Q1 2024 Vivos Therapeutics Inc Earnings Call

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Good day, everyone and welcome that Aviva Therapeutics first quarter 'twenty 'twenty four earnings conference call. At this time participants are in a listen only mode.

Operator: Good day, everyone, and welcome to the Vivos Therapeutics first quarter 2024 earnings conference call. At this time, participants are in a listen only mode.

Operator: A question and answer session will follow management's remarks. This conference call is being recorded, and a replay of the day's call will be available on the investor relations section of Vivos' website and will remain posted there for the next 30 days. I will now hand the call over to Julie Gannon, Vivos Investor Relations Officer, for introductions and the reading of the Safe Harbor Statement. Please go ahead.

Speaker Change: I shouldn't 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 the next 30 days I will now hand, the call over to Julie Gannon.

Julie Gannon: Investor Relations officer for introductions and reading of the Safe Harbor statement. Please go ahead.

Julie Gannon: Thank you, operator. Hello, everyone, and welcome to our conference call. A copy of our earnings press release is available on the investor relations section of our website at www.vivos.com. With us on today's call are Kirk Huntsman, Vivos Chairman and Chief Executive Officer, and Brad Amman, Chief Financial Officer. Today we'll review the highlights and financial results for the first quarter of 2024, as well as more recent developments and Vivos plans for the rest of 2024.

Speaker Change: Thank you operator, Hello, everyone and welcome to our conference call a copy of our earnings press release is available on the Investor Relations section of our website at Www dot in vivo dot com with us on today's call are Kirk Huntsman, Nivose, Chairman and Chief Executive Officer and Brad.

Speaker Change: And then Chief Financial Officer Today, We will review the highlights and financial results for the first quarter 'twenty 'twenty four as well as more recent developments in vivo as plans for the rest of 2024. Following the formal remarks, we will be happy to take questions.

Julie Gannon: Following these formal remarks, we will be happy to take questions. 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. Words such as aim, may, could, should, projects, expects, intends, plans, believes, anticipates, hopes, estimates, goal, and variations of such words and similar expressions are intended to identify forward-looking statements.

Speaker Change: I'd also like to remind everyone that 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.

Speaker Change: Concerning future events word such as aim me could should projects expects intends plans believes anticipates hopes estimates goal and variations of such work and similar expressions are intended to identify forward looking.

Speaker Change: Statements. These statements involve significant known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant risks uncertainties and contingencies, many of which are beyond the company's control actual results, including without limitation. The result of Veeva.

Julie Gannon: These statements involve significant known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant risks, uncertainties, and contingencies, many of which are beyond the company's control. Actual results, including without limitation, the results of Vivos' growth strategies, operational plans, including sales, marketing, product acquisition and integration, research and development, regulatory initiatives, cost savings plans, and plans to generate revenue, as well as future potential results of operations or operating metrics, such as the potential for Vivos to achieve future positive cash flows or profitability, and other matters of the future.

Veeva: Those growth strategies operational plans, including sales marketing product acquisition and integration research and development regulatory initiatives cost savings plans and plans to generate revenue as well as future potential results of operations, our operating metrics such as the potential for.

Speaker Change: Vivo to achieve future positive cash flows or profitability and other matters can be addressed by vivo management. In this conference call 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.

Julie Gannon: And other matters to be addressed by Vivos' management in this conference call 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, the risk factors described and other disclosures contained in Vivos filings with the Security and Exchange Commission, including the risk factors and other disclosures in our Form 10-K for the year ended December 31, 2023, and our other filings with the SEC, including our first quarter 10-Q filed with the SEC today, all of which are or will be accessible on the Investor Relations section of Vivos' website as well as the SEC's website.

Speaker Change: The risk factors described and other disclosures contained in vivo filings with the security and exchange Commission, including the risk factors and other disclosures in our Form 10-K for the year ended December 31, 2023, and our other filings with the SEC, including our first quarter 10-Q.

Speaker Change: Filed with the SEC today, all of which are or will be accessible on the investor relations section of vivo website and as well as the Sec's website.

Julie Gannon: Except to the extent required by law, Vivos assumes no obligation to update statements as circumstances change. Finally, please be aware that the U.S. Food and Drug Administration has given certain Vivos appliances 510K clearance to treat mild to severe OSA. With FDA clearance for severe OSA last November, treatment of patients with severe OSA no longer needs to be performed off label at the clinical discretion of the treating doctor.

Speaker Change: To the extent required by law Devos assumes no obligation to update statements as circumstances change finally, please be aware that the U S food and drug administration has given certain nivose appliances, five 10-K clearance to treat mild to severe OSA with the FDA clearance for severe last note.

Speaker Change: Remember treatment of patients with severe OSA no longer needs to be performed off label at the clinical district discretion of the treating doctor as it is now an integral part of the vivo treatment protocols now at this time. It is my pleasure to introduce Brad Almond CFO of vivo Brad. Please go ahead. Thank you.

Julie Gannon: As it is now an integral part of the Vivos treatment protocol. Now, at this time, it is my pleasure to introduce Brad Amman, CFO of Vivos. Brad, please go ahead.

Speaker Change: Julie and good afternoon, everyone.

Bradford K. Amman: Thank you, Julie. And good afternoon, everyone. Today, I will review the highlights of our financial results for the first quarter of 2024. For further information on our results for the three-month period ended March 31st, 2024, please see our earnings release, which was distributed earlier today, and our quarterly report on Form 10-Q, which is available on the SEC filings portion of the investor relations section of our website, as Julie mentioned, vivos.com forward slash investor dash relations.

Bradford K. Amman: Today I will review the highlights of our financial results for the first quarter of 2024.

Bradford K. Amman: For further information on our results for the three month period ended March 31, 2024, Please see our earnings release, which was distributed earlier today and our quarterly report on Form 10-K, 10-Q, which is available on the SEC filings portion of the Investor Relations section of our website.

Speaker Change: As Julie mentioned Levo dotcom forward Slash Investor Dash relations.

Speaker Change: Today, We report first quarter 2024.

Bradford K. Amman: Today, we report first quarter 2024 total revenue of $3.4 million compared to $3.8 million for the first quarter of 2023. The year-over-year decrease was due to $400,000 lower revenue generated from VIP enrollments and $200,000 less in appliance sales, offset by an increase of approximately $100,000 in pediatric and lifeline product sales to VIPs and an increase of approximately $100,000 from revenue generated by our home sleep test ring lease program.

Speaker Change: Total revenue of $3 $4 million compared to $3 8 million for the first quarter of 2023 the year over year decrease was due to $400000 lower revenue generated from VIP enrollments and 200000 less in appliance sales offset by an increase of approximately one.

Speaker Change: $100000 in pediatric and lifeline product sales to Vips at an increase of approximately 100000 from revenue generated by our home sleep test ring lease program.

Bradford K. Amman: While revenue is essentially flat, we were pleased that the expansion of our product offerings, which were introduced last year, including the pediatric and lifeline products, have started to become additive to revenue. For example, during the first quarter of 2024, we enrolled 50 VIPs and recognized VIP enrollment revenue of approximately $900,000 compared to 36 VIPs for a total of approximately 1.3 million in revenue during the same period last year. While the number of VIP enrollments increased, revenue was impacted by updates to key inputs in our revenue recognition methodology, primarily estimated customer lives, and the addition of new entry levels into the VIP program at a lower price point.

Speaker Change: While revenue was essentially flat we were pleased that the expansion of our product offerings, which were introduced last year, including the pediatric and lifeline products.

Speaker Change: I've started to become additive to revenue.

Speaker Change: During the first quarter of 'twenty 'twenty, four we enrolled 50, Vips and recognize VIP enrollment revenue of approximately $900000 compared to 36 Vips for a total of approximately $1 3 million in revenue during the same period last year.

Speaker Change: While the number of VIP enrollments increased revenue was impacted by updates to key inputs and our revenue recognition methodology.

Speaker Change: Primarily estimated customer lives and the addition of new <unk>.

Speaker Change: Entry levels into the VIP program.

Speaker Change: Lower price point.

Bradford K. Amman: We sold 1,996 oral appliance arches during the first quarter of 2024 for a total of approximately $1.7 million, compared to 2,369 during the first quarter of 2023 for $1.8 million. The decrease in revenue is due in part to fewer product discounts in the first quarter of 2024 than in the first quarter of 2023.

Speaker Change: We sold 1996 oral appliance or just during the first quarter of 'twenty 'twenty four for a total of approximately $101.7 million compared to 2369 during the first quarter of 2023 for $1.8 million.

Speaker Change: The decrease in revenue is due in part to fewer product discounts in the first quarter of 2024, then in first quarter of 2023.

Speaker Change: Lastly, during the first quarters of 'twenty 'twenty, four and 2023, our billing intelligence services and my functional therapy services revenue remained relatively unchanged at $200000 in each of these.

Bradford K. Amman: Lastly, during the first quarters of 2024 and 2023, our billing, intelligence services, and myofunctional therapy services revenue remained relatively unchanged at $200,000 in each of these areas during the three respective periods. During the first quarters of 2024 and 2023, we also recognized $100,000 in sponsorship, seminar, and other revenue. Our revenue during the first quarter of 2024 was impacted by increases in estimated VIP customer lives, which are calculated separately each year and were estimated to be 27 months in 2024, an increase of 17% compared to 23 months in 2023.

Speaker Change: Areas during the three during these respective periods during the first quarters of 'twenty 'twenty four 2023 we also recognized a 100000 and sponsorship seminar and other revenue.

Speaker Change: Our revenue during the first quarter of 2024 was impacted by increases in estimated VIP customer lives, which are calculated separately each year and was estimated to be 27 months in 2024, an increase of 17% compared to 23 months in 2023. This impacts the amortization of revenue to be.

Bradford K. Amman: This impacts the amortization of revenue to be spread over a longer period of time, thus decreasing the revenue that is recognized over the same period when compared to 2023. Although this negatively impacts our revenue recognition, it is a result of VIPs staying active for a longer period of time, thus increasing our customer retention year over year. Additionally, our revenue is impacted by new entry levels into the VIP program, ranging from $2,500 to $50,000 and adding an $8,000 pediatric program, which was received positively by our VIPs. However, it also results in lower revenue per contract.

Speaker Change: Spread over a longer period of time, thus decreasing the revenue that is recognized over the same period when compared to 'twenty to 'twenty three.

Speaker Change: Although this negatively impacts our revenue recognition is a result of VIP staying active for a longer period of time, thus, increasing our customer retention year over year.

Speaker Change: Additionally, our revenue was impacted by new entry levels into the VIP program, ranging from $2500 to $50000 and adding an $8000 pediatric program, which was received positively by our vips.

Speaker Change: However, it also results in lower revenue per contract.

Bradford K. Amman: This, coupled with fewer enrollments in 2023, resulted in lower revenue for the first quarter of 2024. As Kirk will talk about in just a bit, in the near term, we are planning on launching a new strategic revenue initiative based on collaborations to better align our interests with referring medical professionals, which we expect to materially broaden the number of OSA patients who have access to our products and make our revenue less dependent on VIP enrollments going forward.

Speaker Change: This coupled with fewer enrollments in 2023 resulted in lower revenue for the first quarter of 'twenty 'twenty four.

Speaker Change: As Kirk will talk about in just a bit in the near term we are planning on launching a new strategic revenue initiatives based upon collaborations to better align our interest with referring medical professionals, which we expect to materially broadened the number of OSA patients who have access to our products and make.

Speaker Change: Our revenue less on VIP enrollments going forward.

Bradford K. Amman: Gross profit was $1.9 million for the first quarter of 2024, compared to gross profit of $2.3 million for the comparable period in 2023. The decrease was primarily attributable to the decrease in revenue and partially offset by a decrease in cost of sales driven by lower VIP enrollment and appliance sales. Gross margin for the first quarter of 2024 was 57% compared to 61% for the first quarter of 2023. Sales and marketing expenses were $700,000 for the first quarter of 2024 compared to slightly over $600,000 in the comparable prior year period. The slight increase represents higher sales commissions as well as sales-related and digital marketing expenses.

Speaker Change: Gross profit was $1 $9 million for the first quarter of 2024 compared to gross profit of $2 3 million for the comparable period in 2023.

Kirk Huntsman: The decrease was primarily attributable to the decrease in revenue and partially offset by a decrease in cost of sales driven by lower VIP enrollment and appliance sales.

Speaker Change: Gross margin for the first quarter of 2024 was 57% compared to 61% for the first quarter of 2023.

Speaker Change: Sales and marketing expense were $700000 for the first quarter of 2024 compared to slightly over 600000 in the comparable prior year period.

Speaker Change: The slight increase represents higher sales commissions as well as sales related and digital marketing expenses.

Bradford K. Amman: As most of you are aware, we have been significantly lowering our burn rate over the past year and a half to make our company more efficient as we seek to achieve cash flow positive operations. This trend continued in the first quarter as we again achieved a significant reduction in general and administrative expenses. For the first quarter of 2024, G&A expenses decreased by $1.6 million, or approximately 25%, to $4.9 million, compared to $6.5 million for the first quarter of last year.

Speaker Change: As most of you are aware, we have been significantly lowering our burn rate over the past year and a half to make our company more efficient as we seek to achieve cash flow positive operations.

Speaker Change: This trend continued in the first quarter as we again achieved a significant reduction in general and administrative expenses for.

Speaker Change: For the first quarter of 2020 for G&A expenses decreased by $1 $6 million or approximately 25% to $4 9 million compared to $6 5 million for the first quarter last year.

Bradford K. Amman: This year-over-year decrease reflects the success of our previously announced cost-cutting efforts and lays a foundation for positive results from operations as we look to increase revenue. Total operating expenses for the first quarter of 2024 decreased by a significant amount, 1.6 million, or 22% versus the first quarter of 2023. This represents our seventh consecutive quarter where we have reported year-over-year decreases in operating expenses, and this is mainly due to the cost-cutting initiatives we have undertaken throughout 2023 as well as in 2024.

Speaker Change: This year over year decrease reflects the success of our previously announced cost cutting efforts and lays the foundation for positive results from operations as we look to increase revenues.

Speaker Change: Total operating expenses for the first quarter of 2024 decreased by a significant amount $1 6 million or 22% versus the first quarter of 2023. This represents our seventh consecutive quarter, where we have reported year over year decreases in operating expenses and it is.

Speaker Change: Mainly due to the cost cutting initiatives, we have undertaken throughout 2023 as well as in 2024.

Bradford K. Amman: Operating loss for the first quarter of 2024 was approximately $3.8 million, a $1.2 million or 24% improvement compared to a $5 million loss for the first quarter of last year. The year-over-year decrease in operating loss was primarily due to lower GNA due to the cost-cutting initiatives I just mentioned.

Speaker Change: Operating loss for the first quarter of 2024 was approximately $3 8 million, a $1 2 million or 24% improvement compared to a 5 million dollar loss for the first quarter of last year.

Speaker Change: The year over year decrease in operating loss was primarily from lower G&A due to the cost cutting initiatives I just mentioned.

Bradford K. Amman: The net loss for the first quarter of 2024 was $3.8 million compared to a loss of $1.7 million for the first quarter of 2023. Please note the year-over-year comparison reflects a one-time benefit of $3.2 million of non-cash, other income that Vivos recognized in last year's first quarter. In the absence of the one-time benefit of $3.2 million, our net loss for the first quarter of 2023 would have been $5 million in Q1, 2023, which equates to a 24% reduction in net loss on a normalized basis.

Speaker Change: Net loss for the first quarter of 2024 was $3 8 million compared to a loss of $1 7 million for the first quarter of 2023. Please note the year over year comparison reflects a one time benefit of $3 2 million of noncash other income that vivo has recognized in last year's first quarter.

Speaker Change: In the absence of the onetime benefit of $3 2 million or net loss for the first quarter of 2023 would have been $5 million in Q1.

Speaker Change: 2023, which equates to a 24% reduction in net loss on a normalized basis.

Bradford K. Amman: To offer some additional details for clarity, in the first quarter of 2023, Vivos recognized approximately $6.5 million as a one-time non-operating expense related to the difference between the excess fare value of warrants issued in our January 2023 private placement and the net proceeds that we received from that transaction. The change in fair value of the warrant liability in the first quarter of 2023 was $9.6 million, net of issuance costs of $600,000.

Speaker Change: To offer some additional details for clarity the first quarter of 2023 gave us recognized approximately $6 seven I'm, sorry, $6 $5 million is a one time non operating expense related to the difference.

Speaker Change: Between excess fair value from warrants issued in our January 2023, private placement and the net proceeds that we received from that transaction.

Speaker Change: The change in fair value of the warrant liability in the first quarter of 2023 was $9 $6 million net of issuance costs of $600000.

Bradford K. Amman: As a result, Vivos recognized $3.2 million of non-cash other income in the first quarter of last year, which was the net impact of the private placement warrant. Please refer to our 10-Q for further details regarding. Now turning to our statement of cash flows, cash burned from operations for the quarter ended March 31, 2024, was $2.5 million, a $1 million decrease compared to $3.5 million during the comparable period last year. This decrease is due primarily to the absence of a favorable net change in fair value warrant liability of $10.2 million, offset by day one non-operating warrant expense of $6.5. For the quarter ended March 31st, 2024, net cash used in investing activities of $200,000 consisted of capital expenditures for software related to the development of VIP ordering software for internal use, which is expected to be placed into service here in the second quarter of the year. This compares to net cash used in investing activities of $300,000 in the comparable 2023 period, arising from capital expenditures for the same ordering software, as well as a $50,000 asset purchase.

Speaker Change: As a result, <unk> recognized $3 2 million of noncash other income in the first quarter of last year, which was the net impact of the private placement warrants.

Speaker Change: Please refer to our 10-Q for further details regarding this.

Speaker Change: Now turning to our statement of cash flows cash burn from operations for the quarter ended March 31, 2024 was $2 $5 million, a $1 million decrease compared to $3 5 million during the comparable period.

Speaker Change: Last year. This decrease is due primarily to the absence of a favorable net change in fair value warrant liability of $10 2 million offset by day, one nonoperating warrant expense of $6 5 million.

Speaker Change: For the quarter ended March 31, 2024, net cash used in investing activities of $200000 consisted of capital expenditures for software related to the development of VIP ordering software for internal use which is expected to be placed into service here in the second quarter.

Speaker Change: For the year.

Speaker Change: This compares to net cash used in investing activities of $300000 in the comparable 2023 period arising from capital expenditures for the same ordering software as well as a 50000 dollar asset purchase.

Bradford K. Amman: For the quarter ended March 31, 2024, net cash provided from financing activities of 3.6 million related to our February warrant inducement transaction. This compares to net cash provided from financing activities in the comparable 2023 period of $7.4 million, reflecting our January 2023 private placement. As previously announced, to augment our liquidity position and stockholders' equity, in February 2024, Vivos entered into an agreement for the exercise of an outstanding common stock purchase warrant held by an institutional investor to purchase an aggregate of 980,393 shares of Vivos' common stock for gross proceeds to the company of approximately $4 million. This transaction closed on February 20, 2024. As of March 31st, 2024, we had $2.6 million in cash and cash equivalents compared to $1.6 million as of December 31st, 2023.

Speaker Change: For the quarter ended March 31, 2024, net cash provided from financing activities of $3 6 million related to our February warrant inducement transaction.

Speaker Change: This compares to net cash provided from financing activities in the comparable 2023 period.

Speaker Change: Seven 4 million, reflecting our January 2023 private placement.

vivo: As previously announced to augment our liquidity position and stockholders equity in February 2020 for vivo has entered into an agreement for the exercise of an outstanding common stock purchase warrants held by an institutional investor to purchase an aggregate of 980393 <unk>.

vivo: Theres a veeva common stock for gross proceeds to the company of approximately $4 million. This transaction closed on February 20th 2024.

vivo: As of March 31, 2024, we had $2 $6 million in cash and cash equivalents compared to $1 6 million as of December 31, 2023.

vivo: In conclusion during the first quarter, we continued taking steps to drive future revenue growth.

vivo: To strengthen our cash position and to improve our cost structure and reduce cash burn our progress gives us renewed confidence in our long term prospects and we continue to target becoming cash flow positive from operations by the end of 2024, our first quarter of 2025.

Speaker Change: I want to thank you all again for joining us on today's conference call now, it's my privilege to turn the call over to Kirk Huntsman Chairman and CEO.

Bradford K. Amman: In conclusion, during the first quarter, we continued taking steps to drive future revenue growth, strengthen our cash position, and improve our cost structure and reduce cash burn. Our progress gives us renewed confidence in our long-term prospects, and we continue to target becoming cash flow positive from operations by the end of 2024 or first quarter of 2025. I want to thank you all again for joining us on today's conference call. Now it's my privilege to turn the call over to Kirk Huntsman, Chairman and CEO. Curt, please go ahead.

Speaker Change: Kurt Please go ahead.

Kirk Huntsman: Thank you Brad.

Kirk Huntsman: Thank you, Brad. Good afternoon, everyone, and thank you for joining us on today's conference call. Today, in my remarks, I'd like to do two things: discuss our progress on the concrete initiatives we've been actively engaged in here at Vivos, and then give you my perspective on the strategic opportunities that are about to launch that we expect to dramatically impact our revenue and future growth. After that, we'll be happy to take your questions.

Kirk Huntsman: Good afternoon, everyone and thank you for joining us on today's conference call.

Kirk Huntsman: Today in my remarks, I would like to do two things disc.

Kirk Huntsman: Discuss our progress on the concrete initiatives, we've been actively engaged in here at <unk> and then give you my perspective on the strategic opportunities that are about to launch that we expect to dramatically impact our revenue and future growth.

Kirk Huntsman: After that we will be happy to take your questions.

Kirk Huntsman: As we have previously stated, our primary focus at Vivos for the past couple of years has been to get cash flow positive as soon as possible. Our goal has been to accomplish this through a dual strategy of driving top-line revenue growth, coupled with phased-in expense reduction. As Brad just highlighted, our cost-reduction initiatives have been strategic, methodical, and consistently applied over the past seven consecutive quarters. And we were careful not to cut so deep that we impacted our revenues.

Speaker Change: As we have previously stated our primary focus at vivo has for the past couple of years has been to get cash flow positive as soon as possible.

Kirk Huntsman: Our goal has been to accomplish this through a dual strategy of driving topline revenue growth coupled with phased in expense reductions.

Kirk Huntsman: As Brad just highlighted our cost reduction initiatives have been strategic.

Kirk Huntsman: Methodical.

Speaker Change: And consistently applied over the past seven consecutive quarters, and we were careful not to cut so deep that we impacted our revenues.

Kirk Huntsman: Such cost reductions continue as we right-size our business and execute our go-forward plan. On the revenue front, the growth initiatives that we've announced in the past have included the following eight key items. One, targeting large and small DSO groups, and DSO dental groups.

Kirk Huntsman: Such cost reductions continue as we rightsize, our business and execute our go forward plans.

Kirk Huntsman: On the revenue front the growth initiatives that we've announced in the past have included the following key items.

Kirk Huntsman: One.

Kirk Huntsman: Targeting large and small DSO groups DSO dental groups too.

Kirk Huntsman: [inaudible] signing distribution Agreements with DME companies such as Lincare. Unknown Attendee, Julie Gannon, Lucas Ward, Vivos Therapeuti, Lucas Ward, Vivos Therapeuti, Adding enhanced and diverse product lines featuring new technologies and services, and publishing groundbreaking new peer-reviewed research. Five, expanding insurance and Medicare coverage for Vivos products. Six, Achieving Key New Regulatory Approvals Two of them, by the way, were unprecedented.

Kirk Huntsman: Signing distribution agreements with <unk> companies such as Lincare.

Kirk Huntsman: Three.

Kirk Huntsman: Adding enhanced and diverse product lines, featuring new technologies and services.

Kirk Huntsman: For publishing groundbreaking new peer reviewed research.

Kirk Huntsman: Five expanding insurance and Medicare coverage for <unk> products.

Kirk Huntsman: Six achieving key new regulatory approvals.

Kirk Huntsman: Two of which by the way were unprecedented.

Kirk Huntsman: Seven, establishing and refining our treatment navigator program, and eight, executing on our kickoff and boost programs for Vivos-trained dentists. Each of these revenue growth initiatives has been at the forefront of our efforts to drive near-term top-line revenue growth. And while each of those efforts is progressing, and even though we've accomplished many important milestones in each of those areas, Frankly, none of them is generating the material top-line sales and revenue growth that we need today, given our resources and realistic runway.

Kirk Huntsman: Seven establishing and refining our treatment navigator program and eight executing our on our kickoff and boost programs for vivo trained dentists.

Kirk Huntsman: Each of these revenue growth initiatives has been at the forefront of our efforts to drive near term topline revenue growth.

Kirk Huntsman: While each of those efforts is progressing.

Kirk Huntsman: And even though we've accomplished many important milestones in each of those areas.

Speaker Change: Frankly, none of them is generating the material topline sales and revenue growth that we need today, given our resources and realistic runway.

Kirk Huntsman: To be clear, we continue to see great long-term growth potential in all of those areas and fully expect to realize significant revenue accretion over time as those initiatives mature and continue to progress. However, management fully recognizes the hard reality that this company needs to generate substantial and immediate cash flow and eliminate our monthly burn.

Speaker Change: To be clear, we continue to see great long term growth potential in all of those areas and fully expect to realize significant revenue accretion over time as those initiatives mature and continue to progress.

Speaker Change: However management fully recognizes the hard reality.

Speaker Change: That this company needs to generate substantial and immediate cash flow and eliminate our monthly burn.

Kirk Huntsman: Thus, we have been exploring and negotiating several important new and pending channel relationships, whereby Vivos will be able to accomplish the following. One, to gain immediate access to put Vivos treatment directly in front of hundreds and potentially thousands of OSA patients each month who have either failed CPAP or who declined CPAP and who are likely, highly likely, to enter into Vivos treatment. Two, to leverage our proven operational abilities to close nine out of ten new OSA cases. And three, to tap into significant additional gross margin, as much as four to five times current levels on each new Vivos case start.

Speaker Change: Thus, we have been exploring and negotiating several important new and pending channel relationships, whereby <unk> will be able to accomplish the following.

Kirk Huntsman: Four, to expand the scope of our clinical services to access the massive and untapped market for pediatric patients. Fifth, to add important new channels with immediate potential access to millions of OSA patients across the United States and Canadian markets, and fully leverage our highly trained group of assisting professionals we call Treatment Navigators. 7th to extend our Vivos brand into both the medical professional community as well as the general public, and to get cash flow positive by the end of 2024 or the first quarter of 2025.

Speaker Change: One.

Speaker Change: To gain immediate access to put patient to put vivo treatment directly in front of hundreds and potentially thousands of OSA patients each month whoever.

Speaker Change: Who have either failed CPAP or who declined CPAP and who are likely highly likely to enter into vivo treatment.

Speaker Change: Two.

Speaker Change: To leverage our proven operational abilities to close nine out of 10, new OSA cases.

Speaker Change: Three to tap into significant additional gross margin as much as 4% to five times current levels on each new vivo case start.

Speaker Change: For to expand the scope of our clinical services to access the massive an untapped market for pediatric patients.

Speaker Change: Fifth to add important new channels with immediate potential to access potential access to millions of OSA patients across the United States and Canadian markets.

Speaker Change: Sixth to fully leverage our highly trained group of assisting professionals, we call treatment navigators.

Speaker Change: <unk> to extend our vivo brand into both the medical professional community as well as the general public.

Speaker Change: Eight to get cash flow positive by the end of 2024.

Speaker Change: Or the first quarter of 2025.

Kirk Huntsman: As an indicator of our progress, we've already begun initial operational integration activities with our first target affiliation, which we expect to finalize and go live on or during the coming weeks. We can't yet name names or share final fine details at this point, since the ink isn't quite dry just yet. But we hope to be able to make a more formal announcement about this in the very near future. But here's what we can say about it.

Speaker Change: As an indicator of our progress we have already begun initial operational integration activities with our first target affiliation.

Speaker Change: Which we expect to finalize and go live on ore during the coming weeks and are in deep discussions with other firms, which will all hold similar kinds of opportunities to accomplish what we've listed above.

Speaker Change: We can't yet named names are sure final deep fine fine details at this point.

Speaker Change: Since the ink is quite dry just yet but.

Speaker Change: But we hope to be able to make a more formal announcement about this in the very near future.

Speaker Change: But here's what we can say about this initiative.

Kirk Huntsman: Under this new and enhanced revenue and operating model, with its expanded focus on collaborations with the medical and sleep testing communities, Vivos immediately becomes far less dependent on the single channel of dentistry. At the same time, Vivos effectively becomes more vertically integrated, allowing it to better influence and improve the patient journey and overall treatment experience while profiting from the multiple levels of patient interaction and value creation. Importantly, this model is not expected to require a lot of capital expenditure by Vivos, as it is driven by collaborations focused on the joint success of both parties.

Speaker Change: Under this new and enhanced revenue and operating model with its expanded focus on collaborations with the medical and sleep testing communities reverse immediately becomes far less dependent on a single channel of dentistry.

Speaker Change: At the same time, vivo secondly becomes more vertically integrated allow us, allowing us to better influence and improve the patient journey and overall treatment experience, while profiting from the multiple levels of patient interaction and value creation.

Speaker Change: Importantly, this model is not expected to require a lot of capital expenditure by vivo and it is as it is driven by collaborations focused on the joint success of the parties.

Kirk Huntsman: In getting to this point, we should note that management spent countless hours working with third-party legal and financial experts in evaluating and analyzing every conceivable aspect of this new endeavor, from the financial modeling and core assumptions to the specific legal structures required under federal and state healthcare laws, to medical reimbursement rules for both in- and out-of-network coverage, to state-level corporate practice of medicine laws, to fee-splitting prohibitions, and more. The end result is believed to be a comprehensive and highly profitable model that has been proven in other aspects of healthcare but, to our knowledge, is unprecedented in the world of sleep medicine.

Speaker Change: And getting to this point, we should note that management spent countless hours working with third party legal and financial experts in evaluating and analyzing every conceivable aspect of this new endeavor from the financing from the financial modeling and core assumptions to those specific legal structures required.

Speaker Change: <unk> under federal and state healthcare laws to medical reimbursement rules for both in and out of network coverage to state level corporate practice of medicine laws to fee splitting prohibitions and more.

Speaker Change: The end result is believed to be a comprehensive and highly profitable model that has been proven in other aspects of health care, but to our knowledge is unprecedented in the world of sleep medicine.

Kirk Huntsman: We further believe that this gives Vivos a critical first mover strategic and competitive advantage in the market. Management's extensive prior experience in successfully operating large multi-market DSOs, or dental support organizations, was especially useful in conceptualizing and creating this unique new structure. The harsh truth for all oral appliance companies is that working exclusively through the dental channel will never allow this type of advanced technology to reach its full potential.

Speaker Change: We further believe that this that this gives <unk> a critical first movers strategic and competitive advantage in the market.

Speaker Change: Managements extensive prior experience in successfully operating large multimarket dsos or dental support organizations was especially useful in conceptualizing and creating this unique new structure.

Speaker Change: The harsh truth for all oral appliance companies is that working exclusively through the dental channel will never allow this type of advanced technology to reach its full potential.

Kirk Huntsman: However, without the experiences and insights gained throughout our journey of the past several years here at Vivos, none of what we are about to do would even be possible. What we've learned along the way and how those insights have informed our current go-forward strategy is what is most important now. Of paramount importance in the full realization of our market strategy will always be our intense interest in and focus on the patient journey and Optimal Clinical Outcomes. In the long run, nothing else will matter more.

Speaker Change: However, without the experiences and insights gained throughout our journey over the past several years here at vivo none of what we are about to do would even be possible.

Speaker Change: We've learned along the way and how those insights have informed our current go forward strategy is what is most important now.

Of Paramount importance in the full realization of our market strategy will always be our intense interest in and focus on the patient journey.

And optimal clinical outcomes.

Speaker Change: In the long run nothing else will matter more.

Kirk Huntsman: We continue to boldly and unapologetically assert our firm belief that VivosCare oral medical devices and the Vivos method will one day become the new gold standard for treatment of breathing and sleep disorders such as obstructive sleep apnea. And further, we fully expect our new model will facilitate a degree of renewed health and wellness on a scale never before seen by any other treatment. And that is how we expect to win

Speaker Change: We continue to boldly and Unapologetically assert our firm belief that devos care oral medical devices and the vivo method will one day become the new gold standard for treatment of breathing and sleep disorders, such as obstructive sleep apnea and further we fully expect our new model.

Speaker Change: We will facilitate a degree of renewed health and wellness on a scale never before seen by any other treatment.

Speaker Change: And that is how we expect to win.

Kirk Huntsman: Everybody knows by now the things that we've accomplished to date, how we've done the heavy lifting of third-party research to prove the safety and efficacy of our technology beyond any reasonable doubt. How we've leveraged that research to obtain mission-critical and, in some cases, unprecedented regulatory approvals from around the world, how we've painstakingly established provider networks that can handle tens of thousands of cases, and how we built the systems and protocols to ensure the very best patient outcomes possible. All of that is now ready.

Speaker Change: Everybody knows by now the things that we've accomplished to date, how we've done the heavy lifting of third party research to prove out the safety and efficacy of our technology beyond any reasonable doubt.

Speaker Change: How we've leveraged that research to obtain mission critical and in some cases unprecedented regulatory approvals from around the world.

Speaker Change: How we painstakingly establish the provider networks that can handle tens of thousands of cases.

Speaker Change: And how we built the systems and protocols to ensure the very best patient outcomes possible.

Speaker Change: All of that is now ready.

Kirk Huntsman: What remains now is for this company to monetize that foundation and begin to reap the financial harvest that is finally at hand. Our team is up for the challenge, and as I said, we look forward to sharing more details soon and also to reporting on our progress over the course of the next several quarters as we reach new milestones and achieve our stated objectives. That concludes our prepared remarks. Now, we'll be happy to take questions.

Speaker Change: What remains now is for this company to monetize that foundation and begin to reap the financial harvest that is finally at hand.

Speaker Change: Our team is up to the challenge and as I said, we look forward to sharing more details soon and also to reporting on our progress over the course of the next several quarters as we reach new milestones and achieve our stated objectives.

Speaker Change: That concludes our prepared remarks now.

Speaker Change: Now, we'll be happy to take questions operator, do we have any questions.

Kirk Huntsman: Operator, do we have any? Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the number one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star followed by the number 3. If you are using a speakerphone, please lift the headset before pressing any key.

Speaker Change: Yeah.

Speaker Change: Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press the star followed by the number one on your thoughts going forward.

Speaker Change: We'll hear a problem that you had has been great.

Speaker Change: Should you wish to decline from the polling process. Please press the star followed by denim breakthrough.

Speaker Change: You are using a speaker phone please yes.

Speaker Change: The handset before pressing and Nicky.

Operator: One moment, please, for your first question. Your first question comes from the line of Lucas Ward from Ascendant Capital Market. Your line is now open.

Speaker Change: One moment. Please for your first question.

Speaker Change: Your first question comes from the line of Lukas wide from Ascendant capital market. Your line is now open.

Lucas Ward: Thank you, operator, and good afternoon, gentlemen. Congratulations on your hard work and your business progress. Thank you, Lucas.

Speaker Change: Thank you operator, and good afternoon, gentlemen, congratulations on your hard work and your business progress.

Speaker Change: Thank you. Thank you.

Speaker Change: Okay.

Lucas Ward: Thank you. Regarding the new channel relationships that you're talking about, I mean, obviously, we've heard about the DMEs and the DSOs. Can you expound on the nature of these relationships?

Speaker Change: So regarding the the new channel relationships that Youre talking about I mean, obviously, we've heard about the <unk>. The dsos can you expand on the nature of these of these relationships like what type of entity or are we talking about and how would it be different from the distribution agreements that you've already talked about.

Kirk Huntsman: Like what type of entity are we talking about, and how would it be different from the distribution agreements that you've already talked about? Yes, that's a great question. And it's one that I'll do the best I can with giving you an answer based on what I can say today. But, and one of the reasons for that, Lucas, is that the nature of the organizations that we're targeting will vary somewhat. They could be large medical groups. They could be hospitals. They could be sleep testing centers and facilities. [inaudible] Any number of, you know, similar or affiliated type groups like that.

Speaker Change: Yes, that's a great question and it's one that.

Speaker Change: I'll do the best I can with giving you an answer with what I can say today, but.

And what are the reasons for that Lucas is that the nature of the organizations that we're targeting is will vary somewhat they could be.

Speaker Change: Large.

Speaker Change: Medical groups.

Speaker Change: They could be hospitals.

Speaker Change: There could be.

Speaker Change: <unk> testing centers and facilities.

Speaker Change: They could be.

Speaker Change: Any number of.

Speaker Change: Similar or affiliated type groups like that for example, we have.

Kirk Huntsman: For example, we have a prospective relationship happening with a large ENT group out in California. We have some testing groups that we're working with, some sleep testing groups. And so one of the things that all of these groups have in common is that they all have CPAP failure patients that they don't know what to do with, or they have patients that are just beginning their journey who have just tested positive for obstructive sleep apnea and need to know what their treatment options are.

Speaker Change: A prospective relationship happening with a large E&P group.

Speaker Change: In California, we have.

Speaker Change: Some some testing groups that we're working with some sleep testing groups and so one of the things that all of these groups have in common is that they all have CPAP failure patients that they don't know what to do with <unk>.

Speaker Change: Or they have patients that are just beginning their journey, who are just tested positive for obstructive sleep apnea and need to know what their treatment options are in today's world of insurance driven health care most of these OSA patients.

Kirk Huntsman: In today's world of insurance-driven healthcare, most of these OSA patients are automatically given a CPAP device to go home with. The industry, tongue-in-cheek, refers to this as the SLAP and PAP model or the PAP and SLAP models.

Speaker Change: Are automatically given a CPAP device to go home with.

Speaker Change: The industry sort of tongue in cheek refers to this as the slap in Pap model.

Kirk Huntsman: I'm not sure which way to go. I'm not sure whether the PAP or the SLAP comes first. But it's a model where patients are basically given very little education about their condition, given very little information about treatment options and alternatives, and are given very little information about the risk that they're at given their condition or what the future might hold if they don't treat it. And so in the current insurance-based model, many patients are left just sort of to figure it out on their own, and they feel overwhelmed, they feel ill-informed, and they feel like they really don't want what they're about to use, which is the CPAP device, and yet they don't know what their other alternatives are.

Or pap and slap Mark not sure, which way I'm not sure whether the path or the slap comes first but it's it's a model that is where the patients are basically.

Speaker Change: Given very little education about their condition, given very little information about treatment options and alternatives.

Speaker Change: Where they are given very little.

Speaker Change: Information about the risks that they're at given their condition or what the future might hold if they don't treat it.

Speaker Change: So and so in this in the current insurance based model. Many patients are left just sort of to figure it out on their own and they feel overwhelmed they feel.

Speaker Change: Ill informed and they feel like they they really don't want what they're about to use which is the CPAP device and yet they don't know what their other alternatives are in our new model, we will be bringing a comprehensive panel of treatment options to the table for these these patients as well as CPAP.

Kirk Huntsman: In our new model, we'll be bringing a comprehensive panel of treatment options to the table for these patients, as well as CPAP. We'll be introducing our entire line of oral appliance therapy. And in our experience, what we have found is that the vast majority of these patients, when presented with all the options and all the in working with their sleep specialist or their PCP doctor, we find that the patients almost always will opt to try to get well, which means that they will opt for the VivosCare treatment option, even though it costs a little more money, even though their insurance coverage is not 100%. They will opt for that coverage, in our experience, probably 9 out of 10 times.

Speaker Change: Will be introducing our entire line of oral appliance therapy and in our experience. What we have found is is that the vast majority of these patients when presented with all of the options and all the information thats necessary for them to make a good decision.

Speaker Change: And working with their sleep specialist or their PCP doctor.

Speaker Change: We find that the that the patients almost all the time, we'll up to try to get well, which means that they will opt for.

Speaker Change: The vivo as care treatment option, even though our costs a little more money, even though the insurance coverage is not 100%.

Speaker Change: They will opt for that coverage in our experience probably nine out of 10 times.

Kirk Huntsman: And so we've been testing out these systems and these protocols, these processes, and when we put our teams in front of massive new numbers of these patients, we fully expect to be able to close those cases and receive payment from those cases. And the difference now is that we'll be realizing revenue from the deep end of the pool. We'll be realizing profit margins that have only heretofore been realized by independent practitioners from wherever they may be, and now the professionals will work for our MSO or for our DSO.

Speaker Change: So we've been testing out the systems and these protocols these processes and when we put our teams in front of massive new numbers of these patients we fully expect to be able to close those cases and receive payment from those cases and the difference now.

Speaker Change: That will be we'll be realizing the revenue from the deep end of the pool will be realizing the profit margins that are only heretofore been realized by independent practitioners from wherever they may be and now those.

Speaker Change: The professionals will work for our NSO or for our DSO.

Speaker Change: And those professionals will be medical doctors and dentists, who will just.

Speaker Change: Basically be doing nothing but but.

Speaker Change: Obstructive sleep apnea full time. So so the reason why this is different is because these patients already exist they are readily available.

Kirk Huntsman: And those professionals will be medical doctors and dentists who will basically be doing nothing but treat obstructive sleep apnea full-time. So the reason why this is different is because these patients already exist, they're readily available, they have a need, an immediate need to get treatment, and now we're partnering with the very firms that direct these patients today, and we're saying, hey, instead of telling these patients to go down the hall and turn left, have them go down the hall and turn right, and there they can get the full measure of education and resources to make a fully Those of you who want to go into CPAP, great. Those of you who want to go into mandibular advancement or appliances, great.

Speaker Change: They have a need an immediate need to get treatment and now we are partnering with the with the very firms that are directing these patients today, and we're saying hey, instead of telling these patients to go down the hall in turn left had them go downhaul and turn right and and there you can get the full measure of.

Lucas Ward: Those of you who want to go into vivos, great. And we fully expect to benefit greatly from that relationship. So that's sort of a lot more information than you probably wanted, but that's where we're going. Okay, Kirk, thanks. So if I hear you correctly, it sounds like the big difference with these new partners is that they already have live patients; they're dealing with the end customer. Unknown Attendee. I guess I have a follow-up question. Bradford Amman, Unknown Attendee.

Speaker Change: Education and resources to make a fully informed decision those of you who want to go into C. Pap great. Those of you want to go into Mandibular advancement oral appliances, great. Those of you want to go into vivo scraped and we fully expect to benefit greatly from that relationship. So.

Speaker Change: That's sort of a lot more information than probably you wanted but that's that's where we're going.

Speaker Change: Okay clear thanks.

Speaker Change: I hear you correctly it sounds like the big difference with these new partners is that they already have live patients they're dealing with the end customer.

Speaker Change: Okay.

Unknown Attendee: We don't have any? That's fair. Unknown Attendee.

Speaker Change: And although up quite don't have any.

Speaker Change: Yes go ahead go ahead.

Speaker Change: So a follow up would be like what do you need to do to execute those opportunities I mean, how resources tend to visit for you to be able to actually service.

Unknown Attendee: Yeah. Yeah, go ahead. So a follow-up question would be, what do you need to do to execute those opportunities? I mean, how resource-intensive is it for you to be able to actually service these partners and their patients? Well, we have the teams that are trained.

Speaker Change: These partners and their patients.

Kirk Huntsman: We've been taking teams and putting them out in the field to gain experience and expertise working with patients all around the country. We've done this from coast to coast and north and south throughout the United States. And so we were very, very well versed in our methodologies and our systems. We know how to close cases. We know how to get patients into treatment, and now all we have to do is just work with them. So, for example, let me just give you an example of a testing company.

Speaker Change: Well, we have the teams that are trained we've been we've been taking teams and putting them out in the field to to gain experience and expertise working with patients all around the country we've done.

Speaker Change: We've done this from coast to coast, and North and south throughout throughout the United States and so we were very very well versed in.

Speaker Change: Our our methodologies in our systems, we know how to close the cases, we know how to get patients into treatment and now all we have to do is just work with these.

Speaker Change: So for example, let me just give you. The example of a testing company. So sleep testing company, that's performing sleep tests, so they send a patient.

Kirk Huntsman: So, a sleep testing company that's performing sleep tests. So they send a patient, a prospective OSA patient, they send them a test, a sleep test, a home sleep test. That home sleep test will give the testing company information about how much it will cost, let's just say two hundred dollars. That's probably a little bit on the high end, but let's just say it's two hundred dollars.

Speaker Change: <unk> OSA patient they send them a.

Speaker Change: A test.

Speaker Change: Leap test of home sleep test that home sleep test will yield to that testing company, probably let's just say $200 thats, probably a little bit on the high end, but let's just say it's $200.

Kirk Huntsman: Well, by the time they do all the things that they've got to do, they may make $100 on that case, and then they'll contract out for a physician to read it, a sleep physician, and the sleep physician may make $50 for reading and interpreting the test. Under our new model, the dentist has historically made, let's just say circa $5,000 to $6,000, maybe $8,000 on a case.

Speaker Change: By the time, they do all the things that they've gotta do they may make $100 on that case.

Speaker Change: And then they have the contract out for a physician.

Speaker Change: To read it a sleep physician in a sleep physician may make 50 bucks for reading and interpreting the test.

Speaker Change: Under our new model.

Speaker Change: The dentist has historically made.

Speaker Change: Let's just say circa 5% to $6000, maybe $8000 on a case.

Kirk Huntsman: So the order of magnitude that the dentists have been realizing in these cases is dramatically disproportionate to the amount of money being made by the by the medical community and the testing companies. By bringing the testing company into our MSO network, we can then redistribute the amount of money that is being compensated for them. And so they have an opportunity to make far more money than they ever made before. And that incentive is very strong.

Speaker Change: So the order of magnitude that the dentists have been realizing on these cases is is dramatically disproportionate to the amount of money being made by the by the.

Speaker Change: By the medical community and the testing company.

Speaker Change: By bringing the testing company into our MSL network.

Speaker Change: We then can re allocate the amount of money that is being that is being compensated for them and so they have an opportunity to make far more money than they ever made before and that incentive is as strong and so.

Kirk Huntsman: And so they will work, and we will work collaboratively to make sure that patients are given the same treatment options, every opportunity to go to whatever makes the most sense. At the end of the day, from our experience, we know more of them will choose the kind of treatment that we have available. Okay, gotcha.

Speaker Change: They will work and we will work collaboratively to make sure that patients are given the same treatment options every opportunity to go to whatever makes the most sense at the end of the day. We are from our experience. We know more of them will choose the kind of treatment that we have available.

Lucas Ward: Thank you. If I could just one more follow-up. You've announced, you've made a very few powerful announcements, a very powerful number of announcements. One, that your care devices are FDA approved for severe sleep apnea treatment and also that you're eligible, those devices are eligible for Medicare reimbursement.

Speaker Change: Okay got you. Thank you.

Speaker Change: If I could just one more follow up.

Speaker Change: You've announced you've made very few powerful announcements.

Speaker Change: Powerful amount announcements.

Speaker Change: One that Youre care devices are approved FDA approved for severe sleep apnea.

Speaker Change: Treatment and also that Youre eligible those devices are eligible for Medicare reimbursement.

Lucas Ward: I guess my question is, I mean, that sounds great, but how does it work? How do you monetize that? How does that impact your business model, your revenue opportunities, your sales, and marketing? Well, the first thing is, thank you for that, by the way, Lucas. The first aspect of that is a certain credibility that comes along with having the world's only FDA-cleared oral appliance device to treat severe sleep apnea. Roughly 20% of all sleep apnea cases are severe, but probably 80% of all of the comorbidities and serious conditions that OSA causes and creates are among the severe population.

Speaker Change: I guess my question is I mean that sounds great, but how does it.

Speaker Change: How do you monetize that like how does that impact your your business model your revenue opportunities your sales and marketing.

Kirk Huntsman: So our ability to treat severe and to treat it very cost-effectively is really garnering a tremendous amount of attention among medical providers and the medical community. So this is elevated vivo to an entirely new level of respect and an entirely new level of credibility, and the conversations that are happening today with medical providers around the country as a result of this severe clearance. They would never have happened a year, two years, three years ago, and they're happening today.

Speaker Change: For the first thing is thank you for that by the way Lucas.

Speaker Change: First aspect of that is a certain credibility that comes along with having the worlds only FDA cleared oral appliance device to treat severe sleep apnea roughly.

Speaker Change: Roughly 20% of all sleep apnea cases are severe.

Speaker Change: But probably 80% of all of the co morbidities and severe conditions that that OSA causes and creates are among severe the severe population so for our ability to treat severe and to treat it very cost effectively as is.

Speaker Change #100: Really garnering a tremendous amount of attention.

Speaker Change #101: On the medical providers and the medical community. So this is this is elevated devos.

Speaker Change #102: Into an entirely new.

Speaker Change #102: Sure.

Level of respect.

Speaker Change #102: And an entirely new level of credibility.

Speaker Change #103: And the dialogues that are happening today with medical providers around the country as a result of the severe clearance. They never would have happened a year two years three years ago, and they're happening today, and so we're seeing more and more medical doctors getting very very comfortable with with recommend.

Kirk Huntsman: And so we're seeing more and more medical doctors getting very, very comfortable with recommending our therapy to patients. And that tends to drive more patients to the therapy. It tends to provide patients with a much greater level of confidence in the technology. And it just opens the door to so many different levels of collaboration and opportunities to work with the medical community that were just never there before. Dentistry has always operated in a silo, and that silo has really been somewhat resented by the medical community historically and never fully embraced.

Speaker Change #103: <unk> our therapy to patients so that tends to drive more patients to the therapy. It tends to provide patients with a much greater level of confidence in the technology.

Speaker Change #104: And it just it just opens the door for so many different levels of collaboration and opportunities to work with the medical community that have just never been there before dentistry has always operated in a silo.

Speaker Change #104: And that silo has really been somewhat resented by the medical community historically.

Speaker Change #105: And never fully embraced with our clearance we noticed almost immediately that the medical community sort of sat back and said Wow. This is really interesting to hear how did this happen and who are these people and what does this technology and what does it do and why is it different and all of a sudden all of these questions started to arise and we.

Kirk Huntsman: With our clearance, we noticed almost immediately that the medical community sort of sat back and said, "whoa, this is really interesting here." How did this happen? And who are these people? And what is this technology? And what does it do? And why is it different?

Kirk Huntsman: And all of a sudden, all these questions started to arise. And we see this happening and building a lot of momentum as we go into the future here. So it takes a little bit of time.

Speaker Change #106: We see this happening in building a lot of momentum as we go into the.

The future here. So it takes a little bit of time this isn't hasn't happened overnight, but now on the Medicare front. It's just another wallet on the table for patients that may need some assistance.

Kirk Huntsman: This isn't happening overnight. But on the Medicare front, it's just another wallet on the table for patients that may need some assistance in terms of how they pay for this. And whether in-network or participating Medicare providers, Medicare patients now have additional assistance in paying for their treatment.

Speaker Change #106: In terms of how they pay for this and.

Speaker Change #107: Whether in network or participating Medicare providers.

Speaker Change #107: Medicare patients now have additional assistance in and paying for their treatment. So it's another wallet on the table.

Lucas Ward: So it's another wallet on the table. Okay, thank you very much, Yvette, and speakers. There are no further questions at this time. I would like to hand over the call to Kirk Huntsman, Chairman and Chief Executive Officer. Please continue.

Speaker Change #107: Okay.

Speaker Change #108: Okay. Thank you very much.

Speaker Change #109: You bet.

Speaker Change #109: And speakers there are no further questions at this time I would like to hand over the call to Greg Huntsman, Chairman and Chief Executive Officer. Please continue.

Kirk Huntsman: Thank you, operator. I would just like to thank everyone for joining us on today's call and for your continued interest and support of Vivos Therapeutics. We know this has been a long journey, but I think it's safe to say that, despite all the adversity and all the opposition and all the things that we've had to overcome, I think it's safe to say that we've never felt more optimistic about our future and about the growth and prospects for this company going forward.

Greg Huntsman: Thank you operator.

Kirk Huntsman: And we look forward to sharing our continued progress with you as we continue to execute on our plans that we just announced throughout 2024 and beyond. Thank you all, and have a great evening. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. [inaudible]

Greg Huntsman: I would just like to thank everyone for joining us on today's call and for your continued interest and support of vivo Therapeutics. We know this has been a long journey.

Greg Huntsman: <unk>.

Greg Huntsman: I think it's safe to say that we have despite all the adversity and all the opposition and all the things that we've had to overcome I think it's safe to say that we've never felt more optimistic about our future and about the growth and prospects for this company going forward and we look forward to sharing our continued progress with you as we.

Greg Huntsman: To execute on our plans that we just announced throughout 2024 and beyond Thank you all and have a great evening.

Greg Huntsman: Yeah.

Speaker Change #111: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation you may now disconnect.