Zynex, Inc. (NASDAQ:ZYXI) Q1 2024 Earnings Call Transcript

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Thomas Sandgaard: Yes, the conversations are very advanced. We are, as you mentioned, looking at a go-in private scenario. And we certainly hope that we can bring that to conclusion. There’s a lot of moving parts in a large transaction like that. But it’s looking very positive. And if we can bring it to completion, I believe we will, or the company will have a partner there that can add a lot of value. So I’d say I’m very pleased with how things are progressing there.

Operator: Your next question comes from Yi Chen of H.C. Wainwright.

Yi Chen: Hi, thank you for taking my question. Regarding the cyber incident, do you have any reason to believe that could occur again later this year?

Donald Gregg : I don’t know that we have information on it. Obviously, it happened at a level outside of Zynex with a very large provider. So I don’t know that we have information that could say whether it could recur later this year or not. But we wouldn’t expect it to.

Thomas Sandgaard: Yes, I mean, there were thousands of companies like ours that got impacted. And it’s more of a clearinghouse. It’s where the claims go through and then get distributed to a very large number of insurance companies. And how much that clearinghouse or other clearinghouses that we’re also using have improved their cyber protection. That’s hard to say. Hopefully, it won’t happen again. And these guys are more on top of it than the bad guys, so.

Yi Chen: Got it, thank you. And with respect to the blood volume monitor, it has obtained FDA clearance for a while. Do you have any plans in your turn to commercialize it? Or if not, is it a better way to generate profit from this product by licensing it out?

Thomas Sandgaard: Yes, it’s a good question, Yi-Chin. Currently, we don’t have commercialization plans for the CM-1600, because that was an R&D milestone. There’s a lot of strategy in how we do our predicates and get clearance through the FDA. And therefore, we have a development for the next major milestone, which is, we believe, is a commercial product for the CM-1700. At this point, we aren’t entertaining, per se, licensing the technology of the CM-1600 because we think it’s a potential game changer in the market. And we would like to commercialize that as Zynex monitoring.

Yi Chen: Okay. And last question. So can you remind us how much amount is still left for shared buybacks?

Dan Moorhead : On the current plan, we did $20 million and we announced that after the Q4 announcement, which was in March. And that was a $20 million plan. We still have about $15 million left on that. There are no further questions at this time. I would hand over the call to Thomas Sandgaard, Chief Executive Officer. Please go ahead.

A – Thomas Sandgaard: Yes, thank you for joining us today. We are pleased with our performance this quarter and the consistent growth our team is delivering. We look forward to leveraging that momentum throughout the rest of the year and speaking to you at upcoming investor events. We appreciate your time and interest in Zynex. Have a great day.

Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.

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