Zynex, Inc.

Good afternoon, ladies and gentlemen, and welcome to the Zynex fourth quarter 2024 earnings conference call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the conference over to Brian Prenevue, Investor Relations for Zynex.

Thank you, Operator, and good afternoon, everyone. Earlier today, Zynex released financial results for the fourth quarter and year ended December 31st, 2024. A copy of the press release is available on the company's website. Joining me today on the call are Thomas Sangard, Chairman, President, and Chief Executive Officer, Dan Moorhead, Chief Financial Officer, Anna Lukczak, Chief Operating Officer, and Donald Gregg, President of Zynex Monitoring Solutions. Before we begin, I'd like to remind you that during this conference call, the company will make projections and forward-looking statements regarding future events. We encourage you to review the company's past and future filings with the SEC, including, without limitation, the company's 2024 Form 10-K and subsequent Form 10-Qs, which identify the specific factors that may cause actual results or events to differ materially from those described in these forward-looking statements. These factors may include, without limitation, statements regarding product development, product potential, the regulatory environment, sales and marketing strategies, capital resources, or operating performance. With that, I'll now turn the call over to Thomas.

Thanks, Brian, and good afternoon, everyone. Thank you for joining us today for the fourth quarter and full year 2024 earnings call. 2024. was a successful year for Cynics as we continue to grow revenue and drive profitability. We have made strides in diversifying our revenue streams with the addition of several new products, some internally developed and some manufactured, and added private label products primarily in the areas of bracing, cold, and compression products, all a perfect fit for Salesforce's call points in pain and rehab. We've also expanded the focus of our sales force to additional new prescribers of pain and rehab products such as National Change of Workers' Comp and the VA. In a moment, Don Gregg will provide you with an update for our patient monitoring business and the FDA submission of our pulse oximeter. In late 2024, we received positive test results on our NICO pulse oximeter in multiple trials done at Duke University and at the University of California in San Francisco. Human trial completion is an essential step prior to our 510K submission to the FCA. The data from the trials have been excellent in showing how much lower bias the current LED-based compared to how the current LED-based pulse oximeters exhibit, especially for skin with darker pigmentation. The old LED technology leads to inaccurate or inconsistent readings during clinical or critical times for a patient. which has been widely criticized in the media and politically. We believe that our laser-based system is a superior technology and has the opportunity to meaningfully impact patient outcomes. I will let Don Gregg provide more details on the status momentarily. We were recently notified by TRICARE that they were temporarily suspending payments to CYNEX related to a review of prior claims. We have a meeting with them here in early April to get it all sorted out, but cannot at this point provide an estimate on when it will all be resolved. Anna will provide more details during her discussion of operations. Given that TRICARE is a substantial source of reimbursement revenue, we currently have limited visibility in our revenue projections for 2025. And we have taken the most conservative approach to not include revenue in the later part of 2024, where some of those bills were submitted to TRICARE, yet not paid. And in this current quarter forecast, and therefore the corresponding lower revenue numbers. As part of a normal prudent cost containment measure, due to the possibility of a significant decrease in revenue short term, while we accelerate sales to other sales channels We continue to make adjustments to the corporate and sales cost structure to ensure we have optimized our structure and expense profile and are set to continue our long-term growth and profitability. And again, Anna will cover this in more detail. We remain very optimistic about the future of Cynics. The improvement we have made in analytics and operations over the past many years will show significant benefits in the long term. As we continue to diversify the product mix and revenue stream, we believe we can actually better capture the 800 million of identified sales opportunities within our 800 designated sales territories. In the patient monitoring business, we're just before FCA submission, and once cleared, that should generate revenue in a very well-established, multibillion-dollar sales segment. Over the past 29 years since its inception, Our growth has certainly not been in a straight line as long-term shareholders would certainly acknowledge. And the key for us is to keep focused on the long vision of growth and diversification and stay firm regardless of short-term disruptions. We trust that shareholders are on board with this strategy. Our recent challenges in 2024 were Not only introducing new product that so far have collected less than expected, however, we see clear signs of improvement here in early 2025. Our sales force and staff has been restructured and we have made changes to sales management. These improvements are already beginning to take effect and puts us in a good position to deal with the temporary suspension, payment suspension from ThaiCare while we focus on growing in other areas. Fortunately, We are in an industry where our potential call points for our sales force is nearly endless. We are still confident that our non-invasive approach with at-home pain management devices have real growth opportunities to provide non-opioid relief to patients. We remain focused on ramping our hospital monitoring division, which represents a large and growing market opportunity with a better mousetrap than our competitors in the pulse oximeter market. I'll now turn the call over to Anna Locksock to provide a more detailed update on the operations and the status with TRICARE. Anna.