Item 2.05 Costs Associated with Exit or Disposal Activities.
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.
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.
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.
Forward-Looking Statements
This Current Report on Form 8-K includes “forward-looking statements,” within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, including, in particular, any statements related to the proposed measures regarding our ZMS business and the expected timing and estimated amount of charges related thereto. We generally use the words “may,” “will,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “plan,” “intend,” “aim” and similar expressions in this Current Report on Form 8-K to identify forward-looking statements. We have based these forward-looking statements on our current views with respect to future events and financial performance. Actual results could differ materially from those projected in the forward-looking statements. These forward-looking statements are subject to risks, uncertainties and assumptions, including, among other things, the risks and uncertainties identified under “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission on July 24, 2025 , and (ii) Part II, Item 1A of the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2025 filed with the Securities and Exchange Commission on July 31, 2025. You should not put undue reliance on any forward-looking statements. You should understand that many important factors, including those identified herein, could cause our results to differ materially from those expressed or suggested in any forward-looking statement. Except as required by law, we do not undertake any obligation to update or revise these forward-looking statements to reflect new information or events or circumstances that occur after the date of the filing of this Current Report on Form 8-K or to reflect the occurrence of unanticipated events or otherwise.
