XML 16 R12.htm IDEA: XBRL DOCUMENT v2.3.0.15
Line of Credit
9 Months Ended
Sep. 30, 2011
Line of Credit [Abstract] 
LINE OF CREDIT
(6) LINE OF CREDIT
In February 2011, the Company entered into an amendment to its revolving credit and security agreement with CapitalSource Bank (the “Credit Agreement”) to add Zynex Monitoring Solutions Inc. and Zynex NeuroDiagnostic Inc. to the Credit Agreement and to amend certain financial covenants. The Company has an asset-based revolving line of credit (“RLOC”) under the Credit Agreement that allows borrowing, repayment and re-borrowing, subject to the lesser of the facility cap of $3,500 or 85% of the borrowing base less certain reserved amounts. The borrowing base is generally the net collectible dollar value of the Company’s eligible accounts receivable, as defined. The Credit Agreement bears interest at a floating rate based on the one-month London interbank offered rate (LIBOR), divided by the sum of one minus a measure of the aggregate maximum reserve requirement for “Eurocurrency Liabilities” for the previous month, as defined, plus 4.0%. Interest is payable monthly. As of September 30, 2011, the effective interest rate under the Credit Agreement was 10% (7% interest rate and 3% fees). As of September 30, 2011, $3,380 was outstanding on the Credit Agreement (the remaining amount available for borrowing was $120).
As of September 30, 2011, the Company was in compliance with its financial covenants.
On October 7, 2011, the Company received a commitment letter from a new lender to provide a larger, more favorable loan facility. Although no assurance can be given that the Company will close the new loan facility, the Company is currently negotiating and documenting the terms. On October 10, 2011, the Company provided its existing lender notice to terminate the Credit Agreement. The Company will continue to operate under its existing Credit Agreement until the new agreement is finalized, which is expected to occur during the fourth quarter of 2011.