488			$ 231	488
Charge to cost of revenue - noncore inventory write-off			650	$ 650			650
Software and development costs						5 years
Advertising expense						$ 78	47
Research and development expense						256	394
Uncertain tax benefits, penalties and interest	250		250			250	250
Inventories
Schedule Of Significant Accounting Policies [Line Items]
Open inventory purchase commitments						295
Slow Moving and obsolete Inventory
Schedule Of Significant Accounting Policies [Line Items]
Allowance and reserve for inventory	$ 28		$ 916			28	916
EZ Rx Prescription Program
Schedule Of Significant Accounting Policies [Line Items]
Allowance for field inventory reserves					$ 655		916
Write-off and/or allowance for field inventory						$ 1,256	$ 916
EZ Rx Prescription Program | Sales
Schedule Of Significant Accounting Policies [Line Items]
Percentage of sales	75.00%	15.00%

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Property Plant And Equipment [Line Items]
Property and Equipment, Gross	$ 2,432	$ 2,536
Less accumulated depreciation	(1,631)	(1,260)
Property and Equipment, Net	801	1,276
Office furniture and equipment
Property Plant And Equipment [Line Items]
Property and Equipment, Gross	$ 911	917
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	$ 1,216	1,314
Property and Equipment, Useful Life	5 years
Vehicles
Property Plant And Equipment [Line Items]
Property and Equipment, Gross	$ 76	76
Property and Equipment, Useful Life	5 years
Leasehold improvements
Property Plant And Equipment [Line Items]
Property and Equipment, Gross	$ 104	104
Leasehold improvements | Minimum
Property Plant And Equipment [Line Items]
Property and Equipment, Useful Life	2 years
Leasehold improvements | Maximum
Property Plant And Equipment [Line Items]
Property and Equipment, Useful Life	6 years
Assembly equipment
Property Plant And Equipment [Line Items]
Property and Equipment, Gross	$ 125	$ 125
Property and Equipment, Useful Life	7 years

Property and Equipment (Detai33

Property and Equipment (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Property Plant And Equipment [Line Items]
Depreciation expense	$ 367	$ 613
Rental inventory
Property Plant And Equipment [Line Items]
Depreciation expense	$ 142	$ 121

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Acquisition of intangible assets
Software and development costs	5 years
Total intangible assets, gross	$ 325	$ 325
Less: accumulated amortization	(251)	(194)
Total intangible assets, net	$ 74	$ 131

Intangible Assets (Details Text

Intangible Assets (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Goodwill And Intangible Assets Disclosure [Abstract]
Software and development costs	5 years
Amortization of intangible assets	$ 57	$ 47

Loss Per Share (Details Textual

Loss Per Share (Details Textual) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings (loss) per share	1,685,250	1,841,769
Dilutive common stock equivalents	0	0

Loss Per Share (Details)

Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
BASIC
Net loss attributable to common stockholders	$ (2,911)	$ (6,199)
Weighted average shares outstanding—basic	31,271,234	31,207,672
Net loss per share—basic	$ (0.09)	$ (0.20)
DILUTED
Net loss attributable to common stockholders	$ (2,911)	$ (6,199)
Weighted average shares outstanding—basic	31,271,234	31,207,672
Weighted average shares outstanding, diluted	31,271,234	31,207,672
Net loss per share, diluted	$ (0.09)	$ (0.20)

Stock-Based Compensation Plan38

Stock-Based Compensation Plans (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
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	$ 130,000	$ 93,000
Shares under option, granted	629,000	518,750
Weighted average exercise price, granted	$ 0.43	$ 0.25
Estimated average forfeiture rate	44.00%	40.00%
Unrecognized compensation expense related to stock options	$ 94,000
Weighted-average period of unrecognized compensation expense related to stock options	3 years
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average exercise price, granted	$ 0.17	$ 0.18
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average exercise price, granted	$ 0.45	$ 0.26
Cost of Sales
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Employee stock-based compensation expense	$ 0	$ 8,000
Selling, General and Administrative Expenses
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Employee stock-based compensation expense	$ 130,000	$ 85,000
2005 Stock Option Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options under option plan, date of expiration	Dec. 31, 2014

Stock-Based Compensation Plan39

Stock-Based Compensation Plans (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair value of stock option grants
Weighted average expected term	4 years 8 months 16 days	6 years 3 months
Weighted average volatility	132.00%	121.00%
Weighted average risk-free interest rate	1.25%	1.67%
Dividend yield	0.00%	0.00%

Stock-Based Compensation Plan40

Stock-Based Compensation Plans (Details 1) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Summary of stock option activity under the option Plan
Shares Under Option, Outstanding beginning balance	1,841,769	2,469,716
Shares Under Option, Granted	629,000	518,750
Shares Under Option, Forfeited	(785,519)	(1,146,697)
Shares Under Option, Outstanding ending balance	1,685,250	1,841,769
Shares Under Option, Exercisable ending balance	1,013,095	895,829
Weighted Average Exercise Price, Outstanding beginning balance	$ 0.59	$ 0.57
Weighted Average Exercise Price, Granted	0.43	0.25
Weighted Average Exercise Price, Forfeited	0.74	0.45
Weighted Average Exercise Price, Outstanding ending balance	0.46	0.59
Weighted Average Exercise Price, Exercisable ending balance	$ 0.55	$ 0.93
Outstanding, Weighted Average Remaining Contractual Life	6 years 9 months 18 days	7 years 2 months 12 days
Exercisable, Weighted Average Remaining Contractual Life	6 years 2 months 12 days	5 years 6 months

Stock-Based Compensation Plan41

Stock-Based Compensation Plans (Details 2) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Summary of status of the Company's non-vested share awards
Non-vested Shares Under Option at January 1, 2015	945,940
Shares Under Option, Granted	629,000	518,750
Non-vested Shares Under Option, Vested	(619,052)
Non-vested Shares Under Option, Forfeited	(283,733)
Non-vested Shares Under Option at December 31, 2015	672,155	945,940
Weighted Average Grant Date Fair Value at January 1, 2015	$ 0.29
Weighted Average Grant Date Fair Value, Granted	0.43
Weighted Average Grant Date Fair Value, Vested	0.40
Weighted Average Grant Date Fair Value, Forfeited	0.74
Weighted Average Grant Date Fair Value at December 31, 2015	$ 0.31	$ 0.29

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Federal	$ (57)	$ (49)
Total current tax expense	(57)	(49)
Federal	(992)	(1,994)
State	(68)	(131)
Valuation allowance	1,060	2,125
Income tax (benefit) expense	$ (57)	$ (49)

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Taxes [Line Items]
Statutory rate	(34.00%)	(34.00%)
Net loss carryforward for income tax purpose offset period, maximum	2,035
Federal
Income Taxes [Line Items]
Net loss carryforward for income tax purpose	$ 11,100
State
Income Taxes [Line Items]
Net operating loss carry forwards	$ 19,900
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, 2015	Dec. 31, 2014
Schedule of reconciliation of income tax
Statutory rate	(34.00%)	(34.00%)
State taxes	(3.00%)	(2.00%)
Permanent differences and other	2.00%	2.00%
Change in valuation allowance	35.00%	34.00%
Effective rate	0.00%	0.00%

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current deferred tax assets (liabilities):
Accrued expenses	$ 22	$ 114
Accounts receivable	730	1,185
Inventory	32	1,603
Prepaid expenses		(90)
Stock based compensation	23	23
Other	9	9
Gross current deferred tax assets	816	2,844
Less: Valuation allowance	(816)	(2,844)
Long-term deferred tax assets (liabilities):
Amortization	115	125
Property and equipment	(293)	(553)
Tax credits and NOL carryforward	4,482	1,644
Net long-term deferred tax liabilities	4,304	1,216
Less: valuation allowance	$ (4,304)	$ (1,216)

Income Taxes (Details 3)

Income Taxes (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits
Uncertain tax benefits at the beginning of the period	$ 250	$ 194
Gross increases for State income tax liabilities	0	56
Uncertain tax benefits at the end of the period	$ 250	$ 250

Line of Credit (Details Textual

Line of Credit (Details Textual) - USD ($) $ in Thousands	Mar. 28, 2016	Dec. 31, 2015	Dec. 31, 2014
Line of Credit Facility [Abstract]
Outstanding amount on the credit agreement		$ 4,002	$ 4,442
Date of maturity		Dec. 19, 2014
Obligation to reduce loan balance		$ 85
Subsequent Event
Line of Credit Facility [Abstract]
Extended date of forbearance	Jun. 30, 2016
Issuance of warrant to purchase common stock	50,000
Revolving Credit Facility
Line of Credit Facility [Abstract]
Outstanding amount on the credit agreement		4,002
Remaining amount available for borrowing		$ 0
Effective interest rate under the credit agreement		11.00%
Interest rate		6.75%
Additional default interest rate		3.00%
Fees include in effective interest rate under the credit agreement		1.25%
Revolving Credit Facility | Subsequent Event | Maximum
Line of Credit Facility [Abstract]
Aggregate periodic cap payment suspended	$ 250

Capital Leases and Other Obli48

Capital Leases and Other Obligations (Details Textual) - USD ($) $ in Thousands	3 Months Ended		4 Months Ended	12 Months Ended
	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Capital Leased Assets [Line Items]
Net gain on lease termination	$ 2,195				$ 2,195
Deferred rent credit current	2,845
Write-off rental units	650	$ 650			650
Annual rental expense				$ 598	1,158
Assembly equipment
Capital Leased Assets [Line Items]
Cost of assets under capital lease	461		$ 461	461	461
Accumulated depreciation	$ 105		105	$ 195	$ 105
Maximum
Capital Leased Assets [Line Items]
Imputed interest rate on lease				10.00%
Minimum
Capital Leased Assets [Line Items]
Imputed interest rate on lease				5.00%
Revised from September 1, 2014 through December 31, 2014
Capital Leased Assets [Line Items]
Lease initiation date				Oct. 31, 2014
Lease commencement date				Jan. 1, 2015
Lease term				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
Capital Leased Assets [Line Items]
Lease termination date				Dec. 31, 2016
Terminating Lease Agreement
Capital Leased Assets [Line Items]
Monthly rental payments			$ 43
Lease commencement date				Sep. 1, 2014
Lease termination date				Dec. 31, 2014

Capital Leases and Other Obli49

Capital Leases and Other Obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Future minimum lease payments under non-cancelable notes payable and capital leases
2016 Notes and Capital Leases	$ 109
2017 Notes and Capital Leases	114
2018 Notes and Capital Leases	79
2019 Notes and Capital Leases	23
Total future minimum lease payments, Notes and Capital Leases	325
Less current portion	(109)	$ (78)
Notes payable and other obligations	216	$ 311
Future minimum lease payments under non-cancelable operating leases
2016 Operating Leases	583
Total future minimum lease payments, Operating Lease	$ 583

Fair Value Measurements (Detail

Fair Value Measurements (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Contingent payments	$ 4,000	$ 3,000
Fair Value, Measurements, Recurring | Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Contingent consideration	$ 0	$ 4,000

Stockholders' Equity (Details T

Stockholders' Equity (Details Textual) - USD ($) $ in Thousands	Aug. 20, 2014	Dec. 31, 2014
Class Of Stock [Line Items]
Value, Issued for Services		$ 23
Common Stock
Class Of Stock [Line Items]
Shares issued for services	100,000	100,000
Value, Issued for Services	$ 23,000

Concentrations (Details Textual

Concentrations (Details Textual)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Raw materials | Electrotherapy products
Concentration Risk [Line Items]
Concentration risk, percentage	42.00%	21.00%
Net accounts receivable | Credit Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage	5.00%	10.00%

Retirement Plan (Details)

Retirement Plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
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 Textual) - Immediate Family Members of Management or Principal Owner - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2014
Related Party Transaction [Line Items]
Compensation paid		$ 75,000	$ 57,000
Net payable to related party included in accrued liabilities	$ 23,000	$ 23,000
Employment Arrangement
Related Party Transaction [Line Items]
Lump sum payment	$ 100,000
Agreement term	3 years

Segment Reporting (Details Text

Segment Reporting (Details Textual) - Segment	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Number of reporting segments	1
Total net revenue | ZMI electrotherapy units and compound pain creams | Customer concentration risk
Segment Reporting Information [Line Items]
Concentration risk, percentage	99.00%	96.00%