AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON JUNE
26, 2019
REGISTRATION NO. 333-__________
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-3
REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933
ZYNEX, INC.
(Exact name of registrant as specified
in its charter)
Nevada
(State or other jurisdiction of
incorporation or organization)
90-0275169
I.R.S. Employer Identification Number
9555 Maroon Cir.
Englewood, CO, 80112
Telephone: (303)
703-4906
(Address, including zip code, and telephone
number, including area code of registrant’s principal executive offices)
Thomas Sandgaard
Chief Executive
Officer
Zynex, Inc.
9555 Maroon Ci.
Englewood, CO 80112
Telephone: (303)
703-4906
(Name, address, including zip code, and
telephone number, including area code, of agent for service)
Copies to:
Gregory Sichenzia,
Esq.
Sichenzia Ross
Ference LLP
1185 Avenue of
the Americas, 37
th
Floor
New York, NY 10036
(212) 930-9700
Approximate date of commencement of proposed
sale to the public:
From time to time after the effective date
of this registration statement.
If the only securities being registered
on this Form are being offered pursuant to dividend or interest reinvestment plans, please check the following box:
¨
If any of the securities being registered
on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than
securities offered only in connection with dividend or interest reinvestment plants, check the following box:
x
If this Form is filed to register additional
securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following and list the Securities
Act registration statement number of the earlier effective registration statement for the same offering.
¨
If this Form is a post-effective amendment
filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering.
¨
If this Form is a registration statement
pursuant to General Instruction I.D. or a post-effective amendment thereto that shall become effective upon filing with the Commission
pursuant to Rule 462(e) under the Securities Act, check the following box.
¨
If this Form is a post-effective amendment
to a registration statement filed pursuant to General Instruction I.D. filed to register additional securities or additional classes
of securities pursuant to Rule 413(b) under the Securities Act, check the following box.
¨
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth
company. See the definitions of “large accelerated filer,” “accelerated filer” , “smaller reporting
company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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¨
Large accelerated filer
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¨
Accelerated filer
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x
Non-accelerated filer
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x
Smaller reporting company
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¨
Emerging growth company
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If an emerging growth company, indicate
by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 7(a)(2)(B) of Securities Act.
¨
CALCULATION OF REGISTRATION FEE
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Proposed
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Proposed
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maximum
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Amount
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maximum
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aggregate
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Amount of
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Title of each class of
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to be
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offering price
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offering
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registration
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Securities to be registered
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Registered
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per unit (1)
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price
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fee
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Common stock, par value $0.001 per share
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16,661,571
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$
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10.58
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$
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176,279,421.18
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$
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21,365.07
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(1)
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Estimated solely for purposes of calculating the registration fee pursuant to Rule 457(c) under the Securities Act of 1933, as amended, using the average of the high and low prices as reported on the NASDAQ Capital Market on June 25, 2019.
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The registrant hereby amends this Registration
Statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment
which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant
to said Section 8(a), may determine.
The information in this prospectus is not complete
and may be changed. The selling stockholders may not sell these securities under this prospectus until the registration statement
of which it is a part and filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell
these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
(Subject to Completion, Dated
June 26, 2019)
PROSPECTUS
ZYNEX, INC.
16,661,571 shares of Common Stock
This prospectus relates
to the public offering of up to 16,661,571 shares of common stock of Zynex, Inc. by the selling stockholders named in this prospectus
or its pledgees, donees, transferees, or other successors in interest.
Our common
stock is currently traded on the NASDAQ Capital Market under the symbol “ZYXI.” On June 25, 2019, the last reported
sales price for our common stock was $10.50 per share.
Investing
in our securities involves certain risks. You should read this prospectus, any prospectus supplement and all other information
included or incorporated by reference into this prospectus carefully before you invest, including the risk factors which begin
on page 4 of this prospectus.
The shares of common
stock may be offered by the selling stockholders in negotiated transactions, at either prevailing market prices or negotiated prices.
Each selling stockholder in its discretion may also offer the shares of common stock from time to time in ordinary brokerage transactions
in the principal market on which our common stock is traded or otherwise. See our discussion in the “Plan of Distribution”
section of this prospectus.
The selling stockholders
and any brokers executing selling orders on behalf of the selling stockholders may be deemed to be "underwriters" within
the meaning of the Securities Act of 1933, as amended, or, the Securities Act, and commissions received by a broker executing
selling orders may be deemed to be underwriting commissions under the Securities Act.
We may amend or
supplement this prospectus from time to time by filing amendments or supplements as required. You should read the entire prospectus
and any amendments or supplements carefully before you make your investment decision.
Neither the Securities
and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this
prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
This prospectus is dated ___________, 2019
Table of Contents
You should rely
only on the information contained or incorporated by reference in this prospectus or any prospectus supplement. We have not authorized
anyone to provide you with information different from that contained or incorporated by reference into this prospectus. If any
person does provide you with information that differs from what is contained or incorporated by reference in this prospectus, you
should not rely on it. No dealer, salesperson or other person is authorized to give any information or to represent anything not
contained in this prospectus. You should assume that the information contained in this prospectus or any prospectus supplement
is accurate only as of the date on the front of the document and that any information contained in any document we have incorporated
by reference is accurate only as of the date of the document incorporated by reference, regardless of the time of delivery of this
prospectus or any prospectus supplement or any sale of a security. These documents are not an offer to sell or a solicitation of
an offer to buy these securities in any circumstances under which the offer or solicitation is unlawful.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This prospectus and
the documents and information incorporated by reference in this prospectus include forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act
of 1934, as amended, or the Exchange Act. These statements are based on our management’s beliefs and assumptions and on information
currently available to our management. Such forward-looking statements include those that express plans, anticipation, intent,
contingency, goals, targets or future development and/or otherwise are not statements of historical fact.
All statements in
this prospectus and the documents and information incorporated by reference in this prospectus that are not historical facts are
forward-looking statements. We may, in some cases, use terms such as “anticipates,” “believes,” “could,”
“estimates,” “expects,” “intends,” “may,” “plans,” “potential,”
“predicts,” “projects,” “should,” “will,” “would” or similar expressions
or the negative of such items that convey uncertainty of future events or outcomes to identify forward-looking statements.
Forward-looking statements
are made based on management’s beliefs, estimates and opinions on the date the statements are made and we undertake no obligation
to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as may
be required by applicable law. Although we believe that the expectations reflected in the forward-looking statements are reasonable,
we cannot guarantee future results, levels of activity, performance or achievements.
ABOUT ZYNEX, INC.
Unless
the context otherwise requires, references to “we,” “our,” “us,” “Zynex” or the
“Company” in this prospectus mean Zynex, Inc., a Nevada corporation, on a consolidated basis with its wholly-owned
subsidiaries, as applicable.
Corporate Background
Thomas Sandgaard founded two medical device
companies, Dan Med Inc. (“DMI”) in October 1996 and Stroke Recovery Systems Inc. (“SRSI”) in February 1998,
both Colorado corporations. DMI was merged into SRSI in October 2003 and renamed Zynex Medical Inc. On December 3, 2003, Fox River
Holdings Inc., a publicly traded company incorporated in Nevada, changed its name to Zynex Medical Holdings Inc. and subsequently
completed the acquisition of Zynex Medical Inc. on February 11, 2004. Fox River Holdings Inc. was originally founded on December
26, 1991 under the name Life Medical Technologies and between 1995 and 2003, changed its corporate name and business several times,
as is further detailed in the Company's December 31, 2004 10-KSB filed on April 15, 2005.On June 30, 2008, Zynex Medical Holdings,
Inc. changed its name to Zynex, Inc.
The Company is
the parent company of, and conducts business within six subsidiaries: Zynex Medical, Inc. (“ZMI”), a Colorado corporation,
Zynex Neurodiagnostics, Inc. (“ZND”), a Colorado corporation, Zynex Monitoring Solutions, Inc. (“ZMS”),
a Colorado corporation, Zynex Billing and Consulting, LLC (“ZBC”), a Colorado limited liability company, Zynex Europe
(Zynex Europe ApS) (“ZEU”), a Danish corporation, and Pharmazy, Inc. (“Pharmazy”), which was incorporated
under the laws of Colorado in June 2015 as a wholly-owned subsidiary of ZMI.
Our principal executive
offices are located at 9555 Maroon Circle, Englewood, CO 80112 and our telephone number is (303) 703-4906. Our web site address
is
www.zynex.com
. The information on our website is not a part of, and should not be construed as being incorporated by
reference into, this prospectus.
Overview
We
operate in one primary business segment, Electrotherapy and Pain Management Products. The Company’s primary subsidiary is
ZMI through which the Company conducts most of its operations. One other subsidiary, ZEU, generated minimal revenues during the
years ended December 31, 2018 and 2017 from international sales and marketing. ZMS has developed a blood volume monitoring device
which is in the process of approval by the Food and Drug Administration (“FDA”) in the United States of America and
European Union (“EU”) Certificate European (“CE”) Marking. CE Marking is a certification that a product
meets the standards established by the 28 nations of the EU and qualifies for sale in the EU and 4-nation European Free Trade Association.
As a result, ZMS has achieved no revenues to date. Our inactive subsidiaries include ZND, ZBC, and Pharmazy. The Company’s
compounding pharmacy operated as a division of ZMI dba as Pharmazy through January 2016.
Zynex Medical, Inc. (ZMI):
ZMI
designs, manufactures and markets medical devices designed to treat chronic and acute pain, as well as activate and exercise muscles
for rehabilitative purposes with electrical stimulation. ZMI devices are intended for pain management to reduce reliance on medications
and are designed to provide rehabilitation and increased mobility through the utilization of non-invasive muscle stimulation, electromyography
technology, interferential current (“IFC”), neuromuscular electrical stimulation (“NMES”) and transcutaneous
electrical nerve stimulation (“TENS”). All our medical devices are intended to be patient friendly and designed for
home use. The ZMI devices are small, portable, battery operated and include an electrical pulse generator which is connected to
the body via electrodes. The products are cost effective when compared to traditional physical therapy, and often result in better
mobility, less pain and increased potential for a patient to return to work earlier than with traditional therapies alone. All
of our medical devices are marketed in the U.S. and follow FDA regulations and approval. Our products require a physician’s
prescription before they can be dispensed in the U.S. We consider the physician’s prescription as an “order”,
and it is on this basis that we provide the product to the patient and either bill the patient directly or the patient’s
private or government insurer for payment. ZMI’s primary product is the NexWave® device. The NexWave is marketed
to physicians and therapists by our field sales representatives. The NexWave requires consumable supplies, such as
electrodes and batteries, which are shipped to patients on a recurring monthly basis, as needed.
ZMI also designs, manufactures and markets
the NeuroMove product. The NeuroMove contains electromyography and electric stimulation technology that is primarily used for stroke,
spinal cord and traumatic brain injury rehabilitation (“SCI”), by reaching parts of the brain to re-connect with muscles,
also known as neuroplasticity. The NeuroMove product is primarily marketed to medical clinics. Zynex did not have material
sales of this product in 2017 or 2018 or for the three months ended March 31, 2019.
Zynex Monitoring Solutions (ZMS):
ZMS was formed in 2011 to develop and market
medical devices for non-invasive cardiac monitoring. The blood volume monitor is a non-invasive medical device for monitoring central
blood volume that would be used in operating and recovery rooms to detect blood loss during surgery and internal bleeding
during recovery. This device has been subjected to multiple clinical studies, which are being utilized for collecting data to further
validate the algorithm used to determine changes in central blood volume, and there are plans to conduct future, additional clinical
studies. We have submitted a 510(k) application to the FDA and are responding to their questions. There is no guarantee when or
if the product will be cleared for marketing by the FDA. Concurrent to our FDA application, we are pursuing EU CE Marking.
The blood volume monitor has been tested
in several International Review Board approved studies and was used in several blood donation settings where hundreds of subjects
have donated half a liter of blood with strong correlation to the index on the device. We have built a number of commercial devices
in pilot-production and continue to refine the algorithms for the Blood Volume Index. In the fourth quarter of 2018 a U.S. utility
patent was obtained for this unique application, and we believe this product could serve a currently unmet need in the market
for safer surgeries and safer monitoring of patients during recovery. ZMS did not produce any revenue for the years ending December,
31, 2018 and 2017 or for the three months ended March 31, 2019.
Zynex International (Zynex Europe) (ZEU):
ZEU was formed in 2012 to further progress
our international expansion. ZEU is currently conducting business and focused on sales and marketing our products within the international
marketplace, upon receipt of necessary regulatory approvals. ZEU did not produce significant revenue for the years ended December
31, 2018 and 2017 or for the three months ended March 31, 2019.
Products
We currently market and sell Zynex-manufactured
products as well as distribute complimentary products and private labeled supplies for Zynex products, as indicated below:
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Product Name
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Description
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Zynex Medical Products
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NexWave
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Dual Channel, multi-modality IFC, TENS, NMES Device
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NeuroMove
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Electromyography (EMG) triggered Electrical Stimulation Device
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InWave
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Electrical stimulation for treatment of female urinary incontinence
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TENSWave
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Dual Channel TENS Device
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Private Labeled Supplies
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Electrodes
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Supplies, re-usable for delivery of electrical current to the body
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Batteries
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Supplies, for use in electrotherapy products
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Distributed Complementary Products
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Comfortrac
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Cervical traction
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JetStream
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Hot/Cold therapy
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LSO Back Braces
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Lumbar support
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Zynex Monitoring Solutions Products
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Non-Invasive Blood Volume Monitor
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Blood Volume Monitor
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Product Uses
Pain Management and Control
Standard electrotherapy is a clinically
proven and medically accepted alternative to manage acute and chronic pain. Electrical stimulation has been shown to reduce
most types of local pain, such as tennis elbow, neck or lower back pain, arthritis, and others. The devices used to accomplish
this are commonly described as the TENS family of devices. Electrotherapy is not known to have any negative side effects,
a significant advantage over most pain relief medications. The benefits of electrotherapy can include: pain relief, increased blood
flow, reduced edema, prevention of venous thrombosis, increased range-of-motion, prevention of muscle disuse atrophy, and reduced
urinary incontinence.
Electrotherapy introduces an electrical
current applied through surface electrodes. The electrical current “distorts” a pain signal on its way to the central
nervous system and the brain, thus reducing the pain. Additionally, by applying higher levels of electricity, muscles contract
and such contraction is believed to assist in the benefits mentioned above.
Numerous clinical studies have been published
over several decades showing the effectiveness of IFC and TENS for pain relief. Zynex’s primary TENS device, the NexWave
has received FDA 510(k) clearance. The NexWave is a digital IFC, TENS and NMES device that delivers pain-alleviating electrotherapy.
Stroke and Spinal Cord Injury Rehabilitation
Our proprietary NeuroMove product is a Class
II medical device that has been cleared by the FDA for stroke and SCI rehabilitation. Stroke and SCI usually affect a survivor’s
mobility, functionality, speech, and memory, and the NeuroMove is designed to help the survivor regain movement and functionality.
The NeuroMove product utilizes the relatively
new science of “neuroplasticity” the process by which healthy parts of the brain learn to compensate and assume functions
previously carried out by the damaged areas. To accomplish this task, the extraordinarily sensitive NeuroMove technology monitors
muscle activity and detects brain signals that indicate, even without any visible movement, the brain’s effort to move a
specific muscle or area of the body. Once the effort is detected, the NeuroMove induces actual movement through electrical stimulation,
thus providing effective feedback to initiate relearning in the healthy part of the brain.
We believe the NeuroMove product is unique
because its built-in microprocessor can recognize low-level attempts by muscles to contract and then “reward” such
detection with electrical stimulation. We do not believe there are similar products in the stroke rehabilitation market. Some generic
devices are being offered in international markets; however, we do not believe these products provide similar results with respect
to stroke rehabilitation. When conscientiously using the NeuroMove product for three to twelve months, studies show that the majority
of NeuroMove patients can re-establish the connection between the brain and impaired muscle and thus regain movement and functionality.
When
movement and functionality are restored, the patient may experience increased mobility, increased productivity, an improved outlook,
and a reduced risk of accidents, and may be able to engage in activities they were precluded from before using the NeuroMove. Sales
of NeuroMove have not generated material revenue for years ended December 31, 2018 and 2017 or for the three months ended March
31, 2019.
About this Offering
This prospectus relates
to the resale of 16,661,571 shares of common stock by the selling stockholders.
RISK FACTORS
Investing in our securities
involves a high degree of risk. Before making an investment decision, you should consider carefully the risks, uncertainties and
other factors described in our most recent Annual Report on Form 10-K, as supplemented and updated by subsequent quarterly reports
on Form 10-Q and current reports on Form 8-K that we have filed or will file with the SEC, which are incorporated by reference
into this prospectus.
Our business, affairs,
prospects, assets, financial condition, results of operations and cash flows could be materially and adversely affected by these
risks. For more information about our SEC filings, please see “Where You Can Find More Information.”
USE OF PROCEEDS
The shares of common
stock to be offered and sold pursuant to this prospectus will be offered and sold by the selling stockholders or their transferees.
We will not receive any proceeds from the sale of the shares of common stock by the selling stockholders.
SELLING STOCKHOLDERS
This prospectus relates
to the offering by the selling stockholders of up to 16,661,571 shares of common stock.
The following table
sets forth, based on information provided to us by the selling stockholders or known to us, the name of the selling stockholders
and the number of shares of our common stock beneficially owned by the stockholder before this offering. The number of shares owned
are those beneficially owned, as determined under the rules of the SEC, and the information is not necessarily indicative of beneficial
ownership for any other purpose. Under these rules, beneficial ownership includes any shares of common stock as to which a person
has sole or shared voting power or investment power and any shares of common stock which the person has the right to acquire within
60 days through the exercise of any option, warrant or right, through conversion of any security or pursuant to the automatic termination
of a power of attorney or revocation of a trust, discretionary account or similar arrangement. The shares are being sold by our
Chief Executive Officer and Founder, individually and through an entity of which he is the sole member. None of the selling stockholders
is a broker-dealer or an affiliate of a broker-dealer.
We have assumed all
shares of common stock reflected on the table will be sold from time to time in the offering covered by this prospectus. Because
the selling stockholder may offer all or any portions of the shares of common stock listed in the table below, no estimate can
be given as to the amount of those shares of common stock covered by this prospectus that will be held by the selling stockholder
upon the termination of the offering.
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Beneficially ownership
prior to the Offering (1)
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Beneficially
ownership after the Offering (5)
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Selling
Stockholder
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Shares
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%
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Number of Shares
Offered
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Shares
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%
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Thomas Sandgaard
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17,055,392
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(2)
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52.00
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%
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2,129,571
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393,821
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(3)
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1.2
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%
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Sandgaard Holdings, LLC
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14,532,000
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(4)
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44.84
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%
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14,532,000
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0
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0
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%
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(1)
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Based upon 32,407,064 shares issued and outstanding as of June 25, 2019.
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(2)
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Includes 14,532,000 shares of common stock held by Sandgaard Holdings LLC, over which Mr. Sandgaard
holds voting and dispositive power and options to purchase 393,821 shares of common stock held by the Selling Stockholder which
vests within 60 days.
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(3)
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Represents options to purchase 393,821 shares of common stock which vests within 60 days.
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(4)
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Mr. Thomas Sandgaard is the sole member of the selling stockholder, and, in such capacity, holds
voting and dispositive power over the shares of common stock held by the selling stockholder.
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(5)
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Assumes the sale of all shares of common stock offered hereunder.
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PLAN OF DISTRIBUTION
We are registering
the shares of common stock which have been issued to the selling stockholders, to permit the resale of these shares of common stock
by the holders thereof from time to time after the date of this prospectus. We will not receive any of the proceeds from the sale
by the selling stockholders of the shares of common stock. We will bear all fees and expenses incident to our obligation to register
the shares of common stock.
Each Selling Stockholder
(the “Selling Stockholders”) of the securities and any of their pledgees, assignees and successors-in-interest may,
from time to time, sell any or all of their shares of common stock covered hereby on the principal trading market or any other
stock exchange, market or trading facility on which the securities are traded or in private transactions. These sales may be at
fixed or negotiated prices. A Selling Stockholder may use any one or more of the following methods when selling shares:
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ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;
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·
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block trades in which the
broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to
facilitate the transaction;
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·
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purchases by a broker-dealer as principal and resale by the broker-dealer for its account;
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an exchange distribution in accordance with the rules of the applicable exchange;
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privately negotiated transactions;
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settlement of short sales entered
into after the effective date of the registration statement of which this prospectus is a part;
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·
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in transactions through
broker-dealers that agree with the Selling Stockholders to sell a specified number of such shares at a stipulated price per
share;
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·
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through the writing or settlement
of options or other hedging transactions, whether through an options exchange or otherwise;
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·
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a combination of any such methods of sale; or
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·
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any other method permitted pursuant to applicable law.
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The Selling Stockholders
may also sell securities under Rule 144 under the Securities Act of 1933, as amended (the “Securities Act”), if available,
rather than under this prospectus.
Broker-dealers engaged
by the Selling Stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions
or discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser)
in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an agency transaction
not in excess of a customary brokerage commission in compliance with FINRA Rule 2440; and in the case of a principal transaction
a markup or markdown in compliance with FINRA IM-2440.
In connection with
the sale of the shares or interests therein, the Selling Stockholders may enter into hedging transactions with broker-dealers or
other financial institutions, which may in turn engage in short sales of the securities in the course of hedging the positions
they assume. The Selling Shareholders may also, to the extent permitted under Rule 105 of Regulation M, sell shares of their common
stock short and deliver these securities to close out their short positions, or loan or pledge shares of their common stock to
broker-dealers that in turn may sell these securities. The Selling Stockholders may also enter into option or other transactions
with broker-dealers or other financial institutions or create one or more derivative securities which require the delivery to such
broker-dealer or other financial institution of securities offered by this prospectus, which securities such broker-dealer or other
financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).
The Selling Stockholders
and any broker-dealers or agents that are involved in selling the shares may be deemed to be “underwriters” within
the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers
or agents and any profit on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts
under the Securities Act. In no event shall any broker-dealer receive fees, commissions and markups, other than in connection with
the closing of the shares purchase agreements by and between various Selling Stockholders and the Company, which, in the aggregate,
would exceed eight percent (8%).
The Company is required
to pay certain fees and expenses incurred by the Company incident to the registration of the securities however, a Selling Stockholder
will pay all underwriting discounts and commissions, if any. The Company has agreed to indemnify the Selling Stockholders against
certain losses, claims, damages and liabilities, including liabilities under the Securities Act.
Because Selling Stockholders
may be deemed to be “underwriters” within the meaning of the Securities Act, they will be subject to the prospectus
delivery requirements of the Securities Act including Rule 172 thereunder. In addition, any securities covered by this prospectus
which qualify for sale pursuant to Rule 144 under the Securities Act may be sold under Rule 144 rather than under this prospectus.
The shares
will
be sold only through registered or licensed brokers or dealers if required under applicable state securities laws. In addition,
in certain states, the resale of the shares covered hereby may not be sold unless they have been registered or qualified for sale
in the applicable state or an exemption from the registration or qualification requirement is available and is complied with.
Under applicable rules
and regulations under the Exchange Act, any person engaged in the distribution of the shares may not simultaneously engage in market
making activities with respect to the common stock for the applicable restricted period, as defined in Regulation M, prior to the
commencement of the distribution. In addition, the Selling Stockholders will be subject to applicable provisions of the Exchange
Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of securities
of the common stock by the Selling Stockholders or any other person. The Company will make copies of this prospectus available
to the Selling Stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior
to the time of the sale (including by compliance with Rule 172 under the Securities Act).
LEGAL MATTERS
The validity of the
issuance of securities offered hereby will be passed upon for us by Sichenzia Ross Ference LLP, New York, New York.
EXPERTS
The consolidated balance
sheet of Zynex, Inc. as of December 31, 2018 and the related consolidated statements of operations, stockholders’ equity,
and cash flows for the year then ended, have been audited by Plante & Moran PLLC, independent registered public accounting
firm, as stated in their report which is incorporated herein by reference. The consolidated balance sheet of Zynex, Inc. as of
December 31, 2017 and the related consolidated statements of operations, stockholders’ equity, and cash flows for the year
then ended, have been audited by EKS&H LLLP, independent registered public accounting firm, as stated in their report which
is incorporated herein by reference. Such financial statements have been incorporated herein by reference in reliance on the report
of such firm given upon their authority as experts in accounting and auditing.
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly
and special reports, along with other information with the SEC. Our SEC filings are available to the public over the Internet at
the SEC’s website at http://www.sec.gov. You may also read and copy any document we file at the SEC’s Public Reference
Room at 100 F Street, NE, Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the Public Reference
Room.
This prospectus is
part of a registration statement on Form S-3 that we filed with the SEC to register the securities offered hereby under the Securities
Act of 1933, as amended. This prospectus does not contain all of the information included in the registration statement, including
certain exhibits and schedules. You may obtain the registration statement and exhibits to the registration statement from the SEC
at the address listed above or from the SEC’s internet site.
INCORPORATION OF CERTAIN DOCUMENTS BY
REFERENCE
This prospectus is
part of a registration statement filed with the SEC. The SEC allows us to “incorporate by reference” into this prospectus
the information that we file with them, which means that we can disclose important information to you by referring you to those
documents. The information incorporated by reference is considered to be part of this prospectus, and information that we file
later with the SEC will automatically update and supersede this information. The following documents are incorporated by reference
and made a part of this prospectus:
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·
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our Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on
February 26, 2019
;
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·
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our Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 filed with the SEC on
April 30, 2019
;
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·
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the description of our common stock contained in the our Registration Statement on Form 8-A filed
with the SEC on
February 7, 2019
(File No. 001-38804), including any amendment or report filed for the purpose of updating such
description; and
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·
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all reports and other documents subsequently filed by us pursuant to Sections 13(a), 13(c), 14
and 15(d) of the Exchange Act after the date of this prospectus and prior to the termination of this offering.
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We also incorporate by reference
all documents (other than Current Reports furnished under Item 2.02 or Item 7.01 of Form 8-K and exhibits filed on such form
that are related to such items) that are subsequently filed by us with the U.S. Securities and Exchange Commission pursuant to
Sections 13(a), 13(c), 14, or 15(d) of the Exchange Act prior to the termination of the offering of the securities made by
this prospectus (including documents filed after the date of the initial Registration Statement of which this prospectus is a part
and prior to the effectiveness of the Registration Statement). These documents include periodic reports, such as Annual Reports
on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, as well as proxy statements.
Any statement contained in this prospectus
or in a document incorporated or deemed to be incorporated by reference into this prospectus will be deemed to be modified or superseded
to the extent that a statement contained in this prospectus or any subsequently filed document that is deemed to be incorporated
by reference into this prospectus modifies or supersedes the statement.
The information about
us contained in this prospectus should be read together with the information in the documents incorporated by reference. You may
request a copy of any or all of these filings, at no cost, by writing or telephoning us at 9555 Maroon Cir., Englewood, CO 80112,
phone number 303-703-4906.
16,661,571 shares of
Common Stock
ZYNEX, INC.
Prospectus
____________, 2019
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 14. Other Expenses of Issuance and Distribution.
The following table sets forth the costs
and expenses payable by the Registrant in connection with this offering, other than underwriting commissions and discounts, all
of which are estimated except for the SEC registration fee.
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Item
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Amount
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SEC registration fee
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$
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21,365
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Legal fees and expenses
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*
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Accounting fees and expenses
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*
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Miscellaneous expenses
|
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*
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*
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Total
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$
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*
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* Estimated expenses not presently known.
Item 15. Indemnification of Directors and Officers.
Nevada Revised Statutes
Sections 78.7502 and 78.751 provide us with the power to indemnify any of our directors and officers. The director or officer must
have conducted himself/herself in good faith and reasonably believe that his/her conduct was in, or not opposed to, our best interests.
In a criminal action, the director, officer, employee or agent must not have had reasonable cause to believe his/her conduct was
unlawful.
Under Nevada Revised
Statutes Section 78.751, advances for expenses may be made by agreement if the director or officer affirms in writing that he/she
believes he/she has met the standards and will personally repay the expenses if it is determined such officer or director did not
meet the standards.
Our Articles of
Incorporation and Bylaws provide for indemnification of our directors and certain officers for liabilities and expenses that they
may incur in such capacities. In general, our directors and certain officers are indemnified with respect to actions taken in good
faith and in a manner such person believed to be in our best interests, and with respect to any criminal action or proceedings,
actions that such person has no reasonable cause to believe were unlawful. Furthermore, the personal liability of our directors
is limited as provided in our Articles of Incorporation.
Insofar as indemnification
for liabilities arising under the Securities Act of 1933, as amended, may be permitted to directors, officers and controlling persons
of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933, as
amended, and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the
payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful
defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed
in the Securities Act of 1933, as amended and will be governed by the final adjudication of such issue.
Item 16. Exhibits.
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*
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To the extent applicable, to be filed by amendment or as an exhibit to a document filed under the Securities and Exchange Act of 1934, as amended, and incorporated by reference herein.
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Item 17. Undertakings
(a) The undersigned registrant hereby undertakes:
(1) To file, during
any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i) To include
any prospectus required by section 10(a)(3) of the Securities Act of 1933;
(ii) To reflect
in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the
registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar
value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated
maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the
aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth
in the “Calculation of Registration Fee” table in the effective registration statement.
(iii) To
include any material information with respect to the plan of distribution not previously disclosed in the registration statement
or any material change to such information in the registration statement;
provided, however
, That:
Paragraphs (a)(1)(i), (a)(1)(ii)
and (a)(1)(iii) of this section do not apply if the registration statement is on Form S-3 or Form F-3 and the information required
to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission
by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference
in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration
statement.
(2) That, for the purpose
of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.
(3) To remove from
registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination
of the offering.
(4) That, for the purpose
of determining liability under the Securities Act of 1933 to any purchaser:
(A) Each
prospectus filed by the registrant pursuant to Rule 424(b)(3)shall be deemed to be part of the registration statement as of the
date the filed prospectus was deemed part of and included in the registration statement; and
(B) Each
prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on
Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information
required by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement
as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale
of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any
person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement
relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration
statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by
reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with
a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement
or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date;
(b) The registrant hereby undertakes that
for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report
pursuant to section 13(a) or section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee
benefit plan’s annual report pursuant to section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference
in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and
the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(i) The registrant
hereby undertakes that:
(1) For purposes
of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this
registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule
424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it
was declared effective.
(2) For the
purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus
shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
Insofar as indemnification for liabilities
arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant
to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim
for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
SIGNATURES
Pursuant to the requirements
of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements
for filing on Form S-3 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Englewood, State of Colorado, on June 26, 2019.
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ZYNEX, INC.
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By:
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/s/ Thomas Sandgaard
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Thomas Sandgaard
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President and Chief Executive Officer (Principal Executive Officer)
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By:
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/s/ Daniel Moorhead
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Daniel Moorhead
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Chief Financial Officer (Principal Financial and Accounting Officer)
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Each person whose
signature appears below constitutes and appoints Thomas Sandgaard and Daniel Moorhead, and each of them severally, as his true
and lawful attorney in fact and agent, with full powers of substitution and resubstitution, for him and in his name, place and
stead, in any and all capacities, to sign any or all amendments (including post effective amendments) to the Registration Statement,
and to sign any registration statement for the same offering covered by this Registration Statement that is to be effective upon
filing pursuant to Rule 462(b) under the Securities Act of 1933, as amended, and all post effective amendments thereto, and to
file the same, with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorney-in-fact and agent, each acting alone, full power and authority to do and perform each and every act
and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might
or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent, each acting alone, or his or her
substitute or substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements
of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities held on the
dates indicated.
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/s/ Thomas Sandgaard
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Chief Executive Officer, President and Chairman of the Board of Directors
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Thomas Sandgaard
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(Principal Executive Officer)
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June 26, 2019
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/s/ Daniel Moorhead
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Chief Financial Officer
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Daniel Moorhead
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(Principal Financial and Accounting Officer)
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June 26, 2019
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/s/ Barry D. Michaels
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Barry D. Michaels
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Director
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June 26, 2019
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/s/ Michael Cress
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Michael Cress
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Director
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June 26, 2019
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/s/ Joshua R. Disbrow
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Joshua R. Disbrow
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Director
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June 26, 2019
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