Q4 2021 Vivos Therapeutics Inc Earnings Call

We're about to begin.

Please standby we're about to begin.

Good day everyone and welcome to the Vivo Spherapeutics fourth quarter and four year 2021 earnings conference call. At this time, participants are in a listen-only mode. A question and answer session will follow management.

Good day, everyone and welcome to the Veeco Therapeutics fourth quarter and full year 2021 earnings conference call. At this time participants are in a listen only mode. A question and answer session will follow management's remarks. This conference call is being recorded and a replay of today's call will be available on the Investor Relations section of Visa's website and will remain posted there for.

This conference call is being recorded and a replay of today's call will be available on the investor relations section of Ugo's website and will remain posted there for the next 30 days.

The next 30 days.

We'll now hand the call over to Julie Gannon, Vivo's Investor Relations Officer, for introductions and the reading of the Safe Harbor Statement. Please go ahead.

Well now hear Nikola what did you again, because investor Relations officer for introductions and the reading of the Safe Harbor statement. Please go ahead.

Thank you operator, Hello, everyone and welcome to the vivo Therapeutics fourth quarter and full year 2021 earnings conference call a copy of our earnings press release is available on the Investor Relations section of our website at Www Dot vivo dot com with us on today's call are first time for many people.

Julie Anning: Thank you operator. Hello everyone and welcome to the Vivo Therapeutics fourth quarter and full year 2021 earnings conference call. A copy of our earnings press release is available on the investor relations section of our website at www.vivos.com.

Julie Anning: With us on today's call are Kirk Huntsman, Vivo's Chairman and Chief Executive Officer, and Brad Ammon, Chief Financial Officer. Today we'll review the highlights and financial results for the fourth quarter and full year 2021, as well as more recent developments.

Chairman and Chief Executive Officer, and Brad and then Chief Financial Officer Today will review the highlights and financial results for the fourth quarter and full year 2021 as well as more recent development probably need more formal remarks, we will be prepared to answer. Your question I would also like to remind everyone.

Julie Anning: Following these more formal remarks, we will be prepared to answer your questions.

Julie Anning: I would also like to remind everyone that today's call will contain certain forward-looking statements from our management made within the meaning of Section 27a of the Securities Act of 1933 as amended and Section 21e of the Securities and Exchange Act of 1934 as amended concerning future events.

Today's call will contain certain forward looking statements from our management made within the meaning of section 27, a of the Securities Act of 1933 as amended and section 21 E of the Securities and Exchange Act of 1934 as amended concerning future events.

Julie Anning: Words such as aim, may, could, should, projects, expects, intends, plans, believes, anticipates, hopes, estimates, and variations of such words and similar expressions are intended to identify forward looking states.

Words, such as aim.

They could should project.

That intends plans believes anticipates hopes estimates and variations of such words and similar expressions are intended to identify forward looking statements.

Julie Anning: These statements involve known and unknown risks that are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the company's control.

These statements involve known and unknown risks that are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies many of which are beyond the company's control actual results, including the results of either both strategies operational plan future potential result.

Julie Anning: Actual results, including the results of vivo's growth strategies, operational plans, future potential results of operations or operating metrics, and other matters to be addressed by vivo's management in this conference call may differ materially from those expressed or implied by such forward-looking statements.

It's of operations, our operating metrics and other matters to be addressed by vivo management. In this conference call may differ materially 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 the risk factors described.

Julie Anning: Factors that could cause actual results to differ materially include, but are not limited to, the risk factors described and other disclosures contained in Vivo's filing with the Security and Exchange Commission, including our 2021 10K, which was filed today and is accessible on the Investor Relations section of the Vivo's website.

Other disclosures contained in vivo filing with the security and Exchange Commission, including our 2021 10-K, which was filed today and is accessible on the Investor Relations section of the V. Both website except.

Speaker Change: To the extent required by law, VEVOS assumes no obligation to update statements as circumstances change. Now at this time, it is my pleasure to introduce Kirk Huntsman, Chairman and CEO of VEVOS. Kirk, please go ahead.

To the extent required by law vivo assumes no obligation to update statements as circumstances change now at this time. It is my pleasure to introduce her huntsman chairman and CEO of vivo Kirk. Please go ahead.

Herk Huntsman: Thanks Julie and thank you everyone for joining us today on our fourth quarter and full year 2021 earnings conference call which follows our first full year as a public company.

Thanks, Julie and thank you everyone for joining us today on our fourth quarter and full year 2021 earnings conference call, which follows our first full year as a public company.

Herk Huntsman: I'm excited to review our results and provide you with an update on our progress.

I'm excited to review our results and provide you with an update on our progress.

Herk Huntsman: Afterwards, our Chief Financial Officer, Brad Ammann, will review the highlights of our fourth quarter and full year financial results. Following that, we'll be happy to take your questions.

Afterwards, our Chief Financial Officer, Brad Allen will review the highlights of our fourth quarter and full year financial results. Following that we'll be happy to take your questions.

Brad Ammon: Both the fourth quarter and full year 2021 marked periods of continuing market penetration and growth for vivo.

Both the fourth quarter and full year 2021, mark periods of continuing market penetration and growth for vivo.

Brad Ammon: In the fourth quarter, we generated strong year-over-year revenue growth of 33 percent. And for the full year, we grew revenue by 29 percent.

In the fourth quarter, we generated strong year over year revenue growth of 33%.

And for the full year, we grew revenue by 29%.

Brad Ammon: We were particularly pleased by this performance and sales growth, given that it came about despite significant headwinds throughout our core customer base, mostly driven by COVID-19 variant resurgences in the middle and latter part of the year.

We were particularly pleased by this performance and sales growth given that it came about despite significant headwinds throughout our core customer base, mostly driven by COVID-19, very resurgence is in the middle and latter part of the year.

Brad Ammon: In December 2021, the American Dental Association reported that just 60% of dental practices were open and operating with business as usual. Another industry source reported that 92% of dental practices were struggling to hire or replace hygienists and 77% recorded difficulty hiring front desk positions.

In December 2021, the American Dental Association reported that just 60% of dental practices were open and operating with business as usual another industry source reported at 92% of dental practices were struggling to hire or replace high genus and 77% recorded difficulty hiring front desk positions.

Brad Ammon: These operational challenges across the dental community have a direct impact on both enrollments of dentists in our VIP program and patient case starts. As replacement dental personnel must be trained and the VEVOS method reintegrated into practice routines.

These operational challenges across the dental community have a direct impact on both enrollments a dentist in our VIP program and patient case starts as replacement dental personnel must be trained and the vivo method reintegrated into practice routines.

Brad Ammon: Regardless of such headwinds, throughout 2021, we continued to successfully execute on our three key performance metrics of one new VIP dentist enrollment

Regardless of such headwinds throughout 2021, we continued to successfully execute on our three key performance metrics of one new VIP dentist enrollment to total home sleep test or Hst's performed.

Brad Ammon: two, total homesleep tests or HSTs performed, and three, new case start.

Three new case starts.

Brad Ammon: In addition, during 2021, we also saw significant advancements in our regulatory status as well as ongoing research and publication efforts that we believe greatly strengthen and enhance our competitive position in the market.

In addition during 2021, we also saw a significant advancements in our regulatory status as well as ongoing research and publication efforts that we believe greatly strengthen and enhance our competitive position in the market.

Brad Ammon: As for new VIP enrollments, during 2021 we continued our outreach efforts to independent dentists while launching our DSO program for large corporate dental groups and accelerating our penetration into the medical arena.

As for new VIP enrollments during 2021 we continued our outreach efforts to independent dentists, while launching our DSO program for large corporate dental groups and accelerating our penetration into the medical arena.

Brad Ammon: During the year 2021, we recognized $8.5 million of VIP enrollment revenue compared with $7.5 million in 2020, and enrolled 197 independent dentists as new VEVOs-integrated providers or VIPs compared to $248 during 2020.

During the year 2021 we recognized $8 $5 million of VIP enrollment revenue compared with $7 5 million in 2020.

And enrolled 197 independent Dennis as new vivo integrated providers or Vips compared to 248 during 2020.

Brad Ammon: The decrease in enrollments was primarily due to COVID-19 variant resurgence during the last half of the year. But we did recognize VIP subscription revenue from prior periods.

The decrease in enrollments was primarily due to COVID-19 variant resurgence is during the last half of the year, but.

But we did recognize VIP subscription revenue from prior periods.

Brad Ammon: Also, we saw an 82% increase in prospective new VIPs attending our informational and sales events in the fourth quarter versus the third quarter of 2021.

So we saw an 82% increase in prospective new VIP is attending our informational and sales events in the fourth quarter versus the third quarter of 2021.

Brad Ammon: Our fourth quarter numbers for new prospects was positively impacted by our third annual breathing wellness conference in October , attended by over 300 dentists, 147 of which were new prospects, and the remainder were existing VIPs.

Our fourth quarter numbers for new prospects was positively impacted by our third annual breathing wellness conference in October attended by over 300, Dennis 147 of which were new prospects and then the remainder were existing vips.

Brad Ammon: Attendance at such company-sponsored events tends to be a leading indicator for future VIP enrollments. As is always the case with our marketing programs, we now have to turn those VIP prospects into paying customers.

Attendance attendance at such company sponsored events tends to be a leading indicator for future VIP enrollments.

As is always the case with our marketing programs, we now have to turn those VIP prospects into paying customers.

Brad Ammon: Also in the fourth quarter, we officially launched our latest marketing and sales initiative into the rapidly growing U.S. and Canadian market for DSOs, or Dental Support Organizations.

Also in the fourth quarter, we officially launched our latest marketing and sales initiative into the rapidly growing U S and Canadian market for Dsos or dental support organizations as we've indicated on prior calls we believe dsos represent the single largest opportunity for veeva to more rapidly scale.

Brad Ammon: As we have indicated on prior calls, we believe DSOs represent the single largest opportunity for vivos to more rapidly scale and achieve broad market penetration for our products and services.

[noise] achieve broad market penetration for our products and services to.

Brad Ammon: Today I am pleased to report that our Vivo Sleep Management Program for DSOs has been extremely well received and demand has exceeded our forecast.

Today I am pleased to report that our vivo sleep management program for Dsos has been extremely well received and demand has exceeded our forecast.

Brad Ammon: Throughout our extensive DSO marketing efforts today, we have not encountered a single DSO that has successfully rolled out a sleep management program across their provider network, despite lucrative top line and EBITDA growth potential.

Throughout our extensive DSO marketing efforts today, we have not encountered a single DSO that has successfully rolled out a sleep management program across their provider network, despite lucrative topline and EBITDA growth potential.

Brad Ammon: Many DSOs have told us they recognize sleep and breathing treatment as the next frontier in dentistry, but haven't known how to execute on a successful model.

Many dsos have told us they recognize sleep and breathing treatment as the next frontier in dentistry, but havent knows how to execute on a successful model.

Brad Ammon: The barriers to entry most often cited by DSOs include the need for specialized doctor and staff training, difficulties in medical doctor collaboration, navigating medical insurance reimbursement requirements, and sleep apnea patient workflows that can vary markedly from dentistry.

The barriers to entry most often cited by Dsos include the need for specialized Doctor and staff training difficulties in medical Doctor collaboration navigating medical insurance reimbursement requirements and sleep apnea patient workflows that can vary markedly from dentistry left.

Brad Ammon: Leveraging our experience with our VIP program, we believe our Vivo Sleep Management program for DSOs elegantly and effectively solves every one of those barriers, opening the door to an entirely new and highly accretive revenue and profit opportunity for DSOs.

Leveraging our experience with our VIP program, we believe our vivo sleep management program for Dsos elegantly and effectively solves every one of those barriers opening the door to an entirely new and highly accretive revenue and profit opportunity for dsos.

Brad Ammon: It is no surprise, therefore, that in the fourth quarter we successfully initiated pilot trials for our VivoSleep program involving multiple DSO practices.

It is no surprise, therefore that in the fourth quarter, we successfully initiated pilot trials for vivo sleep program involving multiple DSO practices. We also furthered our active contract discussions for additional pilots with several DSO groups, representing close to an estimated $3 billion in <unk> and.

Brad Ammon: We also furthered our active contract discussions for additional pilots with several DSO groups representing close to an estimated $3 billion in total annual dental revenue derived from over 1,800 locations.

In total annual dental revenue derived from over 1800 locations.

Brad Ammon: Our DSO market penetration in the U.S. and Canada continues to accelerate as we move into 2022.

Our DSO market penetration in the U S and Canada continues to accelerate as we move into 2022.

Our other Dennis enrollment program, which we referred to as the Airway Alliance program was also established in the fourth quarter and launched here in the first quarter of 2022.

Brad Ammon: Our other dentist enrollment program, which we refer to as the Airway Alliance Program, was also established in the fourth quarter and launched here in the first quarter of 2022. This program is designed to attract the vast majority of the estimated 200,000 U.S. and Canadian dentists who are being strongly encouraged by the American Dental Association to screen their patients for sleep apnea and don't yet know how.

This program is designed to attract the vast majority of the estimated 200000 U S and Canadian dentist, who are being strongly encouraged by the American Dental association to screen their patients for sleep apnea, and yet and don't yet know how.

Brad Ammon: The Airway Alliance Program gives these dentists a simple yet profitable way to screen their patients for OSA using our VIVA score program featuring the Sleep Image Ring Homesleep Test and then refer them to fully trained local VIVA dentists for treatment.

The airway Alliance program gives these dentists, a simple yet profitable way to screen their patients for OSA using our vivo SCOR program, featuring the sleep image ring home sleep test and then refer them to fully trained local vivo status for treatment.

Brad Ammon: As for our second key performance metric, total home sleep tests or HSTs performed, we recently announced an 18 times increase in the total number of average monthly tests being performed in the fourth quarter of 2021 versus the same period in 2020. This growth represented a change from under 300 tests per month across our network to over 5,000 tests per month.

As for our second key performance metric total home sleep test or Hst's performed we recently announced an 18 times increase in the total number of average monthly tests being performed in the fourth quarter of 2021 versus the same period in 2020.

This growth represented a change from under 300 tests per month across our network to over 5000 tests per month.

Brad Ammon: We also reported a 5.7 times increase in the number of VIPs administering home sleep tests and a 3 times increase in the average number of home sleep tests being administered per VIP.

We also reported a 5.7 times increase in the number of Vips administering at home sleep test and a three times increase in the average number of home sleep test being administered per VIP.

Brad Ammon: We also continue to see approximately one out of every two patients testing positive for OSA.

We also continued to see approximately one out of every two patients testing positive.

For OSA.

Brad Ammon: We are very pleased by these dramatic performance gains in homesleep testing as we believe diagnosis is essential in helping those suffering from OSA to get proper treatment.

We are very pleased by these dramatic performance gains in home sleep testing as we believe diagnosis is essential in helping those suffering from OSA to get proper treatment.

Brad Ammon: Also, these HST results allowed us to renegotiate our commercial agreement with Sleep Image to lower costs and convert the entire diagnostic program from a lost leader into a potential recurring revenue center as we have shifted to leasing the Sleep Image test rings to our dentists.

Also these HST results allowed us to renegotiate our commercial agreement with sleep image to lower costs and convert the entire diagnostic program from a lost leader into a potential recurring revenue center as we have shifted to leasing the sleep image test rings to the to our dentists.

Brad Ammon: We expect our new pricing arrangement with Sleep Image will yield positive financial results for vivos in 2022 and beyond.

We expect our new pricing arrangement with sleep image will yield positive financial results for vivo in 2022 and beyond.

Brad Ammon: Our primary focus now is helping VEVOS trained providers and their staff convert those patients into treatment with the VEVOS method.

Our primary focus now is helping in vivo strain providers and their staffs convert those patients into treatment with the vivo Smith at.

Brad Ammon: Maximizing new case starts is the third key performance metric that I referenced earlier. During 2021, we saw solid growth in case starts as we sold 40% more oral appliance arches during the year than we did in 2020.

Maximizing new case starts is the third key performance metric that I referenced earlier.

During 2021, we saw solid growth in case starts as we sold 40% more oral appliance arches during the year than we did in 2020.

Brad Ammon: Also in the fourth quarter, we formally rolled out the systems and procedures for patients to readily and conveniently obtain their requisite medical diagnoses from the independent medical providers at Empower Sleep, who are fully licensed in over 40 states.

Also in the fourth quarter, we formerly rolled out the sleep says the systems and procedures for patients to readily and conveniently obtained their requisite medical diagnoses from the independent medical providers at empower sleep, who are fully licensed in over 40 states empower sleep reports that they expect to be fully.

Brad Ammon: Empower Sleep reports that they expect to be fully licensed in all 50 states by the end of the second quarter of this year.

Licensed in all 50 states by the end of the second quarter of this year.

Brad Ammon: Having this relationship in place and working seamlessly with our VIVO score program using sleep image technology.

Having this relationship in place and working seamlessly with our vivo SCOR program using sleep image technology.

Brad Ammon: is an essential step to increasing case acceptance and reimbursement from payers.

Ah is an essential step to increasing case acceptance and reimbursement from payers we.

Brad Ammon: We executed on this essential program by conducting regionalized training events around the country.

We executed on this essential program by conducting regionalized training events around the country through December of 'twenty 'twenty. One we successfully conducted 15, such trainings, which were attended by nearly 800 dentists and staff personnel from Devos VIP offices throughout the U S and Canada.

Brad Ammon: Through December of 2021, we successfully conducted 15 such trainings, which were attended by nearly 800 dentists and staff personnel from Vivos VIP offices throughout the U.S. and Canada.

Brad Ammon: The primary objective in pushing to maximize home sleep tests is of course getting as many patients as possible to become aware of their sleep apnea and to seek treatment from a qualified and trained VEVOS provider.

The primary objective and pushing to maximize home sleep test is of course getting as many patients as possible to become aware of their sleep apnea and to seek treatment from a qualified and trained vivo provider.

Having made progress on our initial go to market objective of establishing a nationwide network of vivo trained providers in the latter part of 'twenty 'twenty. One we turned our marketing focus towards consumers. This effort involved a multifaceted digital marketing strategy, including digital advertising social media and.

Brad Ammon: Having made progress on our initial go-to-market objective of establishing a nationwide network of Vivos trained providers, in the latter part of 2021, we turned our marketing focus towards consumers. This effort involved a multifaceted digital marketing strategy, including digital advertising, social media initiatives, as well as an overhaul of our website, which is now found at a new URL, vivos.com.

<unk> as well as an overhaul of our website, which is now found at a new U R. L Devos Dot com.

Brad Ammon: As part of that effort, we work closely with our strategic marketing company, Stage Marketing, to produce over 150 new videos and start over 350 new content creation projects which led to a fourth quarter growth of 92% in website traffic compared to the third quarter as well as a consistently branded customer journey.

As part of that effort, we worked closely with our strategic marketing company stage marketing to produce over 150, new videos and start over 350, new content creation projects, which led to a fourth quarter growth of 92% in website traffic compared to the third quarter.

As well as a consistently branded customer journey.

Brad Ammon: We also saw our Facebook fan engagement ratios come in at an impressive 11.54% versus just 12.1, excuse me, versus just 7.12% for a much larger direct competitor in the sleep apnea space.

We also saw our Facebook fan engagement ratios come in at an impressive 11.54% versus just 12.1 excuse me versus just 7.12% for a much larger direct competitor in the split in the sleep apnea space on Instagram.

Brad Ammon: On Instagram, our engagement rate was 2.74%, which is just over six times the 0.44% engagement rate for that same company during the same period.

Our engagement rate was two points to seven 4%, which is just over six times the 0.44% engagement rate for that same company during the same period.

Brad Ammon: We began running Google ads in February 2022 and are seeing double the industry average benchmark in lead conversion.

We began running Google ads in February 2022, and are seeing double the industry average benchmark in Lee and lead conversions.

Brad Ammon: This strong positive reaction to the vivos method by consumers is expected to grow as we build awareness through digital and other media channels.

This strong positive reaction to the vivo method by consumers is expected to grow as we build awareness through digital and other media channels.

Brad Ammon: During 2021, we further accelerated our exposure and penetration into the broader medical community through the formation of our Interdisciplinary Medical Advisory Board, formerly known as the Medical Consortium, co-chaired by doctors Cley Cushita of Stanford and Cecilia Wu of Alberta, Canada, along with the appointment of internationally renowned cardiologist, Dr. Mimi Guinari, as our medical director of clinical education.

During 2021, we further accelerated our exposure and penetration into the broader medical community through the formation of our interdisciplinary Medical Advisory Board, formerly known as the medical consortium.

So chaired by doctors Quaker sheet of Stanford and Cecilia Woo of Alberta, Canada, along with the appointment of internationally renowned cardiologist, Dr. Mimi coronary as our medical director of clinical education.

Brad Ammon: The medical doctors who serve as advisors to VEVOS in these various capacities see and treat patients with sleep apnea every day in their clinics. Some of these doctors are actual VEVOS patients themselves or have had family members who have gone through VEVOS method treatment.

The medical doctors, who serve as advisors to vivo in these various capacities see and treat patients with sleep apnea everyday in their clinics. Some of these doctors are actual <unk> patients themselves or have had family members who have gone through the most method treatment.

Brad Ammon: These prominent physicians have seen our data and experienced clinical results from VEVOS therapy firsthand. As a result, they have enthusiastically joined our mission to urgently get this message out to their medical colleagues.

These prominent physicians have seen our data and experience clinical results from vivo therapy firsthand.

As a result, they are enthusiastically joined our mission to urgently get this message out to their medical colleagues.

Brad Ammon: One of the Medical Advisory Board's main directives is to strengthen VIVO's scientific foundation so the evidence underlying VIVO's technology will be robust enough to be widely accepted and adopted by physicians worldwide.

One of the medical advisory boards main directives is to strengthen vivo scientific foundation. So the evidenced underlying devos technology will be robust enough to be widely accepted and adopted by physicians worldwide.

Brad Ammon: New clinical data guiding physician awareness and practice is disseminated via two major avenues, highly ranked medical journals and medical conferences.

New clinical data guiding physician awareness and practice is disseminated via two major avenues highly ranked medical journals and medical conferences.

Brad Ammon: DeVos is making great strides in both of these areas. During 2021, we published multiple papers demonstrating and confirming various aspects of our technology and expect to see even more published studies and papers highlighting our technology during 2022.

<unk> is making great strides in both of these areas.

During 2021, we published multiple papers, demonstrating and confirming various aspects of our technology and expect to see even more published studies and papers highlighting our technology during 2022.

Brad Ammon: Production of high quality manuscripts highlighting important clinical data are already in the works.

Production of high quality manuscripts, highlighting important clinical data are already in the works. For example, a study of 220 patients who underwent vivo method therapy has already been finalized and submitted to a highly ranked medical journal.

Brad Ammon: For example, a study of 220 patients who underwent VEVOS method therapy has already been finalized and submitted to a highly ranked medical journal.

Brad Ammon: More recently, at the World Sleep Congress in Rome on March 14th, VEVOS presented a data set compiled in the fall of 2021 showing that VEVOS method treatment, the VEVOS treatment method modality, is competitively effective at treating OSA at all severity levels and regardless of body mass index.

More recently at the World Sleep Congress in Rome on March 14th.

<unk> presented a dataset compiled in the fall of 2021 showing that vivo method treatment. The vivo strike treatment method modality is competitively effective at treating OSA at all severity levels and regardless of body Mass Index. This conference was attended by over four.

Brad Ammon: This conference was attended by over 4,500 professionals in sleep and the presentation was very well received.

<unk> thousand 500 professionals in sleep and the presentation was very well received.

Brad Ammon: Members of our Medical Advisory Board will be presenting again on behalf of the company at SLEEP 2022, the annual SLEEP Conference of the American Academy of SLEEP Medicine, which has over 11,000 members to be held in June in Charlotte, North Carolina. There they will present evidence showing that the VEVOS method significantly expands the maxilla or upper jaw and the airway.

Members of our medical Advisory Board will be presenting again on behalf of the company at sleep 2022, the annual sleep conference of the American Academy of Sleep Medicine, which has over 11000 members to be held in June in Charlotte North Carolina, there they will present evidence showing that the vivo.

Methods significantly expands the maxilla or upper jaw and the airwave.

Brad Ammon: At the same conference, Vivo's technology will also be discussed during a symposium during focusing on new and emerging technologies that will shape the future of sleep medicine.

At the same conference vivo technology will also be discussed during this symposium.

Focusing on new and emerging technologies that will shape the future of sleep medicine.

Brad Ammon: in the European Sleep Research Society to be held

In the European Sleep Research society to be held.

Brad Ammon: In Greece, in September , VEBOS technology will be discussed at another symposium highlighting dental medical collaborative models for the diagnosis and treatment of obstructive sleep apnea.

In Greece in September vivo technology will be discussed at another symposium highlighting.

Medical collaborative models for the diagnosis and treatment of obstructive sleep apnea as.

Brad Ammon: As we move into 2022, VEVOS will have for the first time a strong presence at all three major World Sleep Conferences, and we expect this trend will continue into the foreseeable future.

As we move into 2022 vehicles will have for the first time, a strong presence at all three major world sleep conferences, and we expect this trend will continue into the foreseeable future.

Brad Ammon: Vivo's technology has been reported by many patients to alleviate their headaches.

<unk> technology has been reported by many patients to alleviate their headaches. We recently conducted a retrospective clinical study of 120 patients with Fedex.

Brad Ammon: We recently conducted a retrospective clinical study of 120 patients with headache.

Brad Ammon: The results in reducing headaches were statistically significant, and another manuscript documenting those results is currently being produced for publication.

The results in reducing headaches were statistically significant and another manuscript documenting those results is currently being produced for publication.

Brad Ammon: The medical and clinical advisory boards are also performing additional partnerships with large health organizations and forging future clinical trials. Details will be forthcoming as further developments occur throughout the year.

The medical and clinical advisory boards are also performing well.

Performing additional partnerships with large health organizations and forging future clinical trials details will be forthcoming as further developments occur throughout the year.

Brad Ammon: Meanwhile, in 2021, our Medical Integration Division launched two Nusomnia clinics owned by medical doctors with local VEVOS trained dentists delivering the VEVOS method of treatment.

Meanwhile, in our 2021 medical integration Division.

Meanwhile, in 2021, our medical integration Division launched two new family of clinics owned by medical doctors with local Devos trained dentists, delivering the vivo method of treatment.

Brad Ammon: As interest within the medical community continues to build, another six to eight such projects are in the queue for opening in 2022.

As interests within the medical community continues to build another six to eight such projects are in the queue for opening in 2022.

Brad Ammon: These first few clinic startups have taken longer than expected, but this physician-backed initiative has been instrumental in legitimizing the interdisciplinary collaboration that can occur between the dental and medical communities on the effectiveness of the VEVOS method.

These first few clinic startups have taken longer than expected, but this physician backed initiative has been instrumental in legitimizing. The interdisciplinary collaboration that can occur between the dental and medical communities on the effectiveness of the vivo method.

Brad Ammon: we believe that our 2021 growth is due at least in part to the success of each of these actions listed above. Our strong revenue growth in 2021 also indicates or includes new revenue streams that we either didn't possess in the prior year or that we were still in their early stages of rollout.

We believe that our our 2021 growth is due at least in part to the success of each of these actions listed above.

Our strong revenue growth in 2021 also indicates our includes new revenue streams that we either didn't possess in the prior year or that we were or that were still in their early stages of rollout.

Brad Ammon: These revenues were derived from new products and services that are outside of our core VIP enrollment revenue and appliances.

These revenues were derived from new products and services that are outside of our core VIP enrollment revenue and appliances and were just introduced in 2021.

Brad Ammon: and we're just introduced in 2021. This includes revenue from the value-added services we offer our VIPs and their patients, as well as management revenue from our Medical Integration Division, including billing intelligence services and myofunctional therapy.

This includes revenue from the value added services, we offer our vips and their patients as well as management revenue from our medical integration Division, including building intelligence services and myocardial mile functional therapy.

Brad Ammon: Growing our revenue from these important ancillary streams remains a top priority for us in 2022, even as we continue to grow revenue from our core business of VIP enrollment and appliance sales.

Growing our revenue from these important ancillary streams remains a top priority for us in 2022, even as we continue to grow revenue from our core business of VIP enrollment in appliance sales.

Brad Ammon: In addition to our solid revenue results, I'm pleased to report that for the fourth quarter and full year 2021, we...

In addition in addition to our solid revenue results I'm pleased to report that for the fourth quarter and full year 2021.

<unk>.

As of the as of December 31, 2021, approximately 25000 total patients had been treated with the vivo <unk> method compared to 15000 at the end of 2020 and as of December 31, 2021, we have trained over 1450 dentists.

Brad Ammon: As of December 31, 2021, approximately 25,000 total patients have been treated with the VEVOS method compared to 15,000 at the end of 2020. And as of December 31, 2021, we have trained over 1,450 dentists globally in the use and application of the VEVOS method, providing our VIPs with training and other related value added services.

Globally in the use and application of the vivo method, providing our vips with training and other related value added services compared to 12 1250 at the end of 2020.

Brad Ammon: compared to $1,250 at the end of 2020.

Brad Ammon: We are very pleased with these operating and financial results, which speak to the growth we have achieved just this past year. Brad will review our financial highlights with you in more detail later in this call.

We are very pleased with these operating and financial results, which speak to the growth. We have achieved just this past year.

<unk> will review our financial highlights with you in more detail later in this call.

Brad Ammon: Aside from our strong financial and operating metrics, VEVOS has also accomplished a number of key business milestones since our 2020 IPO.

Aside from our strong financial and operating metrics vehicles has also accomplished a number of key business milestones since our 2020 I P O.

Brad Ammon: During the fourth quarter, we formed a strategic collaboration with CandidCare, a company that provides consumers and dentists with the latest invisible aligner technology for straightening teeth through a digital platform at a much lower price than the leading brand.

During the fourth quarter, we formed a strategic collaboration with candid care a company that provides consumers and dentists with the latest invisible aligner technology for straightening teeth through a digital platform at a much lower price than the leading brand.

Brad Ammon: Candid recently announced that they were closing down their direct-to-consumer retail efforts in order to focus entirely on their Candid Pro product and provider model, which is very much aligned with our model here at Vivos. In short, Candid is actively marketing to and recruiting the very same type of dentists as Vivos, and thus we see the collaboration between Vivos and Candid to continue to evolve and grow as we move forward.

Candid recently announced that they were closing down their direct to consumer retail efforts in order to focus entirely on their candid pro product and provider model, which is very much aligned with our model with our model here at Veeva.

In short candidate is actively marketing to and recruiting the very same type of dentists as devos and thus we see the collaboration between vivo and candid to continue to evolve and grow as we move forward.

Brad Ammon: Through this relationship, our two companies will be sharing provider and DSO contacts, referrals, educational resources, training.

Through this relationship our two companies, we'll be sharing provider and DSO contacts referrals educational resources training.

Brad Ammon: and key opinion leaders to bridge the gap between airway health and orthodontic therapy. We are excited to be working with Candid and believe our combined strengths will enable us to offer a seamless solution for patients suffering from OSA.

And key opinion leaders to bridge the gap between airway health and orthodontic therapy. We are excited to be working with Candida and believe our combined strengths will enable us to seamlessly to offer a seamless solution for patients suffering from OSA.

On the intellectual property and regulatory fronts, we accomplished three important items in Q4.

First we filed two patents to ensure protection on device enhancements and developments.

Secondly, we completed our official registration of vivo products with health, Canada, a minister of Health Department responsible for helping Canadians maintain and improve their health through services and resources.

Brad Ammon: Even prior to this, we have received high demand from Canadian dentists for our products and clinical protocols. With this Health Canada registration, approximately 25,000 Canadian dentists now have complete access to VEVOS's products and services.

Even prior to this we have received high demand from Canadian dentist for our products and clinical protocols with this health, Canada registration approximately 25000 Canadian dentist now have complete access to vivo says products and services.

Brad Ammon: These local dentists can now screen, clinically assess, and properly treat patients suffering from OSA through complete and official access to the VEVOS method.

These local dentist can now screen clinically assess and properly treat patients suffering from OSA through come through complete an official access to the vivo method.

Brad Ammon: We are very happy to deliver our much needed products to millions of Canadians suffering from OSA and its related comorbidities. In connection with this development, we expect to expand our contract manufacturing presence and capacity in Canada to better serve the needs of Canadian dentists and their patients.

We are very happy to deliver our much needed products to millions of Canadians suffering from OSA and its related comorbidities in connection with this development, we expect to expand our contract manufacturing presence and capacity in Canada to better serve the needs of Canadian dentists and their patients.

Brad Ammon: And finally, we achieved another regulatory milestone closer to year end when we received acceptance from a Centers for Medicare and Medicaid Services Pricing Data Analysis and Coding, or PDAC, contractor for our MMRNA oral advice.

And finally, we achieved another regulatory milestone closer to year end when we received acceptance from a centers for Medicare and Medicaid services pricing data analysis, and coding or P. DAC contractor for our M. M. RNA oral advice this acceptance places the M.

Brad Ammon: This acceptance places the MMRNA device on the PDAC list of oral appliances covered by and billable to Medicare. This is an extremely positive development for VEVOS, which makes benefits of this device available to millions of Medicare beneficiaries who seek effective treatment from mild to moderate OSA.

M RNA device on the P. DAC list of oral appliances covered by and billable to Medicare. This is an extremely positive development for vivo switch makes benefits of this device.

Available to millions of Medicare beneficiaries, who seek effective treatment for mild to moderate OSA.

Brad Ammon: The MMRNA is the first and only appliance on the PDAC list that offers patients the clinical advantages of vivo's proprietary technology.

The M. M. RNA is the first and only appliance on the feedback list that offers patients the clinical advantages of <unk> proprietary technology.

Brad Ammon: We are very happy about this and look forward to delivering our life-changing therapeutic technology to the millions of OSA sufferers in the U.S. who are either on Medicare or who have commercial medical insurance coverage that follows Medicare guidelines. Our progress did not stop at year end. We have continued to realize several key catalysts in 2022 that we believe will help drive our continued growth.

We are very happy about this and look forward to delivering our life changing therapeutic technology to the millions of OSA sufferers in the U S who are either on Medicare or who have commercial medical insurance coverage that follows Medicare guidelines, our progress did not stop at year end, we have continued to realize several key catalysts.

In 2022 that we believe will help drive our continued growth.

Brad Ammon: Adding to this, later in January , we filed a U.S. patent application for proprietary new and enhanced clinical protocols and methods developed within our Vivos method for treatment of OSA.

Adding to this later in January we filed a U S patent application for proprietary new and enhanced clinical protocols and methods protocols and methods developed within our vivo method for treatment of OSA.

Brad Ammon: This new patent application was based on early field data, which revealed an additional 58% average improvement in apnea hypopnea index or AHI score reductions.

This new patent application was based on early field data, which revealed an additional 58% average improvement in AR and apnea Hypopnea index or <unk> score reductions.

Brad Ammon: in OSA patients who had received treatment with a VEVOS method where the revised clinical protocols were implemented.

In OSA patients, who had received treatment with a vivo method, where the revised clinical protocols were implemented we.

Brad Ammon: We believe this patent, if granted, will increase the scope of DeVos's patent portfolio and demonstrates our commitment to delivering innovative technology in our mission to rid the world of obstructive sleep apnea.

We believe this patent if granted will increase the scope of <unk> patent portfolio and demonstrates our commitment to delivering innovative technology and our mission to rid the world of obstructive sleep apnea.

Brad Ammon: These are all important achievements that we believe leave us well-positioned for the future. Complimenting these milestones, VEVOS has continued engaging in activities designed to increase our recognition with relevant audiences to help drive our future growth. These activities include forging key contacts and relationships with the U.S. Department of Defense, the U.S. Department of Transportation, and the Veterans Administration.

These are all important achievements that we believe leave us well positioned for the future.

Complementing these milestones vivo has continued engaging in activities designed to increase our recognition with relevant audiences to help drive our future growth.

These activities include forging key contacts and relationships with the U S Department of defense. The U S Department of transportation and the veterans administration as well as large corporations with tens of thousands of transportation workers, who need to be screened and treated for breathing and sleep disorders reached.

Brad Ammon: as well as large corporations with tens of thousands of transportation workers who need to be screened and treated for breathing and sleep disorders.

Brad Ammon: Recently, we announced a rebranding of vivo's proprietary offering of clinical treatment devices, modalities and protocols, now called the vivo's method to better capture the multiple ways in which vivos can help independent dentists treat their patients.

Recently, we announced a rebranding of vivo proprietary offering of clinical treatment devices modalities and protocols now called the vivo <unk> method to better capture the multiple ways in which vivo can help independent Dennis treat their patients.

Brad Ammon: We believe this rebrand makes it clearer and easier for providers and patients to understand our offerings and the manner in which each can contribute to addressing dental facial and airway abnormalities in a relatable and more approachable way and to feel secure in proactively asking their dentists or medical providers about the VEVOS methods.

We believe this rebrand makes it clearer and easier for providers and patients to understand our offerings and the manner in which each can contribute to addressing dentofacial, an airway abnormalities in a related bull and more approachable way and to feel secure and proactively stay asking their dentist or medical per.

<unk> about the vivo method.

Brad Ammon: As part of this process and as previously noted, we recently launched an updated corporate website at www.vivos.com where medical professionals and patients can find information about OSA and its corresponding symptoms, testimonials from Vivos trained dentists, and their patients about their personal journeys and success stories, and opportunities for Vivos partnerships, FAQs, and much more.

As part of this process and as previously noted we recently launched an updated corporate website at www dot vivo <unk> dot com, where medical professionals and patients can find information about OSA and its corresponding symptoms testimonials from vivo trained dentists and their patients about their personal.

Ernie and success stories.

And opportunities for Veeva is partnerships.

Queues and much more in.

Brad Ammon: In addition to simplifying information for patients, the new Vivo site also provides guidance to prospective dentists on becoming one of our VIPs.

In addition to simplifying information for patients the new vivo side also provides guidance to prospective dentist on becoming one of our Vips. This turnkey program enables dentists to elevate patient services and care.

Brad Ammon: This turnkey program enables dentists to elevate patient services and care, while also increasing the growth potential for practice revenue and income.

While also increasing the growth potential for practice revenue and income.

Brad Ammon: This is just another example of the steps we are taking to increase our name recognition in the dental and medical communities, as well as to drive VIP enrollment.

This is just another example of the steps we are taking to increase our name recognition in the dental and medical communities as well as to drive VIP enrollments.

Brad Ammon: In summary, both the fourth quarter and full year 2021 were exciting periods for VEVOS. We made substantial progress in all facets of our business, which drove strong year-over-year revenue growth, driven by increased VIP enrollments and appliance sales, as well as newer revenue streams.

In summary, both the fourth quarter and full year 2021 were exciting periods for vivo <unk>, we made substantial progress in all facets of our business, which drove strong year over year growth revenue growth driven by increased VIP enrollments and appliance sales as well as newer revenue streams. The company also achieved.

Brad Ammon: The company also achieved a number of significant milestones to position itself for further growth in 2022.

A number of significant milestones to position itself for further growth in 2022.

Brad Ammon: Considering all that we have achieved since our IPO in December of 2020, we are very excited about our future prospects.

Considering all that we have achieved since our IPO in December of 2020, we are very excited about our future prospects comp.

Brad Ammon: Complimenting our progress today, we will continue to expand our sales and marketing efforts, including enhanced social media marketing outreach to engage more directly with consumers, medical providers, and large employers.

Complementing our progress to date, we will continue to expand our sales and marketing efforts, including enhanced social media marketing outreach to engage more directly with consumers medical providers.

And large employers.

Brad Ammon: Also, just yesterday, I attended the annual ADSO, DSO conference in Austin, Texas, and we expect to attend other DSO conferences later this year where we will be on stage presenting for the first time a comprehensive DSO program for all DSOs in the United States and Canada.

Also just yesterday I attended the annual a DSO DSO conference in Austin, Texas, and we expect to to we expect to attend other DSO conferences. Later this year, where we will be on stage presenting for the first time a comprehensive.

Ziv DSO program for all Dsos in the United States and Canada.

Brad Ammon: By continuing to increase awareness of our products and services, we remain confident this will drive further adoption of the VEVOS method, which in turn should generate increased VIP enrollment and appliance revenues in 2022 and beyond.

By continuing to increase awareness of our products and services. We remain confident this will drive further adoption of the vivo Smith, it which in turn should generate VIP increased VIP enrollment and appliance revenues in 2022 and beyond.

Brad Ammon: This concludes my opening remarks. Now I'll pass the call over to Brad, who will review our financial results. Brad?

This concludes my opening remarks, now I'll pass the call over to Brad who will review our financial results Brad.

Brad: Thank you Kirk, and good afternoon everyone. Today I'll review our fourth quarter and full year 2021 financial results.

Thank you Kirk and good afternoon, everyone today, I'll review, our fourth quarter and full year 2021 financial results.

Brad: We reported total revenue of $4.4 million for the fourth quarter of 2021, a 33% increase compared to $3.3 million for the fourth quarter of 2020. This increase was mainly due to increased revenue from VIP enrollments, appliance sales due to volume increases, management fees from our Medical Integration Division or

We reported total revenue of $4 $4 million for the fourth quarter of 2021 of 33% increase compared to $3 3 million for the fourth quarter of 2020.

This increase was mainly due to increased revenue from VIP enrollments appliance sales due to volume increases management fees from our medical integration division or <unk> program billing.

Brad: building intelligence service, subscriptions, and additional revenue sources not present in 2020, including our MyoCorrect Oral Facial Myofunctional Therapy, or OMT, services and sponsorship revenue.

Billing intelligence service subscriptions and additional revenue sources not present in 2020, including our micro correct oral facial mile functional therapy R. O M T services in sponsorship revenue.

Brad: Fourth quarter 2021 revenue growth was partially impacted by lower VIP enrollments due in part to the COVID-19 Delta and Omicron variant research.

Fourth quarter 2021 revenue growth was partially impacted by lower VIP enrollments due in part to this COVID-19 Delta and omicron variant resurgence.

Brad: However, VIP enrollment revenue was actually up year over year due to recognition of revenue from prior periods.

However, VIP enrollment revenue was actually up year over year due to recognition of revenue from prior periods.

Brad: During the fourth quarter, we enrolled 35 VIPs and out of cancellations and recognized revenue of approximately $2.1 million compared to 54 VIPs and revenue of approximately $1.7 million during the same period last year.

During the fourth quarter, we enrolled 35 VIP is net of cancellations and recognized revenue of approximately $2 $1 million compared to 54, Vips and revenue of approximately $1.7 million during the same period last year.

Brad: During the three-months-ended December 31, 2021, we sold 2,707 total oral appliance arches for revenue of approximately $1.5 million in increase from the three-months-ended December 31, 2020, where we sold 2,525 total oral appliance arches for revenue of approximately $1.3 million. The increase in appliance revenue

During the three months ended December 31, 2021, we sold 2707 total oral appliance arches for revenue of approximately $1 $5 million an increase from the three months ended December 30, 31, 2020, where we sold 2005.

525, total oral appliance arches for a revenue of approximately $1 $3 million.

The increase in appliance revenue is due to volume increases.

Brad: For the full year 2021, revenue increased 29%.

For the full year 2021 revenue increased 29% to $16 $9 million compared to $13 $1 million for the full year of 2020. This increase was attributable to the same factors I just mentioned.

Brad: to $16.9 million compared to $13.1 million for the full year of 2020. This increase was attributable to the same factors I just mentioned.

Brad: During the 12 months ended December 31, 2021, we enrolled 197 VIPs net of cancellations for revenue of approximately $8.5 million, a 13% revenue increase compared to 248 VIPs and revenue of $7.5 million for 2020.

During the 12 months ended December 31, 2021, we enrolled 197 VIP is net of cancellations for revenue of approximately $8 $5 million, a 13% revenue increase compared to 248, Vips and revenue of $7 $5 million for 2020.

Brad: The roughly 13% revenue increase was primarily driven by a higher average price per enrollment, higher enrollments that took place in June , August , and September , of which 50% of the enrollment fees were recognized during the year and in December 31, 2020, and revenue

The roughly 13% revenue increase was primarily driven by a higher average price per enrollment higher enrollments that took place in June August and September of which 50% of the enrollment fees were recognized during the year ended December 31, 2020 and.

Revenue recognized from higher prior period enrollments.

Brad: VIP enrollment revenue is recognized 50 percent in the second month of enrollment and the remaining 50 percent pro rata throughout the following 11 months of the service contract.

Enrollment revenue is recognized 50% in the second month of enrollment and the remaining 50% pro rata throughout the following 11 months of the service contract.

Brad: We evaluate each contract separately for applicable factors in meeting the definition of a contract under ASC topic 606.

We evaluate each contract separately for applicable factors and meeting the definition of a contract under ASC topic six assets.

Brad: Additionally, our billing intelligence service revenue increased $900,000 for the year ended December 31, 2020, up 46% compared to approximately $600,000 for the year ended December 31, 2021.

Additionally, our billing intelligence service revenue increased $900000 for the year ended December 31 2020.

46% compared to approximately $600000 for the year ended December 31 2021.

Brad: During the year ended December 31, 2021, we sold 11,355 total oral appliance arches for revenue of approximately $6 million, a 33% increase in product revenue, and a 40% increase in appliance shipped from a year earlier.

During the year ended December 31, 2021, we sold 11355 total oral appliance arches for revenue of approximately $6 million or 33% increase in product revenue and a 40% increase in appliance shifts from a year earlier.

Brad: and during the year ended December 30, 2020, when we sold 8,135 total oral appliance arches for revenue of approximately $4.5 million.

And during the year ended December 30, <unk> 2020, when we sold 8135 total oral appliance arches for revenue of approximately $4 $5 million.

Brad: Again, the increase in appliance revenue is due to volume.

Again, the increase in appliance revenue is due to volume increases.

Brad: Gross profit was $3.1 million for the fourth quarter of 2021.

Gross profit was $3 $1 million for the fourth quarter of 2021.

Brad: and $12.6 million for the full year 2021 compared to gross profit of $2.7 million and $10.4 million for the comparable periods in 2020, respectively.

And $12 $6 million for the full year 2021, compared to gross profit of $2 $7 million and $10 4 million for.

For the comparable periods in 2020, respectively.

Brad: gross margin for the fourth quarter was 71% compared to 81% during the last year's fourth quarter, reflecting higher costs associated with BIT enrollments, which included homesleep testing range.

Gross margin for the fourth quarter was 71% compared to 81% during last year's fourth quarter, reflecting higher costs associated with VIP enrollments, which included home sleep testing rates.

Brad: gross margin for the year ended December 31st, 2021, was 75%.

Gross margin for the year ended December 31, 2021 was 75%.

Brad: compared to 80% for the year ended December 31st, 2020.

Compared to 80% for the year ended December 31 2020.

Brad: We are continuing to refine our sales, marketing and promotional efforts with potential VIPs in an effort not only to drive revenue but to maintain our gross profit and margin.

We are continuing and continuing to refine our sales marketing and promotional efforts with protect with potential vips in an effort not only to drive revenue, but to maintain our gross profit and margins.

Brad: This includes our expanded social media marketing outreach that Kirk mentioned earlier.

This includes our expanded social media marketing outreach that Kirk mentioned earlier.

Brad: Dales and marketing expense increased approximately a half a million dollars to 1.3 million dollars for the fourth quarter of 2021, compared to $800,000 for the fourth quarter of 2020. The increase was primarily due to new marketing campaigns

Sales and marketing expense increased approximately a half a million dollars to $1 $3 million for the fourth quarter of 2021 compared to $800000 for the fourth quarter of 2020 the increase was.

Primarily due to new marketing campaigns.

Brad: updating marketing materials for investors and consumers, improving the BEVOS website, and promotion of conferences and events taking place in 2021, such as the grand opening of the BEVOS Institute in Denver.

Updating marketing materials for investors and consumers improving the website and promotion of conferences and events taking place in 2021, such as the Grand opening of the vivo Institute in Denver.

Sales and marketing expense increased by approximately $3 2 million to $5 $6 million for the year ended December 31, 2021, compared to $2 $3 million for the year ended December 31, 2020. The increase was primarily due to the factors described earlier in the three month periods.

Brad: Sales and marketing expense increased by approximately $3.2 million to $5.6 million for the year end of December 31, 2021, compared to $2.3 million for the year end of December 31, 2020. The increase was primarily due to the factors described earlier in the three month period.

<unk>.

Brad: general and administrative expenses were approximately $9 million for the fourth quarter of 2021 and approximately $26.7 million for the year end of December 31, 2021, compared to $4.9 million and $16.1 million.

General and administrative expenses were approximately $9 million for the fourth quarter of 2021 and.

And approximately $26 $7 million for the year ended December 31, 2021, compared to $4 $9 million and $16 $1 million.

Brad: For the three and 12 month periods ended December 31st, 2020, respect it.

For the three and 12 months.

Periods ended December 31, 2020, respectively.

Brad: The year-over-year increase was primarily due to higher headcount and expenses related to support our sales growth. The impairment of a note related to the 2019 sale of our company-owned dental clinic in Orem, Utah, as well as our status as a public company, which started in late 2020.

The year over year increase was primarily due to higher head count and expenses related to support our sales growth the impairment of a note related to the 2019 and sale of our company owned dental clinic in Orem, Utah as well as our status as a public company, which started in late 2020.

Brad: Additionally, these increased expenses are related to higher revenues from our core business as well as revenue from new products and services offered in 2021, including our sleep image HST diagnostic product, myocorect therapy services, management fee revenue from our medical integration division, and sponsorship revenue, which accounted for approximately nine percent of our fourth quarter 2021 revenue.

Additionally, these increased expenses are related to higher revenues from our core business as well as revenue from new products and services offered in 2021, including our sleep image HST diagnostic product bio correct therapy services.

Management fee revenue from our medical integration Division and sponsorship revenue, which accounted for approximately 9% of our of our fourth quarter 2021 revenue.

Brad: We continue to deploy capital to support our sales and marketing efforts, as well as general and administrative expenses.

We continue to deploy capital to support our sales and marketing efforts as well as general and administrative expenses.

Brad: We consider these strategic investments to support our future growth and have already seen these investments start proving and providing us

Can we consider these strategic investments to support our future growth and have already seen these investments start proving.

And providing us.

Brad: returns in the form of strong revenue growth as demonstrated by our fourth quarter results.

Returns in the form of strong revenue growth as demonstrated by our fourth quarter results.

Brad: We continue to believe these initiatives will enhance our long-term growth potential.

We continue to believe these initiatives will enhance our long term growth potential.

Brad: Net loss was approximately $7.4 million for the fourth quarter of 2021 compared to $6.2 million for the fourth quarter of 2020.

Net loss was approximately $7 $4 million for the fourth quarter of 2021 compared to $6 2 million for the fourth quarter of 2020.

Brad: year-over-year increase was primarily due to higher GNA and sales and marketing expense due to the factors I just discussed.

Year over year increase was primarily to due to higher G&A and sales and marketing expense due to the factors I just discussed.

Brad: Net loss for the year end of December 31, 2021 was $20.3 million, compared to approximately $12.1 million for the year end of December 31, 2020.

Net loss for the year ended December 31, 2021 was $23 million.

Compared to approximately $12 1 million for the year ended December 31 2020.

Brad: Turning to our balance sheet at December 31st, 2021, our cash and cash equivalents were approximately $24 million compared to cash and cash equivalents of approximately $18.2 million a year ago at December 31st, 2020.

Turning to our balance sheet at December 31, 2021, our cash and cash equivalents were approximately $24 million compared to cash and cash equivalents of approximately $18 $2 million a year ago at December 31, 2020.

Brad: With proceeds from our 2020 IPO and the follow-on offering we completed in the second quarter of 2021, we anticipate having sufficient financial resources to meet our capital requirements, fund our operations, and continuing to execute on our growth strategy for the foreseeable future.

With proceeds from our 2020 IPO and the follow on offering we completed in the second quarter of 2021, we anticipate having sufficient financial resources to meet our capital requirements fund, our operations and continuing to execute on our growth strategy for the foreseeable future.

Brad: In conclusion, we made significant progress in 2021, which enabled us to generate strong year-over-year revenue growth both for the quarter and for the full year 2021.

In conclusion, we made significant progress in 'twenty, and 'twenty, one which enabled us to generate strong year over year revenue growth both for the quarter and for the full year 2021.

Brad: This was driven by increased appliance sales and further VIP enrollment.

This was driven by increased appliance sales and further VIP enrollments.

Brad: Our sales growth continues to be fueled by the strategic sales and marketing activities, including the deployment of the Sleep Image Homesleep Test.

Our sales growth continues to be fueled by the strategic sales and marketing activities, including the deployment of the sleep image home sleep test.

Brad: rings that Kirk spoke about earlier. Also, fourth quarter revenue showed an increasing contribution from newer revenue streams outside our core appliance and VIP business, including products and service we introduced in 2021 such as Myocorect, the medical integration division, and value added services such as filling intelligence services.

Rings that Kurt spoke about earlier also fourth quarter revenue showed an increasing contribution from newer revenue streams outside of our core appliance and VIP business, including products and service. We entered we introduced in 2021, such as <unk>, the medical integration Division and.

Value added services, such as filling intelligence services.

Brad: As we look forward to 2022, we expect the current sales momentum in our core business to continue as we refine our model.

As we look forward to 2022, we expect the current sales momentum in our core business to continue as we refine our model.

Brad: and as more members of both the dental and medical communities see the benefit of the VEVOS method as a treatment for LSA.

And as more members of both the dental and medical community see the benefit of the Veeva method as a treatment for OSA.

Brad: At the same time, we remain focused on exploring additional revenue streams to enhance our growth prospects.

At the same time, we remain focused on exploring additional revenue streams to enhance our growth prospects. We are very proud of what we have already achieved and look forward to providing you with further updates on our continued and our continued progress.

Brad: We are very proud of what we have already achieved and look forward to providing you with further updates on our continued progress.

Brad: That concludes our prepared remarks. Now we would like to turn the call over for questions.

That control that concludes our prepared remarks, now I would like to turn the call over for questions.

Later, please go ahead.

Thank you if you'd like to ask a question. Please signal by pressing star one on your telephone keypad using a speaker phone. Please make sure that your mute function is turned off to lay your signal to reach our equipment.

Speaker Change: Thank you. If you'd like to ask a question, please signal by pressing star 1 on your telephone keypad. If you're using a speakerphone, please make sure that your mute function is turned off to allow your signal to reach our equipment. If you're going to add a star 1, if you'd like to ask a question, we'll take our first question from Alex Noak with Craig Helm Capital. Please go ahead.

It is star one if you'd like to ask a question we will take our first question from Alex Nowak with Craig Hallum Capital. Please go ahead.

Speaker Change: Good afternoon everyone, this is Chase on for Alex. First for me, given the revamped sleep image sales strategy, did it contribute any sales in Q4 and how do you expect this to trend over the next several quarters?

Good afternoon, everyone. This is chase on for Alex first from me given the revamped sleep image sale strategy did it contribute any sales in Q4 and how do you expect this to trend over the next several quarters.

Speaker Change: Great question. So we did not see any revenue recognition from sales of the Sleep Image product in Q4. That was a time when we were transitioning the program over from what was essentially a loss leader to a profit center for us.

Great question, So we did not see any.

Any revenue recognition from.

From sales of the sleep image product in Q4 that was a time when we were transitioning the program over from what was essentially a loss leader to a profit our profit center for us.

Speaker Change: And so it's here in the first quarter and really going into the second quarter of the year that we'll start to see some revenue contributions. And we'll have to explore just to what extent those revenue contributions are as we see how the rollout goes.

And so it is here in the first quarter and really the going into the second quarter of the year that will start to see some some revenue contributions and we.

We'll have to we'll have to explore just to what extent those revenue contributions are as we as we see how the how the rollout goes.

Speaker Change: Thank you. And second, could you expand it all on the revamping of the marketing initiative to not only gain more VPs but also more archers from those VPs that you already have signed on?

No that's helpful. Thank you.

And second could you expand at all on the revamping of the marketing initiative.

To not only gain more V piece, but also more arches from those V piece that you already have signed on.

Yeah.

Yeah, So we have.

We have seen over the course of time, especially throughout Covid, we've seen providers coming on and and dropping off in terms of their production for implementing sleep in their practices there've been a lot of distractions for dentists as they've wrestled with.

Speaker Change: seen over the course of time, especially throughout COVID, we've seen providers coming on and dropping off in terms of their production for implementing sleep in their practices. There have been a lot of distractions for dentists as they've wrestled with...

Speaker Change: you know, practice closures and, you know, loss of staff, etc.

Practice closures and and.

Loss of staff et cetera. So.

Speaker Change: We have been out there actively in the market, retraining, new staff personnel, getting systems reinstalled back in their offices, helping them to navigate these things. And we're seeing quite a great time.

We have been out there actively in the market retraining new staff personnel.

Getting systems reinstall back in their offices, helping them to navigate these things.

And we're seeing we're seeing quite a great.

Speaker Change: degree of reception to that and we're seeing a great uptick from new purchases, new case starts from these doctors who had been either, their production had fallen off or they had

Degree of of reception to that and we're seeing a great.

Uptick from from new purchases.

Purchases New case starts from these doctors who had.

Who had been either.

Their production had fallen off or they had.

Speaker Change: sort of lost their way a little bit, so we're continuing to devote a considerable amount of our resources to reactivating or encouraging doctors to continue to grow their sleep business and their practices, and we're having some very, very encouraging success with that.

Lost their way a little bit so we're continuing to devote a considerable amount of our resources to.

To reactivating or <unk>.

Encouraging doctors to continue to grow their sleep business in their practices and we're having we're having some some very very encouraging success with that.

Speaker Change: That's helpful color. Thank you. And then that 220 patient study you mentioned sounds exciting. Any other specific publications we should be watching for in the near to midterm here?

That's helpful color. Thank you.

And then that 220 patient study you mentioned it sounds exciting any other specific publications, we should be watching for in the near to mid term here.

Speaker Change: Yeah, I think you'll see in the next little while you'll see some announcements from us with respect to important studies that have been ongoing and we'll have announcements coming out about that. But we're very, very excited about what we're seeing on the research and development

Yes, I think youll see in the next the next little while Youll see some.

Some announcements.

Announcements from us with respect to important studies that have been ongoing and we'll have a we'll have announcements coming out about that but we're very very excited about what we're seeing on the research and development front.

That sounds great.

Speaker Change: sounds great. You know, considering the departure of your CMO, any updates there you can provide on the search for a place to go.

And the departure of your CMO and any updates there you can provide on the search for replacement.

Speaker Change: No, at this point in time, you know, Dr. Singh had already somewhat scaled back his

No at this point in time, you know Dr Singh had already.

Somewhat a scaled back is.

His time and efforts here because of his sabbatical and so we had previously.

Speaker Change: time and efforts here because of his sabbatical. And so we had previously taken steps to allocate responsibilities and

Previously taken steps to allocate responsibilities and various aspects of what he was doing two other personnel within the organization or contract personnel that we hired so we feel like we're well positioned to navigate that and we are.

Speaker Change: various aspects of what he was doing to other personnel within the organization or contract personnel that we hired. So we feel like we're well positioned to navigate that and we are in discussions with a number of potential replacements. We aren't yet prepared to make any announcements about that, but we are evaluating a number of different candidates.

Our and in discussions with a number of potential replacements, we arent yet prepared to make any announcements about that but we are we're evaluating.

A different candidates at the moment.

Speaker Change: And then just lastly for me, just a little housekeeping for Brad, could you provide us the specific share count for the end of Q4, you know, not the full fiscal year, but I might have missed that in the release, but that would be helpful. We had 23 million shares.

And then just lastly for me just a little housekeeping for Brad.

But could you provide us the specific share count for the end of Q4, you know not the not the full fiscal year, but I might have missed that in the in the release, but that would be helpful.

We had 23 million shares.

Outstanding at the end of the year.

Okay. Thank you very much.

Thank you.

Speaker Change: Thank you and that does conclude today's question and answer session. I'd like to turn the conference back over to management for any additional or closing remarks.

Thank you and that does conclude today's question and answer session I would like to turn the conference back over to management for any additional or closing remarks.

Okay.

Speaker Change: I would like to thank everyone for joining us on today's call and for your continued interest in Vivo.

I would like to thank everyone for joining us on today's call and for your continued interest in vivo.

Speaker Change: I hope that throughout this call you've been able to sense the optimism that we have here for this company and its prospects as we move headlong into 2022. I don't think we've ever felt better about where we are in the stream of things and the potential that lies before us.

I hope that throughout this call you've been able to sense. The optimism that we have here for this company and its prospects as we move headlong into 2022.

I don't think we've ever felt better about where we are in the stream of things and the potential that lies before us. So we are very excited about what's happening and we're very excited about what the future holds and we appreciate each and every one of our shareholders and investors for supporting Us and for all that you do at all.

Speaker Change: So we are very excited about what's happening. We're very excited about what the future holds. And we appreciate each and every one of our shareholders and investors.

Speaker Change: for supporting us and for all that you do. I'd also like to extend a thank you to our amazing board of directors for the guidance and direction that they provide this company. They've done an absolutely amazing job of leading this company and doing the things that are necessary to position us for what lies ahead. So I wanna express our

Also like to extend a.

Thank you to our amazing board of directors for the guidance and direction that they provide this company they've done an absolutely amazing job of leading this company and and doing the things that are necessary to position us for what lies ahead. So I want to express our are on behalf of all of the management.

Speaker Change: are on behalf of all of the management here are appreciation for the active role that our board of directors is playing in our future. And also that extends as well to our medical and clinical advisory boards and all the good work that's being done out there on behalf of this company. We really, truly wouldn't be able to do what we do without them.

Here, our appreciation for the active role that our board of directors is playing in our future and also whether that extends as well to our medical and clinical advisory boards and all the good work that's being done out there on behalf of this company, we really truly wouldn't be able to do what we do without them. So.

Speaker Change: I appreciate everyone and their contributions here, and we look forward to having more positive results to report in the future. Thank you very much. Have a great day, and we'll see you next time.

<unk>, everyone and their contributions here and we look forward to having more.

Positive results to report in the future. Thank you very much.

Have a great day, and we will we will see you again soon.

Speaker Change: Thank you, and that does conclude today's conference. We thank you all for your participation. You may now disconnect.

Thank you and that does conclude today's conference. We do thank you all for your participation you may now disconnect.

Yes.

Yeah.

Speaker Change: Thank you for watching.