Message #23 From:
NewsBot Date: December 26, 2006 06:54:00 AM
ZYNX News Zynex Medical Restates Financials Resulting in Increases in 2005 Profit
LITTLETON, Colo.--(BUSINESS WIRE)--Zynex Medical (OTCBB: ZYNX), a provider of pain management systems and
electrotherapy products for medical patients with functional disability,
announced the restatement of its financial statements for the year ended
December 31, 2005 in the 2005 Form 10-KSB of Zynex, and its financial
statements for the quarters ended March 31, 2005 and 2006 and June 30,
2005 and 2006 on Forms 10-QSB for those 2006 quarters. Zynex has filed
with the Securities and Exchange Commission amended reports with the
restated financial statements.
The adjustments in the Form 10-KSB reflect an increase in net income
profit of $193,108 to a restated $301,064 for the year 2005. The
increase is primarily because of increased inventory values, resulting
in a decrease in the cost of goods sold (COGS). The restatement also
included adjustments to property and equipment and corresponding changes
to other numbers. The restatements were a result of a detailed inventory
analysis of the value and quantity of finished goods as well as the
value of rented inventory.
In addition, the restated financial statements in the 2006 Forms 10-QSB
for the quarters ended March 31, 2006 and June 30, 2006, reflect updated
inventory values and COGS for the first and second quarters of 2006 and
2005. The Form 10-QSB pertaining to the third quarter ended September
30, 2006, remains unchanged but included restated financial statements
for the three and nine months ended September 30, 2005.
Thomas Sandgaard, CEO, commented: “We believe
improvements made to our inventory controls will benefit the company. As
we experience growth in orders, we also immediately anticipate higher
inventory values”.
About Zynex Medical Holdings, Inc.
Zynex Medical Holdings, Inc. (founded in 1996) engineers, manufactures,
markets and sells its own design of electrotherapy medical devices in
two distinct markets: standard digital electrotherapy products for pain
relief and pain management; and the NeuroMove(TM) for stroke and spinal
cord injury (SCI) rehabilitation. Zynex's product lines are fully
developed, FDA-cleared, commercially sold, and have been developed to
uphold the Company's mission of improving the quality of life for
patients suffering from impaired mobility due to stroke, spinal cord
injury, or debilitating and chronic pain.
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, risks and
delays associated with product development, risk of market acceptance of
products, technology or product obsolescence, competitive risks,
reliance on manufacturing partners, dependence on reimbursement from
insurance companies, additional capital needs and other risks described
in our Form 10-KSB/A for the year ended December 31, 2005.
