Zynex, Inc. Q3 FY2025 earnings call

• New management team added, including leaders in sales, legal, compliance, etc., and two new board directors. Brett Wise is audit committee chair with healthcare and financial expertise; Paul Aronson chairs special committee for strategic alternatives. - Strategy includes: proactively engaging with government agencies on compliance, implementing new resupply order fulfillment policy starting October 1; addressing near-term maturity of $60 million convertible senior notes and seeking new capital; improving revenue and cash flow through quick-win projects in Salesforce productivity, order conversion, collections; stabilizing orders with reduced sales force, improving commission plans for sales reps, engaging new partner for VA business.

For the third quarter ended September 30, 2025, net revenue was $13.4 million. Device revenue was $7.1 million, which accounts for approximately 53% of net revenue, and supplies revenue was $6.3 million, making up about 47% of net revenue. Gross profit in the third quarter was $8.1 million, or 60% of revenue.

• Addressing the near-term maturity of $60 million convertible senior notes and liquidity concerns. - Hiring Providence LLC to advise on strategic and financing alternatives. - Initiating collaborative discussions with debt holders regarding potential restructuring. - Focus on raising new capital to fund operations and create a new future for the company.

• Uncertainty regarding TRICARE reinstatement and resolution of ongoing investigations. - Risks associated with the regulatory and legal environment affecting revenue. - Challenges in successfully restructuring debt and managing cash burn.