UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8‑K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): July 14, 2014
Zynex, Inc.
(Exact name of Registrant as specified in its charter)
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Nevada |
33-26787-D |
90-0275169 |
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(State or other |
(Commission |
(I.R.S. Employer |
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jurisdiction |
File Number) |
Identification No.) |
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of incorporation) |
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9990 Park Meadows Drive Lone Tree, Colorado |
80124 |
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(Address of principal executive offices) |
(Zip Code) |
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Registrant’s telephone number, including area code: (303) 703-4906
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.04. Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.
On July 14, 2014, Zynex, Inc. (the “Company”) received notice from Triumph Community Bank dba Triumph Healthcare Finance (the “Lender”) of an event of default under the Company’s Loan and Security Agreement with the Lender dated December 19, 2011, as amended ( the “Credit Agreement”). The notice relates to the Company’s default under the minimum debt service coverage ratio for the quarter ended March 31, 2014 and certain other alleged defaults. The Lender notified the Company that it would no longer make additional loans under the Credit Agreement and was exercising its default remedies under the Credit Agreement, including, among others, accelerating the repayment of all outstanding obligations under the Credit Agreement (outstanding principal and accrued interest) and collecting the Company’s bank deposits to apply towards the outstanding obligations. As of July 17, 2014, the Company has approximately $4,540,665 of outstanding borrowings under the Credit Agreement including approximately $43,820 of interest and fees.
The Company and the Lender are currently negotiating the terms of an accelerated repayment of the amounts outstanding under the Credit Agreement. However, no assurance can be given that the parties will agree on a repayment plan acceptable to the Company. If the Lender insists upon immediate repayment, the Company will be insolvent and may be forced to declare bankruptcy.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Zynex, Inc.
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Date: July 18, 2014 |
By: /s/ Thomas Sandgaard
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Thomas Sandgaard |
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Chief Executive Officer |