Core Insights - Heartbeam Inc's shares increased significantly by 43.3% to $0.86 in pre-market trading following the announcement of its regulatory strategy after the FDA's Not Substantially Equivalent decision on its Electrocardiogram Synthesis Software [1][2] Company Developments - Heartbeam is exploring multiple regulatory options, including an appeal process or a 510(k) resubmission to demonstrate that its device is equivalent to legally marketed products [1] Market Movements - Other notable pre-market stock movements include: - SMX PLC surged 73.1% to $30.12 after a previous jump of 194% [6] - Zenta Group Co Ltd gained 26.7% to $3.18 [6] - Waton Financial Ltd rose 21.1% to $3.74 [6] - Verrica Pharmaceuticals Inc increased by 9.7% to $7.36 after announcing a $50 million private placement [6] - Conversely, several companies experienced declines, such as: - FBS Global Ltd fell 24.3% to $0.51 [6] - Tilray Brands Inc declined 15% to $0.88 following a reverse stock split announcement [6] - Solo Brands Inc dipped 14.4% to $7.19 after reporting disappointing third-quarter results [6]

Company Highlights - Zynex, Inc. (NASDAQ:ZYXI) experienced a 98% increase in stock price, reaching $1.46 from a low of $0.695, with a trading volume exceeding 66 million shares, driven by strong Q3 results [1][6] - Pasithea Therapeutics Corp. (KTTA) saw a 69.4% rise in stock price to $0.826, peaking at $1.34 during the day, with a trading volume of approximately 124 million shares, following a $1 million grant from the ALS Association for ALS research [2][6] - Amber International Holding Ltd (Nasdaq: AMBR) reported a 59.49% jump in stock price to $2.52, with over 85 million shares traded, and announced a $50 million share repurchase program, reflecting strong business momentum [3][6] - SMX (NASDAQ:SMX) saw its stock price climb by 58.21% to $9.35, with over 12 million shares traded, showcasing strong momentum at the 2025 DMCC Precious Metals Conference [4][6] Market Trends - The market is characterized by significant investor interest and stock price volatility across various sectors, including healthcare, biotechnology, real estate, and technology, driven by company-specific developments and broader market trends [5]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Viewpoint - Zynex has released its financial results for the third quarter ending September 30, 2025, and is set to discuss projections and forward-looking statements during the earnings conference call [2][4]. Financial Results - The financial results for the third quarter of 2025 were made available on the company's website [2]. Future Projections - The company will provide forward-looking statements regarding future events, which may include product development, regulatory environment, and sales strategies [3][4].

Financial Data and Key Metrics Changes - Net revenue for Q3 2025 was $13.4 million, a significant decline from $50 million in Q3 2024, primarily due to TRICARE payment suspension and a $2.8 million reduction in revenue related to payments received during the suspension period [11][12] - Gross profit in Q3 2025 was $8.1 million, or 60% of revenue, compared to $39.8 million, or 80% of revenue, in Q3 2024 [12] - Net loss for Q3 2025 was $42.9 million, or $1.42 per share, compared to net income of $2.4 million in Q3 2024 [14] - Adjusted EBITDA loss for Q3 2025 was $12.3 million, compared to adjusted EBITDA of positive $5.1 million in Q3 2024 [14] - Cash and cash equivalents as of September 30, 2025, were $13.3 million, with a negative cash flow of $6.3 million for the quarter [7][14] Business Line Data and Key Metrics Changes - Device revenue for Q3 2025 was $7.1 million, while supplies revenue was $6.3 million, contributing to the overall decline in net revenue [11] - Workforce reductions in Q1 and Q2 2025 negatively impacted device orders and new patient onboarding, contributing to the revenue decline [12] Market Data and Key Metrics Changes - Changes to certain payers' claim submission and review practices have resulted in denials and payment delays, negatively impacting revenue [11] Company Strategy and Development Direction - The company is focused on a three-part strategy: addressing government agency concerns, managing near-term debt obligations, and improving revenue and cash flow performance [5][6][9] - A new resupply order fulfillment policy was implemented to enhance patient engagement and compliance [6][7] - The company is actively seeking to raise new capital to fund operations and address the maturity of $60 million in convertible senior notes due in May 2026 [6][8][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing challenges but expresses optimism about progress in implementing the turnaround strategy [10] - The company is engaging with government agencies in a collaborative manner to ensure compliance and integrity moving forward [6] Other Important Information - A non-cash asset impairment charge of $30.7 million was recorded in Q3 2025, primarily related to goodwill and certain fixed assets [14] - The company has entered a 30-day grace period regarding a $1.5 million interest payment due on convertible notes [15] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the call concluded without a Q&A segment [17]

Financial Data and Key Metrics Changes - Net revenue for Q3 2025 was $13.4 million, a significant decline from $50 million in Q3 2024, primarily due to TRICARE payment suspension and a $2.8 million reduction in revenue related to payments received during the suspension period [11][12] - Gross profit in Q3 2025 was $8.1 million, or 60% of revenue, compared to $39.8 million, or 80% of revenue, in Q3 2024 [12] - Net loss for Q3 2025 was $42.9 million, or $1.42 per share, compared to a net income of $2.4 million in Q3 2024 [14] Business Line Data and Key Metrics Changes - Device revenue was $7.1 million, while supplies revenue was $6.3 million in Q3 2025, reflecting the overall decline in net revenue [11] - Sales and marketing expenses decreased by 54% to $9.5 million in Q3 2025, primarily due to headcount reduction [12] Market Data and Key Metrics Changes - The decline in revenue was attributed to changes in payers' claim submission and review practices, resulting in denials and payment delays [11] - Workforce reductions in Q1 and Q2 negatively impacted device orders and new patient onboarding, contributing to the overall revenue decline [12] Company Strategy and Development Direction - The company is focused on a three-part strategy: addressing government agency concerns, managing near-term debt obligations, and improving revenue and cash flow performance [5][6] - A new resupply order fulfillment policy was implemented to enhance patient engagement and compliance [6][7] - The company is actively seeking to raise new capital to fund operations and address the maturity of $60 million in convertible senior notes due in May 2026 [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about progress in addressing compliance and integrity issues, although uncertainty remains regarding TRICARE reinstatement and ongoing investigations [6][10] - Early signs of success were noted in improving sales force productivity and order volumes, despite a reduced sales force [9][10] Other Important Information - The company had $13.3 million in cash and cash equivalents as of September 30, 2025, and experienced a negative cash flow of $6.3 million during the quarter [7][14] - A non-cash asset impairment charge of $30.7 million was recorded, primarily related to goodwill and certain fixed assets [14][15] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the call concluded without a Q&A segment [17]

Zynex (NasdaqGS:ZYXI) Q3 2025 Earnings Call November 18, 2025 09:00 AM ET Speaker2Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Zynex third quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. As a reminder, this conference is being recorded. I would now like to turn the conference over to Vikram Bajaj, Chief Financial Officer of Zynex. Please go ahead.Speaker1Thank you, Operator, and good afternoon, everyone. Yesterday, we rele ...

Core Insights - Zynex, Inc. is undergoing a transformative phase under new management, focusing on overcoming business challenges and enhancing financial health [1] Financial Performance - For Q3 2025, Zynex reported an EPS of -$1.42, significantly below the expected -$0.19, and revenue of $13.36 million, compared to an estimate of $24.53 million, indicating ongoing financial difficulties [2] - The company has a negative P/E ratio of -0.23, reflecting its financial struggles [2] Management Strategy - Zynex's management, led by CEO Steven Dyson, is implementing a three-part strategy aimed at improving compliance, liquidity, and revenue [3] - Despite poor performance in Q3, management emphasizes progress in strategic initiatives to rebuild the company's strength [3] Financial Metrics - The company has a price-to-sales ratio of 0.16 and an enterprise value to sales ratio of 0.70, indicating low market valuation of its sales and revenue [4] - An enterprise value to operating cash flow ratio of -3.67 suggests difficulties in generating positive cash flow [4] Liquidity and Debt - Zynex faces a negative earnings yield of -4.32% and a debt-to-equity ratio of -1.73, indicating more liabilities than equity [5] - The current ratio of 0.47 points to potential liquidity issues, as it is below the standard threshold of 1, suggesting challenges in meeting short-term obligations [5]

Revenue Performance - Net revenue decreased by $36.6 million or 73% to $13.4 million for the three months ended September 30, 2025, compared to $50.0 million for the same period in 2024[168] - For the nine months ended September 30, 2025, net revenue decreased by $84.2 million or 57% to $62.2 million from $146.4 million in the same period in 2024[168] - Device revenue decreased by $7.8 million or 53% to $7.1 million for the three months ended September 30, 2025, from $14.9 million for the same period in 2024[176] - Device revenue decreased by $14.8 million or 33% to $30.0 million for the nine months ended September 30, 2025, from $44.8 million for the same period in 2024[176] - Supplies revenue decreased by $28.8 million or 82% to $6.3 million for Q3 2025, and by $69.3 million or 68% to $32.2 million for the nine months ended September 30, 2025[178] Operational Challenges - Device orders decreased by 35% and 20% for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024[168] - The decrease in supplies revenue was significantly impacted by the Tricare payment suspension, resulting in a $13.3 million decline for Q3 2025[179] - Device revenue declined by approximately $2.0 million (from the same period in 2024) due to a temporary Tricare payment suspension and workforce reductions[177] Financial Position - Cash used in operating activities was $23.0 million during the nine months ended September 30, 2025, compared to cash provided by operating activities of $10.3 million during the same period in 2024[169] - Working capital deficit was $41.8 million as of September 30, 2025, compared to working capital of $58.3 million as of December 31, 2024[169] - As of September 30, 2025, the company had $13.3 million in cash and cash equivalents and $6.7 million in net accounts receivable[192] Expenses and Impairments - The company recognized pre-tax non-cash asset impairment charges of $30.7 million during the quarter ended September 30, 2025, primarily related to goodwill and certain fixed assets associated with Zynex Monitoring Solutions[154] - Cost of revenue for devices and supplies decreased by $4.9 million or 48% to $5.3 million for Q3 2025, but as a percentage of revenue, it increased to 40% from 20%[180] - General and administrative expenses decreased by $3.5 million or 23% to $11.8 million for Q3 2025, with the percentage of revenue increasing to 88% from 31%[186] - The company recorded non-cash impairment charges totaling $30.7 million during Q3 2025 related to its ZMS subsidiary[189] Net Loss and Default Risk - The company has incurred net losses of $73.3 million for the nine months ended September 30, 2025, compared to net income of $3.6 million during the same period in 2024[198] - The company has not made an interest payment of approximately $1.5 million due on November 15, 2025, which could lead to an event of default[201] Workforce and Severance - The company expects to incur aggregate pre-tax cash severance charges of approximately $0.7 million in the fourth quarter of 2025 due to workforce reductions[154] - Tricare historically represented approximately 20-25% of the company's annual revenue, with cash collections from Tricare amounting to $48.8 million and $38.8 million for the years ended December 31, 2024 and 2023, respectively[165]

Financial Performance - Net revenue for Q3 2025 was $13.4 million, a decline of 73% compared to $50.0 million in Q3 2024, primarily due to Tricare payment suspension and a $2.8 million revenue reduction during the suspension period[6] - Gross profit for the quarter was $8.1 million, representing 60% of revenue, down from $39.8 million or 80% of revenue in Q3 2024[7] - Net loss for Q3 2025 totaled ($42.9) million, or ($1.42) per share, significantly impacted by a non-cash asset impairment charge of $30.7 million[9] - Adjusted EBITDA loss for Q3 2025 was ($12.3) million, compared to an Adjusted EBITDA of $5.1 million in Q3 2024[10] - Total net revenue for Q3 2025 was $13,360,000, a decrease of 73% compared to $49,966,000 in Q3 2024[20] - Net income (loss) for the nine months ended September 30, 2025, was $(73,343,000), compared to $3,609,000 for the same period in 2024[21] - Adjusted EBITDA for Q3 2025 was $(12,343,000), representing -92% of net revenue, compared to 10% in Q3 2024[23] - Total costs of revenue and operating expenses for Q3 2025 were $57,322,000, an increase from $46,164,000 in Q3 2024[20] Cash Flow and Assets - Cash flow from operations for Q3 2025 was ($6.3) million, with total cash and cash equivalents at $13.3 million as of September 30, 2025[10] - Cash and cash equivalents at the end of Q3 2025 were $13,259,000, down from $37,630,000 at the end of Q3 2024[21] - Total current assets decreased to $37.0 million as of September 30, 2025, down from $75.2 million at the end of 2024[19] Liabilities and Debt - Total liabilities increased to $86.7 million as of September 30, 2025, compared to $86.4 million at the end of 2024[19] - Zynex has entered a 30-day grace period and will not make a $1.5 million interest payment on its $60 million Convertible Notes due in May 2026[4] - The company incurred interest expense of $890,000 in Q3 2025, compared to $625,000 in Q3 2024[20] Revenue Breakdown - Devices revenue for Q3 2025 was $7,057,000, down from $14,858,000 in Q3 2024[20] - Supplies revenue for Q3 2025 was $6,303,000, compared to $35,108,000 in Q3 2024[20] Expenses - Sales and marketing expenses decreased by 54% to $9.5 million from $20.7 million in Q3 2024, primarily due to reduced sales force headcount[8] - The company reported impairment charges of $30,740,000 for the nine months ended September 30, 2025[20] Strategic Initiatives - The company has engaged Province, LLC to evaluate strategic alternatives, including potential capital raising and restructuring strategies[3] Shareholder Information - Weighted average basic shares outstanding decreased to 30,314,000 in Q3 2025 from 31,775,000 in Q3 2024[20]