Release Date: March 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Could you give us a sense of what was accomplished in the fourth quarter regarding the 15% staff reduction and how it will affect your OpEx lines? A: Daniel Moorhead, CFO, explained that less than half of the $30 million-plus in annual savings was achieved during 2024, with the rest implemented in Q1 2025. Sales expenses are expected to decrease by $1-2 million, and G&A expenses will also see a similar reduction.
Q: Could you elaborate on the commercial path to market for the NiCO pulse oximeter? A: Donald Gregg, President of Zynex Monitoring Solutions, stated that they are considering multiple strategies, including direct sales, partnerships, and indirect sales through 1099 organizations. They are prepared to execute these plans upon FDA clearance.
Q: What was the nature of the 2022 audit by TRICARE related to billing practices, and why didn't you have visibility into TRICARE's actions? A: Anna Lucsok, COO, mentioned that the audit was a routine post-payment audit with standard adjustments. The lack of visibility into TRICARE's recent actions is due to unclear communication from TRICARE regarding specific issues.
Q: Why don't you have visibility into sales for 2025, given that 75% of your business is still being reimbursed? A: Thomas Sandgaard, CEO, explained that the uncertainty with TRICARE, which represents a significant portion of revenue, makes it difficult to provide guidance. They are confident in resolving the issue but are taking a conservative approach until more clarity is obtained.
Q: What is your plan for the April meeting with TRICARE, and have they requested specific information? A: Anna Lucsok, COO, stated that TRICARE has provided vague guidance, but Zynex plans to present data on compliance with policies and refer to the 2022 audit findings. They aim to clarify and resolve the issues during the meeting.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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