Form 4: Zynex Director's Shares Cancelled Post-Reorganization

Zynex Director Michael Cress reports cancellation of all common stock and restricted stock awards for no consideration following the company's Chapter 11 reorganization plan.

Summary

• Michael D. Cress, a Director of Zynex Inc. (ZYXI), reported changes in beneficial ownership via a Form 4 filing.
• On March 26, 2026, all outstanding shares of Zynex common stock, including shares issuable under equity awards, options, warrants, and other rights, were cancelled for no consideration.
• This cancellation was executed pursuant to the Issuer's Third Amended Combined Disclosure Statement and Joint Chapter 11 Plan of Reorganization.
• The Chapter 11 Plan was confirmed by the United States Bankruptcy Court for the Southern District of Texas on March 19, 2026, and became effective on March 26, 2026.
• Michael Cress disposed of 12,499 shares of Common Stock (Restricted Stock Award) and 82,501 shares of Common Stock, both for a price of $0.
• Following these reported transactions, Michael Cress beneficially owns 0 shares of Zynex common stock.

Sentiment

Score: 1

Explanation: StockSavvy.ai views this as an extremely negative event for existing shareholders, as their equity has been rendered worthless due to the company's bankruptcy reorganization.

Negatives

• All outstanding shares of common stock and equity awards were cancelled for no consideration.
• Existing shareholders received no recovery under the Chapter 11 Plan of Reorganization.
• The company underwent a Chapter 11 bankruptcy reorganization, indicating severe financial distress.

Risks

• The primary risk for existing equity holders has been realized, with all shares cancelled for no consideration due to the Chapter 11 reorganization.

Future Outlook

This Form 4 filing does not contain any forward-looking statements or guidance regarding the company's future operations or financial performance, as it reports a past transaction related to a reorganization.

Industry Context

StockSavvy.ai notes that Chapter 11 reorganizations typically result in significant dilution or complete loss of value for existing equity holders, which is consistent with this filing. This event reflects a severe financial distress scenario for Zynex, leading to a restructuring of its capital structure.

Comparison to Industry Standards

• In bankruptcy proceedings, it is standard for existing equity to be wiped out or severely diluted, especially when creditors are not fully satisfied. This outcome for Zynex's common stock aligns with typical outcomes in Chapter 11 reorganizations where the company's value is insufficient to cover all liabilities.

Legal Proceedings

• The filing references the confirmation of the Chapter 11 Plan of Reorganization by the United States Bankruptcy Court for the Southern District of Texas, indicating a significant legal proceeding.

Stakeholder Impact

• Shareholders: Existing common shareholders and equity award holders lost their entire investment as all shares were cancelled for no consideration.
• Creditors: While not detailed in this filing, the Chapter 11 plan would have addressed the company's creditors, likely resulting in some form of recovery or restructuring of debt.

Key Dates

Recommendation

The company's common stock has been cancelled for no consideration as part of a Chapter 11 reorganization, meaning existing shares are worthless. There is no value left for current shareholders, necessitating a strong sell recommendation for any remaining or theoretical holdings.

Keywords

Zynex, ZYXI, Form 4, beneficial ownership, Chapter 11, bankruptcy, reorganization, stock cancellation, equity awards