ZYNEX INC 8-K

What Happened
Zynex, Inc. announced on February 17, 2026 that it and its subsidiary Zynex Medical entered into a Non‑Prosecution Agreement (NPA) with the U.S. Attorney’s Office for the District of Rhode Island. The company admitted responsibility for conduct by prior management described in the NPA’s Statement of Facts and agreed to comply with the NPA’s terms, including payment obligations and enhanced compliance and governance reforms. The NPA becomes effective only if approved by the Bankruptcy Court handling the company’s Chapter 11 cases. The company also issued a related press release on February 17, 2026.

Key Details

• NPA date: February 17, 2026; obligations commence that date and run until the later of full payment of the criminal monetary penalty or December 31, 2034.
• Criminal monetary penalty: between $5.0 million and $12.5 million, variable based on company earnings/profit during the NPA term; payment may be accelerated on certain events.
• Forfeiture/release of unpaid claims: approximately $85 million in TRICARE billings during the company’s TRICARE suspension period, and roughly $13 million in billings to other payors for claims submitted before Sept. 1, 2025 (subject to limited offsets for non‑fraud defenses).
• Condition to effectiveness: NPA is conditioned on approval by the United States Bankruptcy Court in the company’s Chapter 11 cases (Chapter 11 petitions were filed Dec. 15, 2025 in the Southern District of Texas, Case No. 25‑90810).
• Additional facts previously reported: former CEO Thomas Sandgaard was indicted Jan. 21, 2026 and removed from all company positions Jan. 22, 2026.

Why It Matters
This NPA resolves criminal exposure alleged to relate primarily to 2017–Aug 2025 conduct under prior management, but its terms carry multi‑year financial and operational consequences for Zynex. The company faces a required criminal penalty (up to $12.5M), forfeiture of substantial unpaid claim recoveries (roughly $98M combined before offsets), ongoing cooperation obligations, and mandated compliance/governance reforms. Because the NPA’s effectiveness depends on bankruptcy‑court approval, the resolution is closely tied to Zynex’s Chapter 11 process and will be a material factor for creditors and investors assessing the company’s post‑bankruptcy recovery, cash obligations, and future compliance risk.