Investor Presentation. August 2017 OTCQB: ZYXI

Transcription

1 Investor Presentation August 2017

2 Forward Looking Statements Statements made in this presentation include financial estimates and forwardlooking statements that are not historical facts. Each of these estimates and forward-looking statements involves risk and uncertainties. These estimates are based on present circumstances, information currently available, and assumptions about future revenues, industry growth, and general economic conditions. Estimates are inherently uncertain as they are based on assumptions concerning future events. No representations can be made as to the accuracy of such information or the reliability of such assumptions. Accordingly, actual revenues and expenditures may vary significantly from the Company s estimates, and actual results or developments may differ materially from those expressed or implied by the forward-looking statements. Factors that could cause actual results to differ from the financial estimates and forwardlooking statements in this presentation include those described in the Company s filings with the Securities and Exchange Commission, including the Risk Factors section of the Company s Annual Report on Form 10-K for the year ended December 31, 2016, as updated in 2017 quarter periods. Therefore, neither the Company s estimates nor the assumptions upon which they are based are to be interpreted as a guarantee or promise of the Company or management. The Company has no obligation to modify, amend, update, alter, or change the estimates contained herein. Sept

3 Zynex Overview Medical Device Manufacturer o Non-invasive, conservative pain treatment o Neuro-Monitoring, Stroke Recovery o Blood volume monitoring Publicly Traded In operation since 1996, headquartered in Lone Tree, Colorado >60%+ recurring revenue with more than 350,000 patients treated since inception High Gross Profit Margin of >75% Estimated $3.7 b market potential Sept

4 Market Opportunity AVAILABLE MARKET ~$3.7B ZYNEX MEDICAL Electrotherapy Devices $500M ZYNEX MONITORING SOLUTIONS Cardiac Monitoring Devices $3B ZYNEX NEURODIAGNOSTICS Biofeedback/Rehab $220M Market size based on internal management estimates and various market sources Sept

5 Business Unit Structure Zynex, Inc. Zynex Medical Electrotherapy Neurodiagnostics EMG &EEG Stroke Rehab Monitoring Solutions Blood Volume Monitoring (R&D) Sept

6 Business Unit Summary ZYNEX MEDICAL (ZMI) o Non-invasive electrotherapy pain management devices TENS (90% of historical revenue) RX required, insurance billed >75% GPM, >60% recurring revenue (consumable supplies and rentals) ZYNEX NEURODIAGNOSTICS (ZND) o EEG EMG diagnostics B:B products (2% of historical revenue) o NeuroMove Stroke Rehab product ZYNEX MONITORING SOLUTIONS (ZMS) o In development, non-invasive blood volume monitor (Zero revenue) Sept

7 Products Zynex Medical Complete line of electrotherapy pain management devices-fda cleared and CE marked Augments healing, alleviates swelling through increased blood circulation, and reduces both acute/chronic pain through the use of electrical currents Requires a prescription Requires Consumables NexWave Consumables (battery/electrode) Reimbursed by health insurance May be rented or purchased $500 million industry worldwide Sept

8 Products NeuroDiagnostics Stroke/spinal cord rehabilitation devices-fda cleared and CE marked Augment healing, as well as assist in recovery for stroke, Spinal Cord Injuries and Traumatic Brain Injury, retrains muscles, increases range of motion Consumables required NeuroMove Consumables (electrodes) Sept

9 Products Monitoring Solutions CM1500 non invasive blood volume monitor Used in operating and recovery rooms to detect blood loss and internal bleeding FDA 510(k) application submitted in Sept Ongoing clinical evaluation underway Patent filed $3b market potential Blood Volume Monitor (in development) Sept

10 Current Business Factors Zynex Medical Electrotherapy Pain Management o Rapid Growth through expanding sales force. o EMPI announced exit from TENS market in Late 2015/Early o Opioid epidemic favor using Zynex s NexWave as 1 st Line-Of-Defense. Zynex Monitoring Solutions - CM1500 o Sept 2015 FDA 510(k) application filed for clearance of CM1500 monitoring device. o CE marking (European Market) in progress. o The CM1500 is capable of monitoring a patient's fluid levels, including blood loss, during surgery and in recovery. o Product fully developed. Sept

11 Long Term Objectives Up-listing to a senior exchange NYSE MKT or NASDAQ Grow recurring revenue streams Generate consistent net earnings and positive free cash flow Reinvest to develop devices and applications with high GPM Focus on driving value thru organic growth and strategic acquisitions Sept

12 Executive Team Thomas Sandgaard has been the Chairman of the Board, President and Chief Executive Officer of Zynex, Inc. since founding the company in He has previously held management positions with companies such as ITT, Siemens, GN Danavox, Dataco and Philips. Most of his work has been in the areas of international sales and distribution, technology transfers, mergers and marketing management in the semiconductor, telecommunications, data communications and medical equipment industries. Mr. Sandgaard has a bachelor s degree in electronics engineering from University of Southern Denmark and an MBA from Copenhagen Business School. Mr. Sandgaard has an in-depth knowledge of the industry and is the driving force as to the Company strategies. Dan Moorhead joined the company in June 2017 as CFO. Mr. Moorhead has over 20 years of experience in a variety of finance roles serving both public and private companies. For the last 10 years, he worked at Evolving Systems, Inc. (a Nasdaq listed company), most recently as Chief Financial Officer after having served as Vice President of Finance & Administration and Corporate Controller. Mr. Moorhead is a CPA and holds a B.B.A. in Accounting from the University of Northern Colorado. Robert Bird is VP of Marketing responsible for all marketing, in-side sales and compounding products within the rehabilitation and pain management markets for the Zynex Medical division of Zynex. Mr. Bird has over 20 years of sales and management experience and holds a B.S. Degree in Business Administration from California State University, Hayward. Michael Frabotta is VP of sales and is responsible for Zynex Medical s sales organization promoting electrotherapy and compound pharmacy products throughout the United States. Mr. Frabotta has over 14 years of successful sales and management experience with RS Medical and ERMI, Inc. At RS Medical a once national competitor in the electrotherapy arena he successfully served as a Director of Sales, National Director of Payor Contracting, Regional Manager, and Sales Representative. Mr. Frabotta received a Bachelor of Science in Nursing from the University of Pittsburgh where he specialized in Orthopaedics. Sept

13 Company Milestones Founded by Thomas Sandgaard FDA clearance on first Zynex E-Stim device Shifted from wholesale to direct sales to physicians and patients Reverse merger into a public entity Received European CE mark on key products Established NeuroDiagnostics (EEG/Sleep) and Monitoring (blood volume) subsidiaries Commenced clinical evaluations for Blood Volume Monitor device TENS business begins to grow. EMPI (largest competitor) exits TENS market Filed FDA 510K application for CM1500 monitoring device Sept

14 Contact Information Amato and Partners, LLC Investor Relations Counsel 90 Park Avenue, 17 th Floor New York, NY Zynex, Inc Park Meadows Drive Lone Tree, CO Telephone: (303) Sept