Full Press Release Details
Therapeutics Reports Full Year 2024 Financial Results and Provides Operational Update
over year product revenue increased 26%
expenses declined 21% and year over year operating loss decreased 35%
to Host Conference Call today at 5:00 pm ET
Colo., March 31, 2025
Vivos Therapeutics, Inc. ("Vivos" or the "Company'') (NASDAQ: VVOS), a leading medical device
and technology company specializing in the development and commercialization of highly effective proprietary treatments for sleep related
breathing disorders (including all severities of obstructive sleep apnea (OSA in adults) and moderate to severe OSA in children ages
6 - 17), today reported financial results and operating highlights for the full year ended December 31, 2024.
Year 2024 Financial and Operating Summary
| Revenue increased approximately $1.2 million, or 9%, to $15.0 million for the full year ended December 31, 2024, compared to $13.8 million for the year ended December 31, 2023. The increase in revenue was mainly due to higher product revenue offset by decreased revenue from fewer Vivos Integrated Practice (VIP) enrollments, which decrease occurred as part of Vivos' change in marketing and sales strategy during the year to focus on provider-based alliances; | ||
| Gross profit was $9.0 million for the full year ended December 31, 2024 compared with $8.3 million for the full year ended December 31, 2023, attributable to the increase in revenue; | ||
| Gross margin remained at 60% for both years ended December 31, 2024 and 2023; | ||
| Operating expenses for the full year ended December 31, 2024 decreased by $5.4 million or 21% to $20.2 million, compared to the full year 2023, reflecting Vivos' continued cost-cutting initiatives including personnel and related expenses; | ||
| Vivos' revenue increase and cost-cutting initiatives led to a significant year-over-year reduction in operating loss of $6.1 million, or a 35% reduction year over year, to $11.2 million from $17.3 million in 2023; | ||
| Cash and cash equivalents were $6.3 million at December 31, 2024 as Vivos raised approximately $17.9 million through four separate equity transactions during 2024; |
| As of December 31, 2024, patients treated with Vivos' patented oral appliances totaled approximately 58,000 worldwide, compared to over 42,000 as of the end of 2023. Vivos has also trained more than 2,000 dentists in the use of The Vivos Method and Vivos' related value-added services; | ||
| In September 2024, Vivos was granted 510(k) clearance from the U.S. Food and Drug Administration ("FDA") for the DNA appliance to treat moderate to severe OSA in children ages 6 to 17 who also have malocclusions that may require orthodontics. The DNA appliance remains the only oral appliance of any kind that has been FDA cleared to treat children with OSA. The 2024 clearance complements Vivos' 2023 FDA clearance to treat moderate and severe OSA in adults, 18 years of age and older. |
Huntsman, Vivos' Chairman and Chief Executive Officer, stated, "In 2024, we increased revenue while continuing to lower our
cost structure. We continued to receive FDA approvals on our products and position ourselves for long-term revenue growth. In 2024, we
reduced operating expenses by 21% and reduced our operating loss by 35%. We believe we are well positioned to continue improvements in
our results throughout 2025."
this positive financial performance helped lay the foundation for the critical pivot we made during 2024 to a new marketing and distribution
strategy for our cutting-edge OSA appliances away from our legacy VIP model and towards a model focused on contractual, profit-sharing
alliances with sleep healthcare providers," Mr. Huntsman continued. "This pivot was launched by our execution in June of
a strategic marketing and distribution alliance with Rebis Health Holdings, LLC ("Rebis"), an operator of multiple sleep
testing and treatment centers in Colorado. We expect this initial alliance will be the first of a series of similar alliances and potential
acquisitions of sleep healthcare providers across the country, which we will use to drive sales of our novel appliances and services.
Under the new alliance model, we are collaborating with Rebis to offer OSA patients a full spectrum of evidence-based treatments such
as our own advanced, proprietary and FDA-cleared CARE oral medical devices, oral appliances and additional adjunctive therapies and other
methods, including CPAP treatment. The program commenced in August of 2024 in the Longmont office of Rebis and has since expanded to
two additional locations. We believe the advantages of this new strategic marketing and distribution model are compelling.
| First, it provides Vivos-trained providers direct access to far more OSA patients who are likely candidates for OSA treatment with our method. As we roll out this new model going forward, potentially thousands of patients each month could be introduced to Vivos treatment options. | ||
| Second, we expect to close (meaning convincing the patient to start) more OSA treatment cases using Vivos-trained personnel. In our pilot testing, which we conducted at over 45 separate locations around the United States during 2023 and 2024, our Vivos-trained personnel were able to consistently close over 70% of patients into some form of Vivos treatment. These figures were relatively consistent across diverse demographic and economic patient profiles and geographies. | ||
| Third, top line revenue and profit per case are expected to rise. We project that each patient who signs up for Vivos treatment represents a potential increase to Vivos top line revenue with contribution margins of approximately 50%. This significantly alters the economics to Vivos, when compared to our prior model, increasing top-line revenues per case start by approximately 4-6 times. |
summary, under our new model, we expect to present Vivos treatments to more patients, refer a higher percentage of cases into Vivos treatment,
and potentially generate more revenue and profit per case. Moreover, our first of its kind FDA clearance to treat mild to severe OSA
in adults and moderate to severe OSA in children ages 6 - 17 has provided the credibility for sleep centers and medical doctors to recommend
Vivos oral medical devices to their patients."
we took actions in 2024 to strengthen our capital structure and improve our liquidity. During the year, we raised approximately $17.9
million through four separate equity transactions, including a key $7.5 million investment from private equity firm New Seneca Partners,
which we announced alongside our execution of the Rebis agreement. Given all this, the key relationships we've established, our
success in managing costs and reducing our cash burn, our increased liquidity and enhanced capital structure, we are extremely excited
about our prospects for 2025. We believe we have all the necessary tools in place to implement our growth plans, drive increased revenues
and achieve cash flow positive operations and profitability in the foreseeable future, and we remain committed to doing so," Mr.
encourages investors and other interested parties to join its conference call today at 5:00 p.m. Eastern time (details below), where
management will discuss further details on topics including Vivos' strategic collaborations and the anticipated effect on Vivos'
near-term revenue growth and cash burn.
addition, further information on Vivos' financial results is included on the attached condensed consolidated balance sheets and
statements of operations, and additional explanations of Vivos' financial performance are provided in the Vivos' Annual Report
on Form 10-K for the twelve months ended December 31, 2024, which will be filed with the Securities and Exchange Commission ("SEC").
The full 10-K report will be available on the SEC Filings section of the Investor Relations section of Vivos' website at https://vivos.com/investor-relations.
access Vivos' investor conference call, please dial (800) 717-1738, or for international callers, (646) 307-1865. A replay will
be available shortly after the call and can be accessed by dialing (844) 512-2921, or for international callers, (412) 317-6671. The
passcode for the replay is 1103883. The replay will be available until April 14, 2025
live webcast of the conference call can be accessed on Vivos' website at https://vivos.com/investor-relations. An online
archive of the webcast will be available on the Company's website for 30 days following the call.
Vivos Therapeutics, Inc.
Therapeutics, Inc. (NASDAQ: VVOS) is a medical technology company focused on developing and commercializing innovative diagnostic and
treatment methods for patients suffering from breathing and sleep issues arising from certain dentofacial abnormalities such as obstructive
sleep apnea (OSA) and snoring in adults and moderate to severe OSA in children ages 6 - 17. The Vivos Method represents the first
clinically effective nonsurgical, noninvasive, nonpharmaceutical and cost-effective solution for treating mild to severe OSA in adults
and moderate to severe OSA in children ages 6-17. It has proven effective in approximately 58,000 patients treated worldwide by more
than 2,000 trained dentists.
Vivos Method includes treatment regimens that employ proprietary CARE appliance therapy and other modalities that alter the size, shape
and position of the jaw and soft tissues that comprise a patient's upper airway and/or palate. The Vivos Method opens airway space
and may significantly reduce symptoms and conditions associated with mild-to-severe OSA in adults and moderate-to-severe OSA in children
ages 6 to 17, such as lowering Apnea Hypopnea Index scores. Vivos also markets and distributes SleepImage diagnostic technology under
its VivoScore program for home sleep testing in adults and children. The Vivos Integrated Practice (VIP) program offers dentists training
and other value-added services in connection with using The Vivos Method. Vivos also employs a marketing and distribution model where
it collaborates with sleep-treatment providers to offer patients OSA treatment options and help promote sales of its appliances.
more information, visit www.vivos.com.
Note Regarding Forward-Looking Statements
press release, the conference call referred to herein, and statements of the Company's management made in connection therewith
contain "forward-looking statements" (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended) concerning future events. Words such as "may", "should",
"expects", "projects," "intends", "plans", "believes", "anticipates",
"hopes", "estimates", "goal" and variations of such words and similar expressions are intended to
identify forward-looking statements. These statements involve significant known and unknown risks and are based upon several assumptions
and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond Vivos' control.
Actual results (including the actual future impact of the initiatives and corporate achievements described herein on Vivos' future
revenues and results of operations and the anticipated benefits of the Company's new marketing and distribution model described
herein) may differ materially and adversely from those expressed or implied by such forward-looking statements. Factors that could cause
actual results to differ materially include, but are not limited to: (i) the risk that Vivos may be unable to implement revenue, sales
and marketing strategies and other strategies that increase revenues, (ii) the risk that some patients may not achieve the desired results
from using Vivos products, (iii) risks associated with regulatory scrutiny of and adverse publicity in the sleep apnea treatment sector;
(iv) the risk that Vivos may be unable to secure additional financings on reasonable terms when needed, if at all, or maintain its Nasdaq
listing (v) market and other conditions, and (vi) other risk factors described in Vivos' filings with the Securities and Exchange
Commission ("SEC"). Vivos' filings can be obtained free of charge on the SEC's website at www.sec.gov. Except
to the extent required by law, Vivos expressly disclaims any obligations or undertaking to release publicly any updates or revisions
to any forward-looking statements contained herein to reflect any change in Vivos' expectations with respect thereto or any change
in events, conditions, or circumstances on which any statement is based.
Investor Relations and Media Contact:
Financial Officer and Investor Relations Contact
Thousands, Except Per Share Amounts)
| 2024 | 2023 | |||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 6,260 | $ | 1,643 | ||||
| Accounts receivable, net of allowance of $390 and $268, respectively | 430 | 202 | ||||||
| Prepaid expenses and other current assets | 783 | 616 | ||||||
| Total current assets | 7,473 | 2,461 | ||||||
| Long-term assets | ||||||||
| Goodwill | 2,843 | 2,843 | ||||||
| Property and equipment, net | 3,350 | 3,314 | ||||||
| Operating lease right-of-use asset | 1,032 | 1,385 | ||||||
| Intangible assets, net | 370 | 420 | ||||||
| Deposits and other | 216 | 307 | ||||||
| Total assets | $ | 15,284 | $ | 10,730 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 1,098 | $ | 2,145 | ||||
| Accrued expenses | 2,234 | 2,334 | ||||||
| Current portion of contract liabilities | 896 | 2,138 | ||||||
| Current portion of operating lease liability | 477 | 474 | ||||||
| Other current liabilities | 273 | 198 | ||||||
| Total current liabilities | 4,978 | 7,289 | ||||||
| Long-term liabilities | ||||||||
| Contract liabilities, net of current portion | 97 | 289 | ||||||
| Employee retention credit liability | 1,220 | 1,220 | ||||||
| Operating lease liability, net of current portion | 1,035 | 1,521 | ||||||
| Total liabilities | 7,330 | 10,319 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity | ||||||||
| Preferred Stock, $0.0001 par value per share. Authorized 50,000,000 shares; no shares issued and outstanding | - | - | ||||||
| Common Stock, $0.0001 par value per share. Authorized 200,000,000 shares; issued and outstanding 5,889,520 shares as of December 31, 2024 and 1,833,877 shares as December 31, 2023 | - | - | ||||||
| Additional paid-in capital | 112,141 | 93,462 | ||||||
| Accumulated deficit | (104,187 | ) | (93,051 | ) | ||||
| Total stockholders' equity | 7,954 | 411 | ||||||
| Total liabilities and stockholders' equity | $ | 15,284 | $ | 10,730 |
Statements of Operations
Ended December 31, 2024 and 2023
Thousands, Except Per Share Amounts)
| 2024 | 2023 | |||||||
| Revenue | ||||||||
| Product revenue | $ | 7,874 | $ | 6,270 | ||||
| Service revenue | 7,157 | 7,531 | ||||||
| Total revenue | 15,031 | 13,801 | ||||||
| Cost of sales (exclusive of depreciation and amortization shown separately below) | 6,012 | 5,530 | ||||||
| Gross profit | 9,019 | 8,271 | ||||||
| Operating expenses | ||||||||
| General and administrative | 17,878 | 22,479 | ||||||
| Sales and marketing | 1,731 | 2,467 | ||||||
| Depreciation and amortization | 581 | 621 | ||||||
| Total operating expenses | 20,190 | 25,567 | ||||||
| Operating loss | (11,171 | ) | (17,296 | ) | ||||
| Non-operating income (expense) | ||||||||
| Other expense | (110 | ) | (212 | ) | ||||
| Excess warrant fair value | - | (6,453 | ) | |||||
| Change in fair value of warrant liability, net of issuance costs of $645 | - | 10,231 | ||||||
| Other income | 145 | 147 | ||||||
| Loss before income taxes | (11,136 | ) | (13,583 | ) | ||||
| Net loss | $ | (11,136 | ) | $ | (13,583 | ) | ||
| Net loss per share (basic and diluted) | $ | (2.22 | ) | $ | (11.14 | ) | ||
| Weighted average number of shares of Common Stock outstanding (basic and diluted) | 5,019,886 | 1,219,381 |