Reorganization, Material Impairments (Form 8-K)

Item 2.05 Costs Associated with Exit or Disposal Activities.

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As part of a strategic shift, Zynex, Inc. (the "Company") has decided to seek a commercialization partner for the NiCO™CO-Oximeter, a multi-parameter pulse oximeter developed by its wholly-owned subsidiary, Zynex Monitoring Solutions, Inc. ("ZMS"), rather than pursue commercialization independently. The Company previously submitted a 510(k) application for the device to the U.S. Food and Drug Administration. Based on this revised strategy, on October 1, 2025, the Company has terminated the positions of a majority of ZMS employees with substantial cost savings expected from the reduction in force.

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As a result of the actions described above, the Company expects to incur (i) pre-tax cash charges of approximately $0.1 million associated with severance payments to former ZMS employees and (ii) pre-tax non-cash asset impairment charges up to approximately $31.0 million primarily related to the impairment of goodwill and other assets associated with the ZMS business. While the Company will continue to pursue commercialization opportunities with third-parties for NiCO™, this potential impairment reflects the change in strategic direction for ZMS. No assurance can be provided that the Company will be successful in attracting a commercialization partner. The Company expects to recognize the severance charges in the fourth quarter of 2025 and any impairment charges are expected to be recognized in the third quarter of 2025.

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Item 2.06 Material Impairments.

The information set forth under Item 2.05 of this report on Form 8-K is incorporated by reference into this Item 2.06.