Zynex : February Investor Presentation & Financial Highlights

Investor Presentation & Financial Highlights

February 2020

NASDAQ:ZYXI

Forward Looking Statements

• Certain statements in this release are"forward-looking" or projections and as such are subject to numerous risks and uncertainties. The company makes no express or implied representation or warranty as to the completeness of this information or, in the case of projections, as to their attainability or the accuracy and completeness of the assumptions from which they are derived. 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 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 for our products from health insurance companies, 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 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, 2019 as well as Forms 10-Q,8-K and 8-K/A, press releases and the Company's website.

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Zynex Medical Overview

Background

• NASDAQ:ZYXI (Listed 2019)
• Listed on OTCQB from2004-2018
• Founded By Thomas Sandgaard-CEO and Chairman
• Medical Device Manufacturer - 23 Years
• HQ - Englewood, Colorado
• More than 400,000 patients treated

Business Units

•ZYNEX MEDICAL (ZMI)

Non-invasive electrotherapy pain management devices "TENS" (90% of historical revenue)

•Rx required, insurance billed

•>75% GPM, >60% recurring revenue (consumable supplies and rentals)

•ZYNEX NEURODIAGNOSTICS (ZND)

EEG, EMG diagnostics B:B products (<2% of historical revenue)

NeuroMove Stroke Rehab product

•ZYNEX MONITORING SOLUTIONS (ZMS)

Fully developed, non-invasive blood volume monitor (Zero revenue)

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Zynex Financial Snapshot

Financial Highlights

• 14 consecutive profitable quarters
• Executed $3.8 million in Stock Buybacks in2017-2019
• One-TimeSpecial Dividend of $0.07 per share in Q4-18.
• Q1-2020Guidance - Revenue $14.0 to $14.5 million, Adjusted EBITDA $2.3 to $2.8 million
• 2020 Full year guidance - Revenue $75.0 to $80.0 million, Adjusted EBITDA$15.0-$18.0 million
• Adding sales reps at15-20 per month

Selected Financials Quarters Ended December 31, 2019 vs 2018

• Net revenue↑52% to $14.2M from $9.3M
• GM's 80%
• Net income↑12% to $2.9M from $2.6M
• A-EBITDA↑30% to $4.1M from $3.1M
• Orders↑129%
• Working capital $17.4M vs $7.3M at 12/31/18
• Cash $14.0M
• Nolong-term debt

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Pain & Rehabilitation

		NexWave		$950 million
		Augments healing, alleviates	Electrotherapy
		swelling through increased blood	industry
		circulation, and reduces both
			worldwide
		acute/chronic pain through the use
		of electrical currents
		InWave	Incontinence	$5 Billion
		Delivers a nonsurgical, drug-free	industry
		therapy that offers a conservative	Treatment
		worldwide
		treatment to manage incontinence
		and is of relatively low cost to
		patients.
		NeuroMove		$100 million
		Augment healing, as well as	Stroke Rehab	industry
		assist in recovery for stroke,
		Spinal Cord Injuries and		worldwide
		Traumatic Brain Injury, retrains
		muscles, increases range of
		motion

• All devices above are FDA approved.

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NexWave: Electrotherapy for Pain Management

• Indications: Pain relief, augments healing, alleviates swelling through increased blood circulation, musclere-education, prevention of muscle disuse atrophy, relaxation of muscle spasms.
• NexWave Electrotherapy eliminates or reduces use of Opioids.
• • Only 23% of patients with chronic pain found opioids effective
  • 51% of people feel that they have no control over their pain
  • 84% of patients were able to reduce medication use.
  • Nearly half reduced medication by 50%
  • Patients decreased the cost of medication by 50%
• Effectivepost-orthopedic surgery.
• Requires a prescription & reimbursed by health insurance
• • Average reimbursement including supplies ≈ $1,500
• $500 million industry worldwide
• • Competitors shut down by Office of Inspector General (OIG)
  • 1.5 Billion + worldwide suffering from chronic pain
• Over 75% gross profit margin
• Greater than 70% of revenue from supplies

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NexWave: Electrotherapy for Pain Management

3 Modalities in 1 Device

• IFC (Interferential Current)
• • 40x stronger than TENS
  • Reaches deeper, stimulating motor nerves to release endorphins or enkephalins which results in pain relief that can last for hours (Endorphin Release Theory)
  • 3-4treatments per day
  • Frequency: Ranges from 4000 - 4128 Hz
• TENS (Transcutaneous Electrical Nerve Stimulation)
• • Supplemental to IFC treatments
  • Used for breakthrough pain
  • More superficial as compared to IFC, stimulating sensory nerves to provide immediate onset of relief (Gate Control Theory)
  • Can be used during activities
  • Frequency: Ranges from 1 - 125 Hz, Pulse Width: 120 - 300 μs
• NMES (Neuromuscular Electrical Stimulation)
• • Reduces muscle relaxant use
  • Breaks up muscle spasms
  • Strengthens atrophied muscles
  • Increases ROM (Range of Motion) & blood circulation
  • Improves overall ADLs (Activities of Daily Living)
  • Frequency: Fixed at 35 Hz, Pulse Width: 480 μs

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NexWave: Electrotherapy for Pain Management

Most Common Types of Chronic Pain

• 27% Back Pain, 15% Neck Pain

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Blood Volume Monitor

Used in

•$3 Billion

CM-1500

operating and

industry

recovery rooms

to detect blood

worldwide.

loss and internal

bleeding

• Zynex Monitoring Solutions - CM1500
• • US Patent obtained October 2018.
  • European Patent obtained February 2020
  • FDA 510(k) clearance received in February 2020
  • CE marking (European Market) in progress.
  • The CM1500 is capable of monitoring a patient's fluid levels, including blood loss, during surgery and in recovery
  • Product fully developed

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Long-Term Objectives

• Increase national footprint with additional direct sales representatives
• Grow recurring revenue streams
• Generate consistent net earnings and positive free cash flow
• Focus on driving value thru organic growth and strategic acquisitions

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Executive Team

THOMAS SANDGAARD - FOUNDER, CHAIRMAN AND CHIEF EXECUTIVE

Thomas Sandgaard has been the Chairman of the Board, President and Chief Executive Officer of Zynex, Inc. since founding the company in 1996. He has previously held management positions with companies such as ITT, Siemens, GN Danavox, Dataco and Philips. He is experienced in international sales and distribution, technology transfers, mergers and marketing management in industrails and medical equipment industries. Mr. Sandgaard has a bachelor's degree in electronics engineering from University of Southern Denmark and an MBA from Copenhagen Business School.

JOSEPH PAPANDREA - CHIEF OPERATING OFFICER

Joseph Papandrea joined the company in 2019 and leads operations including billing, patient support, sales and device production. Mr. Papandrea previously worked as Vice President of Operations at Arrow Electronics. He has extensive global operational experience to achieve scale and transformation in electronics, energy, healthcare and medical technology industries. Prior to joining Arrow electronics Mr. Papandrea worked in Australia, Singapore, Germany, the UK, Chile and the USA in a variety of senior leadership roles.

Mr. Papandrea holds a Bachelor of Commerce from the University of Western Sydney in Australia.

DAN MOORHEAD - CHIEF FINANCIAL OFFICER

Dan Moorhead joined the company in June 2017 as CFO. Mr. Moorhead has over 20 years of experience in a variety of finance roles serving both public and private companies. For the last 10 years, he worked at Evolving Systems, Inc. (a Nasdaq listed company), most recently as Chief Financial Officer after having served as Vice President of Finance & Administration and Corporate Controller. Mr. Moorhead is a CPA and holds a B.B.A. in Accounting from the University of Northern Colorado.

CHRIS BROWN - VICE PRESIDENT OF SALES & MARKETING

Chris Brown is the Vice President of sales and marketing and is responsible for Zynex Medical's sales organization throughout the United States. Mr. Brown has extensive experience in sales and marketing in the healthcare industry. Previously, he held Vice President positions with Safeop Surgical, Nuvasive/Impulse Monitoring, Intelistaff Healthcare and Steris Corp/AMSCO. Chris holds a Bachelor's Degree in Business Administration from Indiana University of Pennsylvania.

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Company Milestones

• Founded by Thomas Sandgaard
• FDA clearance on first ZynexE-Stim device
• Shifted from wholesale to direct sales to physicians and patients
• Reverse merger into a public entity
• Received European CE mark on key products
• Established NeuroDiagnostics (EEG/Sleep) and Monitoring (blood volume) subsidiaries
• Commenced clinical evaluations for Blood Volume Monitor device
• TENS business begins to grow. EMPI (largest competitor) exits TENS market
• Filed FDA 510K application for CM1500 monitoring device
• U.S. Patent obtained on CM1500 monitoring device
• Listed on The Nasdaq Capital Market - February 12th
• FDA clearance on Blood Volume Monitor - February 21st

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• Q4-19revenue ↑52% vs Q4-18
• Q4-19device revenue ↑117% vs Q4-18

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• Q4-2019↑30% vs Q4-18

• Q4-2019 14thstraight profitable quarter

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Stock Information

Key Stats
Ticker	NASDAQ: ZYXI
Shares Outstanding	32.8 M
Public Float	16.3M
Insider Ownership	51%
Avg. Daily Volume (50 days)	322,830
52 Week Range	$4.25 - $14.10
Year End	December 31st

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Stock Chart

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Contact Information

Amato and Partners, LLC	Zynex, Inc.
Investor Relations Counsel	9555 Maroon Circle
100 Park Avenue, 16thFloor	Englewood, CO 80112
New York, NY 10017	Telephone: [phone]
[e-mail]	www.zynex.com

Zynex, Inc.

Dan Moorhead

Chief Financial Officer

Telephone: [phone]

[e-mail]

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