Zynex Reports Electrotherapy Orders for April
LONE TREE, Colo., May 5, 2016 /PRNewswire/ -- Zynex, Inc. (OTCQB: ZYXI), an innovative medical technology company specializing in the manufacture and sale of non-invasive medical devices for pain management, stroke rehabilitation, cardiac monitoring and neurological diagnostics, announced today April orders for the electrotherapy product line.
Thomas Sandgaard, Founder and CEO of Zynex, said: "In April we processed 2,556 patient files, primarily for our NexWave electrotherapy device. This is more than twice the amount of 1,200 orders in the month of April a year ago, yet a 15% decline compared to March 2016 orders. We expect to see a small incremental increase in orders in May, which should bring us to a level of three times higher than the 900 orders we had in May of last year.
We see a huge potential for growing orders as we are the only provider left in the industry with a national footprint, yet keeping up with manufacturing enough units for the orders we are receiving continues to be a problem. We are facing financial constraints from the past two years of losses and have limited support from our lender to finance increase production and sales commission levels. Our lender has continued to make advances to support our business during the past two years of being in default, and we are yet to see the benefits of increased orders turn into a significant increase in cash collections. We are actively looking to finance our growth through additional debt and/or equity."
Revenue from the placement of a NexWave electrotherapy unit is normally derived over time from monthly billings for the sale or rental and from monthly supplies during the treatment period after the initial patient order. A sharp increase in orders does not show in revenue numbers until monthly rentals and monthly supplies are billed to the insurance carriers, and the cash collections do not occur until a while after that, thus generating a steady stream of recurring revenue, yet only growing slowly.
Zynex, founded in 1996, markets and sells its own design of electrotherapy medical devices used for pain management and rehabilitation, and the company's proprietary NeuroMove device is designed to help recovery of stroke and spinal cord injury patients. Zynex is also developing a new blood volume monitor for use in hospitals and surgery centers. For additional information, please visit: Zynex.com.
Safe Harbor Statement
Certain statements in this release are "forward-looking" and as such are subject to numerous risks and uncertainties. Actual results may vary significantly from the results expressed or implied in such statements. Factors that could cause actual results to materially differ from forward-looking statements include, but are not limited to, the need to obtain additional capital or augment our liquidity in order to continue our business, the success of our compound pharmacy and international expansion efforts, our ability to engage additional sales representatives, the success of such additional sales representatives, the need to obtain FDA clearance and CE marking of new products, the acceptance of new products as well as existing products by doctors and hospitals, larger competitors with greater financial resources, the need to keep pace with technological changes, our dependence on the reimbursement from insurance companies for products sold or rented to our customers, acceptance of our products by health insurance providers, our dependence on third party manufacturers to produce our goods on time and to our specifications, implementation of our sales strategy including a strong direct sales force, the uncertain outcome of pending material litigation and other risks described in our filings with the Securities and Exchange Commission including the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2015.
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