ITEM 2.02 Results of Operations and Financial Condition

On July 9, 2020, Zynex, Inc. (the "Company") issued a press release announcing select estimated results for the three months ended June 30, 2020 and updated guidance for the full year 2020. The full text of the press release is furnished herewith as Exhibit 99.1.





Non-GAAP Financial Measures

The Company reports its financial results in accordance with accounting principles generally accepted in the U.S. (GAAP). In addition, the Company provided in the furnished press release financial information in the form of Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, other income/expense and stock compensation). The Company's management believes this non-GAAP financial measure is useful to investors and lenders in evaluating the overall financial health of the Company in that it allows for greater transparency of additional financial data routinely used by management to evaluate performance. Adjusted EBITDA can be useful for investors or lenders as an indicator of available earnings. Non-GAAP financial measures should not be considered in isolation from or as an alternative to the financial information prepared in accordance with GAAP.

The Company's income tax expense for the three months ended June 30, 2020 has not yet been finalized and is currently estimated to range from 10% to 20% of pre-tax income.

The following is a reconciliation of GAAP to Non-GAAP financial measures provided in the furnished press release assuming a 10% or 20% effective tax rate:

ZYNEX, INC.
Reconciliation of GAAP to Non-GAAP Measures
(in thousands)
(unaudited)




                                    For the Three Months Ended June 30,
20% Effective Tax Rate                             2020
Adjusted EBITDA:
Net income                         $                               3,291
Depreciation and Amortization*                                        97
Stock-based compensation expense                                     579
Interest expense and other, net                                        5
Income tax expense                                                   928
Adjusted EBITDA                    $                               4,900




                                    For the Three Months Ended June 30,
10% Effective Tax Rate                             2020
Adjusted EBITDA:
Net income                         $                               3,347
Depreciation and Amortization*                                        97
Stock-based compensation expense                                     579
Interest expense and other, net                                        5
Income tax expense                                                   372
Adjusted EBITDA                    $                               4,400

* Depreciation does not include amounts related to units on lease to third parties which are depreciated and included in cost of goods sold.

The Company is not able to provide a reconciliation of the Company's forward-looking guidance for full year 2020 Adjusted EBITDA to full year 2020 GAAP net income without unreasonable efforts due to the unknown effect, timing and potential significance of the expense items that affect the comparable GAAP financial measure.

The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as expressly set forth in such filing.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

d) Exhibits. The following exhibit is furnished with this report.








Exhibit No.                   Description
   99.1       Zynex, Inc. Press Release dated July 9, 2020

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