Form 4: Zynex Shares Cancelled in Chapter 11 Reorganization

Zynex director Joshua Disbrow reports the cancellation of all ZYXI common stock and equity awards for no consideration following the company's Chapter 11 reorganization.

Summary

• Joshua R. Disbrow, a Director of Zynex Inc. (ZYXI), reported the disposition of 12,499 shares of Common Stock (Restricted Stock Award) and 89,501 shares of Common Stock.
• These shares were cancelled for $0 consideration.
• The cancellation occurred on March 26, 2026, pursuant to the Issuer's Third Amended Combined Disclosure Statement and Joint Chapter 11 Plan of Reorganization (the "Plan").
• The 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.
• All outstanding shares of Zynex's common stock, including shares issuable under equity awards, and all other options, warrants, and rights, have been cancelled for no consideration and are of no further force and effect, with no recovery under the Plan.

Sentiment

Score: 1

Explanation: StockSavvy.ai views this as extremely negative, as the cancellation of all outstanding shares for no consideration due to a Chapter 11 reorganization represents a total loss for existing equity holders.

Negatives

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

Risks

• The risk of the company entering and completing a Chapter 11 bankruptcy reorganization, leading to the cancellation of all existing equity, has materialized.

Future Outlook

The filing indicates that the Chapter 11 Plan of Reorganization became effective on March 26, 2026, resulting in the cancellation of all existing equity. This marks the conclusion of the previous equity structure under the bankruptcy proceedings.

Management Comments

• Joshua R. Disbrow, as the reporting person, confirmed that all outstanding shares of Zynex, Inc. common stock and equity awards were cancelled for no consideration, with no recovery under the Chapter 11 Plan of Reorganization.

Industry Context

StockSavvy.ai notes that a Chapter 11 reorganization and the subsequent cancellation of all existing equity for no consideration represent a complete failure for the company's prior business model and a total loss for its former shareholders. This event typically signals a significant restructuring of the company's operations and capital structure, often under new ownership or with a significantly altered strategic direction.

Corporate Governance

Legal Proceedings

• The United States Bankruptcy Court for the Southern District of Texas confirmed the Issuer's Chapter 11 Plan of Reorganization on March 19, 2026, which became effective on March 26, 2026.

Stakeholder Impact

• Existing shareholders experienced a complete loss of investment as all common stock and equity awards were cancelled for no consideration under the Chapter 11 Plan of Reorganization.

Key Dates

Recommendation

The filing reports the complete cancellation of all Zynex common stock and equity awards for no consideration due to a Chapter 11 reorganization. This signifies a total loss for existing shareholders, making any prior equity position worthless. For any investor holding these securities, the event dictates a 'strong sell' as the value has been extinguished.

Keywords

Zynex, ZYXI, Chapter 11, Bankruptcy, Reorganization, Share Cancellation, Equity Awards, Form 4, Beneficial Ownership