An agreement was reached with our senior lender to extend the termination date of the Company’s credit facility to March 31, 2015, subject to the terms of a forbearance agreement. In addition, the Company’s compound pharmacy, Pharmazy, obtained licensing in North Carolina bringing the current total of licenses to 41 states. Finally, Zynex has begun discussions with the FDA regarding the application process for its Blood Volume Monitor.
Thomas Sandgaard, CEO of Zynex, stated, “We are pleased with the progress we have made in repositioning our businesses during 2014, particularly the growth of our Pharmazy brand, and the stabilization of our TENS business. The new agreement with our lender to extend the loan termination date provides us the opportunity to continue building our business while we pursue additional capital. We would like to acknowledge Triumph Healthcare Finance, our lender, for their continued patience and support as we work towards a mutually beneficial resolution.”
Sandgaard continued, “We are most pleased, however, with our progress achieved in testing the Blood Volume Monitor. The technology has been developed to the point that we are confident enough to begin the FDA application process. We have held conference calls with the FDA to discuss the most effective way to apply for approval, and will update investors accordingly during the first half of 2015.”
Zynex, founded in 1996, markets and sells its own design of electrotherapy medical devices used for pain management and rehabilitation; and the company’s proprietary NeuroMove device designed to help recovery of stroke and spinal cord injury patients. Zynex’s product lines are fully developed, FDA-cleared and commercially sold world-wide. Zynex also operates a non-sterile compound pharmacy providing topical and transdermal pain creams. Zynex is developing a new blood volume monitor for use in hospitals and surgery centers. For additional information, please visit: http://zynex.local.
Safe Harbor Statement
Certain statements in this release are “forward-looking” and as such are subject to numerous risks and uncertainties. Actual results may vary significantly from the results expressed or implied in such statements. Factors that could cause actual results to materially differ from forward-looking statements include, but are not limited to, the need to obtain additional capital or augment our liquidity in order to continue our business, the success of our compound pharmacy and international expansion efforts, our ability to engage additional sales representatives, the success of such additional sales representatives, the need to obtain FDA clearance and CE marking of new products, the acceptance of new products as well as existing products by doctors and hospitals, larger competitors with greater financial resources, the need to keep pace with technological changes, our dependence on the reimbursement from insurance companies for products sold or rented to our customers, acceptance of our products by health insurance providers, our dependence on third party manufacturers to produce our goods on time and to our specifications, implementation of our sales strategy including a strong direct sales force, the uncertain outcome of pending material litigation and other risks described in our filings with the Securities and Exchange Commission including the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2013.