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Organization, Nature of Business and Managements' Plans
12 Months Ended
Dec. 31, 2012
Organization, Nature of Business and Managements' Plans [Abstract]  
ORGANIZATION, NATURE OF BUSINESS AND MANAGMENTS' PLANS

(1) ORGANIZATION, NATURE OF BUSINESS AND MANAGEMENTS’ PLANS

Zynex, Inc. (a Nevada corporation) and its subsidiaries, Zynex Medical, Inc. (ZMI) (a Colorado corporation, wholly-owned), Zynex NeuroDiagnostics, Inc. (ZND) (a Colorado corporation, wholly-owned), Zynex Monitoring Solutions Inc. (ZMS) (a Colorado corporation, wholly-owned), Zynex Billing and Consulting, LLC (ZBC) (a Colorado limited liability company, 80% majority-owned) and Zynex Europe, ApS (ZEU) (a Denmark corporation, wholly-owned), are collectively referred to as the “Company”. The Company’s headquarters are located in Lone Tree, Colorado.

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. ZND was formed to market, through product development and acquisitions, electromyography (“EMG”), electroencephalography (“EEG”), sleep pattern, auditory and nerve conductivity neurological diagnosis devices to hospitals and clinics worldwide, through the utilization of existing ZMI diagnostic EMG technology. During 2012, the primary activities within ZND were product development and sales and marketing. ZND did not produce significant revenue during 2012 or 2011. ZMS was formed to develop and market medical devices for non-invasive cardiac monitoring. ZMS did not produce any revenue during 2012 or 2011. ZEU was formed in 2012 to conduct international sales and marketing for Company products. ZEU did not produce significant revenue in 2012. ZBC was formed in 2012 to provide medical billing and consulting services. ZBC did not produce significant revenue in 2012.

In 2012 and 2011, 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.

For the years ended December 31, 2012 and 2011, the Company reported negative cash flows from operations of $879 and $362, respectively. In addition, the Company’s line of credit has increased from $3,289 at December 31, 2011 to $5,906 at December 31, 2012, primarily driven by working capital requirements related to an increase in sales orders during the year. Maximum borrowings under the line of credit are $7,000. Management developed the Company’s operating plans for 2013 to emphasize cash flow, under which the Company is making operational billing changes to increase cash collections as well as implementing various cost modifications to reduce expenses. Management believes that its cash flow projections for 2013 are achievable and that sufficient cash will be generated to meet the Company’s operating and financial obligations for the remainder of 2013.