Zynex, Inc.

afternoon, ladies and gentlemen, and welcome to the Zynex first quarter 2025 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 Prinovo, Investor Relations for Zynex.

Thank you, Operator, and good afternoon, everyone. Earlier today, Zynex released financial results for the first quarter ended March 31st, 2025. A copy of the press release is available on the company's website. Joining me on today's call are Thomas Sandgard, Chairman, President, Chief Executive Officer, Dan Moorhead, Chief Financial Officer, Anna Lukczak, Chief Operating Officer, 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, companies 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. Thomas?

Yeah, thanks, Brian, and good afternoon, everyone. Thank you for joining us today for the first quarter 2025 earnings call. With me today are Anna Luxor, our Chief Operating Officer, Donald Gregg, President of our Sinex Monitoring Division, and Dan Moorhead, our Chief Financial Officer. Anna will provide an update on the appeals process for TRICARE and the other initiatives we are pursuing in pain management. And Don Greig will discuss patient monitoring and the pending submission to the FCA for our NICO Pulsar Xenoderm. Dan will discuss the first quarter's financial results. And before Anna discusses operations, I'd like to thank our employees and shareholders for their patience and dedication And I want to offer our shareholders some clarity around our current situation and stock price. And clearly, our stock price is very low right now and likely lower than it's really justified. And several things have added to our current situation. As you all know, our business model is to obtain a prescription for patient use of our devices and then build an insurance company for the use. We deal with over 3,000 insurance companies daily and are constantly navigating challenges and obstacles put in our way in securing reimbursement. Recently, a new challenge was that TRICARE abruptly placed a temporary payment suspicion while they're looking into if our claims comply with their policies and guidelines. We are used to these kind of behaviors constantly over the past several decades. and we therefore did not include bills to TRICARE in our recent revenue calculations. If and when this all gets resolved, it will get incorporated into our financials for accounting guidelines. We had a chance to meet with TRICARE or what's called the Defense Health Agency on April 9th, and we believe we presented strong arguments that we have clearly followed all current and existing guidelines and policies. They committed to providing a response before June 9, which was 60 days after the meeting. And we now have up to 40 more days to wait. But hopefully, we will hear from them sooner. As a reminder, we actually had an audit and completed an audit with TRICARE back in 2022. And at the time, we made all recommended adjustments to billing and reimbursements that they requested. The evidence we outlined in our presentation to TRICARE strongly supported our consistent compliance with TRICARE billing practices. And we hope, as they work through our arguments, that coverage and payments gets restored. But of course, we never know the outcome here short term. Not long ago, an accounting firm called CBIS acquired Markham. Markham is our auditors, or was our auditors. That acquisition made it possible for short collaborators or short news agencies to skew the story so that it sounded like our auditors dumped Sinex as a client, which was clearly not the case. The mandatory 8K filing we made made this narrative possible, which clearly did not help the stock price either. I want to emphasize that we are restructuring our business to run without TRICARE business in a worst-case scenario going forward, trimming a lot of overdue fat in the organization and restructuring several areas of the business. Once this is completed later this year, we'll be poised to get back on our growth track. We're refocusing our sales force on new revenue opportunities which will help us grow even without TRICARE patients and will eventually help us get back to current revenue levels and even more. as growing our sales force with more productive sales reps will drive more growth. We also continue to promote other products such as grazing to our prescribers. As part of our cost containment, we have continued to trim unproductive sales reps and leaving territories open for better hires in the future. You will later hear in more detail about finishing up our game-changing pulse oximeter. In short, we have completed and passed all EMC and safety tests, which was the last missing item that we were waiting for, and will be submitting to the FDA in what we believe will be just over a week. I'm very excited about finally getting ready to launch this product into the world's biggest device market, which is pulse oximetry, a product that has no bias when patients have darker skin, a product that will not show incorrect oxygen data, when there's, for instance, carbon monoxide poisoning. And fundamentally, we'll be able to do the same thing as when hospitals take a blood sample to be sure that hemoglobin species are, what hemoglobin species are in the blood. With our technology, this can now be done noninvasively, real time, and accurately show levels of oxygen, carbon monoxide, methemoglobin, and reduced hemoglobin. A revolution that would or could replace old technology pulse oximeters as we will have the same price levels and form factors that hospitals are used to. Hopefully, shareholders will pay attention to our progress on the background of these recent challenges that we now have a clear path to turn things around and a clear path to continued growth in both divisions. We're 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 in the pulse oximeter market. Our revenue is also becoming more diversified with increased call points, more products, technologies, and more end users. We're very optimistic about the future of Sinex as we have proven to be a business that can grow quickly and profitably. We think there's a plethora of growth paths available in the years to come. And I will now turn the call over to Anna Loksock to provide a more detailed update on the operations and our status with Tricare. Anna?