Replies to post #2806 on Zynex Inc. (ZYXI)

[MikeDDKing]

Here are some answers:

1. Do I see correctly that there is absolutely NO cash, and that no cash is being generated?
-> You are wrong. They have $189,620 as of 6/30/08 and cashflow from operations in Q2 was $509,887.

2. How can their product be sold for 10x cost? Is there something incredibly specially great about their products over the competition?
-> First of all, you are looking at manufacturing cost/GM. They have more cost for processing orders and accounting for each order. Operating margins are very nice at 53.3% in the most recent quarter. Margins are often quite high in the medical space as there is significant work to get FDA approval. Look at MDT for example as a comparison. MDT's GM is 75.5%.

3. Why do they have that huge "provision for discount to providers" in there? Some strange accounting....
-> No, this is standard when working with insurance companies. Read more in the filings.

4. Don't they need to raise cash real soon?
-> No. See the answer to question #1.

Mike