Delay Due to Technical Revenue Recognition Analysis and Unrelated to Overall Business Health
Colorado, | Source: Vivos Therapeutics, Inc
(GLOBE NEWSWIRE) — Vivos Therapeutics, Inc. (NASDAQ: VVOS) (“Vivos”) is providing an update on the delay in announcing its second quarter 2022 financial results.
“We are disappointed it is taking longer than usual to report our financial and operating results for the second quarter,” stated Kirk Huntsman, Chairman and CEO of Vivos. “Importantly, we want to provide assurances that the delay is unrelated to the overall health of our business or the progress we believe Vivos has been making during 2022, but rather is due to a required technical reevaluation of our revenue recognition policy.”
“We were recently advised by our independent registered public accountants about a potential need to reevaluate how and when we recognize enrollment fees charged to new Vivos Integrated Providers (VIPs) and the related performance obligations that are included in VIP enrollments as revenue under ASC Topic 606. Our management and independent audit committee have been working diligently through the highly technical aspects of this accounting standard with our auditors and independent consultants we have retained. We are hopeful this will be a matter of the timing of VIP fee revenue recognition and that any impact on our current or prior results of operations will not be material. That said, a final determination on these matters has not been reached, and while we expected to be able to report our results by today, we have concluded that further analysis is required, a process which could take several weeks. As a result, we will not be filing our Form 10-Q for the second quarter and releasing our results of operations today as we had anticipated. As a company, we are fully committed to maintaining compliance with applicable accounting standards and will do what is necessary to complete our work on this matter and announce our conclusions and our second quarter results of operations as soon as possible.”
“In the meantime, we want to assure our investors that we do not believe this delay is in any way a reflection on the overall health of our business. Since our last update, Vivos has been making solid progress on our initiatives. We believe we are past the worst impact of the COVID-19 pandemic and are optimistic about our growth prospects moving forward. In June, we saw a record month for appliance sales with a record number of new providers starting cases. Our primary VIP recruitment event has also sold out for September. At the same time, we have been actively implementing measures to reduce expenses, preserve cash resources and operate more efficiently. Further, we have launched a new program called Treatment Navigator which connects new patient leads generated by a direct-to-consumer marketing initiative to a select number of VIP practices in their area. We fully expect these proactive steps will materially reduce our cash burn and increase revenue in future quarters. With these measures in place, we believe we have positioned Vivos to potentially achieve positive cash flow in early 2024. We thank our investors for their patience and continued support and look forward to sharing further details as soon as we can do so,” concluded Mr. Huntsman.
About Vivos Therapeutics, Inc.
Vivos Therapeutics, Inc. (NASDAQ: VVOS) is a medical technology company focused on developing and commercializing innovative diagnostic and treatment methods for patients suffering from breathing and sleep issues arising from certain dentofacial abnormalities such as mild-to-moderate obstructive sleep apnea (OSA) and snoring in adults. The Vivos Method represents the first clinically effective nonsurgical, noninvasive, nonpharmaceutical and cost-effective solution. It has proven effective in approximately 28,000 patients treated worldwide by more than 1,600 trained dentists.
The Vivos Method includes the Vivos Complete Airway Repositioning and/or Expansion (CARE) appliance therapy and associated protocols that alter the size, shape and position of the tissues that comprise a patient’s upper airway and/or palate. The Vivos Method opens airway space and may significantly reduce symptoms and conditions associated with mild-to-moderate OSA, such as lowering Apnea Hypopnea Index scores. Vivos also markets and distributes SleepImage diagnostic technology under its VivoScore program for home sleep testing in adults and children. The Vivos Integrated Practice (VIP) program offers dentists training and other value-added services in connection with using The Vivos Method.
For more information, visit www.vivos.com.
Cautionary Note Regarding Forward-Looking Statements
This press release and statements of the Company’s management made in connection therewith contain “forward-looking statements” (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, particularly with respect to the public offering described herein. Words such as “aim,” “may,” “could,” “expects,” “projects,” “intends,” “plans,” “believes,” “predicts,” “anticipates,” “hopes,” “estimates” and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon several assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond Vivos’ control. Actual results (including, without limitation, the anticipated benefits of Australian regulatory approval described here on the Company’s sales and ability to obtain regulatory approvals in other countries) may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the risk factors described in Vivos’ filings with the Securities and Exchange Commission (“SEC”). Vivos’ filings can be obtained free of charge on the SEC’s website at sec.gov. Except to the extent required by law, Vivos expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Vivos’ expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.