Zynex, Inc. Receives SEC Notice of Conclusion to Investigation; Updates on Chapter 11 Proceedings and Delisting
Key Points:
- The SEC has concluded its investigation into Zynex, Inc., with no enforcement action recommended.
- Zynex is currently undergoing Chapter 11 bankruptcy proceedings.
- The company’s common stock has been delisted from Nasdaq and now trades on OTC Markets under the symbol ZYXIQ.
- Significant risk remains for equity holders due to ongoing restructuring and bankruptcy processes.
SEC Investigation Concludes Without Enforcement Action
On February 18, 2026, Zynex, Inc. (the “Company”) announced it has received a letter from the U.S. Securities and Exchange Commission (SEC) stating that the SEC has concluded its investigation into the Company. Importantly, based on the information available as of the date of the letter, the SEC does not intend to recommend any enforcement action against Zynex, Inc. This investigation had been previously disclosed in the Company’s periodic filings.
The letter was issued under the procedures described in Securities Act Release No. 5310, signaling the formal end of the inquiry. This positive development removes a significant legal overhang, although investors should note that the Company continues to face substantial operational and financial challenges.
Update on Chapter 11 Bankruptcy Proceedings
Shareholders should be aware that Zynex and certain of its subsidiaries commenced voluntary cases under Chapter 11 of the U.S. Bankruptcy Code on December 15, 2025. This step was taken as part of a broader effort to restructure the Company’s debts and operations.
The Company cautions that trading in its securities during the pendency of these bankruptcy cases is highly speculative and entails substantial risk. Zynex explicitly warns that trading prices of its shares may bear little or no relationship to the actual recovery, if any, by holders of its securities in the Chapter 11 process. The Company further states that equity holders are likely to experience significant losses on their investments if the restructuring transactions contemplated under the bankruptcy process are implemented.
Risks highlighted include:
- Uncertainty regarding the approval of Zynex’s restructuring plan by the bankruptcy court and other stakeholders.
- Potential cancellation of Zynex’s common stock as part of the Chapter 11 process.
- Adverse effects on liquidity, ability to retain key personnel, and overall business operations during the bankruptcy proceedings.
- Ongoing risks and uncertainties as disclosed in prior SEC filings, including the 2024 Form 10-K/A and subsequent quarterly reports.
Delisting and Change of Trading Venue
As a direct result of the Chapter 11 filing, on December 17, 2025, Zynex received a written notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) indicating the Company’s stock would be delisted. Effective December 24, 2025, trading of Zynex’s common stock on Nasdaq was suspended, and the shares began trading on the OTC Markets Group’s Pink Limited Market under the ticker ZYXIQ.
Nasdaq subsequently filed a Form 25 with the SEC on January 26, 2026, formalizing the delisting, which became effective ten days later on February 2, 2026. The deregistration of Zynex’s common stock under Section 12(b) of the Exchange Act will become effective 90 days after filing, unless the SEC determines otherwise.
Forward-Looking Statements and Risks
The Company’s report includes extensive cautionary language regarding forward-looking statements. Notably, it stresses that actual results may differ materially from those expressed or implied due to a variety of risks, including the ongoing bankruptcy process, uncertainty regarding restructuring outcomes, and the potential for common stock cancellation. Shareholders are strongly advised to review all risk factors in the Company’s filings.
Shareholder Takeaways:
- The end of the SEC investigation without recommended action is a positive legal development.
- Despite this, the ongoing Chapter 11 bankruptcy and restructuring represent significant risks to current equity holders.
- The delisting from Nasdaq and transition to OTC Markets further increases the risk and volatility of trading Zynex shares.
- There is a substantial risk that current shareholders may lose most, if not all, of their investment depending on the outcome of the restructuring.
Disclaimer: This article is intended for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with professional advisors before making investment decisions. The situation at Zynex, Inc. is highly fluid and subject to significant risks, including the risk of total loss of investment.
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