Vivos Therapeutics, Inc.
For the period ended Jun 30, 2025. Filed Aug 19, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 19, 2025
VVOS$0.09-8.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-15.
0001641172-25-010874
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-19.
0001641172-25-024832
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 66 previous paragraphs and 108 current paragraphs.
32 unchanged; 25 reworded; 49 added; 7 removed; 2 previous and 2 current paragraphs rearranged.
Tables are not compared: 2 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (49)
Current report
In June 2024, as our initial entry into our new sales, marketing and distribution model, we entered into our first contractual alliance with Rebis Health, a sleep center operator in Colorado. Revenues from this arrangement have not developed as we had expected for many reasons beyond our control, but we learned important lessons which have led to changes to this model.
Current report
In an important milestone in our business model pivot we undertook during 2024 and 2025, on June 10, 2025, we acquired the net operating assets of R.D. Prabhu-Lata K. Shete MDs, LTD., a Nevada professional corporation d/b/a The Sleep Center of Nevada (“SCN”) pursuant to an Asset Purchase Agreement dated April 15, 2025 (the “SCN Purchase Agreement”) whereby we agreed to purchase the net operating assets and liabilities related to SCN’s sleep testing, diagnostics, and treatment centers (the “Acquisition”) from SCN’s shareholders Prabhu Rachakonda, M.D. (“Dr. Prabhu”) and Lata K. Shete, M.D.
Current report
With seven operating locations, SCN delivers and promotes sleep wellness and health through its proprietary, non-invasive treatments for OSA and is the largest operator of medical sleep centers in the state of Nevada. The Acquisition represents our first major acquisition of a sleep testing center and associated medical sleep practice. We funded the consideration for the Acquisition at closing by issuing a senior, non-convertible, secured term note to Streeterville Capital, LLC (the “Lender”) in the principal amount of $8.2 million. We also entered into a securities purchase agreement with V-Co Investors 2 LLC, a Wyoming limited liability company and affiliate of an existing significant investor in our company (“V-Co 2”), for a private placement of common stock and warrants in consideration for total gross proceeds of $3.7 million to support ourselves in connection with the Acquisition and for general working capital purposes. Please refer to “*Material Items, Trends and Risks Impacting Our Business - Enrollments (Service Revenue) and Pivot to the Marketing and Distribution Model”and“Material Items, Trends and Risks Impacting Our Business – SCN Integration Update”*below for a further discussion of the Acquisition and our progress on integrating SCN into our business.
Current report
Total consideration for SCN equaled to a sum of $8.7 million consisting of $6.0 million in cash consideration, 607,287 shares of Vivos common stock with a fair value of $1.3 million, and contingent “earn out” consideration with a fair value of $1.4 million payable upon the achievement of a financial milestone as specified in the SCN Purchase Agreement.
Current report
As part of our pivot to the new strategic alliance and acquisition model, on April 15, 2025, we entered into the SCN Purchase Agreement with the Seller, pursuant to which we agreed to purchase, among other things, the operating assets related to SCN’s sleep testing, diagnostics, and treatment centers. The below provides a summary of the Acquisition and the contractual arrangements we had entered with SCN in connection with the Acquisition:
Current report
On June 10, 2025, we completed the Acquisition, and we had acquired all of the operating assets of the Seller in consideration for a (i) cash payment equal to $6.0 million, (ii) 607,287 shares of restricted common stock our company equal to $1.5 million based on the volume-weighted average price (“VWAP”) of our common stock for the 30 days immediately preceding the Acquisition and (iii) the assumption of certain specific trade accounts payable and liabilities related to specific SCN contracts assigned to us as part of the Acquisition. Pending the achievement of an agreed upon financial milestone, we will pay to Dr. Prabhu a contingent “earn out” consideration in the form of restricted common stock equal to $1.5 million based on the VWAP of the common stock for the 30 days following the date on which such financial milestone is achieved, as determined in accordance with U.S. generally accepted accounting principles.
Current report
As of June 10, 2025, but effective as of June 2, 2025, pursuant to the SCN Purchase Agreement, our wholly-owned subsidiary AIM, entered into Practice Administration Agreements (“PAAs”) respectively with SCN (the “SCN PAA”) and the Sleep Center of Nevada, Rachakonda & Associates, PLLC, a newly formed Nevada professional limited liability company owned and controlled by Dr. Prabhu (“SCN PLLC” and the practice management agreement with SCN PLLC, the “SCN PLLC PAA”). SCN PLLC was formed for the purpose of integrating the medical practices of SCN with the Company in connection with the Acquisition. The principal purpose of the PAAs is to allow AIM to manage the SCN practice in compliance with applicable federal and Nevada laws, rules and regulations relating to the corporate practice of medicine (the “CPM Laws”). AIM intends to conduct an orderly transition of the operation of the SCN practice to SCN PLLC.
Current report
Pursuant to the PAAs, AIM shall provide management, administrative, and non-clinical services to SCN and SCN PLLC, in consideration for monthly administration fees (the “Administration Fees”) of $0.2 million from SCN and $0.1 million from SCN PLLC. The Administration Fees may be adjusted by AIM prospectively after quarterly reviews. Both the PAAs have a term of fifteen years and subject both SCN and SCN PLLC, along with Dr. Prabhu, to an exclusivity provision during the term and for a period of one-year after termination, whereby neither SCN nor SCN PLLC shall operate, participate in, or be connected with any other entity providing similar services within Nevada, except for operating its own medical practice without a third-party provider providing covered programs. In connection with the PAAs, Dr. Prabhu, as an equity owner of and on behalf of SCN and SCN PLLC, has entered into management and succession agreements with AIM for continued operation of their respective medical practices upon occurrence of certain events as described therein and for Dr. Prabhu to comply with the CPM Laws.
Current report
Pursuant to the SCN Purchase Agreement, SCN had entered into a physician employment agreement (the “Physician Employment Agreement”) with Dr. Prabhu. Under the Physician Employment Agreement, Dr. Prabhu shall perform his duties as a physician in SCN (or SCN affiliated companies) and comply with all CPM Laws. The Physician Employment Agreement provides an annual compensation of $400,000 and bonus incentives, payable in cash, should SCN achieve certain annual revenue targets in a calendar year. The Physician Employment Agreement also affords Dr. Prabhu a board observation right, whereby Dr. Prabhu is entitled to receive advanced notices and attend our board of directors meetings.
Current report
Below is a summary of financing arrangements we entered into to fund the Acquisition and our working capital:
Current report
Senior Secured Loan. On June 9, 2025, concurrently with the Acquisition, we entered into a Note Purchase Agreement (the “Note Purchase Agreement”) with Streeterville Capital, LLC, a Utah limited liability company (“Lender”), pursuant to which we issued and sold to Lender a Secured Promissory Note (the “Note”) in the original principal amount of $8.3 million (the “Principal Amount”, and the financing as described herein, the “Note Financing”). The Principal Amount includes an original issue discount of $0.7 million. We also agreed to pay $50 thousand to the Lender to cover its legal fees, accounting costs, due diligence, monitoring, and other transaction costs, each of which was added to the Principal Amount, resulting in a purchase price of for the Note and gross proceeds to the Company of $7.5 million received by the Company. The Note is not convertible into shares of Common Stock or otherwise.
Current report
The Note accrues interest at a rate of nine percent (9%) per annum and has a maturity date of eighteen (18) months from the issuance of the Note, unless earlier prepaid, redeemed or accelerated in accordance with its terms prior to such date. We used the net proceeds from the Note Financing for funding the cash portion of the Acquisition purchase price and to support ourselves in connection with the Acquisition. No placement agent was used in connection with the Note Financing.
Current report
The Note is secured by all of the tangible and intangible assets of AIM pursuant to that certain Security Agreement, dated June 9, 2025, between AIM and the Lender (the “Security Agreement”) We have also pledged the entirety of AIM’s membership interests to the Lender as collateral for the Loan pursuant to that certain Pledge Agreement dated June 9, 2025, between us and the Lender (“Pledge Agreement”) and caused AIM to enter into the Guaranty Agreement, dated June 9, 2025, in favor of the Lender (“Guaranty Agreement”) to respectively secure the our performance and provide a guarantee of our obligations to the Lender under the Note and the other transaction documents.
Current report
Commencing six (6) months after the date of issuance of the Note and at any time thereafter until the Note is paid in full, the Lender will have the right to redeem up to $0.6 million of the Principal Amount under the Note per calendar month. We must pay the redeemed amount in cash within three (3) trading days of receiving a redemption notice. We may prepay all or any portion of the outstanding balance of the Note. If we elect to prepay the Note in part within one hundred twenty (120) days from the issuance of Note, we will be required to pay to the Lender an amount in cash equal to one hundred and seven percent (107%) of the portion (the “Prepayment Premium”) of the outstanding balance we elect to prepay. Notwithstanding the foregoing, the Prepayment Premium shall not apply to any outstanding balance of the Note that we elect to prepay on or after the one hundred twenty (120) days after the issuance of the Note. Additionally, if the Note remains outstanding on the one hundred twenty (120) days from the anniversary of the issuance, we will incur a one-time monitoring fee equal to the difference between (i) the outstanding balance of the Note divided by 0.85 (as minuend), and (ii) the outstanding balance of the Note (as subtrahend), which fee will be added to the Principal Amount if incurred.
Current report
The Note provides for customary events of default (each as defined in the Note, an “Event of Default”), including, among other things, the event of nonpayment of principal, interest, fees or other amounts, a representation or warranty proving to have been incorrect when made, failure to perform or observe covenants as specified in the Note, failure to obtain prior written consent from the Lender on a fundamental transaction (including consolidations, mergers, and certain changes in control of the Company) undertaken by us, and the occurrence of a bankruptcy, insolvency or similar event affecting us. Upon the occurrence of certain Events of Default related to the occurrence of a bankruptcy, insolvency or similar event affecting us, the outstanding Principal Amount of the Note will become automatically due and payable. Additionally, upon the occurrence of any Events of Default, interest shall begin accruing on the outstanding balance of the Note from the date of the Event of Default equal to the lesser of twenty-two percent (22%) per annum and the maximum rate allowable under law.
Current report
Private Placement Financing. On June 9, 2025, in connection with the Acquisition, we entered into a Securities Purchase Agreement (the “PIPE SPA”) with V-Co Investors 2 LLC, a Wyoming limited liability company (“V-Co 2”). V-Co 2 is an affiliate of New Seneca Partners Inc., a Michigan corporation (“Seneca”), a leading independent private equity firm and an existing significant investor in our company.
Current report
Pursuant to the PIPE SPA, we sold to V-Co 2 in a private placement offering (the “PIPE Offering”): (i) 828,000 shares (the “PIPE Shares”) of our common stock, (ii) a pre-funded warrant to purchase 725,258 shares of our common stock (the “Pre-Funded Warrant”, with the shares of common stock underlying the Pre-Funded Warrant being referred to as the “PFW Shares”), and (iii) a Common Stock Purchase Warrant to purchase up to 2,329,886 shares of our common stock (the “Common Stock Purchase Warrant, and together with the Pre-Funded Warrant, the “Warrants”, and with the shares of Common Stock underlying the Common Stock Purchase Warrant being referred to as the “Warrant Shares”).
Current report
V-Co 2 paid a purchase price of $2.42 for each PIPE Share and Pre-Funded Warrant Share and associated Common Stock Purchase Warrant, with such price being established for purposes of compliance with the listing rules of the Nasdaq Stock Market LLC. The PIPE Offering closed on June 9, 2025. We received $2.7 million in cash proceeds upon the closing of the PIPE Offering. Additionally, the $1.1 million bridge note entered into by the Company and V-Co 2 on May 20, 2025, the terms of which were previously reported on Current Report on Form 8-K filed on May 23, 2025, automatically converted into the PIPE Offering, for total gross proceeds of $3.7 million upon conversion of the bridge note. The gross proceeds exclude an original issue discount of $0.1 million paid by us in connection with issuing the bridge note. We are using the net proceeds from the PIPE Offering to support the integration of SCN into our business and for general working capital purposes. No placement agent was used in connection with the PIPE Offering.
Current report
The Common Stock Purchase Warrant has a term ending on or before June 9, 2029, an exercise price of $2.23 per share and became exercisable immediately as of the date of issuance. The Pre-Funded Warrant has a term ending on the complete exercise of the Pre-Funded Warrant, an exercise price of $0.0001 per share and became exercisable immediately as of the date of issuance. The Warrants also contain customary stock-based (but not price-based) anti-dilution protection as well as beneficial ownership limitations preventing Seneca or its affiliates from exercising Warrants if such exercise would result in Seneca or its affiliates from owning in excess of 19.99% of our then outstanding common stock.
Current report
The terms of the PIPE SPA requires us to file a registration statement on Form S-3 or other appropriate form (the “Resale Registration Statement”) registering the PIPE Shares, the PFW Shares and the Warrant Shares (collectively, the “Registerable Securities”) for resale no later than 45 days of the closing of the PIPE Offering and to use commercially reasonable best efforts to cause the Resale Registration Statement to be effective within 90 days of the closing of the PIPE Offering. Subsequently, on July 24, 2025, we and V-Co 2 agreed to extend the respective date for which we file the registration statement and cause such registration statement to be declared effective by 30 days pursuant to an amendment to the June 2025 PIPE SPA. We must also use our commercially reasonable efforts to keep the Resale Registration Statement continuously effective (including by filing a post-effective amendment to the Resale Registration Statement or a new registration statement if the Resale Registration Statement expires) for a period of three (3) years after the date of effectiveness of the Resale Registration Statement or for such shorter period as such securities no longer constitute Registrable Securities, subject to certain limitations specified in the PIPE SPA. The PIPE SPA further provides that we shall pay V-Co 2 in the amount equal to $50,000 for the fees and expenses of V-Co 2’s counsel incurred in connection with the PIPE Offering. The PIPE SPA also includes standard representations, warranties, indemnifications, and covenants of the Company and V-Co 2.
Current report
*SCN Integration Update.*Our operational planning for the integration of SCN began in April 2025, when we signed the definitive agreement to purchase SCN. We believe these two months of advance planning has benefited the process of integrating SCN into our business, as our operations team has been able to execute our plan on schedule and under budget with respect to two of SCN’s seven locations in the greater Las Vegas area. Also because of this effort, we expect to recognize a small amount of SCN revenue during our fiscal second quarter (for the period beginning with the June 10, 2025 Acquisition closing date through June 30, 2025), with the goal of increasing this revenue in the second half of 2025 and further in 2026.
Current report
As we had anticipated during the initial stage of SCN integration, patient demand is exceeding our capacity to process and treat patients under our model which includes offering SCN patients Vivos treatment options. Our goal is to ramp up our systems and operations by strategically deploying additional personnel and resources to meet this demand. We currently expect that some of SCN’s locations, including the two already integrated, to be primary treatment hubs with larger patient capacities, with the remaining being referral centers (which could be relocated facilities) requiring less time and effort to integrate.
Current report
Our operational plan is driven by our deployment of our Sleep Optimization (SO) teams, each consisting of one nurse practitioner (or physician’s assistant), two specially trained dentists, six dental assistants, six administrative support personnel, and one treatment navigator. These SO teams can be dedicated to high demand locations or spread across multiple locations as circumstances dictate. We currently have 1.5 SO teams deployed across two SCN locations and expect to have two additional SO teams deployed during the fourth quarter of 2025. We anticipate an initial ramp of up to 60 days for SO teams to become fully functional, and up to five months or longer before net revenue collections match revenue generating activity (such as OSA diagnostic services or OSA treatment case starts). A fourth SO team is planned for deployment sometime in the first quarter of 2026, giving us an expected total of 4.5 SO teams operating by the end of the first quarter of 2026. Based on the current volume of OSA patient demand, we believe the current markets served by SCN could support up to eight SO teams, and potentially more if certain planned growth initiatives meet expectations. Such initiatives include, but are not limited to, the expansion of diagnostic and treatment services, the establishment and rollout of a pediatric OSA program, and the collaboration with certain specialty medical groups who treat patients with comorbid OSA but who lack the ability to test, evaluate and treat such patients within their existing practice environments.
Current report
Based on our experience to date, we believe our limiting constraints for near-term revenue growth at SCN are (1) physical space to see an optimal number of patients; (2) provider and staff recruiting, training, and onboarding; and (3) customary issues with third party provider credentialing. At the SCN locations we have onboarded, we are currently fully booked for appointments for several weeks, and we are processing what we believe is less than 40% of patients attempting to get appointments for treatment. We expect the current expansion at one facility and relocation of a second facility, coupled with the additional deployments of two new SO teams by mid-October 2025, will help reduce the backlog of patients seeking treatment. However, we do not believe we will be able to fully meet current demand until additional SO teams are fully deployed during 2026.
Current report
Our initial average case revenue and acceptance rate for Vivos treatment at SCN to date suggest that each SO team could potentially generate collections in excess of $500,000 per month, net of adjustments, with contribution margins above 50%. In addition to current Vivos diagnostic and treatment options, we expect to be able to offer SCN patients additional diagnostic and treatment services that could generate additional high-margin revenue. It will take time for each SO team to reach full capacity, if at all, so the above figures should be viewed as our current best estimates based on our limited operating experience and actual performance to date, rather than projections of our future performance. That said, we continue to gather additional data that will allow us to refine our model and optimize operations, and results of operations, in future periods.
Current report
Importantly, we expect to apply the lessons learned from our SCN integration activities to future sleep center or medical practice acquisitions or management collaborations we are currently exploring and hope to consummate in the future as described below. We expect to fund costs associated with our SCN integration activities with net proceeds from our June 2024 debt and equity financings, potential future financings, and ultimately cash from operations.
Current report
Revised OSA Provider Management Model. In addition to growth through acquisitions of medical sleep providers like SCN, we are actively developing a revised management model that we are implementing in situations where the sleep center or medical practice owners are not interested in being purchased by us, but are interested in making the full range of our OSA treatment options available to their patients. Our plan is to accomplish this type of collaboration through the creation and pro-rata funding of a new management services entity that is jointly owned by the sleep center owners and our company, but where our company retains a supermajority controlling interest. The revised management model incorporates our experience with Rebis Health in Colorado, our first sleep provider collaboration arrangement which we entered into in 2024, and which has not yet performed to our expectations. Under the revised model, through the co-owned management company, we will have more operational control to help ensure that our business model is being properly implemented.
Current report
We believe this revised management model can provide financial upside for our company with limited capital expenditures, and with what we believe are manageable risks. At the same time, this revised management model creates the potential for economic upside for sleep center or medical practice collaborators who are currently not interested in an outright sale to our company. Moreover, we believe the overall quality of care and service to the OSA patients of our medical provider collaborators can improve by having more treatment options available. The revised management model, as in the previous model, is designed to be compliant with current state and federal healthcare, anti-kickback, and corporate practice of medicine and dentistry regulations.
Current report
On July 14, 2025, we entered into our first management agreement under this revised approach with MISleep Solution LLC to provide our full suite of Vivos treatments and services to OSA patients at a joint location in Auburn Hills, Michigan (which is near Detroit). Consistent with our new model, our company owns a supermajority equity stake in the management services company, with the sleep doctors having minority ownership interests. Facilities to support these operations are currently under construction, with an estimated opening date in October 2025. We are currently in the process of hiring, training, and onboarding one complete SO team that we expect to deploy as soon as the physical facility is ready for occupancy. Based on our internal analysis and experience, we expect the economics of our Detroit SO team to be similar to the economics described above for our SO teams at SCN, except that net profit distributions from the management services entity will be paid out on a pro-rata basis (with our company receiving the supermajority share). As of this time, we have no direct operating history in the Detroit, Michigan market or with this new model. However, we believe that the overall benefit to our company of this model derives from the limited risks (as opposed to outright acquisitions) and generally low equipment and facility capital expenditures relative to the potential revenue opportunity. This model also obviates the need for us to finance the purchase and other costs associated with our acquisition model.
Current report
Potential Provider Acquisition or Management Pipeline. We are currently in active discussions with a number of potential acquisition targets to follow our SCN acquisition and Detroit-area management agreement. Every prospect must meet a rigorous set of criteria and standards in order to be considered by our mergers and acquisitions team for acquisition or management. One such acquisition target is currently under an exclusive letter of intent with us. Our pipeline of additional potential acquisition andmanagement opportunities with sleep centers and medical sleep specialists continues to expand. This is happening largely through word of mouth and very little expenditure in terms of marketing efforts to the more than 2,600 American Academy of Sleep Medicine accredited sleep testing centers nationwide. We believe this pipeline of potential acquisition and management activity, together with the experience gained from previous endeavors, will be a key driver of future accretive growth for us.
Current report
Comparison of the three and six months ended June 30, 2025 and 2024
Current report
We view the contribution of revenue from SCN in such a relatively short period of time post-acquisition (from June 10 to June 30, 2025) as encouraging, particularly since such revenue does not reflect revenue from sales of our appliances to SCN patients, which is expected to first be recognized in the quarter ended September 30, 2025.
Current report
Cost of sales increased $0.3 million or 22% to approximately $1.7 million for the three months ended June 30, 2025, compared to $1.4 million for the three months ended June 30, 2024. This was primarily attributable to higher costs associated with diagnostic services and patient therapy.
Current report
General and administrative expenses increased $2.3 million or 55% to approximately $6.4 million for the three months ended June 30, 2025, as compared to $4.1 million for the three months ended June 30, 2024. The primary cause of this increase was approximately $1.8 million in costs associated with acquiring and integrating SCN including professional fees of approximately $0.9 million, salaries and wages of approximately $0.5 million, infrastructure costs of approximately $0.3 million and travel related expenses of approximately $0.1 million.
Current report
Sales and marketing expenses stayed relatively flat at $0.3 million for the three months ended June 30, 2025, which is attributable in significant part to our one-time focus on the acquisition and commencement of integration of SCN into our operations.
Current report
Other Income/(Expense)
Current report
Other (Expense) increased $0.1 million due to interest expense on a note during the three months ended June 30, 2025.
Current report
Comparison of the six months ended June 30, 2025 and 2024
Current report
Revenue
Current report
For the six months ended June 30, 2025, we sold 7,852 oral appliance arches for a total of approximately $3.7 million, a 1% increase in revenue from the six months ended June 30, 2024, when we sold 4,029 oral appliance arches for a total of approximately $3.6 million. The increase in revenue was due primarily to an increase in guide sales at a lower average price than CARE devices, offset by an increase in discounts during the six months ended June 30, 2025. Refer to “Material Items, Trends and Risks Impacting Our Business” section above for events that impacted our product sales.
Showing the first 40 of 49 passages. Open the source sections for the rest.
Removed paragraphs (7)
Previous report
Enrollments (Service Revenue) and Pivot in Marketing and Distribution Model
Previous report
On April 15, 2025, we signed a definitive agreement to acquire the assets of a sleep testing center business in Las Vegas, Nevada known as Sleep Center of Nevada (“SCN”). We have subsequently signed a non-binding term sheet with a lender who will provide $7,500,000 in net financing, before certain fees and other costs, and expect to close the acquisition in June or July 2025. If consummated, we believe the acquisition will bring our OSA treatment technology and other diagnostic and therapeutic services to numerous patients in that market. Moreover, we expect to realize greater revenue growth and potential for profitability as we integrate our products and services into SCN’s business. In addition to the SCN acquisition, we are seeking other potential transactions (either strategic alliances or outright acquisition) with similar sleep specialty centers.
Previous report
Clinical Trial Work. Our efforts to engage in research to demonstrate the clinical efficacy of our products and obtain additional regulatory clearances for the use of our products is an important aspect of our overall strategy. In this regard, on May 29, 2023, we and Stanford University executed an agreement to commence a sponsored clinical research study to evaluate the efficacy of our FDA-cleared DNA appliance compared to the standard of care, CPAP for treatment of sleep apnea. Our DNA device is currently indicated for the treatment of mild to severe sleep apnea and jaw repositioning in adults (and in the case of severe OSA, along with positive airway pressure and/or myofunctional therapy, as needed) and has an FDA clearance intended to reduce nighttime snoring and to treat moderate and severe obstructive sleep apnea in children, 6 to 17 years of age who are diagnosed with snoring and/or moderate or severe obstructive sleep apnea who need orthodontic treatment. Enrollment of 150 patients with moderate to severe sleep apnea (apnea-hypopnea index score of 15 or greater) will be randomly assigned to either treatment with our FDA-cleared DNA appliance or CPAP. The protocol has been finalized, and enrollment began in 2024. Late 2024, our clinical study conducted in collaboration with Stanford University and evaluating the DNA and CPAP for the treatment of OSA, was placed on hold by Stanford University. The decision to pause the study was made due to low recruitment into the study.
Previous report
Cost of sales remained relatively constant with an increase of less than $0.1 million or 2% at approximately $1.5 million for the three months ended March 31, 2025, compared to slightly under $1.5 million for the three months ended March 31, 2024. This was primarily related to $0.2 million in higher costs associated with appliances, driven by the higher product sales as explained above. This was offset by a decrease of approximately $0.1 million due to lower costs associated with medical reporting expense and membership support costs as a result of no VIP enrollments during the period.
Previous report
General and administrative expenses remained relatively constant with a decrease of less than $0.1 million or 1% to approximately $4.9 million for the three months ended March 31, 2025, as compared to slightly over $4.9 million for the three months ended March 31, 2024. The primary cause of this decrease was $0.1 million in travel, meals and entertainment, a decrease of approximately $0.1 million related to being a public company, and a decrease of less than $0.1 million related to change in the allowance for credit losses. This was offset by an increase of approximately $0.1 million in professional fees, including consulting and legal fees and approximately $0.1 million in infrastructure expenses such as communications, development and customization.
Previous report
Other income of less than $0.1 million includes interest income from financial institutions.
Previous report
We have implemented cost savings measures that have reduced cash used in operations. However, as our product offerings and strategies continue to be refined, our sales did not grow during either of our fiscal years ended 2023 or 2024, nor the first quarter of 2025 as anticipated. As such, we have raised equity capital in the financial year ended December 31, 2023 and 2024. We intend to obtain additional financing to satisfy our cash needs (including the $6 million in cash required for our acquisition of SCN) and increase our stockholders’ equity for Nasdaq compliance purposes as our management attempts to increase revenue to achieve positive cash flow from our operations.
Reworded paragraphs (25)
Previous wording
We are a revenue stage medical technology company focused on the development and commercialization of innovative treatment alternatives for patients with dentofacial abnormalities and/or patients diagnosed with mild to severe obstructive sleep apnea (“OSA”) and snoring in adults. We believe our technologies and conventions represent a significant improvement in the treatment of mild to severe OSA versus other treatments such as continuous positive airway pressure (“CPAP”) or palliative oral appliance therapies. Our alternative treatments are part ofThe Vivos Method*.*
Current wording
We are a revenue stage medical technology company focused on the development and commercialization of innovative treatment alternatives for patients with dentofacial abnormalities and/or patients diagnosed with mild to severe obstructive sleep apnea (“OSA”) and snoring in adults. We believe our technologies and conventions represent a significant improvement in the treatment of mild to severe OSA versus other treatments such as continuous positive airway pressure (“CPAP”) or palliative oral appliance therapies. Our alternative treatments are part of what we callThe Vivos Method*.*
Previous wording
The Vivos Method is an advanced therapeutic protocol, which often combines the use of customized oral appliance specifications and proprietary clinical treatments developed by our company and prescribed by specially trained dentists in cooperation with their medical colleagues. Published studies have shown that using our customized appliances and clinical treatments led to significantly lower Apnea Hypopnea Index scores and have improved other conditions associated with OSA. Nearly 59,000 patients have been treated to date worldwide with our entire current suite of products by more than 2,000 trained dentists.
Current wording
The Vivos Method is an advanced therapeutic protocol, which often combines the use of customized oral appliance specifications and proprietary clinical treatments which we developed and is prescribed by specially trained dentists in cooperation with their medical colleagues. Published studies have shown that using our customized appliances and clinical treatments led to significantly lower Apnea Hypopnea Index scores and have improved other conditions associated with OSA. Nearly 59,000 patients have been treated to date worldwide with our entire current suite of products by more than 2,000 trained dentists.
Previous wording
See Note 1 to the accompanying financial statements for additional background information on our Company and current product and service offerings.
Current wording
See Note 1 to the accompanying financial statements for additional background information on our company and our legacy VIP and current alliance/acquisition sales, marketing and distribution models.
Previous wording
Enrolling dental practices as VIPs has historically been the first step in our ability to generate new revenue. However, as a result of our strategic pivot away from growing our VIP model and toward the acquisition and operation of medical and dental sleep medicine centers, we have reduced our sales personnel in connection with our VIP business model and generally ceased recruitment of new VIP dentists. As a result, future revenue from VIP enrollments is expected to decline substantially, and although we will continue to recognize some VIP enrollment revenue going forward in accordance with ASC 606, such revenue will make up proportionately less of our total revenue over time. While we will continue to provide technical and product support to our existing VIP customer base, we have also redeployed and refocused training facilities, programs and personnel on training and supporting the dentists, staff members, nurse practitioners, physician assistants, and medical doctors who work in one of the Company’s Sleep and Airway Medicine Centers as part of our new strategic model.
Current wording
VIP Enrollments (Service Revenue) and Pivot in Our Sales, Marketing and Distribution Model. Enrolling dental practices as VIPs has historically been the first step in our ability to generate new revenue. However, as a result of our strategic pivot away from growing our VIP model and toward contractual alliances with, or the acquisition and operation of, medical and dental sleep medicine centers, we have reduced our sales personnel in connection with our VIP business model and generally ceased recruitment of new VIP dentists. As a result, future revenue from VIP enrollments will decline substantially, and although we will continue to recognize some VIP enrollment revenue going forward in accordance with ASC 606, such revenue will make up proportionately less of our total revenue over time. While we will continue to provide technical and product support to our existing VIP customer base, we have also redeployed and refocused training facilities, programs and personnel on training and supporting the dentists, staff members, nurse practitioners, physician assistants, and medical doctors who work in one of the Company’s Sleep and Airway Medicine Centers as part of our new strategic model.
Previous wording
*Trade Policy Risk.*Certain of our products or components are manufactured outside the United States. Most products imported into the United States is subject to duty and restrictive quotas on the amount of products that can be imported from certain countries into the United States each year. Because of the duty rates and quotas, changes in U.S. trade policy as reflected in the imposition of tariffs, trade legislation, trade preference programs and trade agreements have the potential to materially impact our sourcing strategy and the competitiveness of our contract manufacturers. We manage this risk by continually monitoring U.S. trade policy, analyzing the impact of changes in such policy and adjusting its manufacturing and sourcing strategy accordingly.
Current wording
*Trade Policy/Tarriff Risks.*Certain of our products or components are manufactured outside the United States. Most products imported into the United States is subject to duty and restrictive quotas on the amount of products that can be imported from certain countries into the United States each year. Because of the duty rates and quotas, changes in U.S. trade policy as reflected in the imposition of tariffs, trade legislation, trade preference programs and trade agreements have the potential to materially impact our sourcing strategy and the competitiveness of our contract manufacturers. We manage this risk by continually monitoring U.S. trade policy, analyzing the impact of changes in such policy and adjusting its manufacturing and sourcing strategy accordingly.
Previous wording
An additional inflation-related risk is the Federal Reserve’s response to inflation, which as of the date of this Report, has been to maintain elevated interest rates. Such actions have, in times past, created unintended consequences for housing starts, overall manufacturing, the capital markets, and the banking sector. If such disruptions become systemic, as occurred in the recession of 2008, then the impact on our revenue, earnings and access to capital of both inflation and inflation-fighting responses would be impossible to know or calculate.
Current wording
An additional inflation-related risk is the Federal Reserve’s response to inflation, which as of the date of this Report, has been to maintain elevated interest rates. Such actions have, in times past, created unintended consequences for housing starts, overall manufacturing, the capital markets, and the banking sector. An uncertain Federal Reserve response to inflation could as a result impact on our revenue, earnings and access to capital.
Previous wording
*War in Ukraine and Middle East Hostilities.*In addition, worldwide supply chain constraints and economic and capital markets uncertainty arising out of Russia’s invasion of Ukraine in February 2022 and the attacks by Hamas on Israel in October of 2023 and Israel’s responses have disrupted commercial and capital markets and emerged as new barriers to long-term economic recovery. If an economic recession or depression commences and is sustained, it could have a material adverse effect on our business as demand for our products could decrease. Capital markets uncertainty, with public stock price decreases and volatility, could make it more difficult for us to raise capital when needed.
Current wording
*War in Ukraine and Middle East Hostilities.*In addition, worldwide supply chain constraints and economic and capital markets uncertainty arising out of Russia’s invasion of Ukraine in February 2022, the attacks by Hamas on Israel in October of 2023 and Israel’s responses have disrupted commercial and capital markets and emerged as new barriers to long-term economic recovery. If an economic recession or depression commences and is sustained as a result of such regional armed conflicts, it could have a material adverse effect on our business as demand for our products could decrease. Capital markets uncertainty, with public stock price decreases and volatility, could make it more difficult for us to raise capital when needed.
Previous wording
On May 16, 2024, we received a written notice from Nasdaq indicating that, as of March 31, 2024, we failed to comply with the Equity Requirement. On June 25, 2024, we reported in a Current Report on Form 8-K that it believed it had stockholders’ equity of at least $2.5 million as of the date of the filing of such report as a result of our closing of a $7.5 million equity private placement on June 10, 2024.
Current wording
On May 16, 2024, we received a written notice from Nasdaq indicating that, as of March 31, 2024, we failed to comply with the Equity Requirement. On June 25, 2024, we reported in a Current Report on Form 8-K that it believed it had stockholders’ equity of at least $2.5 million as of the date of the filing of such report as a result of our closing of a $7.5 million equity private placement on June 10, 2024. On June 27, 2024, we met with the Nasdaq Hearing Panel (the “Hearing Panel”) to discuss our past, current, and anticipated future compliance with the Equity Requirement, and requested the continued listing of its securities on Nasdaq. On July 5, 2024, we were notified that the Panel had granted our request for continued listing on Nasdaq, subject to our filing of the Form 10-Q for the quarter ended June 30, 2024, with the Securities and Exchange Commission by August 15, 2024, evidencing our compliance with the Equity Requirement. We made such filing in a timely manner.
Previous wording
Net revenue. We recognize revenue when we satisfy our performance obligations over time as our customers receive the benefit of the promised goods and services, which generally occurs over a short period of time. Performance obligations with respect to appliance sales are typically satisfied by shipping or delivering products to our VIPs or to any sleep clinic, through our new marketing and distribution model, in the case of enrollment or service revenue, upon our satisfaction of performance obligations associated with VIP enrollments. Revenue consists of the gross sales price, net of estimated allowances, discounts, and personal rebates that are accounted for as a reduction from the gross sale price.
Current wording
Net revenue. Under our legacy VIP model, we recognize revenue when we satisfy our performance obligations over time as our customers receive the benefit of the promised goods and services, which generally occurs over a short period of time. Performance obligations with respect to appliance sales are typically satisfied by shipping or delivering products to our VIPs or to any sleep clinic, through our new marketing and distribution model, in the case of enrollment or service revenue, upon our satisfaction of performance obligations associated with VIP enrollments. Revenue consists of the gross sales price, net of estimated allowances, discounts, and personal rebates that are accounted for as a reduction from the gross sale price. Revenues to date from our new contractual alliance or acquisition management model have been relatively nominal, although we expect revenues generated from SCN and our agreements related to the Acquisition to increase.
Previous wording
Our consolidated statements of operations for the three months ended March 31, 2025 and 2024 are presented below (dollars in thousands):
Current wording
Our consolidated statements of operations for the three and six months ended June 30, 2025 and 2024 (which includes incremental revenue recognized from the operations of SCN from June 10, 2025 to June 30, 2025) are presented below (dollars in thousands):
Previous wording
Revenue decreased approximately $0.4 million, or 12%, to approximately $3.0 million for the three months ended March 31, 2025 compared to $3.4 million for the three months ended March 31, 2024. Revenue during the first three months of 2025 was impacted by a decrease of approximately $0.5 million in service revenue, offset by an increase of $0.1 million in product revenue. The increase in product revenue is attributable to an increase of approximately $0.1 million in C.A.R.E. appliance and Guide sales to VIPs. Additionally, we had a decrease in service revenue of approximately $0.7 million in VIP enrollment, and a decrease of approximately $0.1 million from BIS and Myofunctional revenue. This was offset by an increase of approximately $0.2 million in sponsorship, conference and training related revenue.
Current wording
Revenue decreased by approximately $0.2 million, or 6%, to approximately $3.8 million for the three months ended June 30, 2025 compared to $4.1 million for the three months ended June 30, 2024. The decrease in total revenue during the second quarter of 2025 was impacted by a decrease of approximately $0.1 million in product revenue and approximately $0.1 million in service revenue. The decrease in product revenue is attributable to an increase in appliances discounts of approximately $0.6 million, offset by an increase of approximately $0.5 million in guide sales. The decrease in service revenue is attributable to a decrease of approximately $1.0 million in VIP enrollment revenue offset by an increase of approximately $0.5 million in sleep testing services primarily generated from SCN and $0.4 million from sponsorship, seminar and other service revenue. Revenue growth in the second quarter of 2025 was impacted by a lower incidence of breakage in contracts, this accelerated revenue recognition on several contracts for VIPs who did not complete their training during the first 90 days of their enrollment. Approximately $0.1 million in revenue was attributable to breakage during the three months ended June 30, 2025, when compared to approximately $0.6 million during the three months ended June 30, 2024.
Previous wording
For the three months ended March 31, 2025, we sold 3,736 oral appliance arches for a total of approximately $1.8 million, an 8% increase in revenue from the three months ended March 31, 2024, when we sold 1,996 oral appliance arches for a total of approximately $1.7 million. The increase is directly attributable a higher volume in Guide sales, which are lower revenue generating products when compared to Vivos C.A.R.E. appliances.
Current wording
For the three months ended June 20, 2025, we sold 4,116 oral appliance arches for a total of approximately $1.9 million, a 5% decrease in revenue from the three months ended June 30, 2024, when we sold 2,033 oral appliance arches for a total of approximately $2.0 million. The decrease is directly attributable a higher volume mix of Guide sales, which are lower revenue generating products when compared to Vivos C.A.R.E. appliances.
Previous wording
For the three months ended March 31, 2025, gross profit decreased by approximately $0.4 million to $1.5 million. This decrease was attributable to the decrease in revenue of approximately $0.4 million. Gross margin decreased to 50% for the three months ended March 31, 2025, compared to 57% for the three months ended March 31, 2024 due to the decrease in service revenue.
Current wording
For the three months ended June 30, 2025, gross profit decreased by approximately $0.5 million to $2.1 million. This decrease was attributable to the decrease in revenue of approximately $0.2 million and increase in cost of sales of $0.3 million. Gross margin decreased to 55% for the three months ended June 30, 2025, compared to 65% for the three months ended June 30, 2024 due to the decrease in revenue and increase in cost of sales.
Previous wording
During the three months ended March 31, 2025, we recognized VIP enrollment revenue of approximately $0.2 million, a decrease of approximately 75% in enrollment revenue, compared to approximately $0.9 million for the three months ended March 31, 2024. Service revenue overall decreased due to a sales strategy shift and focus toward sleep center affiliations, coupled with lower enrollments in early 2024, and no enrollment since October 2024. This was slightly offset by breakage in contracts, which accelerated revenue recognition on several contracts for VIPs who did not complete their training during the first 90 days of their enrollment. Approximately $0.1 million in revenue was attributable to breakage during the three months ended March 31, 2025, when compared to approximately $0.4 million during the three months ended March 31, 2024.
Current wording
Revenue decreased approximately $0.6 million, or 9%, to approximately $6.8 million for the six months ended June 30, 2025 compared to $7.5 million for the six months ended June 30, 2024. The decrease in total revenue during the period was impacted primarily by a decrease of approximately $1.7 million in enrollment revenue due to the pivot in strategy away from enrollment of VIP’s and to affiliations with and acquisitions of sleep centers and OSA medical diagnostic practices. The decrease of enrollment revenue was offset by increases of $0.5 million of sleep testing service revenue primarily generated from SCN and $0.5 million of sponsorship and seminar revenue. Revenue growth in the first half quarter of 2025 was impacted by a lower incidence of breakage in contracts, this accelerated revenue recognition on several contracts for VIPs who did not complete their training during the first 90 days of their enrollment. Approximately $0.1 million in revenue was attributable to breakage during the six months ended June 30, 2025, when compared to approximately $1.0 million during the six months ended June 30, 2024.
Previous wording
Sales and marketing expenses decreased by $0.3 million to approximately $0.4 million for the three months ended March 31, 2025, compared to $0.7 million for the three months ended March 31, 2024. This decrease was primarily driven by a $0.3 million decrease in commissions related to lower service revenue.
Current wording
Sales and marketing expenses decreased by $0.4 million to $0.6 million for the six months ended June 30, 2025, compared to $1.0 million for the six months ended June 30, 2024. This decrease was primarily driven by our decrease in sales and marketing campaigns, resulting in lower commissions paid to our employees for digital media services and reduction in use of marketing supplies.
Previous wording
Depreciation and amortization expense was approximately $0.2 million for the three months ended March 31, 2025 and approximately $0.1 million for three months ended March 31, 2024, respectively. Depreciation and amortization had a slight increase during the period due to assets being placed into service.
Current wording
Depreciation and amortization expense increased $0.2 million to approximately $0.5 million for the six months ended June 30, 2025 from $0.3 million for the six months ended June 30, 2024. Depreciation and amortization increased during the period due to assets being placed into service during the period.
Previous wording
The financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate our continuation as a going concern. We have incurred losses since inception, including $3.9 and $3.8 million for the three months ended March 31, 2025 and 2024, respectively, resulting in an accumulated deficit of approximately $108 million as of March 31, 2025.
Current wording
The financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. We have incurred losses since inception, including $5.0 and $1.9 million for the three months ended June 30, 2025 and 2024, respectively, and $8.9 and $5.7 million for the six months ended June 30, 2025 and 2024, respectively, resulting in an accumulated deficit of approximately $113.1 million as of June 30, 2025.
Previous wording
Net cash used in operating activities amounted to approximately $3.8 and $2.5 million for the three months ended March 31, 2025 and 2024, respectively. As of March 31, 2025, we had total liabilities of approximately $6.9 million.
Current wording
Net cash used in operating activities amounted to approximately $7.3 and $5.6 million for the six months ended June 30, 2025 and 2024, respectively. As of June 30, 2025, we had total liabilities of approximately $21.5 million.
Previous wording
As of March 31, 2025, we had approximately $2.3 million in cash and cash equivalents, which will not be sufficient to fund operations and strategic objectives over the next twelve months from the date of the issuance of these financial statements. Without additional financing, these factors raise substantial doubt regarding the Company’s ability to continue as a going concern.
Current wording
As of June 30, 2025, we had approximately $4.4 million in cash and cash equivalents, which will not be sufficient to fund operations and strategic objectives over the next twelve months from the date of the issuance of these financial statements. Without additional financing, these factors raise substantial doubt regarding the Company’s ability to continue as a going concern.
Previous wording
Until we have attained positive cash flow, our management is reviewing all options to obtain additional financing to fund our operations. This financing is expected to come primarily from the issuance of debt or equity securities in order to sustain operations until we can close our Sleep Center of Nevada acquisition and ultimately achieve positive cash flows, if ever. We originally expected the Strategic Alliance Agreement (“SAA”) with Rebis entered into in June 2024 to increase patient volume, drive top line revenue and lower customer acquisition costs and overhead. However, due to ongoing delays at Rebis that are beyond our control, we are currently re-evaluating and lowering our revenue expectations under the SAA and are seeking to make other acquisitions or enter into other strategic alliances (such as our pending acquisition of SCN). There can be no assurances that adequate additional funding will be available on favorable terms, or at all. If such funds are not available in the future, or the SAA agreement or similar alliances or acquisitions do not result in the patient volume, appliance sales and financial results within the timeframes we expect, we may be required to delay, significantly modify or terminate some or all of our operations, all of which could have a material adverse effect on us and our stockholders.
Current wording
Until we have attained positive cash flow, our management is reviewing all options to obtain additional financing to fund our operations. We financed the SCN acquisition from the issuance of senior secured debt and equity securities. We expect the SCN acquisition will ultimately allow our company to achieve positive cash flows; however, there is a risk this may not occur. We originally expected the Strategic Alliance Agreement (“SAA”) with Rebis Health entered into in June 2024 to increase patient volume, drive top line revenue and lower customer acquisition costs and overhead. However, due to ongoing delays at Rebis Health that are beyond our control, we are currently re-evaluating and lowering our revenue expectations under the SAA. As such, we seek to acquire other sleep centers in transactions similar to the SCN acquisition or enter into other strategic alliances. There can be no assurances that adequate additional funding will be available on favorable terms, or at all. If such funds are not available in the future, or the SAA or similar alliances or acquisitions do not result in the patient volume, appliance sales and financial results within the timeframes we expect, we may be required to delay, significantly modify or terminate some or all of our operations, all of which could have a material adverse effect on us and our stockholders.
Previous wording
The following table presents a summary of our cash flow for the three months ended March 31, 2025 and 2024 (in thousands):
Current wording
The following table presents a summary of our cash flow for the three and six months ended June 30, 2025 and 2024 (in thousands):
Previous wording
Net cash used in operating activities of approximately $3.8 million for the three months ended March 31, 2025 is an increase of approximately $1.3 million compared to net cash used in operating activities of approximately $2.5 million for the three months ended March 31, 2024. This increase is due primarily to a decrease of approximately $0.9 million in contract liability, a decrease of approximately $0.6 million in accrued expenses, a decrease of approximately $0.2 million in accounts payable, offset by the increase in other liabilities of approximately $0.4 million.
Current wording
Net cash used in operating activities of approximately $7.3 million for the six months ended June 30, 2025 an increase of approximately $1.7 million compared to net cash used in operating activities of approximately $5.6 million for the six months ended June 30, 2024. This increase is due primarily to a $3.2 million increase in net loss for the six months ended June 30, 2025 and decrease in contract liabilities of approximately $0.2 million, offset by an increase in depreciation and amortization of approximately $0.2 million, an increase of approximately $0.7 million in accounts payable, an increase of approximately $0.6 million in other liabilities, and an increase of approximately $0.1 million in interest expense on a promissory note.
Previous wording
For the three months ended March 31, 2025, net cash used in investing activities consisted of capital expenditures for software of $0.1 million related to the development of software for internal use, which was placed in service in March 2025, as compared to net cash used in investing activities for the three months ended March 31, 2024 of $0.2 million from capital expenditures for internally developed software.
Current wording
For the six months ended June 30, 2025, net cash used in investing activities consisted of approximately $5.1 million for payment of a business acquisition and capital expenditures for software of $0.9 million related to the development of software for internal use, placed in service in 2025. This compares to net cash used in investing activities for the six months ended June 30, 2024 of $0.2 million due to capital expenditures for internally developed software.
Previous wording
No cash was provided by financing activities for the three months ended March 31, 2025, as compared to net cash provided in financing activities of $3.6 million for the three months ended March 31, 2024, is attributable to proceeds of $3.9 million from the issuance of Common Stock, net of approximately $0.3 million of professional fees and other issuance costs, in our February 2024 warrant inducement.
Current wording
Net cash provided by financing activities of $11.5 million for the six months ended June 30, 2025, is attributable to proceeds of approximately $9.6 million from the issuance of debt, approximately $1.7 million for the issuance of warrants, approximately $0.6 million form the issuance of pre-funded warrants, and approximately $0.3 million from the issuance of common stock. This compares to net cash used in investing financing for the six months ended June 30, 2024 of $11.0 million attributable to proceeds from the issuance of Common Stock, net of approximately $0.4 million of professional fees and other issuance costs, in our February 2024 warrant inducement transaction with an institutional investor and June 2024 private placement.
Previous wording
Our critical accounting policies and estimates are described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. We have reviewed and determined that those critical accounting policies and estimates remain our critical accounting policies and estimates as of and for the three months ended March 31, 2025.
Current wording
Our critical accounting policies and estimates are described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. We have reviewed and determined that those critical accounting policies and estimates remain our critical accounting policies and estimates as of and for the three and six months ended June 30, 2025.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Depreciation and amortization expense increased $0.2 million for the three months ended June 30, 2025 due to assets being placed into service.
Current report — wording carried from elsewhere
Cost of Sales and Gross Profit
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
On June 27, 2024, we met with the Nasdaq Hearing Panel (the “Hearing Panel”) to discuss our past, current, and anticipated future compliance with the Equity Requirement, and requested the continued listing of its securities on Nasdaq.
Previous report — wording carried elsewhere
On July 5, 2024, we were notified that the Panel had granted our request for continued listing on Nasdaq, subject to our filing of the Form 10-Q for the quarter ended June 30, 2024, with the Securities and Exchange Commission by August 15, 2024, evidencing our compliance with the Equity Requirement. We made such filing in a timely manner.