Zynex (ZYXI) 27 Oct 202020 Q3 Earnings call transcript

Good afternoon, everyone and welcome to the Zynex Q3 2020 Earnings Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] 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. Risk cause described to the company's XX-K in Exchange and including releases could forward-looking differ Securities press for that our X-Ka, as Commission, are of Forms December website. statements our the as the factors year actual on the XX, materially results from and annual ended Risk report section XXXX, Form well Factors in filings X-K with XX-Q, note event being Please recorded. today’s is the time conference Founder, this would I Thomas Executive to turn over at Sandgaard, call And Chairman, Officer. like to Chief and Sir, please go ahead.

Thank net Sandgaard, yet to announce you. of income. I Good our afternoon. and Welcome to positive My excited another name quarter call. is Zynex. earnings am President Thomas of XXXX revenue quarter third and CEO growth

our quarter in pandemic. continued QX increase was was companies, which of compared seen we force. $XX growth QX the COVID-XX million, straight order last our third trending for was compared highest October is impact revenue benchmark was expanding sales as in saw quarter same $X.XX. also in Similar It U.S. our in last XX% pain. is with Adjusted prescribe an the to as XXX% XX% has in investment force by relationship at we've QX which September. strength invest than strength XX% July XXX% progress in of as third a month the EBITDA quarter for quarter momentum and last of need and XXXX. during non-addictive our quarterly our the force to to growing many came speaks our currently positive diluted It geographic non-opioid The for and income, we $X.X October revenue many patients the company. in in the actually in share orders higher in increased year. The them the million sales the was in across and to per to to was QX fully history year, strongest the we sales And year, net strong XX% with earnings year-over-year year XXth expand with and prescribers, of to continued the of Our August prescription volumes October order solutions far last growth order continues footprint above

to aggressively quarter. continue eclipse total sales in We add and the reps, XXX reps third

been due have aided efforts recruiting increased in related the unemployment Our surge to rates a candidates to COVID-XX. by

to and provide increases beyond. QX We expect productivity significant new in hires these

XXX We in end. orders the quarter. reps expect have in QX still but the compared to year second XX% grew quarter third and XX% in in to over the COVID-XX, to sales related by Revenues QX May slightly April to lower slowed due

monthly our was patients reminder, lag a our and As devices the billing between and business for a causes supplies are used revenue as they model by growth. orders consumed

interruption without As Also continue revenue business back our we mention and follow uninterrupted. continue accordingly. to and chain grow, orders revenue expect supply remains to our and that continues normal growth want to to get to operations

of keep for hand of several components of to placed XX internal products top assembly, it's XX four over in-house our months months our the to have materials. In months finished with addition, shelf, the on on vendors practice and on of orders

abuse. continues is to to sourcing to us thousands We a become our defense have reached It die the level dependent strength the issue a impact patient for on tens immediately The less prescription opioid ship pain. in opioid we're first individual where critical has physicians increasingly working vendors. a in and opioids, this of as epidemic country, to have line to devastating be pain. Currently, off to for patients treating also of increased use and when our serious second get the ability yearly technology to due to

aware that make develop to to our of continue technology tools literally has effects. more We physicians no side

Our as our the of and industry. products the for NeuroMove products the NexWave Those incontinence strong pain in treatment. a stroke puts management, us still and rehabilitation position for all some InWave The rehabilitation best stand device pain rehabilitation, out very management for for in in markets. the product

potential from pain product to our revenue-generating management, continue for both as also huge We blood see well monitor. area a volume our great unmet existing of for divisions, our as potential

you As FDA a fluid hospitals this get to The clearance is most centers. earlier and non-invasive patient's for monitor CMXXXX CMXXXX monitor know, intended in to probably surgical managed of year. monitor fluid and we our already blood balance

several At in the with P&L, led side manufacturing, and Zimmer development, Biomet, sales He cardiac division and with for led product launches, week XX% expect surgical initially surgeries, surgical announced primarily product will we device as and well safer target XXX and and We ICUs, in from devices as President also force one the background particular the as medical Neil complications, hospitals strong XXX common believe to of internal million division. and blood marketing, in fewer a margins. display and also needs blood surgeries this to EBITDA loss, serious employees the monitoring We quality and that detect hired comes lead we bleeding about a Neil and built typically loss knowledge rooms at specifically acquisition until sales product complications less a today biggest efforts this $XXX market. substantial Neil Biomet, to difficult mortality; of COO recovery are lot from Zimmer of scratch and occur. ORs Last has where and Friery hospitals. their functions managed today. unmet men

or that, he Controller of for Surgical. Director Finance years at was Before five Zimmer

In have accounting utilizes Dan marketing, self-sufficient call resources their research be resources, division the point some Going our human forward, Moorhead, functions. over will Zynex efforts. other I Neil turn to QA near-term, CFO. leading the now our But this division. will own the sales, at still Medical, and manufacturing, and engineering from clinical will

Thomas. Thanks,

review the were XXXX. quarter our in functions reimbursement third to year-over-year. patient of in increased was million increased margins marketing Gross related million, I'll XX% G&A XXXX. million grew XX% million aggressively to year-over-year, XX% Sales increased increase to $X.X XXXX revenue $X.X results. grow force. and to million. expense sales that and we in $XX.X quarter XX% headcount to revenue Orders year. our to year-over-year revenue related support First, order of from compared $X.X as from last million and Much Supplies continue Device expenses year-over-year, third $XX.X our grew $XX growth. to grew to net XX% XX% increased our XXX%

first the $X.X Adjusted share, is diluted release, XX% or will net million nine was million. calculation, increased expense income marketing grew third expenses to income revenue EBITDA from Sales and of increased million $XX in to first which XX% $X.X XX% net XX% Third the net quarters year-over-year, $XX.X or from year. a standard XXX% $X.XX to was or G&A share quarter. Orders compared exclusion million million Gross $XX.X to share in share, reconciled per third compensation three non-cash increased the last year. revenue income and $X.XX $X.X review quarter year. diluted per in $X.XX year-over-year. and year-over-year plus increased an quarter year-over-year, is other now Device margins Supplies million, EBITDA, to in the and increased income XX% XXXX $XX.X net which million three XX% $XX.X per revenue to were months stock-based quarters last compared through in compared $X.X million, our income $X.X $X million per $XX.X our of in of was last million press of million expense, XX% I month net $X.XX XXXX million results. or grew XXXX. diluted nine XXXX. diluted EBITDA three to Adjusted quarters.

cash balance balance at sheet, $XX On up $XX.X was from XX, year-end. as million September million, of the our

many we $XX balance you completed As an to added the sheet. million transaction July, equity during approximately of which know,

as the Our over I'll call $XX.X at December to million Thomas. XX, back XXX% compared XXXX. to September $XX.X working to XX, that, grew turn now capital With million of

Dan. a to COVID-XX of support about force sales I'm management, orders year-over-year justifies and our growth of investments testament revenue XX%, grow clearly growth our our you, It's insight of efforts to functions. Thank the and in XX% in personnel, our and midst the the out especially sales pandemic. huge excited of in sales

that Our focus entire a the continues force at have we sales now country few important be months growing to a eventually to It our don’t any competitors left. really also rapid is cover just from now. in significant rate

XXXX. In sales review take guidance, have the reimbursement we in with orders end, combined drive products forecasting original over a year and we sales have profitability. midst full reps. to our which force increased we to revenue of Our far continues a gave for XXX year so accomplished in year due what to hired a beat I’d like to before This larger February this increased pandemic, minute year. new of to we will alone are our and strong revenue

last in revenue effective orders in range in million we estimate expanding will QX. the now This We are is produce million between and sales to XXXX growth revenue therefore, to adjusted and of $X.X higher the quarter bullish reps ever in be three quarter. $XX.X first are revenue. year-over-year into to XXXX. than And fourth revenue million up more is year’s very the Our third orders turn fourth million. than This from and quarter months with between will able those before $XX.X be our EBITDA XX% XX% it and revenue on and what $X.X XX%

dictated MSRP. those pattern U.S. of whether These by amounts income amounts healthcare Payments auto nearly device typically comp, allowable allowable discounted patient government, insurance, on mostly bill and end getting That's established are basis. also all is we collections reminder, same already the either through from up a insurance personal well-established our less a or the much private discounts have our contractual attorneys. get the we amounts other workers' throughout are the and patient-by-patient and supplies. injury industry industry, As negotiated but amounts companies, and our and co-pays This paid we from insurances, or by than in typical deductibles for from

We law all with to always and billing within our are and comply are sure the careful guidelines practices regulations. make

goals division undergo the take are compliant. well and after and the management to regular the long-term technologies. competitors. be we advantage growing out of domestic like huge as to therapy of main void in the potential also force, complementary huge accreditation grow as pain our rehab share We to ensure the continue market is acquisitions of market disappearance My of a sales to our prescription includes to This third-party continue for by

adding of Solutions employees new added additional to managers recently in process three our division just our the executives and are and have COO volume in this We we President launch monitoring. Monitoring four to division and blood the including

We build going will continue of summary, to another to division. strong us quarter orders, forward. great update now in a puts strength in out everyone this revenue continue profits, with growth and in growth announced we which as yet position we In

from listeners. We questions will our now answer

we question-and-answer gentlemen, your will first question. Jeffrey Instructions] today Thalmann. with Cohen ahead question and today’s from go Ladies begin from comes [Operator session. Please Our Ladenburg

So, and hi, Thomas Dan. you? How are

you Jeff? How are doing, Very well.

Just in fine, hiding there.

few just for questions a you. So,

a Firstly, read coming else any orders? looked X% more there read basically like something is to Or sales our just Is earlier there with side, on into into on function the there? device that? estimates. in it higher about is that Is of

whole a Not Dan? but lot,

be is changes they the how there device. much. comes mix really on just there It’s But think devices. the or always the lease in can don’t in buy revenue I when

So that would I know. don’t you need trending think there is anything to

insurance how up, the set to changes we each company. mix of in bill have slight insurance how is companies preferences and which Maybe we their

on up of ticking And kind organization Okay. the sales could along the or increasing Got organization? little office flavor us it. Is there us? the support sales with a for the back build you out that give to ratio color any of

day. obviously, the within group patients we patient In we XX to sales the Yes. a whole the eventually the to of questions managers And obviously have call system obviously, that center experience call after XXX for enrollment have this established will inside from finally have total nearly what that the reps year people we have. entry addition those or they might regional two XX order all sales that that very they back during day patient I be anything we now sales with office, pipeline can completed the supporting – control we the the then of And to and up sales each need device. receive patients a say, the may have are reps. of have large the we a

there. prescription the obviously process we the core work could there that have what making with So understand get you it is the sure what bills We separate department. of That obviously need we and device. that shipped of can lot a from that. department engine billing. say on We now companies. have is that’s that have the billing we base and call of is insurance business The the insurance that’s coverage the our there they force is second sales all the But part the insurance fact But sales companies and really and is paid the to departments. the directly

a Can other may. what’s bit? Is more Could sourcing? it if just talk little to for? about boards One components? that specific or it. talk And Got I it Okay. second you the you about PCM

Yes. It’s use. every component we

obviously that it. the go in also example like what So do. It’s one semiconductors we it’s is billing

of sources It’s automatic. very easy second for find the some components those. to are And

a that’s develop then, for to LCD So devices, we vendor. that just you instance, one the problem. ask when have not customize get – we And But through. displays along have

for the that’s plastic We then to customers the for bags wire, enclosure et – that device cetera, goes lead phase, in. the have another comes one the

has really everything source So a now. second

to and the with vendors our multiple make volumes now that two can we just justify Just to well pricing. trading have having sure,

are up. So, the certainly not of cost our price going devices

Okay. taking the Perfect. Thanks questions. for

you. Thank Sure.

question. ahead Chen Our Wainwright. Yi next with HC from question Please comes from your go

reps sales have? you us for you you remind many question. Could how do Thank currently my taking

end the quarter, something we the had XXX approximately like or of At that.

than that. have somewhere been higher a that. XXX little May in Yes.

over a expect and today obviously higher have it’s XXX. and by of there around Right as number end we year to

it. Got Okay.

end is right going So, a not the COVID-XX the to rebound winter. coming in of until It probably end experiencing the rebound U.S. cases. the is looks now, like

the for coming quarter you ramp second do going And expect of XXXX? up continuing see quarter? first do from COVID-XX So, negative how you into the will the trend impact growth and

point, see this don’t we At impacts. any

order – are As with sales how stronger them in they sure are with year-over-year – they September patients to than should has becoming. also clinics, how reps just lot can to I reps are found a how of mentioned, balance growth. is making open pandemic additional October a is and That nervousness you to and in. reps What still And while distancing it business. about of sales sure that deal it’s if was unlike May, seeing also operating April, attribute we could a allow and as not should dealing enough between productive the call we now allow even terms new now lot that when there in obviously there people and a is

any cetera. accordingly. see prescribe there also that we don’t, through to medicine of still of with prescribers maybe obviously, different communicate call slowdown prescribers. clinics we then sure our reps, those going see patients have And is ways the a this So, and some at on Zoom et in some sales point I are am tailor or terms the winning And

of So, in don’t all, this point, all see signs at we slowdown. any

when out to of COVID growing how it’s a compared straight orders got and line now, all So, the are up. nearly right we

Got it.

a next So, they quarter? color for be and conducting what current the of volume some And the for on activity Can during division commercial the you timeframe give don’t, monitor. the company the will blood us if launch?

Yes.

be Secondly, some in there a orders. be precious hospitals and placing we that sell can few might might interested

So, initial point. talks those this are at

then, more underway suggest to in more surgical be works in using us what’s – conduct also to a eventually to development studies we And that are published They the product for studies when actually data few research the suggested hospitals pilot adhere that class that use we the setting. had clinical have also a practical research to collect We much we by collecting data. with continue device studies few and to assist hospitals. institutions’

we - someone someone issue that fashion detect seeing that and a how minutes many bleeding. we detect instance an see, So, earlier would very has a in are for maybe in internal recovery, simple was a than seen – can pretty are

that So, be will of efforts. a of studies we the terms sales simply significantly initiating very, in are are couple us put helping

So on that’s clinical side. the

cetera. develop in and the the et is terms elegant wires, going We in that to wireless less version lot it It’s the looking to at a CM-XXXX, on of more that’s continue also the ORs, in parameters a fashion use. to make some complicated of a even

that’s in first we had So, about at. than soon as that and plan the will contacts that, initial product. to do the looking or comes the we as already And going on. a that the from strategic days, international site for going could are already a division on office be it’s sales few things we we’ve have what’s be so that can also – Neil There few in other efforts day. many this started will we and talking we with We’ve

we corner. let’s sure So in right make the start

it sometime XXXX in reasonable that XXXX? to be Is expect could launched

Yes. Absolutely.

Okay.

rather Surely, it’s no of shows And hard we do than because direct we with just be now that right terms that now. are things media not formal probably and maybe splash. as up sales we But obviously on say – call a we social more are for than in to – already efforts ramping less launched. in trade slowly launch a can those can when efforts big doing it’s

So, we’ll see.

CM-XXXX, to And you need that in what does approval a expect device And approval? timeframe XXXk follow-up occur? do on separate to the

with maybe application. FDA five between another it able doesn’t not somewhere two in say, need trends. through file to when to and that separate plan be our months XXXk just technically, should XXXk. you – But – necessarily the We a it it’s would is We

progress the of finally, the related regarding there company? inventory? moving use disruption And the of to operations the operations new the what’s overall Got of facility. Is the – And into the the any it.

that, news the even was a set The we won’t up, are we difference. way good that there is know

be I couple do already sure of it’s And weeks. ready of the think is we can But We make here and in say, I over the it the portion appropriate over big in will that so a have stations that there. an November I the will everything December few will line everybody it we to slowly the our inventory all a probably work do A and start – of pipeline. have moving, much there taken would believe Xst whole hit now we do day. towards weeks, end assembly be seamlessly. because ���

we have a now feet So XX,XXX total here. of square

We over there in feet have square XX,XXX feet nearly the XX,XXX, XX,XXX door. we building next and square have

that’s we it’s So, feet a so, to room. warehouse a square and we that and bit going breathing more And of out of XXX,XXX getting occupy. the definitely need here, give production now little as us

O'Brien from Matthew next Our Piper comes with go Sandler. Please your question question. from ahead

Afternoon. Thanks questions. for taking the

the just suppliers’ that was I starters, lot in number the For a have than been quarter modeling. lower

the So, did impact payer Xst, there that’s what think I had starting and see of covering you stopped July you kind can talk about specifically, weakness you that a region? in

that It about wasn’t TRICARE… the a payor really are if you issue talking –

That’s not, it certainly is.

That’s not. really

quarter. QX $XX.X on was but the the quarter, start in the You order patients driving and drove, in again decrease were $XX out the million in growth in because million up up quarter. the orders that just we the from orders posted the know Devices to supplies flattened about during revenue

Okay.

question we chain in seen that Do you QX. be guess shape are on into from those – would comfortable have in feel completely supply the as QX? resolved? employee head So, you and Are now that the the you good press next release issue the I

Yes, there weren’t any issues.

QX. lot pretty we’ve we were issues just and through we a side with gone pointing are the issues. good out the really we’ve now towards making seen we looking operations we’ve a those the dealt of and haven’t And sure COVID-XX then, pretty think in on pandemic that done of I QX We’ve seen and job QX. that smooth

I in reason we guess, a I step place. humongous for surrounding questions got up. the guide. saw it’s a And in these really up QX what QX, a then, lot But, know and really reps It’s step you’ve versus more the base is Okay.

about feel it So reps, in days level the question, think to confidence guys to by, And driven October in in the from get the we a you Thanks. business. of is that so perspective outlook confidence? what year? you thoughts the productivity Any I as updated step is up? about but are you that comfortable level through a getting seeing head XXXX, as know Are bullish follow next that guess, that I gives into improvement that on you to early far for XXXX I here of you pretty

revenue we’ll QX over in putting what without many obviously XXXX. we part too orders in of seeing growth is what level that. But say, numbers it, see is the see confidence some right are of on that I’d the building in from now, we into revenue quarters won’t much four

eventually the time And so, right on quarter we I rates order some for continue we, quite of another keep can will think that for be around if revenue the And the, at expecting two or we can growth XXX%. or for working growth over next forecasting But formally XXX%, XXX%. catch that setting and we’ll here year. the on well start revenue internally this growth the – numbers here up over year, late showing be to in will then

up the step big there? QX, confidence And in Okay. the

strong, we of seeing is is we are still into terms will But numbers already plough. bit drive cash obviously little what QX. Again, of which in and drop used net collections are it revenue that to orders, a the for absolutely, revenue that

So, can we the there. are we about very numbers out put think just feel I confident we

Thank you. Okay.

Riley go Our with your from next question Please from Marc comes Wiesenberger B. ahead FBR. question.

order new well kind there reps the XXX% was existing July XX% productivity in from that Was September? to in drove what or driven the of reps? primarily about as gains, talk just acceleration you Can afternoon. Good Thanks. from some the by

what say, would I consider reps, new a Primarily we sitting.

slowdown COVID a significant but and gotten have gains Once a incredible early numbers. as we with board may back started those we January, brand on gains, have it’s some really year May So it, that March, in or those new reps August two productivity have a had that seen and from, February, well and on for reps during all that very significant really seen early us producing slowdown this been may July, – we’ve in for COVID into that us as are orders in June. incredible as experienced productivity reps April, now little bit and

say initial we’ve still it even not, able of – I’d training to year that, provide like better better we than So, these believe XX on a managers even or and or top seems two recruit it been in we now And did regional have to maybe sales ago. place.

of now really get they they the after have probably new immediately a also out reps to So, hold do helps That brand get and little. the time deployed. hands

Understood. how Of sales? the XX $X million in sales? producing least many month started trailing with, month in are that at year And $XXX,XXX trailing at the then, you XXX reps are XX many least how producing

if look somewhere number guess, that I if the and XX those runrate-wise. you between should present. and XX have don’t at of But I

Yes.

Maybe, is not then, still not heavy There anymore lifting. yet and than that.

of are expectations the Got it. state month? steady sales reps per world, for In generate what a number you can orders

able orders month. per They produce XXX over should be to

that XXX, were a a Empi, produced when come them they when remember competitor, that. division And that the goals all the month in was a as we they less order conservative anymore. someone fairly if can get I come will on long anymore make our than – If realistically force, together. XXX wouldn’t long-term able they is push be our them orders throughout average numbers be of business, we not XX projections the for then a may in working make Our month, as orders than although to together sales to DJO, do

I pretty think revenue it’s million per rep. we $X for in budgeting in forecasting in have a that’s annualized annual purposes, there. revenue, it’s So, and number conservative But

And Thanks. it. me. for one Got more

and Can saw read solutions about mean, the new strategy the you monitoring XX volume the And opposed you monitor that go released to to we to volume you’ve the hired for Officer licensing market to facilities, your or months? think a of blood your between to venture next guys to Turning favoring loan monitor, associated should Chief with go infer the that blood we lines how joint we XX deal? path, determining expanding spending a as an over announcement of closer the are Thank division. cadence Operating I you. to then a

doing Neil talks think I we with that – with close we the the many out with, initial am and defining into his – we’ll least on talks private already had here. and preempting working OEM I are still strategy board be coming Yes, the pretty loan background strategic Without find have royalty, at come partnerships, that up of what will expecting until be labeling we going in bit have obviously, licensing, what really a everything a terms of versus works. we to

this very part a market, that’s viable strategy. of know as far typically I the As

and it’s how much maybe little early resources to few purchase to we’ll of middle put that a to and So to talk boxes. probably and maybe hard see say much, side – either trying you how here when sales get I it – have some interest early We on. the very we of lot which received and of sell resources revenue see next already way. there towards when arms we the bit is unusual often many on have depends – out it, negotiate a little open all or don’t it are about probably I you year. a on that works. with it’s How we’ll on And a got we need But too we of

encouraging. very So it’s

you. Thank Great.

Thank you.

with Please your question ahead Markets. Terwilliger next our comes from go Northland And James Capital from question.

me? Hey, Thomas, can you hear

can I you. hear How you doing? Yes, are

doing? question. questions quick Three you taking thanks my for quickly are How very and really, Good.

numbers have economy you growth On other guys of COVID tremendous of companies. you when are COVID impact up and better the it’s numbers the the shutdown the to even considering issue, what put growth and done

all slowdown, more on national was every was you Was You facility. it’s of you to terms rep you hey, a Or southeast, particular – kind coming COVID a scale? it had almost that little coast, to we that more When things getting hit hey, are you expand region, it locked of out it the one slowdown Can it seen and down up that one catch regional really you started the is then from sales had slight of Was there it issue of momentum the region said, bit. saw? took? are shutdown? and or the that at northeast, tremendous did rather west just, kind the the it in of

say, Yes, back harder went we obviously terms worked June, reps We would we others. were in after the that us, I that than that certain our But country, April, hit really of it. that at coverage that of when general point, look I say, national hit ourselves in out and at dense. we May, early saw of parts when would sales

was. by, therefore, prescription text without Manhattan. for of more could it they like have in producing that some entering it contact reflection good drive email, by update something to drop the were relationship – the And messaging middle with reps cases, we that still of saw, problems a instance, whatever And that terms just a the clinic. without by was smack probably in them reps sort our in phone, ability by or had prescribers, actually, So, off maybe had packs of or right more much We sales if by existing period rep which basis. on were best during of

random, And of distant creativity. we We looks lot more really that was sales like produced selling it training there up a do ones didn’t. did much was material So which a on – on which and those a and it – lot reps a months. picked was well during to sales it of

by much that didn’t more regions So, was we any correlation then. it direct rep back with and spots considered see the hot were

as reimbursement do going and fiscal Okay. you sometimes Great. see concerning towards the significant That reimbursement today, second you again, of from what pretty Thanks. December. From changes color. is mean, coming we high think and you view reset is today? do level the level, in might be marketplace, you or And any clearly I within with high view excellent stable healthcare end a year do see years were really it the to where reimbursement. my with you October was there November, additional question a

not the Having deductibles any it we see – HMO to months. on and comes collect many of On the in to of that But, the other any pattern being now commercial issue, years macro micro always done where the an don’t seen a see it these the of years, allowable here close we insurance amounts, produce, same level, the a companies I company of in it trends. that, towards insurance cash. right therefore portion we this traditional insurances, When changes level. end it’s XX XX a year, bigger the for difficult very have which one than most is

revenue. to so, that’s last cash – And when collections is And somewhat we stronger. why three the projecting quarter the months little we it fourth always of also comes in year, a upbeat that always

Great. then, just Okay. And very lastly, quickly.

going hate to you are this most. the think one I

forgive So, time. of ahead me

into are you on? discuss what on? back XXXX? in Now Thomas. you are move excited working together, And R&D that the what queue. And you you talking team I’ll are working maybe launch about that the can put able see, in that What as Thanks, of XXXX monitor that we what you the you to as jump you are can about pipeline we discuss are

we're Yes. bit little them. And probably about CM-XXXX I have halfway talked about with over well a the that

more add will from as technologies already obviously, then inventions well some hospital be the and I'd have maybe fit But like other producing into still soon option we private-labeling here that start that us And versions the mean same. a for other about already see will also that. think U.S. have. will OEM looking a version very patents I what we'll talk we to easier that's am and of for create we embedded more it's CM-XXXX, that's can to companies. as that maybe So, get it an when idea I more less be And made some other ahead we maybe companies it military, also embedded would space having say. Functionality filed monitoring more the or or I for – to more that, stuff an will prototypes once

I'll my jump Thomas. Alright. questions. Well, Thanks, for back guys. queue. taking Thanks Dan. thanks, Goodbye. in Thanks,

James. Thanks,

today's like with for session. the any question-and-answer I'd management turn remarks. And will over call that, conclude we to ladies conference to and back gentlemen, closing

earnings been all. and this you call. a I hope into has day appreciate the Yes, interest great and thank have call to today's you. I informative for everyone Zynex Thank listening in and

thank conclude and attending. with conference. gentlemen, for you we’ll do today’s that, We And ladies

disconnect may lines. your You now