ZYNEX INC Bankruptcy Update

1. What happened? (in plain English - the actual event)

Zynex Inc. just got court approval for its plan to exit Chapter 11 bankruptcy. Chapter 11 is like a financial reset button. It lets a company reorganize its business and debts under court supervision. The court approved Zynex's plan to reorganize its finances. This provides a legal path for the company to leave bankruptcy.

Here's the crucial part for Zynex stockholders: The plan cancels all existing common stock. Your current shares will become worthless. They will be legally extinguished. The company will be reborn under new ownership. It will have a new financial structure.

2. When did it happen?

The court approved this reorganization plan on March 19, 2026. This approval helps the company finalize its bankruptcy exit.

Zynex and its subsidiaries filed for Chapter 11 bankruptcy on December 15, 2025. Nasdaq delisted their stock on December 17, 2025. It lost its listing on a major market. It then began trading on the Pink Limited Market (ZYXIQ). This happened on December 24, 2025. This showed its financial distress.

The company expects the plan to become "effective" by March 31, 2026. This means all changes will legally begin.

3. Why did it happen? (context and background)

Zynex faced major financial trouble. This led them to file for Chapter 11 bankruptcy. Companies file when they cannot pay their debts or expenses. They seek legal protection to reorganize their finances. This court-approved plan helps Zynex manage its debts. It aims to restructure the business to keep it running.

This legal process gives struggling companies a second chance. They can shed or renegotiate debts. However, it often costs existing owners and some creditors dearly.

4. Why does this matter? (impact and significance)

This is a MASSIVE and negative event for Zynex stockholders. The plan clearly states: all existing common stock will be "discharged, cancelled, released, and extinguished." It will have "no further force or effect."

Simply put, your shares will become worthless. They will have no value and will no longer represent ownership. This legal action removes existing shareholders' claims. They lose rights to company assets or future earnings.

For Zynex, this is a clear step toward leaving bankruptcy. They now have a path forward. They successfully navigated the complex Chapter 11 process. This path wipes out the old ownership. It brings in new investors. This fundamentally changes the company's ownership and control.

5. Who is affected? (employees, customers, investors, etc.)

• Investors (that's us!): This is the biggest impact. If you own Zynex common stock (ZYXIQ), your investment will be wiped out. The company warned "equity holders will experience a significant loss." This means a total loss of your money. This often happens in Chapter 11 bankruptcies. The company's value cannot cover all creditor claims.
• New Owners (the "Plan Sponsor"): Lenders who funded Zynex during bankruptcy (DIP Lenders) will own 100% of the "new" Zynex. DIP Lenders (Debtor-in-Possession Lenders) provide crucial bankruptcy funding. They often have top priority over other creditors. They are taking over the company. This compensates them for their essential funding. They will also get $10 million in "takeback debt." This is new debt from the reorganized company. It converts part of their bankruptcy funding into a long-term debt.
• Unsecured Creditors: Zynex owed these people or companies money. They had no specific collateral. They rank lower than secured creditors or DIP Lenders. They won't get new stock or cash right away. Instead, they get a share in a "litigation trust." This trust holds assets and legal claims. It might recover some money for them later. Their recovery depends on future events and may be delayed. They are usually paid last, after secured and priority creditors.
• Employees: The filing doesn't detail employee changes. Reorganizations often adjust operations and staffing. A "Management Incentive Plan" suggests key management will stay. They will have a stake in the reorganized company. This shows leadership continuity for the new entity.
• Customers: Bankruptcy reorganization aims to keep the business running. It preserves its operational value. Ownership changes, but customers should still get products and services. The filing does not mention immediate customer changes.
• Competitors: Zynex will emerge from bankruptcy. It will have a cleaner balance sheet and new ownership. This could make them a more stable competitor. They will no longer carry their old debt.

6. What happens next? (immediate and future implications)

The plan should become "effective" by March 31, 2026. Then, existing Zynex shares will be cancelled. The new ownership structure will begin. DIP Lenders will become the sole owners. The company will then operate under new terms. It will have a restructured balance sheet and governance. The old Zynex stock will no longer trade. It will cease to exist.

7. What should investors/traders know? (practical takeaways)

Here's what you need to know:

• Your Zynex shares (ZYXIQ) will become worthless. This is not a temporary dip. It's not a chance to "buy low." The company's existing common stock is cancelled. It will have no value.
• Do not buy ZYXIQ shares expecting recovery. The company warned current owners will face a "significant loss." This means a complete loss of their money. Buying ZYXIQ shares now is a speculative bet. It's a bet on a non-existent recovery for existing owners.
• The company emerging from bankruptcy will have new owners. It will be a different entity for investors. It will have a new financial structure. It will have no link to the old common stock.