ZYXI on NASDAQ

Zynex

Logo: zynexmed.com4

Medical device manufacturer

Zynex, Inc. is a medical device manufacturer that produces and markets electrotherapy devices for use in pain management, physical rehabilitation, neurological diagnosis and cardiac monitoring. Thomas Sandgaard founded Zynex Medical in 1996. The company is based in unincorporated Douglas County, Colorado.3 Its shares trade on NASDAQ under the symbol ZYXI.1 Wikipedia text CC BY-SA 4.0

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Last updated Oct 21, 2026.

Overview

2001Founded1

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  • TickerZYXI on NASDAQ1
  • Industrymedical technology1
  • HeadquartersEnglewood1
  • Websitewww.zynexmed.com
  • Incorporated inNV5
  • Business address9655 Maroon Circle, Englewood, Co 801125
  • Filer categoryAccelerated filer, Smaller reporting company5
Zynex Medical Tranparent Background
Photo: Dzwygart, CC BY-SA 4.0, via Wikimedia Commons8

Zynex, Inc. is a medical device manufacturer that produces and markets electrotherapy devices for use in pain management, physical rehabilitation, neurological diagnosis and cardiac monitoring. Thomas Sandgaard founded Zynex Medical in 1996.3

Financials

From the company’s reports to the SEC. Every number links to the filing it came from.

Key numbers, fiscal 2024

3.1%Operating margin9
1.6%Net margin9
4.4%Revenue growth, 20249
8.4%Return on equity9
$12.1MFree cash flow9

Where the money goes

Where each dollar of revenue went, fiscal 2024

  • Cost of revenue20¢$39.4M
  • Research and development6¢$12.0M
  • Other costs71¢$137.3M
  • Income tax0¢$633.0K
  • Profit2¢$3.0M

Out of $192.4M in revenue.9

Where each dollar of operating cash went, fiscal 2024

  • Capital spending4¢$578.0K
  • Dividends paid0¢$9.0K
  • Share buybacks96¢$15.6M

Out of $12.7M of cash from operations. Spending exceeded cash from operations; the rest came from savings or borrowing.9

Financial statements

Revenue10111213149$192.4M in 2024+503% since 2018
0$50.0M$100.0M$150.0M$200.0M2018: $31.9M$31.9M20182019: $45.5M$45.5M2019+42%2020: $80.1M$80.1M2020+76%2021: $130.3M$130.3M2021+63%2022: $158.2M$158.2M2022+21%2023: $184.3M$184.3M2023+17%2024: $192.4M$192.4M2024+4%
Operating income10111213149$6.0M in 2024−42% since 2018
0$10.0M$20.0M$30.0M2018: $10.4M$10.4M20182019: $11.1M$11.1M2019+7%2020: $10.2M$10.2M2020−7%2021: $22.4M$22.4M2021+118%2022: $22.9M$22.9M2022+3%2023: $10.8M$10.8M2023−53%2024: $6.0M$6.0M2024−44%
Net income10111213149$3.0M in 2024−69% since 2018
0$5.0M$10.0M$15.0M$20.0M2018: $9.6M$9.6M20182019: $9.5M$9.5M2019−1%2020: $9.1M$9.1M2020−4%2021: $17.1M$17.1M2021+88%2022: $17.0M$17.0M2022−0%2023: $9.7M$9.7M2023−43%2024: $3.0M$3.0M2024−69%
Fiscal year2018201920202021202220232024
Revenue$31.9M10$45.5M11$80.1M12$130.3M13$158.2M14$184.3M9$192.4M9
Cost of revenue$6.0M10$8.8M11$17.4M12$27.3M13$32.0M14$38.4M9$39.4M9
Research and development$200.0K10$600.0K11$800.0K12$2.6M13$7.1M14$9.2M9$12.0M9
Selling, general and admin$15.5M17
Operating expenses$107.9M13$135.2M14$173.5M9$186.4M9
Operating income$10.4M10$11.1M11$10.2M12$22.4M13$22.9M14$10.8M9$6.0M9
Interest$154.0K17
Income before tax$22.3M13$22.2M14$12.6M9$3.6M9
Income tax$664.0K10$2.4M11$1.1M12$5.2M13$5.2M14$2.8M9$633.0K9
Net income$9.6M10$9.5M11$9.1M12$17.1M13$17.0M14$9.7M9$3.0M9
Earnings per share$0.2910$0.2911$0.2412$0.4513$0.4414$0.279$0.099
Earnings per share (diluted)$0.2810$0.2811$0.2412$0.4413$0.4414$0.279$0.099
Shares (weighted, basic)38.3M shares1338.5M shares1435.6M shares931.9M shares9
Shares (weighted, diluted)39.2M shares1339.1M shares1436.1M shares932.3M shares9

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Corporate structure

Zynex sits at the top of its group. 5 entities, 1 country on record. Switch between the flow chart and the network, and select any entity to see its details.

Major holders of Zynex

  • BlackRock Filed SC 13G/A on Zynex, latest Oct 6, 2023 (3 filings since Feb 7, 2022)
  • Thomas Sandgaard Filed SC 13D/A on Zynex, latest May 24, 2023
  • Zynex Englewood
    • Kestrel Labs, Inc. Subsidiary · Colorado, United States
    • Zynex Medical, Inc. Subsidiary · Colorado, United States
    • Zynex Monitoring Solutions, Inc. Subsidiary · Colorado, United States
    • Zynex NeuroDiagnostics, Inc. Subsidiary · Colorado, United States

Built from subsidiaries listed in Exhibit 21 of annual reports filed with the SEC; major holders from Schedules 13D and 13G. Each entity in the chart links to its source.

What it owns

What Zynex reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.

Property and equipment

ItemLatestA year beforeChange
Property and equipment, before depreciation$6.6M9 Dec 31, 2024$5.9M9 Dec 31, 2023+12.6%
Accumulated depreciation$3.5M9 Dec 31, 2024$2.7M9 Dec 31, 2023+28.0%
Property and equipment, net$3.1M9 Dec 31, 2024$3.1M9 Dec 31, 2023−1.0%
Finance-lease assets$1.1M9 Dec 31, 2024$587.0K9 Dec 31, 2023+94.4%
Operating-lease assets (leased space)$9.8M9 Dec 31, 2024$12.5M9 Dec 31, 2023−21.5%

Intangibles and goodwill

ItemLatestA year beforeChange
Goodwill$20.4M9 Dec 31, 2024$20.4M9 Dec 31, 20230%
Intangible assets, net (excluding goodwill)$7.2M9 Dec 31, 2024$8.2M9 Dec 31, 2023−11.2%
Finite-lived intangibles, net$7.2M9 Dec 31, 2024$8.2M14 Dec 31, 2023−11.2%

Inventory

ItemLatestA year beforeChange
Inventory, total$13.9M9 Dec 31, 2024$13.1M9 Dec 31, 2023+6.2%
Work in process$143.0K9 Dec 31, 2024$530.0K9 Dec 31, 2023−73.0%
Finished goods$7.1M9 Dec 31, 2024$6.9M9 Dec 31, 2023+2.3%

Properties, in its own words

During February 2023, the Company entered into a lease agreement for approximately 41,427 square feet of office space for the operations of ZMS in Englewood, Colorado. The lease commenced on July 1, 2023 and runs through December 31, 2028. At the expiration of the lease term the Company has the option to renew the lease for one additional five-year period. The Company is entitled to rent abatements for the first six months of the lease and tenant improvement allowances.

In April 2021, the Company signed a sublease for our corporate headquarters in Englewood, Colorado beginning in May 2021 for up to approximately 110,754 square feet. This lease runs through April 2028.

The rest of Item 2

The Company entered into a lease agreement for a warehouse and production facility with approximately 50,488 square feet in September 2020. The lease continues through June 2026 with an option for a five-year extension through June 2031.

During March 2022, the Company entered into a lease agreement for approximately 4,162 square feet of office space for the operations of ZMS in Boulder, Colorado. The lease began on April 1, 2022 and will run through April 1, 2025.

We believe these leased properties are sufficient to support our current requirements and that we will be able to locate additional facilities as needed. See Note 12 to the Consolidated Financial Statements for additional information on these leases.

Item 2 of the 10-K filed Mar 11, 2025.18

The story

In 1996, Thomas Sandgaard founded Zynex Medical as a wholesaler of electrotherapy products. Sandgaard began working with medical devices in his native Denmark and immigrated to the United States with plans to open a medical devices business. He launched his company in a one-bedroom apartment with $4,000 and a credit card. In 1998, the company received its first Food and Drug Administration approval for one of its products, “an electric-stimulation device that managed pain and increased blood circulation to promote healing.”

The company went public in 2004. In 2008, the company changed its name from Zynex Medical Holdings to Zynex and began trading on the OTC Bulletin Board under the symbol ZYXI. It relocated from Lone Tree, Colorado to Englewood, Colorado in early 2018.

In February 2010, Zynex restructured its business into three subsidiaries: Zynex Medical, Zynex Monitoring Solutions and Zynex NeuroDiagnostic. Zynex Medical manufactures electrotherapy devices for pain management and physical rehabilitation; Zynex Monitoring Solutions manufactures devices for non-invasive cardiac monitoring; and Zynex NeuroDiagnostic manufactures devices for neurological diagnosis.

In March 2012, Zynex Medical acquired the assets of NeuroDyne Medical. NeuroDyne Medical was a Cambridge, Massachusetts-based manufacturer of “medical devices for non-invasive measurement of surface electromyography and autonomic nervous systems.” NeuroDyne Medical was folded into Zynex's NeuroDiagnostic subsidiary.

In February 2019, Zynex Medical began trading on Nasdaq under the symbol ZYXI.

In February 2020, Zynex received FDA clearance for their CM-1500 Cardiac Monitor.

In December 2025, Zynex filed for Chapter 11 bankruptcy protection in an effort to receive new financing from its lenders and resolve pending federal investigations into its billing practices. Zynex admitted to participating in a conspiracy to commit health care fraud, securities fraud, mail fraud, and other violations in a February 2026 court filing to enter into a non-prosecution agreement.

From Wikipedia’s article on Zynex, shared under CC BY-SA 4.0.6

Leadership

Who has led Zynex, and when. Pick a name to see everywhere that person has worked.

Board members and other officers (10)

Products and brands

  • medical device

Listed on Wikidata.1

Subsidiaries and ownership

Subsidiaries (Exhibit 21)

  • Kestrel Labs, Inc. Colorado7
  • Zynex Medical, Inc. Colorado7
  • Zynex Monitoring Solutions, Inc. Colorado7
  • Zynex NeuroDiagnostics, Inc. Colorado7

The subsidiaries the company lists in Exhibit 21 of its annual report, as filed.

Former names

  • ZYNEX MEDICAL HOLDINGS INCOct 7, 2005 to Jul 8, 20085
  • ZYNEX MEDICAL HOLDINGS INCFeb 4, 2004 to Aug 12, 20055
  • FOX RIVER HOLDINGS INCNov 26, 2003 to Jan 20, 20045
  • ARIZONA VENTURES INCFeb 14, 2003 to Aug 19, 20035
  • CHINA GLOBAL DEVELOPMENT INCJan 31, 2002 to Jan 15, 20035
  • IBONZAI COM INCNov 14, 2000 to Jun 12, 20015
  • LIFE MEDICAL TECHNOLOGIES INC /UT/Jul 30, 1999 to May 25, 20005

Timeline

  1. Mar 26, 20268-K Entered a material agreement; Ended a material agreement; New debt or obligation33
  2. Mar 20, 20268-K Bankruptcy or receivership34
  3. Feb 19, 20268-K Other events35
  4. Feb 18, 20268-K Entered a material agreement; Regulation FD disclosure36
  5. Feb 11, 20268-K Bankruptcy or receivership37
  6. Feb 2, 20268-K Bankruptcy or receivership38
  7. Jan 23, 20268-K Executive or director change; Regulation FD disclosure39
  8. Jan 15, 20268-K Entered a material agreement; Bankruptcy or receivership; New debt or obligation40
  9. Dec 18, 20258-K Entered a material agreement; Bankruptcy or receivership; New debt or obligation41
  10. Dec 16, 20258-K Entered a material agreement; Bankruptcy or receivership; Debt or obligation accelerated42
  11. Nov 17, 20258-K Results of operations43
  12. Oct 31, 20258-K Executive or director change44
  13. Sep 2, 2025New chief executive Steven Lewis Dyson becomes CEO19
  14. Jul 9, 2018New chief executive Thomas Sandgaard becomes CEO20
  15. 2001Founded Founded1

Calendar

When it reported results

  1. Nov 17, 2025Reported quarterly or annual results43
  2. Jul 31, 2025Reported quarterly or annual results45
  3. Apr 29, 2025Reported quarterly or annual results46
  4. Mar 11, 2025Reported quarterly or annual results47
  5. Oct 24, 2024Reported quarterly or annual results48
  6. Jul 25, 2024Reported quarterly or annual results49
  7. Apr 30, 2024Reported quarterly or annual results50
  8. Feb 29, 2024Reported quarterly or annual results51

Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar

Filings

283 filings to the SEC since October 2021: 5 annual reports, 14 quarterly reports, 67 major events, 163 insider forms, 4 large holders, 30 other. The latest 20:

  1. Mar 27, 20264 EDGAR
  2. Mar 27, 20264 EDGAR
  3. Mar 27, 20264 EDGAR
  4. Mar 26, 202615-12G EDGAR
  5. Mar 26, 20268-K EDGAR
  6. Mar 26, 2026S-8 POS EDGAR
  7. Mar 26, 2026S-8 POS EDGAR
  8. Mar 20, 20268-K EDGAR
  9. Mar 18, 2026EFFECT EDGAR
  10. Mar 13, 2026RW EDGAR
  11. Mar 13, 2026POS AM EDGAR
  12. Feb 19, 20268-K EDGAR
  13. Feb 18, 20268-K EDGAR
  14. Feb 11, 20268-K EDGAR
  15. Feb 2, 20268-K EDGAR
  16. Jan 23, 202625-NSE/A EDGAR
  17. Jan 23, 202625-NSE EDGAR
  18. Jan 23, 20268-K EDGAR
  19. Jan 15, 20268-K EDGAR
  20. Dec 18, 20258-K EDGAR

The 283 filings since October 2021 can be filtered by form type and year here when JavaScript is on.

Every filing from the last five years, summarized. The full record is on SEC EDGAR.

Insider trades

25 open-market trades by officers, directors and large owners since October 2021: 1 buys and 24 sales. Grants, option exercises and gifts are left out.

DateWhoTradeSharesPriceValueFiling
Mar 3, 2025MOORHEAD DANIEL JCHIEF FINANCIAL OFFICERSale10,000$7.15$71.5KForm 4
Feb 3, 2025MOORHEAD DANIEL JCHIEF FINANCIAL OFFICERSale10,000$7.68$76.8KForm 4
Jan 2, 2025MOORHEAD DANIEL JCHIEF FINANCIAL OFFICERSale10,000$7.88$78.8KForm 4
Dec 2, 2024MOORHEAD DANIEL JCHIEF FINANCIAL OFFICERSale10,000$8.08$80.8KForm 4
Nov 14, 2024Sandgaard ThomasPresident, CEO and ChairmanSale2,000$8.09$16.2KForm 4
Nov 13, 2024Sandgaard ThomasPresident, CEO and ChairmanSale2,000$8.37$16.7KForm 4
Nov 12, 2024Sandgaard ThomasPresident, CEO and ChairmanSale2,000$9.24$18.5KForm 4
Nov 11, 2024Sandgaard ThomasPresident, CEO and ChairmanSale2,000$9.09$18.2KForm 4
Nov 8, 2024Sandgaard ThomasPresident, CEO and ChairmanSale2,000$8.77$17.5KForm 4
Nov 7, 2024Sandgaard ThomasPresident, CEO and ChairmanSale2,000$9.17$18.3KForm 4
Nov 6, 2024Sandgaard ThomasPresident, CEO and ChairmanSale2,000$8.82$17.6KForm 4
Nov 5, 2024Sandgaard ThomasPresident, CEO and ChairmanSale2,000$8.05$16.1KForm 4
Nov 4, 2024Sandgaard ThomasPresident, CEO and ChairmanSale2,000$8.67$17.3KForm 4
Nov 1, 2024MOORHEAD DANIEL JCHIEF FINANCIAL OFFICERSale10,000$8.59$85.9KForm 4
Nov 1, 2024Sandgaard ThomasPresident, CEO and ChairmanSale2,000$8.63$17.3KForm 4
Oct 31, 2024Sandgaard ThomasPresident, CEO and ChairmanSale2,000$8.82$17.6KForm 4
Oct 30, 2024Sandgaard ThomasPresident, CEO and ChairmanSale2,000$8.92$17.8KForm 4
Aug 7, 2024Lucsok AnnaCHIEF OPERATING OFFICERSale8,083$8.03$64.9KForm 4
Aug 6, 2024Lucsok AnnaCHIEF OPERATING OFFICERSale16,792$8.01$134.5KForm 4
Jul 30, 2024MOORHEAD DANIEL JCHIEF FINANCIAL OFFICERSale15,000$8.24$123.6KForm 4

All 25 trades can be filtered by person here when JavaScript is on.

From Forms 4 filed with the SEC.

Major holders

Investors who own more than 5% of the shares must tell the SEC: a 13D if they may seek to influence the company, a 13G if they hold passively.

Executive pay

What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.

YearExecutiveAgeSalaryTotal pay
2024Thomas Sandgaard66$700.0K$991.8K54
2024Daniel Moorhead$415.0K$909.8K54
2024Anna Lucsok$300.0K$709.1K54
2023PresidentChief Executive Officer$650.0K$1.2M54
2023Chief Financial Officer$325.0K$883.1K54
2023Chief Operating Officer$275.0K$714.4K54
2022And Chairman$575.0K$1.4M54
2022Chief Financial Officer$300.0K$821.2K54
2022Chief Operating Officer$212.5K$600.3K54

SEC filer profile

How Zynex is registered with the Securities and Exchange Commission, from its EDGAR record and the cover page of its latest annual report.

  • Name on EDGARZYNEX INC2
  • CIK0000846475
  • Employer ID (EIN)90-027516918
  • Filer statusAccelerated filer not an emerging growth company; a smaller reporting company; not a shell company18
  • Incorporated inNevada18
  • Fiscal year endsDecember 312
  • Industry code (SIC)3845 Electromedical & Electrotherapeutic Apparatus2
  • SEC reviewing officeOffice of Industrial Applications and Services, Division of Corporation Finance2
  • Business address9655 Maroon Circle, Englewood, CO 801122
  • Phone(800)-495-66702
  • Shares outstanding30,388,635 as of Nov 11, 202516
  • Public float$143.4M as of Jun 30, 202418
  • AuditorMarcum LLP, New York, NY PCAOB ID 688; it also attests to the company’s internal control over financial reporting18
  • On EDGAR sinceJul 30, 19992
  • Filings768 in all: 4 (244), 8-K (224), 10-Q (54), 10QSB (27), NT 10-Q (20), 424B3 (19), 10-K (17), SC 13D/A (17)2
    All 49 form types

    3 (14), 10KSB (11), UPLOAD (11), NT 10-K (10), CORRESP (8), 8-K/A (7), 144 (6), DEF 14A (6), SC 13G/A (6), 10KSB/A (5), DEFA14A (5), EFFECT (5), 4/A (4), 10QSB/A (3), 424B5 (3), 424B7 (3), NTN 10Q (3), S-3 (3), 10-K/A (2), POS AM (2), REGDEX (2), RW (2), S-8 (2), S-8 POS (2), SB-2 (2), SB-2/A (2), SC 13D (2), SC 13G (2), 10-Q/A (1), 15-12G (1), 25-NSE (1), 25-NSE/A (1), 8-A12B (1), 8-A12G (1), CERT (1), D (1), NT 10-K/A (1), NT 10-Q/A (1), PRE 14C (1), S-1 (1), S-1/A (1)

  • Latest filingsAnnual report (10-K) Mar 11, 2025
    Quarterly report (10-Q) Nov 17, 2025
    Proxy statement (DEF 14A) Mar 28, 2025
    Latest 8-K (8-K) Mar 26, 2026

Securities registered for trading

ClassSymbolExchange
Common Stock, $0.001 par value per shareZYXINasdaq

From the cover page of the 10-K filed Mar 11, 2025 (Section 12(b) of the Exchange Act).18

Risk factors and legal proceedings

The risks Zynex names in Item 1A of its 10-K filed Mar 11, 2025: 54 risks under these headings, as written.18

  • RISKS RELATED TO OUR BUSINESS AND THE INDUSTRY IN WHICH WE OPERATE
  • Unfavorable global economic conditions could adversely affect our business, financial condition, or results of operations.
  • Rapid technological change could cause our products to become obsolete and if we do not enhance our product offerings through our research and development efforts, we may be unable to effectively compete.
  • The technologies underlying our products are subject to rapid and profound technological change. Competition intensifies as technical advances in each field are made and become more widely known. We can give no assurance that others will not develop services, products, or processes with significant advantages over the products, services, and processes that we offer or are seeking to develop. Any such occurrence could have a material and adverse effect on our business, results of operations, and financial condition.
  • We are dependent on reimbursement from third-party payers, most of whom are larger than we are and have substantially more employees and financial resources; changes in insurance reimbursement policies or application of them have resulted in decreased or delayed revenues.
  • We are dependent on our Medicare Supplier Number.
  • We face periodic reviews and billing audits from governmental and private payers, and these audits could have adverse results that may negatively impact our business.
  • Failure to secure and maintain adequate coverage and reimbursement from third-party payers could adversely affect acceptance of our products and reduce our revenues.
  • We may not be successful in maintaining the reimbursement codes necessary to facilitate accurate and timely billing for our products or physician services attendant to our products.
  • Future changes in coverage and reimbursement policies for our products or reductions in reimbursement rates for our products by third party payers could adversely affect our business and results of operations.
  • There are significant estimating risks associated with the amount of revenue, related refund liabilities, accounts receivable, and provider discounts that we recognize, and if we are unable to accurately estimate these amounts, it could impact the timing of our revenue recognition and cash collections, which have a significant impact on our operating results, or lead to a restatement of our financial results.
  • Tax laws and regulations require compliance efforts that can increase our cost of doing business. Changes to these laws and regulations could impact financial results.
The other 43 risks
  • The impact of healthcare reform legislation and other changes in the healthcare industry and in healthcare spending on us is currently unknown but may harm our business.
  • Our revenue is dependent on the healthcare industry and could be affected by changes in healthcare spending and policy. The healthcare industry is subject to changing political, regulatory, and other influences. The Patient Protection and Affordable Care Act (“PPACA”) made major changes in how healthcare is both delivered and reimbursed, and increased access to health insurance benefits to the uninsured and underinsured population of the United States.
  • The PPACA, among other things, increased the number of individuals with Medicaid and private insurance coverage, implemented reimbursement policies that tie payment to quality, facilitated the creation of accountable care organizations that may use capitation and other alternative payment methodologies, strengthened enforcement of fraud and abuse laws, and encouraged the use of information technology. Such changes in the regulatory environment may also result in changes to our payer mix that may affect our operations and net revenue.
  • Certain provisions of the PPACA authorize voluntary demonstration projects, which include the development of bundling payments for acute, inpatient hospital services, physician services, and post-acute services for episodes of hospital care. Further, the PPACA may negatively impact payers by increasing medical costs generally, which could have an effect on the industry and potentially impact our business and revenue as payers seek to offset these increases by reducing costs in other areas. The full impact of these changes on us cannot be determined at this time.
  • In addition, current and prior healthcare reform proposals have included the concept of creating a single payer or public option for health insurance. If enacted, these proposals could have an extensive impact on the healthcare industry, including us. We are unable predict whether such reforms may be enacted or their impact on our operations.
  • We expect that additional state and federal healthcare reform measures will be adopted in the future, any of which could limit the amounts that federal and state governments and other third-party payers will pay for healthcare services, which could harm our business, financial condition, and results of operations.
  • The Patient Protection and Affordable Care Act of 2010 has had an impact on our business, which may be in part beneficial and in part detrimental.
  • The uncertainty of continuing healthcare changes and regulations may negatively affect our business.
  • We are subject, directly or indirectly, to United States federal and state healthcare fraud and abuse and false claims laws and regulations. Prosecutions under such laws have increased in recent years, and we may become subject to such litigation. If we are unable to or have not fully complied with such laws, we could face substantial penalties.
  • Healthcare Fraud and Abuse
  • Claims made against us from time to time can result in litigation that could distract management from our business activities and result in significant liability or damage to our brand.
  • Litigation with customers, payers, employees and others could harm our reputation and impact operating results.
  • Hospitals and clinicians may not buy, prescribe, or use our products in sufficient numbers, which could result in decreased revenues and profits.
  • Any new competitor could be larger than us and have greater financial and other resources than we do, and those advantages could make it difficult for us to compete with them.
  • Failure to keep pace with the latest technological changes could result in decreased revenues.
  • Our business could be adversely affected by reliance on sole suppliers.
  • A third-party manufacturer’s inability to produce our products’ components on time and to our specifications could result in lost revenue.
  • We could experience cost increases or disruptions in supply of raw materials or other components used in our products.
  • We depend upon third parties to manufacture and to supply key semiconductor chip components necessary for our products. We do not have long-term agreements with our semiconductor chip manufacturers and suppliers, and if these manufacturers or suppliers become unwilling or unable to provide an adequate supply of semiconductor chips, with respect to which there is a global shortage, we would not be able to find alternative sources in a timely manner and our business would be adversely impacted.
  • If we need to replace manufacturers, our expenses and cost of goods could increase, resulting in lower profit margins.
  • We are a relatively small company with a limited number of products and staff. Sales fluctuations and employee turnover may adversely affect our business.
  • If we are unable to retain the services of Mr. Sandgaard or if we are unable to successfully recruit qualified managerial and sales personnel, we may not be able to continue our operations.
  • We need to maintain insurance coverage, which could become very expensive or have limited availability.
  • Although we do not manufacture the products we distribute, if one of the products distributed by us proves to be defective or is misused by a health care practitioner or patient, we may be subject to liability that could adversely affect our financial condition and results of operations.
  • We depend upon obtaining regulatory clearance of new products and/or manufacturing operations we develop and maintain clearances of current products; failure to obtain or maintain such regulatory clearances could result in increased costs, lost revenue, penalties, and fines.
  • We may not be able to obtain clearance of a 510(k) pre-market notification or grant of a de novo classification request or approval of a pre-market approval application with respect to any products on a timely basis, if at all.
  • Our products are subject to recall even after receiving FDA or foreign clearance or approval, which would harm our reputation and business.
  • We continue to incur expenses.
  • Substantial costs could be incurred defending against claims of intellectual property infringement.
  • We may be unable to protect our trademarks, trade secrets, and other intellectual property rights that are important to our business.
  • We may fail to protect the privacy, integrity and security of customer information.
  • Cyber-attacks and security vulnerabilities could lead to reduced revenue, increased costs, liability claims, or harm to our competitive position.
  • We have identified material weakness in our internal controls over financial reporting and may identify additional material weaknesses in the future or otherwise fail to maintain an effective system of internal controls, which may result in material misstatements of our consolidated financial statements or cause us to fail to meet our periodic reporting obligations.
  • Expansion of our operations and sales internationally may subject us to additional risks, including risks associated with unexpected events.
  • Our acquisition of other companies could require significant management attention, disrupt our business, dilute stockholder value and adversely affect our operating results.
  • As part of our business strategy, we have made and may in the future acquire or make investments in other companies, solutions or technologies to, among other reasons, expand or enhance our product offerings. In the future, any significant acquisition would require the consent of our lenders. Any failure to receive such consent could delay or prohibit us from acquiring companies that we believe could enhance our business.
  • If we are not able to integrate acquired businesses successfully, our business could be harmed.
  • Changes in financial accounting standards or practices may cause adverse, unexpected financial reporting fluctuations and affect our reported results of operations.
  • The conversion feature of our convertible senior notes, if triggered, may adversely affect our financial condition and operating results.
  • RISKS RELATED TO OUR COMMON STOCK
  • Sales of significant amounts of shares held by Mr. Sandgaard, or the prospect of these sales, could adversely affect the market price of our common stock
  • Our existing stockholders may experience dilution if we elect to raise equity capital
  • We paid a dividend on our common stock, and cash used to pay dividends will not be available for other corporate purposes
  • Our stock price could become more volatile and your investment could lose value.
  • Conversion of our 5% convertible senior notes into common stock may dilute the ownership interests of existing stockholders or may otherwise depress the price of our common stock.

Legal proceedings

Travelers

On August 23, 2023, Travelers Casualty Insurance Company of America and its affiliated entities (“Travelers”), on behalf of the People of the State of California, filed a complaint under seal in California Superior Court, County of Los Angeles against ZMI. The complaint, which was unsealed on December 16, 2024, alleged violations of the California Insurance Frauds Prevention Act (“IFPA”) for alleged false billing practices for claims submitted to Travelers in California. Travelers sought civil penalties and assessments on behalf of Travelers and the People of the State of California under the IFPA. ZMI disputed liability under the IFPA. Effective August 29, 2024, ZMI and Travelers entered into two settlement agreements for the collective amount of $1 million to resolve the claims asserted by Travelers in the IFPA action and for threatened claims for bills submitted to Travelers outside California. In addition to obtaining a broad release of liability from Travelers and avoiding the substantial cost of further litigation, the settlement agreements also provide a billing protocol for all future claims submitted to Travelers. At the time of the settlement agreements, the Company could not estimate the likelihood of a particular outcome or probable cost resulting from the action because the State of California had not intervened in the action, participated in settlement discussions, or consented to settlement or dismissal. On or about November 4, 2024, Travelers informed ZMI the State of California would not object to settlement and dismissal. On December 13, 2024, the action was dismissed with prejudice and the settlement payment was made to Travelers on December 19, 2024.

Other Legal Proceedings

We are not a party to any other material pending legal proceedings.

The opening of Item 3, Legal Proceedings.18

Sources

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