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ENGLEWOOD, CO – Zynex Inc. (NASDAQ:ZYXI), a Nevada-based company specializing in electromedical equipment currently trading near its 52-week low of $2.41, announced on Thursday a change in its independent registered accounting firm. According to InvestingPro data, the company maintains strong financial health with a current ratio of 4.46, indicating robust liquidity despite recent stock price challenges. The company’s previous accountant, Marcum LLP, resigned on Wednesday, and CBIZ (NYSE:CBZ) CPAs P.C. was appointed as the new firm following the approval of Zynex’s Audit Committee.
The transition comes after CBIZ acquired Marcum’s attest business on November 1, 2024. Zynex reported that Marcum’s reviews of the financial statements for the years ending December 31, 2024, and December 31, 2023, did not contain any adverse opinions or modifications. The company has maintained profitability with earnings per share of $0.09 in the last twelve months, though InvestingPro analysis reveals 14+ additional key insights about the company’s financial trajectory. However, during those periods, Zynex disclosed material weaknesses in its internal control over financial reporting related to Information Technology General Controls and the valuation of certain accounts receivables.
These weaknesses were addressed in Zynex’s Annual Reports filed with the Securities and Exchange Commission (SEC) on March 11, 2025, and March 12, 2024, respectively. The company has since redesigned the controls over the valuation of certain accounts receivable, which were tested and deemed effective for the year ending December 31, 2024.
Marcum discussed these reportable events with the Audit Committee and has been authorized to respond fully to CBIZ’s inquiries concerning the reported issues. In the period leading up to Marcum’s resignation, Zynex did not consult CBIZ on any accounting principles or auditing opinions that might be rendered on the company’s financial statements.
In compliance with regulatory requirements, Zynex provided Marcum with a copy of this announcement before filing with the SEC and has included a letter from Marcum in its Current Report on Form 8-K, dated March 27, 2025, as Exhibit 16.1, confirming their agreement with the statements made in the report.
This change comes as Zynex continues to address its internal control processes and ensures compliance with financial reporting standards. The company maintains a healthy gross profit margin of 79.7% and is scheduled to report its next earnings on April 24, 2025. The information contained in this article is based on a press release statement from Zynex Inc. For comprehensive analysis and detailed insights, investors can access the full Pro Research Report, available exclusively on InvestingPro, which covers this and 1,400+ other US stocks with actionable intelligence for smarter investing decisions.
In other recent news, Zynex Inc. reported a 3% year-over-year decline in fourth-quarter revenue for 2024, amounting to $46 million, missing the expected $53.7 million. The shortfall was largely due to a temporary suspension of payments from Tricare, a significant payer representing 20-25% of Zynex’s revenue. The company also reported a net loss of $0.6 million for the quarter, translating to an earnings per share (EPS) of -$0.02, falling short of the projected income of $2.8 million. Despite these challenges, Zynex’s full-year 2024 results showed a 4.4% increase in total revenue, reaching $192.4 million, with net income of $3.0 million.
In response to the financial pressures, Zynex announced a 15% reduction in workforce, aiming to save approximately $35 million annually. H.C. Wainwright maintained a Buy rating on Zynex but lowered its price target from $17.00 to $15.00, reflecting concerns over the company’s immediate revenue challenges. Meanwhile, RBC Capital Markets downgraded Zynex from Outperform to Sector Perform, reducing its price target to $5.50, citing operational concerns and the potential risks from the Tricare payment suspension. The company has not provided full-year guidance for 2025 due to these uncertainties but anticipates first-quarter revenue of at least $30 million.
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