Vivos Therapeutics (NASDAQ:VVOS) told investors it continues to anticipate becoming cash flow positive from operations by the end of 2024 or the first quarter of 2025 as it successfully executes its cost-cutting initiatives and launches a new strategic revenue initiative.
The company, which is developing and commercializing proprietary treatments for sleep-related breathing disorders including obstructive sleep apnea (OSA), said that during the first quarter its operating expenses decreased by 22% or $1.6 billion from the year-ago quarter. Its operating loss decreased by 24% or $1.2 million.
Revenue was $3.4 million for the first quarter of 2024, down from $3.8 million in the year-ago quarter. This was attributed to lower Vivos Integrated Provider (VIP) enrollments and CARE appliance revenue, offset by increased revenue from sales of Vivos’ Pediatric and Lifeline appliances and home sleep testing services to VIPs.
Gross profit was $1.9 million, down from $2.3 million in the first quarter of 2023, attributed to decreased revenue and partially offset by a drop in the cost of sales.
“We recognize that our revenues have not grown as we would have liked,” Vivos CEO Kirk Huntsman said in a statement.
“To that end, we are announcing today the anticipated launch of 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, make our revenue less reliant of VIP enrollments, and build on the initiatives we’ve been implementing over the past year.”
Huntsman said additional details on this new initiative will be provided during the company’s post-earnings call and in the coming weeks.
“By doing this, we expect to position Vivos for long-term, sustainable revenue growth and ultimate profitability,” he said.
At the quarter-end, the number of patients treated with Vivos’ patented oral appliances was more than 42,600, up from 35,000 last year.
The company trained more than 1,950 dentists in the Vivos Method and Vivos’ related value-added services, up from 1,750 in the year-ago quarter.