Zynex Inc.
11/17/2025 | Press release | Distributed by Public on 11/17/2025 16:22
Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Cautionary Notice Regarding Forward-Looking Statements
This quarterly report includes statements of our expectations, intentions, plans, and beliefs that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Nonetheless, it is important for an investor to understand that these statements involve risks and uncertainties. These statements relate to the discussion of our business strategies and our expectations concerning future operations, margins, profitability, liquidity, and capital resources, potential outcomes of the evaluation of the strategic alternatives, and our ability to continue as a going concern as well as analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. We have used words such as "may" "will" "should" "expect" "intend" "plan" "anticipate" "believe" "think" "estimate" "seek" "expect" "predict" "could" "project" "potential" and other similar terms and phrases, including references to assumptions, in this report to identify forward-looking statements. These forward-looking statements are made based on expectations and beliefs concerning future events affecting us and are subject to uncertainties, risks, and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control, that could cause our actual results to differ materially from those matters expressed or implied by these forward-looking statements. These interim financial statements and the information contained in this Quarterly Report on Form 10-Q should be read in conjunction with the annual audited consolidated financial statements, and notes to consolidated financial statements, included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on March 11, 2025, as subsequently amended on July 24, 2025 (the "2024 Form 10-K") and subsequently filed reports, which have previously been filed with the Securities and Exchange Commission (the "SEC").
Such risks and other factors also include those listed in Part II, Item 1A. "Risk Factors" and in Part I, Item 1A. "Risk Factors" in our 2024 Form 10-K, Part II, Item 1A. "Risk Factors" of the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2025 filed with the SEC on July 31, 2025, Part II, Item 1A. "Risk Factors" of this Quarterly Report on Form 10-Q, and our other filings with the SEC. When considering these forward-looking statements, you should keep in mind the cautionary statements in this report and the documents incorporated by reference. New risks and uncertainties arise from time to time, and we cannot predict those events or how they may affect us. We assume no obligation to update any forward-looking statements after the date of this report as a result of new information, future events or developments, except as required by applicable laws and regulations.
The information and financial data discussed below is derived from our condensed consolidated financial statements for the quarterly period ended September 30, 2025, and 2024. The condensed consolidated financial statements of the Company were prepared and presented in accordance with generally accepted accounting principles in the United States. The information and financial data discussed below is only a summary and was prepared to provide a historical and narrative discussion of our financial condition and results of operations through the eyes of management and should be read in conjunction with the historical financial statements and related notes of the Company contained elsewhere in this Quarterly Report on Form 10-Q and with the annual audited consolidated financial statements, and notes to consolidated financial statements, included in the 2024 Form 10-K and subsequently filed reports, which have previously been filed with the SEC.
General
Zynex, Inc. (a Nevada corporation) has its headquarters in Englewood, Colorado. We operate in one primary business segment, medical devices which include electrotherapy and pain management products. As of September 30, 2025, the Company's only active subsidiaries are Zynex Medical, Inc. ("ZMI," a wholly-owned Colorado corporation) through which the Company has historically conducted most of its operations, and Zynex Monitoring Solutions, Inc. ("ZMS," a wholly-owned Colorado corporation).
When used in this quarterly report, the terms the "Company," "Zynex", "we," "us," "ours," and similar terms refer to Zynex, Inc., a Nevada corporation, and our wholly-owned active subsidiaries, ZMI and ZMS.
Recent Developments
Zynex Monitoring Solutions
On October 1, 2025, the Company announced a change to the commercialization stategy for its ZMS subsidiary, which develops noninvasive, laser-based patient-monitoring technologies acquired through the December 2021 acquisition of Kestrel Labs, Inc. The
Company determined it would no longer independently commercialize its NiCO™ CO-Oximeter ("NiCO"). Instead, the Company plans to pursue commercialization through one or more strategic partners.
As part of this initiative, the Company implemented a workforce reduction within ZMS on October 1, 2025, eliminating substantially all positions and ceasing most internal R&D and manufacturing activities. On November 1, 2025, the Company eliminated all remaining positions within ZMS and ceased independent operations. As a result, the Company expects to incur aggregate pre-tax cash severance charges of approximately $0.7 million in the fourth quarter of 2025. The Company recognized pre-tax non-cash asset impairment charges of $30.7 million, during the quarter ended September 30, 2025, primarily related to goodwill, definite-lived intangible assets and certain fixed assets associated with the ZMS business.
New Leadership
Effective August 18, 2025, the Company appointed Steven Dyson to serve as the Chief Executive Officer, Vikram Bajaj to serve as the Chief Financial Officer and John Bibb to serve as the Chief Legal Officer.
Chief Commercial Officer Departure
On October 8, 2025, Anna Lucsok notified the Company of her decision to resign from her position as Chief Commercial Officer of the Company, effective as of October 10, 2025.
Director Appointments
Effective October 7, 2025, the Board of Directors (the "Board") elected Bret W. Wise to serve as a member of the Board and appointed Mr. Wise to serve as Chair of the Audit Committee of the Board and as a member of the Compensation Committee and the Nominating and Governance Committee. Effective November 11, 2025, the Board appointed Mr. Wise as a member of the Special Committee (defined below).
Effective November 11, 2025, the Board elected Paul S. Aronzon to serve as a member of the Board and appointed Mr. Aronzon to serve as the Chair of the Special Committee. Refer to Part II, Item 5. "Other Information" for additional information on the appointment of Mr. Aronzon to the Board. The Company has not yet identified a strategic transaction and there can be no assurance any such transaction will result from the Special Committee's evaluation of strategic alternatives, or the timing, terms and conditions of any such transaction.
Special Committee Formation
On November 11, 2025, the Board established a Special Committee (the "Special Committee"), with delegated authority from the Board to, among other things, review, evaluate, negotiate, and, if appropriate, approve and implement on behalf of the Board and the Company, any strategic restructuring and/or financing transactions available to the Company.
Tricare and workforce reductions
During the quarter ended March 31, 2025 the Company was notified that the Defense Health Agency ("DHA") was temporarily suspending Tricare claims processing and payments to the Company pursuant to 32 C.F.R. § 199.9(h). DHA informed the Company that the suspension is based on allegations that the Company misrepresented claims for supplies and equipment billed to the Tricare program, that the Company misrepresented diagnoses to justify a requirement for TENS units, and that the Company lacked physician orders supporting the medical need for the replenishment of TENS supplies.
In response to the ongoing temporary suspension of payments and the related uncertainty regarding the timing of resolution, the Company implemented a workforce reduction of approximately 15% of the Company's total number of employees during the quarter ended March 31, 2025, to align its operating expenses with current revenue levels.
In April 2025, the Company met with DHA to present evidence in opposition to the temporary Tricare payment suspension. In June 2025, DHA notified the Company that the temporary Tricare payment suspension would continue pending completion of DHA's investigation. Also in June 2025, the Company executed a further workforce reduction affecting 86 corporate roles, representing approximately 14% of its total employees. During the quarter ended September 30, 2025, the Company determined that the prior
workforce reduction had negatively impacted device orders and corresponding supplies, new patients onboarding and order completion and, as a result, rehired certain previously impacted employees to support service levels.
Tricare historically represented approximately 20-25% of the Company's annual revenue and cash collections from Tricare were $48.8 million and $38.8 million during the years ended December 31, 2024 and 2023, respectively. Because DHA informed the Company that any participation agreement with its patients remains in full force and effect, the Company continues to support both existing patients and new patients as prescriptions are received.
During the nine months ended September 30, 2025, the Company received $2.2 million in payments from TriWest Healthcare Alliance ("TriWest"), the contractor for the Tricare West Region, and $0.6 million in payments from Humana Military, the contractor for the Tricare East Region. TriWest and Humana Military have sought repayment of these amounts. The Company reduced its revenue by $2.8 million during the quarter ended September 30, 2025 related to Tricare payments it received from TriWest and Humana Military during the time period of the Company's Tricare payment suspension. During the nine months ended September 30, 2025, as a result of the adjustment, the Company did not recognize any revenue from Tricare, all other fulfillments and related revenue have been fully reserved and we have no reported receivables related to Tricare as of September 30, 2025.
SEC request for documents
On June 11, 2025, the Company received a voluntary (non-subpoena) request for documents from the Securities and Exchange Commission (the "SEC") in connection with an investigation that it is conducting into the Company to determine whether violations of federal securities laws have occurred. Subsequently, on June 30, 2025 and September 4, 2025, the Company received additional voluntary requests for documents from the SEC. The Company is cooperating with the SEC in its investigation, and is, on a rolling basis, providing all responsive documents to the requests. Consistent with its cooperation with the SEC, the Company has voluntarily agreed to toll the statute of limitations applicable to matters that are the subject of the SEC's inquiry.
RESULTS OF OPERATIONS
Summary
Net revenue was $13.4 million and $50.0 million for the three months ended September 30, 2025 and 2024, respectively, and $62.2 million and $146.4 million for the nine months ended September 30, 2025 and 2024, respectively. Net revenue decreased $36.6 million or 73% for the three months ended September 30, 2025 from the same period in 2024. For the nine months ended September 30, 2025, net revenue decreased $84.2 million or 57% compared to the same period in 2024. For the three and nine months ended September 30, 2025, device orders decreased 35% and 20%, respectively, from the same periods in 2024.
Net loss was $42.9 million for the three months ended September 30, 2025 compared with net income of $2.4 million during the same period in 2024. Net loss was $73.3 million for the nine months ended September 30, 2025 compared with net income of $3.6 million during the same period in 2024. Cash used in operating activities was $23.0 million during the nine months ended September 30, 2025 compared to cash provided by operating activities of $10.3 million during the same period in 2024. Working capital deficit was $41.8 million as of September 30, 2025 and working capital was $58.3 million as of December 31, 2024. The change in working capital primarily reflects the reclassification of the Company's $60 million of outstanding 2023 Convertible Senior Notes (as defined herein) to current liabilities (see Note 10), cash used in operations during the nine months ended September 30, 2025, and the repurchase of $4.9 million of treasury stock.
Net Revenue
Net revenues are comprised of device and supply sales, constrained by estimated third-party payer reimbursement deductions. The reserve for billing allowance adjustments and allowance for uncollectible accounts are adjusted on an ongoing basis in conjunction with the processing of third-party payer insurance claims and other customer collection history. Product device revenue is primarily comprised of sales and rentals of our electrotherapy products and also includes private labeled rehabilitation products such as our bracing, cervical traction, lumbar support and hot/cold therapy products.
Supplies revenue is primarily comprised of sales of our consumable supplies to patients using our electrotherapy products, consisting primarily of surface electrodes and batteries. Revenue related to both devices and supplies is reported net, after adjustments for estimated third-party payer reimbursement deductions and estimated allowance for uncollectible accounts. The deductions are known throughout the healthcare industry as billing adjustments whereby the healthcare insurers unilaterally reduce the amount they reimburse for our products as compared to the sales prices charged by us. The deductions from gross revenue also take into account
the estimated denials, net of resubmitted billings of claims for products placed with patients which may affect collectability. See our Significant Accounting Policies in Note 2 to the condensed financial statements for a more complete explanation of our revenue recognition policies.
We occasionally receive, and expect to continue to receive, refund requests from insurance providers relating to specific patients and dates of service. Billing and reimbursement disputes are very common in our industry. These requests are sometimes related to a few patients and other times include a significant number of refund claims in a single request. We review and evaluate these requests and determine if any refund is appropriate. We also review claims that have been resubmitted or where we are pursuing additional reimbursement from that insurance provider. We frequently have significant offsets against such refund requests which may result in amounts that are due to us in excess of the amounts of refunds requested by the insurance providers. Therefore, at the time of receipt of such refund requests we are generally unable to determine if a refund request is valid.
Net revenue decreased $36.6 million to $13.4 million for the three months ended September 30, 2025, from $50.0 million for the same period in 2024. Net revenue decreased $84.2 million or 57% to $62.2 million for the nine months ended September 30, 2025 from $146.4 million for the same period in 2024. For the three and nine months ended September 30, 2025, the decline in net revenue from the same period in 2024 is related to the Company's temporary Tricare payment suspension, along with a $2.8 million reduction in revenue related to payments received from Tricare during the suspension period. During the pendency of the temporary Tricare payment suspension, we continue to fulfill orders related to new prescriptions for Tricare patients as well as continue to serve existing patients with needed supplies. During 2025 and through the third quarter of 2025, changes to certain payers' claim submission and review practices have resulted in unanticipated denials and payment delays, which has negatively impacted our revenue. Additionally, workforce reductions in the first and second quarters of 2025 have negatively impacted device orders and corresponding supplies, new patients onboarding and order completion, contributing to the overall decline in net revenue during the three months ended September 30, 2025.
Device Revenue
Device revenue is related to the sale or lease of our electrotherapy or private-labeled products. Device revenue decreased $7.8 million or 53% to $7.1 million for the three months ended September 30, 2025, from $14.9 million for the same period in 2024.
Device revenue decreased $14.8 million or 33% to $30.0 million for the nine months ended September 30, 2025, from $44.8 million for the same period in 2024.
For the three and nine months ended September 30, 2025, approximately $2.0 million and $4.8 million, respectively, of the decline in device revenue from the same period in 2024 is related to the Company's temporary Tricare payment suspension, along with the reduction in revenue related to payments received from Tricare during the suspension period. During the third quarter of 2025, changes to certain payers' claim submission and review practices have resulted in unanticipated denials and payment delays, which has negatively impacted our revenue. Additionally, workforce reductions in the first and second quarters of 2025 have negatively impacted device orders and corresponding supplies, new patients onboarding and order completion, contributing to the overall decline in device revenue during the three and nine months ended September 30, 2025, respectively.
Supplies Revenue
Supplies revenue is related to the sale of supplies, primarily electrodes and batteries, for our electrotherapy products. Supplies revenue decreased $28.8 million or 82% to $6.3 million for the three months ended September 30, 2025, from $35.1 million for the same period in 2024.
Supplies revenue decreased $69.3 million or 68% to $32.2 million for the nine months ended September 30, 2025, from $101.6 million for the same period in 2024.
Approximately $13.3 million and $32.9 million of the decrease in supplies revenue during the three and nine months ended September 30, 2025, respectively, is related to the Company's temporary Tricare payment suspension, revenue reduction related to payments received from Tricare during the suspension period, payer policy changes, payer prepayment reviews, along with a revised resupply process that is resulting in fewer shipments and bills submitted. Additionally, workforce reductions in the first and second quarters of 2025 have negatively impacted device orders and corresponding supplies, new patients onboarding and order completion, contributing to the overall decline in supplies revenue during the three and nine months ended September 30, 2025, respectively.
Operating Expenses
Cost of Revenue - Devices and Supplies
Cost of revenue - devices and supplies consist primarily of device and supply costs, facilities, operations labor and overhead, shipping and depreciation. Cost of revenue for the three months ended September 30, 2025 decreased $4.9 million or 48% to $5.3 million from $10.2 million from the same period in 2024. As a percentage of revenue, cost of revenue - devices and supplies increased to 40% from 20% for the three months ended September 30, 2025 and 2024, respectively.
Cost of revenue for the nine months ended September 30, 2025 decreased $8.7 million or 30% to $20.7 million from $29.4 million for the same period in 2024. As a percentage of revenue, cost of revenue - device and supplies increased to 33% from 20% for the nine months ended September 30, 2025 and 2024.
The decrease in cost of revenue - device and supplies in the three and nine months ended September 30, 2025 and 2024 is due to lower orders and fewer products shipped. The increase in cost of revenue - devices and supplies as percentage of revenue for the three and nine months ended September 30, 2025 compared to the same periods in 2024 is due to the decrease in revenue, decreased revenue related to the Tricare revenue adjustment which had no corresponding decrease to cost of revenue, and less volume in our production facility to absorb fixed costs.
Sales and Marketing Expense
Sales and marketing expenses primarily consist of employee-related costs, including commissions and other direct costs associated with these personnel including travel expenses, marketing, and related expenses.
Sales and marketing expense for the three months ended September 30, 2025 decreased $11.2 million or 54% to $9.5 million from $20.7 million for the same period in 2024. The decrease in sales and marketing expense is primarily due to lower employee compensation expenses related to decreased headcount in the sales force. As a percentage of revenue, sales and marketing expense increased to 71% from 41% for the three months ended September 30, 2025 and 2024, respectively, primarily due to the decreased revenue during the period.
Sales and marketing expense for the nine months ended September 30, 2025 decreased $28.1 million or 42% to $39.2 million from $67.3 million for the same period in 2024. The decrease in sales and marketing expense is primarily due to lower employee compensation expenses related to decreased headcount in the sales force and associated expenses. As a percentage of revenue, sales and marketing expense increased to 63% from 46% for the nine months ended September 30, 2025 and 2024, respectively. The increase as a percentage of revenue is primarily due to the decrease in revenue during the period.
General and Administrative Expense
General and administrative expenses primarily consist of employee-related costs, and other direct costs associated with these personnel including facilities, travel expenses, professional fees, depreciation, and amortization. General and administrative expense for the three months ended September 30, 2025 decreased $3.5 million or 23% to $11.8 million from $15.3 million for the same period in 2024. As a percentage of revenue, general and administrative expense increased to 88% for the three months ended September 30, 2025 from 31% for the same period in 2024.
General and administrative expense for the nine months ended September 30, 2025 decreased $4.2 million or 10% to $38.9 million from $43.1 million for the same period in 2024. As a percentage of revenue, general and administrative expense increased to 63% for the nine months ended September 30, 2025 from 29% for the same period in 2024.
The decrease in general and administrative expense for the three and nine months ended September 30, 2025 compared to the same periods in 2024 are primarily due to lower headcount within the Company's billing and corporate departments, partially offset by increased professional fees. The increase as a percentage of revenue is primarily due to decreased revenue.
Impairment charges
During the quarter ended September 30, 2025, the Company identified indicators of impairment related to its ZMS subsidiary following management's decision to discontinue internal commercialization efforts for NiCO and to pursue strategic commercial partnership opportunities for those technologies. As a result, the Company recorded non-cash impairment charges totaling $30.7 million during the three months ending September 30, 2025. The impairment primarily related to the write-down of goodwill and
intangible assets recognized in connection with the December 2021 acquisition of Kestrel Labs, Inc., and other long-term assets held at ZMS. Management does not expect further material impairment related to the ZMS business at this time.
Income Taxes
The provision for income taxes is recorded at the end of each interim period based on the Company's best estimate of its effective income tax rate expected to be applicable for the full fiscal year. The Company's effective income tax rate was 4% and (5)% the three and nine months ended September 30, 2025, respectively. Discrete items adjusted, primarily related to the valuation allowance charge, were ($2.0) million and $3.5 million, for the three and nine months ended September 30, 2025, respectively. Discrete items adjusted, primarily related to the tax impact of restricted stock vestings, were $0.2 million for both the three and nine months ended September 30, 2024. The Company recorded income tax expense of $1.9 million and $3.6 million for the three and nine months ended September 30, 2025, respectively. For the three and nine months ended September 30, 2024, the Company recorded an income tax expense of approximately $0.8 million and $1.2 million, respectively.
Liquidity and Capital Resources
Our future results are subject to substantial risks and uncertainties. We have historically financed operations through cash flows from operations, debt and equity transactions. At September 30, 2025, our principal source of liquidity was $13.3 million in cash and cash equivalents and $6.7 million in net accounts receivable, less amounts sold under our Secured Borrowing (see Note 9). See "- Liquidity and Going Concern" below.
Net cash used in operating activities for the nine months ended September 30, 2025 was $23.0 million compared with net cash provided by operating activities of $10.3 million for the nine months ended September 30, 2024. The decrease in our cash provided by operating activities for the nine months ended September 30, 2025 was primarily due to lower net income as result of the Company's temporary Tricare payment suspension and reduced revenue, partially offset by a decrease in accounts receivable for the nine months ended September 30, 2025 compared to the same period in 2024.
Net cash used in investing activities for the nine months ended September 30, 2025 and 2024 was $0.2 million and $0.4 million, respectively. Cash used in investing activities for the nine months ended September 30, 2025 and 2024 was primarily related to the purchases of property and equipment related to ZMS.
Net cash used in financing activities for the nine months ended September 30, 2025 was $3.1 million compared with net cash used in financing activities of $16.9 million for the same period in 2024. Net cash used in financing activities for the nine months ended September 30, 2025 was primarily due to purchases of $4.9 million in treasury stock. Net cash used in financing activities for the nine months ended September 30, 2024 was primarily due to purchases of treasury stock of $15.6 million.
During the third quarter of 2025, the Company entered into a receivable funding program designed to enhance liquidity by monetizing a portion of its medical lien receivables. The program provides cash advances of approximately 21% of billed charges, with the funding counterparty retaining a share of future collections based on the timing of recovery. Because the arrangement includes limited recourse and offset provisions, it is accounted for as a financing rather than a sale of receivables.
At September 30, 2025, total advances outstanding under the arrangement were approximately $2.2 million, secured by receivables with aggregate billed charges of about $10.3 million. A significant portion of the receivables had already been written down through the Company's accounts receivable valuation process prior to funding. The effective cost of the arrangement will vary with the timing of collections, and longer collection cycles are expected to result in higher implied financing rates.
Liquidity and Going Concern
The Company has incurred net losses of $73.3 million for the nine months ended September 30, 2025 compared with net income of $3.6 million during the same period in 2024. As of September 30, 2025, the Company had $13.3 million in cash and cash equivalents and $6.7 million in accounts receivable. As discussed herein, the Company is also subject to an ongoing suspension of payments from Tricare and is subject to various refund demands from payers, which may materially impact the Company's liquidity. During 2025 and through the third quarter of 2025, changes to certain payers' claim submission and review practices have resulted in unanticipated denials and payment delays, which has negatively impacted our revenue. Based on the Company's cash and cash equivalents as of September 30, 2025 and the Company's current and forecasted level of operations and cash flows, management believes that our existing cash resources are not sufficient to support planned operations for at least the next year from the issuance of the unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q.
The Company's ability to continue as a going concern is dependent upon its ability to obtain the consent from creditors or terminating, amending or refinancing the agreements governing the Company's $60.0 million outstanding 2023 Convertible Senior Notes (as defined herein) which mature on May 15, 2026 and to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due, and to generate profitable operations in the future (such alternatives, a "Restructuring"). The Company has retained Province, LLC as its financial advisor to assist the Company in preparing for, analyzing, evaluating and arranging discussions with its creditors, including the holders of our 2023 Convertible Senior Notes, and other stakeholders to explore several alternatives for a Restructuring. The Company has recently begun discussions with certain creditors holding the 2023 Convertible Senior Notes and anticipates beginning discussions with other stakeholders and investors with respect to a Restructuring. While certain discussions are ongoing, the Company has not reached an agreement with respect to such a Restructuring and there can be no assurances that an agreement with respect to a Restructuring will be reached in the future.
The Company has elected to not make an interest payment in the amount of approximately $1.5 million (the "Interest Payment") due on November 15, 2025 (and payable on November 17, 2025, as November 15, 2025 is a non-business day) with respect to the 2023 Convertible Senior Notes. Under the indenture governing 2023 Convertible Senior Notes, the Company has a 30-day grace period to make the Interest Payment before such non-payment constitutes an "event of default" with respect to the 2023 Convertible Senior Notes. The Company may elect to make the Interest Payment on or prior to the expiration of the 30-day grace period. However, the failure of the Company to make the Interest Payment on or prior to the expiration of the 30-day grace period would result in an event of default with respect to the 2023 Convertible Senior Notes which may result in the acceleration of the 2023 Convertible Senior Notes and the Company filing for bankruptcy.
The Company's unaudited condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets and liabilities that may result in the Company not being able to continue as a going concern. The Company is subject to various demands from payers, the amount cannot be quantified and the outcome is unknown.
There can be no assurance that we will be able to amend or refinance the 2023 Convertible Senior Notes and if we are able to, that the terms will be acceptable or advantageous to us or that we will satisfactorily resolve the payment suspension and refund demands referenced above. If we are unable to redeem or refinance the 2023 Convertible Senior Notes and/or resolve the payment suspension and refund demands referenced above, this could have a material adverse impact on our operations. In addition, there can be no assurance that the Company will be able to raise additional capital to fund operations with terms acceptable to the Company, or at all. Because certain elements of management's plans to mitigate the conditions that raised substantial doubt about the Company's ability to continue as a going concern are outside of the Company's control, including the ability to raise capital through an equity or other financing, those elements cannot be considered probable according to ASC 205-40, and therefore cannot be considered in the evaluation of mitigating factors. As a result, management has concluded that substantial doubt exists about the Company's ability to continue as a going concern for 12 months from the date the unaudited condensed consolidated financial statements are issued.
If we are not successful in improving our liquidity position, we may be required to significantly scale back our operations or pursue the sale of our company to a third party at a price that may result in a loss on investment for our stockholders, or file for bankruptcy or cease operations altogether. Any of these events could have a material adverse effect on our business, operating results and prospects.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Our discussion and analysis of our financial condition and results of operations are based upon our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America.
Please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operation" located within our 2024 Form 10-K and Note 2 to the unaudited condensed consolidated financial statements.
Zynex Inc. published this content on November 17, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on November 17, 2025 at 22:22 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]