XML 36 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segment Reporting
 6 Months Ended
Jun. 30, 2012
Segment Reporting [Abstract]  
SEGMENT REPORTING

(11) SEGMENT REPORTING

At June 30, 2012, the Company has determined that its subsidiaries, ZMI, ZND and ZMS each represent reporting segments. This determination was made based on the nature of the products and services offered to customers or the nature of the function in the organization. The accounting policies for each of these segments are the same as those described in Note 2, and inter-segment transactions are eliminated. Net revenue was primarily generated from sales in the United States.

Zynex Medical (ZMI):

ZMI designs, manufactures and markets FDA cleared medical devices that treat chronic and acute pain, as well as activate and exercise muscles for rehabilitative purposes with electrical stimulation. ZMI devices are intended for pain management to reduce reliance on drugs and medications and provide rehabilitation and increased mobility through the utilization of non-invasive muscle stimulation, electromyography technology, interferential current (“IF”), neuromuscular electrical stimulation (“NMES”) and transcutaneous electrical nerve stimulation (“TENS”). ZMI products require a physician’s prescription, authorization or order before they can be dispensed in the U.S. ZMI considers the physician’s prescription as an “order”, and it is on this basis that product is provided to the patient and ZMI either bills the patient directly, bills the patient’s private insurance or bills Medicare or Medicaid for payment.

 

Zynex NeuroDiagnostics (ZND):

ZND was formed to market, through product development and acquisitions, EMG, EEG, sleep pattern, auditory and nerve conductivity neurological diagnosis devices to hospitals and clinics worldwide, through the utilization of existing ZMI diagnostic EMG technology. As described in Note 3, on March 9, 2012, ZND acquired NeuroDyne. NeuroDyne is a manufacturer of advanced medical devices for non-invasive measurement of sEMG and autonomic nervous systems.

Zynex Monitoring Solutions (ZMS):

ZMS was formed to develop and market medical devices for non-invasive cardiac monitoring. ZMS activities to date represent research and product development, specifically related to a non-invasive blood volume monitor. The blood volume monitor is a non-invasive medical device for monitoring central blood volume that would be used in operating and recovery rooms to detect blood loss during surgery and internal bleeding during recovery.

 

The tables below summarize information about reported segments for the three and six months ended June 30, 2012 and 2011.

 

                                 
    ZMI     ZND     ZMS     TOTAL  

THREE MONTHS ENDED JUNE 30, 2012

                                

Sales

     9,973       53       —       10,026  
   

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit

     8,204       36       —       8,240  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total assets

     24,724       762       8       25,494  
   

 

 

    

 

 

    

 

 

    

 

 

  
         

THREE MONTHS ENDED JUNE 30, 2011

                                

Sales

     8,395       —       —       8,395  
   

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit

     6,668       —       —       6,668  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total assets

     18,670       14       10       18,694  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

                                 
    ZMI     ZND     ZMS     TOTAL  

SIX MONTHS ENDED JUNE 30, 2012

                                

Sales

     18,842       128       —       18,970  
   

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit

     15,285       86       —       15,371  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total assets

     24,724       762       8       25,494  
   

 

 

    

 

 

    

 

 

    

 

 

  
         

SIX MONTHS ENDED JUNE 30, 2011

                                

Sales

     15,028       —       —       15,028  
   

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit

     11,857       —       —       11,857  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total assets

     18,670       14       10       18,694