Vivos Therapeutics Inc (VVOS) 2023 Q1 法說會逐字稿

Good day, everyone. And welcome to the Vivos Therapeutics first quarter 2023 earnings conference call. (Operator Instructions) This conference call is being recorded and a replay of today's call will be available on the Investor Relations section of Vivos' website and will remain posted there for the next 30 days.

今天是個好日子。歡迎參加 Vivos Therapeutics 2023 年第一季度收益電話會議。 （操作員說明）本次電話會議正在錄音，今天電話會議的重播將在 Vivos 網站的投資者關係部分提供，並將在未來 30 天內發佈在那裡。

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.

我現在將把電話轉交給 Vivos 投資者關係官 Julie Gannon，由其進行介紹並宣讀安全港聲明。請繼續。

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.

謝謝你，接線員。大家好，歡迎參加我們的電話會議。我們的收益新聞稿副本可在我們網站 www.vivos.com 的投資者關係部分獲取。

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 2023, as well as more recent developments and Vivos' plans for the remainder of 2023. Following these formal remarks, we will be happy to take questions.

參加今天電話會議的有 Vivos 董事長兼首席執行官 Kirk Huntsman 和首席財務官 Brad Amman。今天，我們將回顧 2023 年第一季度的亮點和財務業績，以及最新進展和 Vivos 2023 年剩餘時間的計劃。在這些正式發言之後，我們將很樂意回答問題。

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.

我還想提醒大家，今天的電話會議將包含我們管理層根據《1933 年證券法》修訂案第 27A 條和《1934 年證券交易法》修訂案第 21E 條的含義做出的某些前瞻性聲明，這些聲明涉及未來事件。諸如“目標”、“可能”、“能夠”、“應該”、“項目”、“期望”、“打算”、“計劃”、“相信”、“預期”、“希望”、“估計”、“目標”等詞語以及這些詞語的變體和類似表達方式旨在識別前瞻性陳述。

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, and 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 potential for future positive cash flows 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.

這些陳述涉及重大的已知和未知風險，並基於許多假設和估計，這些假設和估計本質上受到重大風險、不確定性和意外事件的影響，其中許多風險、不確定性和意外事件超出了公司的控制範圍。實際結果，包括但不限於 Vivos 增長戰略、運營計劃（包括銷售、營銷、產品收購和整合、研發、監管舉措、成本節約計劃和創收計劃）以及未來潛在結果運營或運營指標（例如未來正現金流的潛力以及 Vivos 管理層在本次電話會議中要解決的其他事項）可能與此類前瞻性陳述中明示或暗示的內容存在重大和不利的差異。

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 Securities and Exchange Commission, including the risk factors and other disclosures in our Form 10-K for the year ended December 31, 2022, and our other filings with the SEC, all of which are or will be accessible on the Investor Relations section of Vivos' website as well as the SEC's website. Except to the extent required by law, Vivos assumes no obligation to update statements as circumstances change.

可能導致實際結果存在重大差異的因素包括但不限於 Vivos 向美國證券交易委員會提交的文件中所述的風險因素和其他披露信息，包括我們的 10-K 表格中的風險因素和其他披露信息截至 2022 年 12 月 31 日的年度，以及我們向 SEC 提交的其他文件，所有這些文件都可以或將在 Vivos 網站的投資者關係部分以及 SEC 網站上訪問。除法律要求的範圍外，Vivos 不承擔因情況變化而更新聲明的義務。

Finally, please be aware that the US Food and Drug Administration has given certain Vivos appliances, 510 (k) clearance to treat mild-to-moderate OSA. Any reference herein regarding Vivos' treatment or the Vivos method should be viewed in that context. Treatment of patients with severe OSA is performed off-label at the sole discretion -- the sole clinical discretion of the treating doctor and is not part of the Vivos treatment protocol.

最後，請注意，美國食品和藥物管理局已授予某些 Vivos 設備 510 (k) 許可，用於治療輕度至中度 OSA。本文中有關 Vivos 治療或 Vivos 方法的任何引用均應在該上下文中查看。嚴重 OSA 患者的治療是根據治療醫生的唯一臨床判斷自行進行標籤外治療，並且不屬於 Vivos 治療方案的一部分。

Now at this time, it is my pleasure to introduce Kirk Huntsman, Chairman and CEO of Vivos. Kirk, please go ahead.

此時此刻，我很高興向您介紹 Vivos 董事長兼首席執行官柯克·亨茨曼 (Kirk Huntsman)。柯克，請繼續。

Thank you, Julie. I want to thank you all for joining us on today's conference call. Just a moment, I'll turn the call over to our Chief Financial Officer, Brad Amman, who will walk you through the highlights of our first quarter 2023 financial and operating results.

謝謝你，朱莉。我要感謝大家參加今天的電話會議。請稍後，我將把電話轉給我們的首席財務官 Brad Amman，他將向您介紹我們 2023 年第一季度財務和運營業績的亮點。

Once Brad is finished, I'll come back on and speak with you about the highlights of what we accomplished at Vivos' during the first quarter and in the past few weeks following the quarter end, including our acquisition of product rights and patents from Advanced Facialdontics. This has expanded our product portfolio even further allowing Vivos' trained providers to treat a much larger percentage of their patients, which ultimately increases the revenue potential for Vivos.

Brad 講完後，我將回來與您討論我們在第一季度以及季度末後的過去幾週內 Vivos 所取得的成就的亮點，包括我們從 Advanced 獲得產品權利和專利面部牙科。這進一步擴大了我們的產品組合，使 Vivos 訓練有素的提供商能夠治療更大比例的患者，從而最終增加 Vivos 的收入潛力。

I'll also talk about our progress with the FDA as well as ongoing R&D efforts. In more recent news, I'll talk about some of the actions we took to improve our organizational infrastructure and highlight how we took steps to increase operational efficiencies, reduce expenses, and position us to take advantage of the growth opportunities that are available to us.

我還將談論我們與 FDA 的進展以及正在進行的研發工作。在最近的新聞中，我將討論我們為改善組織基礎設施而採取的一些行動，並重點介紹我們如何採取措施來提高運營效率、減少開支，並使我們能夠利用現有的增長機會。

I'm pleased to say that due to these initiatives, we can reiterate that we remain on target to achieve our goal of positive cash flow for the first quarter of 2024, which is a full quarter earlier than the target we provided you on our last earnings call in March. Our goal is to achieve this key target without having to raise any further equity capital if possible.

我很高興地說，由於這些舉措，我們可以重申，我們仍然致力於實現 2024 年第一季度正現金流的目標，這比我們上次向您提供的目標早了整整一個季​​度三月份的財報電話會議。我們的目標是在可能的情況下無需籌集任何進一步的股本即可實現這一關鍵目標。

Following that, I'll talk about our plans going forward in 2023, how we intend to build upon what we've already done, and what we have planned for the rest of the year as well as into 2024. After that, we'll take your questions.

接下來，我將討論我們 2023 年的計劃、我們打算如何在已經完成的工作的基礎上再接再厲，以及我們今年剩餘時間以及 2024 年的計劃。在那之後，我們我們會回答你的問題。

Now let me turn it over to Brad to review our financials. Brad, please go ahead.

現在讓我把它交給布拉德來審查我們的財務狀況。布拉德，請繼續。

Thank you, Kirk, and good afternoon, everyone. Today, I'll review the financial highlights of our first quarter 2023 financial results. For information on our results for the three-month period ended March 31, 2023, I'll refer you to 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 the Vivos website at vivos.com/investor-relations.

謝謝柯克，大家下午好。今天，我將回顧 2023 年第一季度財務業績的財務要點。有關我們截至 2023 年 3 月 31 日的三個月業績的信息，請參閱我們今天早些時候發布的收益報告以及 10-Q 表格季度報告（可在 SEC 備案部分獲取） Vivos 網站投資者關係部分：vivos.com/investor-relations。

At the outset, I want to say thank you for your patience as we switched auditors for the first quarter, which led to a delay in our 10-Q filing. I am pleased to report that our relationship with our new auditor, Moss Adams is off to a very positive start, and we are looking for a smooth and productive relationship with him.

首先，我想說感謝您的耐心，因為我們更換了第一季度的審計師，這導致了我們 10-Q 申報的延遲。我很高興地向大家報告，我們與新審計師莫斯·亞當斯 (Moss Adams) 的關係有了一個非常積極的開端，我們正在尋求與他建立順暢且富有成效的關係。

Today, we report first quarter 2023 total revenue of $3.9 million compared to $3.6 million for the first quarter of 2022. The overall year-over-year increase was due to higher revenue from Vivos' integrated provider or VIP enrollments, as well as increased sleep testing service revenue and increased -- and conference and training related revenue. This was offset by lower revenue generated year over year from appliance sales, billing intelligence services, and central revenue.

今天，我們報告 2023 年第一季度的總收入為 390 萬美元，而 2022 年第一季度的總收入為 360 萬美元。總體同比增長是由於 Vivos 集成提供商或 VIP 註冊的收入增加，以及睡眠增加測試服務收入以及會議和培訓相關收入有所增加。這被家電銷售、計費智能服務和中央收入同比下降的收入所抵消。

Our VIP enrollments were up in the first quarter with 38 VIPs enrolled versus 32 enrolled in the same period last year. For the first quarter of 2023, we recognized VIP revenue of approximately $1.3 million, an increase of $400,000 or 42% in enrollment revenue compared to $900,000 for the first quarter of 2022. It should be noted that first quarter of 2022 VIP revenue was negatively affected by a $300,000 adjustment that rose from the prior year impact of our change in revenue recognition policy. We also saw an increase of approximately $200,000 in revenue recognized from our home sleep test ring lease program as well as an increase of approximately $100,000 in conference and training related revenue.

第一季度我們的 VIP 註冊人數有所增加，註冊人數為 38 名，而去年同期註冊人數為 32 名。 2023 年第一季度，我們確認 VIP 收入約為 130 萬美元，與 2022 年第一季度的 90 萬美元相比，註冊收入增加了 40 萬美元，即 42%。值得注意的是，2022 年第一季度 VIP 收入受到了負面影響與上一年收入確認政策變化的影響相比，調整了 300,000 美元。我們還發現家庭睡眠測試環租賃計劃確認的收入增加了約 200,000 美元，會議和培訓相關收入增加了約 100,000 美元。

The increase in total revenue was partially offset by lower product revenue. During the first quarter of 2023, we sold 2,369 oral appliance arches for a total of approximately $1.7 million compared to 2,965 during the first quarter of 2022 for approximately $1.9 million. And for the first quarter of 2023, we recognized approximately $200,000 in our billing intelligence service revenue compared to $400,000 in the same period in the prior year. We also had approximately $100,000 in center revenue compared to approximately $200,000 during last year's first quarter.

總收入的增長被產品收入的下降部分抵消。 2023 年第一季度，我們售出了 2,369 個口腔矯治器拱門，總價值約為 170 萬美元，而 2022 年第一季度售出 2,965 個口腔矯治器拱門，總價值約為 190 萬美元。 2023 年第一季度，我們確認計費智能服務收入約為 20 萬美元，而上年同期為 40 萬美元。我們的中心收入也約為 100,000 美元，而去年第一季度約為 200,000 美元。

Gross profit was $2.3 million for the first quarter of 2023 compared to gross profit of $2.6 million for the comparable period in 2022. Gross margin for the first quarter of 2023 was 61% compared to 70% during the last year's first quarter, primarily driven by higher costs associated with VIP enrollment and training, as well as costs related to our new programs, including the sale and leasing of sleep testing rings.

2023 年第一季度的毛利潤為 230 萬美元，而 2022 年同期毛利潤為 260 萬美元。2023 年第一季度的毛利率為 61%，而去年第一季度的毛利率為 70%，這主要是由於與 VIP 註冊和培訓相關的成本較高，以及與我們的新計劃相關的成本（包括睡眠測試環的銷售和租賃）。

We continue to refine our sales, marketing, and promotional efforts with potential VIPs -- not only to increase enrollment and revenue, but to improve our gross profits and margins. This includes utilizing targeted social media and digital marketing efforts, specifically designed to drive sales. As of the first quarter, we are now starting to see the benefits of these efforts with increased VIP enrollments on a year-over-year basis.

我們繼續完善我們與潛在 VIP 的銷售、營銷和促銷工作——不僅是為了增加註冊人數和收入，而且是為了提高我們的毛利潤和利潤率。這包括利用專門為推動銷售而設計的有針對性的社交媒體和數字營銷工作。截至第一季度，我們開始看到這些努力的好處，VIP 註冊人數逐年增加。

Sales and marketing expense was $600,000 for the first quarter of 2023, a decrease of approximately $200,000 compared to $800,000 for the first quarter of 2022. This year-over-year decrease was primarily due to decreased sales commissions and a reduction in associated sales related expenses.

2023 年第一季度的銷售和營銷費用為 600,000 美元，與 2022 年第一季度的 800,000 美元相比減少了約 200,000 美元。這一同比下降主要是由於銷售佣金的減少以及相關銷售相關費用的減少。

Importantly, G&A expenses decreased approximately $1.7 million or 21% to $6.5 million for the first quarter of 2023 compared to $8.3 million for the first quarter of 2022, reflecting the substantial impact our cost cutting efforts are beginning to make. We believe these important efforts will reduce our cash burn as we seek to ramp revenues and move toward cash-flow-positive operations.

重要的是，與 2022 年第一季度的 830 萬美元相比，2023 年第一季度的一般管理費用減少了約 170 萬美元，降至 650 萬美元，降幅為 21%，這反映出我們的成本削減工作已開始產生重大影響。我們相信，當我們尋求增加收入並轉向現金流為正的運營時，這些重要的努力將減少我們的現金消耗。

Operating loss was $5 million for the first quarter of 2023 compared to 6.6 million for the first quarter of 2022. This year-over-year decrease in operating loss was primarily from lower G&A expenses due to expense cuts and the factors I just discussed.

2023 年第一季度的運營虧損為 500 萬美元，而 2022 年第一季度的運營虧損為 660 萬美元。運營虧損同比減少主要是由於費用削減和我剛才討論的因素導致一般管理費用減少。

Net loss was $1.7 million for the first quarter of 2023 compared to $5.3 million for the first quarter of 2022. The reduction in net loss was due in part to cost cutting, but also during the quarter, we recognized approximately $6.5 million as a one-time nonoperating expense related to the difference between excess fair value from warrants issued in our January 2023 private placement and the net proceeds we received. The change in fair value of the warrant liability over the quarter was $9.6 million net of issuance costs of $600,000. Accordingly, the net impact of the private placement warrants for the three months ended March 31, 2023, it was approximately $3.2 million of non-cash other income. Please refer to our 10-Q for further details regarding this.

2023 年第一季度的淨虧損為 170 萬美元，而 2022 年第一季度的淨虧損為 530 萬美元。淨虧損的減少部分歸因於成本削減，但也在本季度，我們確認了約 650 萬美元的單項損失。與 2023 年 1 月私募發行的認股權證的超額公允價值與我們收到的淨收益之間的差額相關的非營業費用。本季度認股權證負債的公允價值變化為 960 萬美元，扣除發行成本 60 萬美元。因此，截至 2023 年 3 月 31 日的三個月，私募認股權證的淨影響約為 320 萬美元的非現金其他收入。請參閱我們的 10-Q 了解有關此問題的更多詳細信息。

Turning to our statement of cash flows. Cash burn from operations for the quarter ended March 31, 2023, was $3.5 million, a decrease of approximately $2.6 million compared to approximately $6.1 million during the comparable prior-year period. This is further evidence of the positive impact of our expense reduction initiatives.

轉向我們的現金流量表。截至 2023 年 3 月 31 日的季度運營現金消耗為 350 萬美元，比去年同期的約 610 萬美元減少約 260 萬美元。這進一步證明了我們削減開支舉措的積極影響。

For the quarter ended March 31, 2023, net cash used in investing activities consisted of capital expenditures for software of $300,000 related to the development of software for internal use, which is expected to be placed into service in mid-2023 as well as a purchase of patents and other intellectual property in February of 2023. This compares to net cash used in investing activities of $100,000 in the comparable 2022 period arising from capital expenditures for internally developed software.

截至 2023 年 3 月 31 日的季度，投資活動使用的淨現金包括與開發內部使用的軟件相關的 300,000 美元軟件資本支出，預計將於 2023 年中期投入使用，以及採購2023 年 2 月的專利和其他知識產權數量。相比之下，2022 年同期投資活動所用的淨現金為 100,000 美元，源自內部開發軟件的資本支出。

As I mentioned earlier, in January of 2023, we strengthened our balance sheet by closing a private placement with a single institutional investor for net proceeds of approximately $7.4 million. The private placement consisted of shares of common stock and pre-funded warrants, together with 5.5 year common stock purchase warrants with an exercise price of $1.20 a share. The effective purchase price per share of common stock or pre-funded warrants in lieu thereof and associated warrant was $1.20 per share. As of March 31, 2023, we had $7 million in cash.

正如我之前提到的，2023 年 1 月，我們通過與單一機構投資者完成私募，獲得了約 740 萬美元的淨收益，從而強化了我們的資產負債表。此次私募包括普通股和預融資認股權證，以及 5.5 年期普通股購買認股權證，行使價為每股 1.20 美元。普通股或代替普通股的預融資認股權證以及相關認股權證的每股有效購買價格為每股 1.20 美元。截至 2023 年 3 月 31 日，我們擁有 700 萬美元現金。

With the financing we completed in January, as well as the strategic initiatives we have applied to reduce our expenses, we continue to anticipate having the necessary financial resources to meet our capital needs, fund our operations, and continue executing on our near-term growth strategy. In the short-term, we expect these changes will result in relatively flat revenues sequentially for the first half of 2023. This also takes into consideration our new ASC 606 revenue recognition policy. Afterwards, we anticipate topline quarter over quarter revenue growth will resume starting in the third quarter of this year.

通過我們一月份完成的融資，以及我們為減少開支而採取的戰略舉措，我們繼續預計擁有必要的財務資源來滿足我們的資本需求，為我們的運營提供資金，並繼續執行我們的近期增長戰略。短期內，我們預計這些變化將導致 2023 年上半年收入相對持平。這也考慮到了我們新的 ASC 606 收入確認政策。此後，我們預計收入季度環比增長將從今年第三季度開始恢復。

Further, as Kirk mentioned earlier. We believe these initiatives will allow us to accelerate our target time for reaching positive cash flow by a full quarter, now in the first quarter of 2024.

此外，正如柯克之前提到的。我們相信，這些舉措將使我們能夠將實現正現金流的目標時間提前整個季度，即 2024 年第一季度。

With that, I'll turn the call back over to Gary.

這樣，我會將電話轉回給加里。

Thank you, Brad. The first quarter that we are reporting on here today may seem like a distant memory. But we believe it represents a significant watershed moment for the company and our future.

謝謝你，布拉德。我們今天在這里報道的第一季度似乎已經成為遙遠的記憶。但我們相信，這對於公司和我們的未來來說是一個重要的分水嶺時刻。

First, in early January, we announced FDA 510(k) clearance for our flagship DNA oral appliance product. This represented the first time in history that the FDA recognized any mechanism of action in an oral appliance other than mandibular advancement for the treatment of mild to moderate obstructive sleep apnea. No oral appliance product has ever received such a clearance. And the significance of this breakthrough should not be underestimated.

首先，一月初，我們宣布我們的旗艦 DNA 口腔矯治器產品獲得 FDA 510(k) 批准。這代表 FDA 歷史上首次認可口腔矯治器除下頜前移以外的任何作用機制，用於治療輕度至中度阻塞性睡眠呼吸暫停。還沒有口腔矯治器產品獲得過這樣的許可。而這一突破的意義不容低估。

We fully believe that after several years of going back and forth with the FDA, they were finally persuaded by our submission of yet another round of compelling real-world data. This time showing a remarkable 80% of OSA patients seeing their symptoms completely resolve after treatment using the DNA appliance and the Vivos Method.

我們完全相信，經過與 FDA 幾年的反复溝通，他們最終被我們提交的又一輪令人信服的真實數據所說服。這次顯示，使用 DNA 矯治器和 Vivos 方法治療後，80% 的 OSA 患者的症狀完全消失。

Now to be clear, this data showed that clinical OSA, meeting AHI scores of five or higher was no longer present in four out of five patients after treatment and with no further intervention required. As far as we know, such clinical results are unprecedented in sleep medicine, and unparalleled by any other product or therapy. We expect the full financial impact of that regulatory clearance on our sales to be realized over time as doctors alter their treatment plans to include more DNA appliances.

現在需要明確的是，這些數據表明，治療後五分之四的患者不再出現符合 AHI 評分 5 分或更高的臨床 OSA，並且無需進一步干預。據我們所知，這樣的臨床結果在睡眠醫學中是前所未有的，也是任何其他產品或療法無法比擬的。隨著醫生改變治療計劃以納入更多 DNA 器具，我們預計監管許可對我們銷售的全面財務影響將隨著時間的推移而實現。

Second, on the heels of our announcement regarding the FDA clearance for the DNA appliance, we raised an equity tranche with net proceeds of roughly $7.4 million from a single institutional investor. We immediately put this capital to good use and expanding our intellectual property and product suite through the acquisition of certain patents, trademarks, and trade secrets from Advanced Facialdontics. We closed on this transaction towards the end of the first quarter.

其次，在我們宣布 FDA 批准 DNA 設備上市後，我們從單一機構投資者處籌集了約 740 萬美元淨收益的股權。我們立即充分利用這筆資金，通過收購 Advanced Facialdontics 的某些專利、商標和商業秘密來擴大我們的知識產權和產品組合。我們在第一季度末完成了這項交易。

That acquisition not only ensures that Vivos will maintain its technological and market-leading position at the forefront of treatments for certain conditions closely linked to obstructive sleep apnea, such as TMD pain, bruxism, nasal resistance, migraine headaches, and other conditions, but it also fills a gap in our product suite and offerings to patients -- to providers and patients. Nearly 40 million people in the United States suffer from TMD pain and related issues. Another 40 million suffer from migraine headaches or have difficulty breathing through their nose. Our new patented unilateral bite block technology has been shown to be highly effective in treating such conditions.

此次收購不僅確保了 Vivos 在治療與阻塞性睡眠呼吸暫停密切相關的某些疾病（例如 TMD 疼痛、磨牙症、鼻阻力、偏頭痛和其他疾病）方面保持其技術和市場領先地位，而且還還填補了我們的產品套件和為患者（提供者和患者）提供的產品的空白。美國有近 4000 萬人患有 TMD 疼痛和相關問題。另外 4000 萬人患有偏頭痛或鼻子呼吸困難。我們的新專利單側咬合塊技術已被證明在治療此類疾病方面非常有效。

Also, during the first quarter, we accelerated the process of rightsizing our corporate staffing levels and reorganizing our management team in order to reduce our cash burn and push the company closer to cash flow breakeven, which, as Brad mentioned, we now expect to achieve during the first quarter of 2024. As a subsequent event, early here in the second quarter, we announced a reduction in force and further reductions in overhead. Again, we think these prudent and necessary actions will serve us well as we look to improve our results of operations.

此外，在第一季度，我們加快了公司人員配置水平的調整和管理團隊的重組，以減少現金消耗並推動公司接近現金流收支平衡，正如布拉德提到的，我們現在期望實現2024 年第一季度。作為後續事件，我們在第二季度初宣布減少兵力並進一步減少管理費用。再次，我們認為這些審慎和必要的行動將對我們改善經營業績很有幫助。

On the operations side, we made important progress in our current pilot tests with certain DSO organizations known as DSOs, including the execution of new and existing pilots with eight regional and national DSOs representing over 1,000 locations nationwide.

在運營方面，我們在當前與某些 DSO 組織（稱為 DSO）的試點測試中取得了重要進展，包括與代表全國 1,000 多個地點的 8 個地區和國家 DSO 執行新的和現有的試點。

I'd like to highlight one particular DSO, which operates in all 50 states under the name Toothpillow. Over the past 12 months, Toothpillow has been making exceptional strides forward in cultivating a direct-to-consumer channel exclusively geared towards use of our Vivos Guides products for pediatric guided growth and development. An estimated 16 million children between the ages of 3 and 12 suffer from various orofacial and developmental issues associated with ADD, ADHD, behavioral problems, scholastic challenges, chronic allergies, mouth breeding, crooked and crowded teeth, bed wetting, and breathing related sleep issues, all of which may be helped through proper oral growth and development.

我想重點介紹一個特定的 DSO，它以 Toothpillow 的名稱在全美 50 個州開展業務。在過去的 12 個月裡，Toothpillow 在培養直接面向消費者的渠道方面取得了巨大的進步，該渠道專門用於使用我們的 Vivos Guides 產品來指導兒科生長和發育。據估計，有 1600 萬 3 歲至 12 歲的兒童患有各種口面部和發育問題，這些問題與註意力缺失症 (ADD)、注意力缺陷多動症 (ADHD)、行為問題、學業挑戰、慢性過敏、張口、牙齒彎曲和擁擠、尿床和呼吸相關的睡眠問題有關。 ，所有這些都可以通過適當的口腔生長和發育來幫助。

Toothpillow is a pioneering telehealth, commercial partner of Vivos. And we are their exclusive oral appliance supplier. Toothpillow is set to redefine the field of pediatric dental and orthodontic treatment with a particular focus on breathing related issues. This transformational relationship leverages Vivos' world-class pediatric oral appliances, underscoring the role of our cutting-edge products in advancing the delivery of dental and orthodontic care.

Toothpillow 是 Vivos 領先的遠程醫療商業合作夥伴。我們是他們的獨家口腔矯治器供應商。牙枕將重新定義兒科牙科和正畸治療領域，特別關注呼吸相關問題。這種變革性的關係利用了 Vivos 世界一流的兒科口腔矯治器，突顯了我們的尖端產品在推進牙科和正畸護理服務方面的作用。

Toothpillow boasts of a strong national network of 48 Vivos-trained dentists that serve as virtual trading partners and a rapidly growing referral base of over 358 in-practice providers. The synergy between Vivos' premium pediatric oral appliances and Toothpillow's software and highly skilled practitioners is creating a holistic, accessible, and high-quality telehealth solution for at-risk patients aged 3 to 12. Over the past year Toothpillow has been perfecting its proprietary virtual care platform featuring a mobile app designed to facilitate seamless connections between patients and doctors.

Toothpillow 擁有強大的全國網絡，由 48 名經過 Vivos 培訓的牙醫組成，他們作為虛擬貿易夥伴，並且擁有超過 358 名執業牙醫的快速增長的推薦基礎。 Vivos 的優質兒科口腔矯治器與 Toothpillow 的軟件以及高技能的從業人員之間的協同作用，正在為 3 至 12 歲的高危患者創建全面、易於使用且高質量的遠程醫療解決方案。在過去的一年中，Toothpillow 一直在完善其專有的虛擬技術護理平台具有移動應用程序，旨在促進患者和醫生之間的無縫連接。

Despite not yet having launched its national marketing campaign, Toothpillow's services have already been sought out by patients in 40 states, all through referrals with 64% of all new inquiries converting into paying patients. Vivos is excited about our relationship with Toothpillow. And we believe it not only showcases the effectiveness and versatility of our oral appliances, but also opens up a large and exciting new avenue for growth. We are confident that Toothpillow's success will further amplify the voices reputation in the industry, bringing us one step closer to our vision of training health care professionals and providing them with the very best treatment tools and technology available.

儘管尚未啟動全國營銷活動，Toothpillow 的服務已受到 40 個州患者的青睞，所有新諮詢中 64% 轉化為付費患者。 Vivos 對我們與 Toothpillow 的關係感到興奮。我們相信，它不僅展示了我們口腔矯治器的有效性和多功能性，而且還開闢了一條巨大且令人興奮的新增長途徑。我們相信，Toothpillow 的成功將進一步提升聲音在行業中的聲譽，使我們離培訓醫療保健專業人員並為他們提供最好的治療工具和技術的願景又近了一步。

Equally as important, Toothpillow is just one of several DSOs we have been speaking with and starting to do business with. And therefore, it serves as an example of similar relationships we hope to enter into in 2023 and beyond.

同樣重要的是，Toothpillow 只是我們一直在與之交談並開始開展業務的幾家 DSO 之一。因此，它是我們希望在 2023 年及以後建立類似關係的一個例子。

Also today, we are announcing the execution of our first non-exclusive distribution agreement for a 90-day pilot with a nationally recognized durable medical equipment company, or DME, that serves hundreds of thousands of CPAP patients nationwide, who are seeking alternatives. If this pilot is successful, a national rollout is planned to follow. And we can provide more details at that time.

同樣在今天，我們還宣布與一家全國認可的耐用醫療設備公司 (DME) 簽署了第一份為期 90 天的非獨家經銷協議，該試點項目為全國數十萬正在尋求替代方案的 CPAP 患者提供服務。如果該試點成功，計劃隨後在全國范圍內推廣。屆時我們可以提供更多詳細信息。

Other similar agreements with potential distributors are in process. We continue to believe that the financial impact on topline revenue from these efforts will begin to show up in the third and fourth quarters of this year. An integral part of this pilot is the Treatment Navigator program that we introduced last fall. This program was designed to effectively act as an extension of the VIP practice to help the dental office guide the patient through the many different steps of the patient journey, including coordinating diagnostic appointments, insurance pre-authorizations, further education, and generally coaching the patients through treatment under the direction of a treating doctor.

與潛在經銷商的其他類似協議正在進行中。我們仍然相信，這些努力對營收的財務影響將在今年第三和第四季度開始顯現。該試點項目的一個組成部分是我們去年秋天推出的治療導航計劃。該計劃旨在有效地作為 VIP 實踐的延伸，幫助牙科診所指導患者完成患者旅程的許多不同步驟，包括協調診斷預約、保險預授權、進一步教育以及對患者的一般指導通過在主治醫生的指導下進行治療。

Excuse me.

打擾一下。

Not only does the Treatment Navigator program removes significant workload from the practice, it helps to mitigate the challenges associated with employee turnover within the practice. It anticipates Vivos up to $895 per case for Treatment Navigator services, which we expect will soon become a significant revenue contributor and profit center for us.

治療導航器計劃不僅消除了診所的大量工作量，還有助於減輕診所內與員工流動相關的挑戰。預計 Vivos 的治療導航服務每病例高達 895 美元，我們預計該服務很快將成為我們的重要收入貢獻者和利潤中心。

We believe our latest rounds of cost cutting, coupled with an intense focus on creating new revenue streams, will allow us to achieve our stated goal of achieving positive cash flow by the first quarter of 2024. Our prior reliance on Vivos-trained dentists to create demand from within their practices is now being augmented by Vivos actively driving new patients into their offices through multiple distribution channels -- including primary care and specialty medical doctors, medical equipment suppliers, large employers, men's health clinics, and more.

我們相信，我們最新一輪的成本削減，加上對創造新收入來源的高度重視，將使我們能夠實現我們既定的目標，即到 2024 年第一季度實現正現金流。我們之前依賴 Vivos 培訓的牙醫來創造Vivos 通過多種分銷渠道（包括初級保健和專科醫生、醫療設備供應商、大型雇主、男性健康診所等）積極吸引新患者進入他們的辦公室，從而擴大了其實踐中的需求。

We deliver more qualified new airway patients to Vivos as we deliver more qualified new airway patients to Vivos-trained providers, our value proposition to potential new providers becomes more compelling and attractive. It's a virtuous cycle that creates the potential to organically fuel our growth. We expect to begin to see the impact of these strategic initiatives in the latter half of this year.

當我們向 Vivos 培訓的提供商提供更多合格的新氣道患者時，我們向 Vivos 提供更多合格的新氣道患者，我們對潛在新提供商的價值主張變得更加引人注目和有吸引力。這是一個良性循環，創造了有機推動我們增長的潛力。我們預計將在今年下半年開始看到這些戰略舉措的影響。

With respect to our ongoing R&D efforts, the last year -- this past year has produced the single largest advancement towards proving the efficacy of our technology with multiple studies and peer-reviewed papers being published in top quality journals, professional journals. We are pleased to announce today, the recent execution of an agreement with Stanford University to begin a randomized controlled trial, where our DNA appliances will be directly compared to CPAP.

就我們正在進行的研發工作而言，去年在證明我們技術的有效性方面取得了最大的進步，多項研究和同行評審的論文發表在頂級期刊、專業期刊上。今天，我們很高興地宣布，最近與斯坦福大學簽署了一項協議，開始一項隨機對照試驗，我們的 DNA 設備將與 CPAP 直接進行比較。

Additional university-based clinical trials on Vivos products are currently in process and are expected to start before year-end. Currently, there are no less than five additional new papers showing significant clinical results that have been submitted and are pending publication. The cumulative effect of this research is to establish beyond any reasonable doubt that Vivos possesses the single most advanced and effective treatment for breathing and sleep disorders on the market today.

其他基於大學的 Vivos 產品臨床試驗目前正在進行中，預計將於年底前開始。目前，已有不少於五篇顯示顯著臨床結果的新論文已提交並等待發表。這項研究的累積效應毫無疑問地證明 Vivos 擁有當今市場上最先進、最有效的呼吸和睡眠障礙治療方法。

One final note on our product development front. For some time now, we have been actively engaged in the development of a patient-driven mobile app that will assist clinicians in collecting key diagnostic data, and in monitoring patient compliance and progress, while also empowering patients to take charge of their own health and wellness. For example, patients can participate in taking periodic records, providing feedback, and actually receive coaching and interaction with their providers.

關於我們產品開發方面的最後一點。一段時間以來，我們一直積極致力於開發一款以患者為主導的移動應用程序，該應用程序將幫助臨床醫生收集關鍵診斷數據，監控患者的依從性和進展情況，同時也使患者能夠掌控自己的健康和健康狀況。健康。例如，患者可以參與定期記錄、提供反饋，並實際接受指導並與其提供者互動。

The mobile platform also allows for remote delivery of certain clinical services such as myofunctional therapy, breathing exercises, important notifications, and more. Our surveys and provider feedback leads us to believe that there is strong potential demand for such a product and that it can be commercialized and highly profitable for both Vivos and Vivos providers, while also taking a load off of dentists and their teams. We plan to have a beta version of the app ready for testing by the end of this month, and expect to have a commercial product available by the fourth quarter of this year.

該移動平台還允許遠程提供某些臨床服務，例如肌功能治療、呼吸練習、重要通知等。我們的調查和供應商反饋使我們相信，這種產品存在強勁的潛在需求，並且它可以商業化，並為 Vivos 和 Vivos 供應商帶來高額利潤，同時也減輕牙醫及其團隊的負擔。我們計劃在本月底之前準備好該應用程序的測試版以進行測試，並預計在今年第四季度之前推出商業產品。

Now in closing. We have the evidence-based technology and products that can now address the needs of patients across the full spectrum of price points and needs. We have the FDA clearances. We have the nationwide network of trained providers. And now we have a growing brand awareness amongst both providers and patients.

現在正在關閉。我們擁有基於證據的技術和產品，現在可以滿足患者在各個價位和需求上的需求。我們有 FDA 許可。我們擁有全國范圍內經過培訓的提供商網絡。現在，我們在醫療服務提供者和患者中的品牌知名度都在不斷提高。

Through our new distribution networks, we will soon have access to more potential new patients than ever before. We believe the combined effects of our internal cost, operating cost reductions, and the strategic revenue initiatives outlined above will yield significant topline revenue growth and allow us to become self-sustaining in the first quarter of 2024.

通過我們新的分銷網絡，我們很快將獲得比以往更多的潛在新患者。我們相信，我們的內部成本、運營成本削減和上述戰略收入計劃的綜合影響將帶來顯著的營收增長，並使我們能夠在 2024 年第一季度實現自我維持。

This concludes our prepared remarks, and now we'll be happy to take questions. Operator?

我們準備好的發言到此結束，現在我們很樂意回答問題。操作員？

Thank you. (Operator Instructions)

謝謝。 （操作員說明）

Scott Henry, Roth Capital Partners.

斯科特·亨利，羅斯資本合夥人。

Thank you, and good afternoon. Cash flow positive in the first quarter of 2024 would be fantastic -- so if you can achieve that goal. So I just wanted to drill a little bit into the assumptions. I know you expect flattish revenues in the first half of this year, but what sort of revenue run rate do you think would allow you to achieve that goal?

謝謝你，下午好。 2024 年第一季度現金流為正那就太棒了——所以如果你能實現這個目標的話。所以我只是想稍微深入研究一下假設。我知道您預計今年上半年的收入將持平，但您認為什麼樣的收入運行率才能讓您實現這一目標？

We believe that at $8 million run rate per quarter, we can hit that goal, Scott.

我們相信，按照每季度 800 萬美元的運行率，我們可以實現這一目標，斯科特。

Okay. Thank you. That's helpful. And when I look at the expense items, obviously sales and marketing was way down. And I know there was layoffs recently. I want to hone in -- firstly, is that sales and marketing level of $600,000 -- is that what we should think about going forward?

好的。謝謝。這很有幫助。當我查看費用項目時，顯然銷售和營銷大幅下降。我知道最近有裁員。我想進一步探討——首先，60 萬美元的銷售和營銷水平是不是我們應該考慮的？

And second of all, that G&A of $6.5 million, I imagine that's where the bulk of the cuts are going to come to. What should we think about as G&A once all the cuts and everything has taken effect?

其次，我想大部分削減將用於 650 萬美元的一般管理費用。一旦所有削減和一切都生效後，我們應該如何考慮一般行政費用？

Well, if you look at quarter over quarter, Scott, last year we were at $8.3 million. In first quarter, we were at $6.5 million in G&A expenses. In the first quarter of 2023, the marketing expenses stayed roughly flat, we were down about $100,000 quarter over quarter. As those take place, we believe on the personnel cost, we're going to have $500,000 a quarter go against that G&A expense. So that's roughly what we will save in terms of salaries, wages, taxes and benefits.

斯科特，如果你看一下每個季度的情況，去年我們的收入是 830 萬美元。第一季度，我們的一般管理費用為 650 萬美元。 2023 年第一季度，營銷費用大致持平，環比下降約 10 萬美元。當這些發生時，我們相信在人員成本方面，我們每個季度將有 500,000 美元用於 G&A 費用。這大致就是我們在工資、工資、稅收和福利方面將節省的金額。

Okay. Thank you. That's helpful. Just a couple other small questions. Arches were down in the quarter. And if you calculate arches per doc, they were down -- significantly. How should we think about that number? I mean, I know the business model is always changing and the accounting is changing as well. Just trying to get a sense of how we should think about that number as far as arches -- how we should interpret the first quarter 2023 results and how we should think about that number going forward?

好的。謝謝。這很有幫助。還有其他幾個小問題。該季度的拱門已下降。如果你計算每個醫生的足弓，就會發現它們明顯下降了。我們應該如何看待這個數字？我的意思是，我知道商業模式總是在變化，會計也在變化。只是想了解一下就拱門而言我們應該如何看待這個數字——我們應該如何解釋 2023 年第一季度的結果以及我們應該如何看待未來的這個數字？

Well, first of all, I think there's a certain element of the macroeconomic economy -- other companies in the dental space have struggled with some of that and some of the results of that. So there's that that plays into it. There is a little bit of seasonality in Q1 that that plays into it.

嗯，首先，我認為宏觀經濟中有一定的因素——牙科領域的其他公司一直在努力應對其中的一些因素以及由此產生的一些結果。所以這就是其中的原因。第一季度存在一些季節性因素。

But there was also an event that took place. It was a little bit unfortunate, towards the middle to later part of Q1 where there was some market confusion over of a product that made similar claims to some of our products out there in the marketplace. This product did not have FDA clearances, did not have research, did not have a lot of things behind it. It was a totally different type of product. But there was some market confusion over that and frankly, a lot of our providers, until we were able to wrap our minds around that and really address that directly, they -- we just saw and we've seen a little bit of a softening in the sales of our arches from that standpoint.

但同時也發生了一件事情。有點不幸的是，在第一季度中後期，市場上出現了一些與我們市場上的一些產品類似的產品的混亂。該產品沒有獲得 FDA 許可，沒有研究，背後沒有很多東西。這是一種完全不同類型的產品。但對此存在一些市場混亂，坦率地說，我們的許多提供商，直到我們能夠全神貫注並真正直接解決這個問題之前，他們 - 我們剛剛看到並且我們已經看到了一點軟化從這個角度來看，我們拱門的銷售情況。

But that seems to have passed, things have picked up again here, and we're optimistic that we weathered that storm a little bit there and that that contributed in, especially in the latter part of the first quarter, and into the second quarter. So we are seeing now -- where as we drive demand through some of these distribution channels that we're talking about that have never been there before. We have new ways of helping doctors find patients to treat and it appears to be significant revenue opportunities for the doctors and their new patients. And so we're very optimistic.

但這似乎已經過去了，這裡的情況再次好轉，我們樂觀地認為，我們在那裡度過了一點風暴，這做出了貢獻，特別是在第一季度後半段和第二季度。所以我們現在看到——當我們通過我們正在談論的一些分銷渠道推動需求時，這是以前從未出現過的。我們有新的方法來幫助醫生找到需要治療的患者，這對於醫生及其新患者來說似乎是重要的收入機會。所以我們非常樂觀。

So it's going to be a -- come a point where the old model where we just relied upon dentists to source their own cases through their own practices and to do that. We're taking the bull by the horns and we're driving patients to our very best providers. So we are actively pursuing through our Treatment NAVIGATOR, our airway alliance and our distribution networks that we've talked about. We're actively working to drive patients into their offices. And that's a very different kind of paradigm shift that we've force into the marketplace. So as you go forward, I think we hopefully will see those numbers pick back up as some of these other distribution channels kick in.

因此，這將是一個舊模式，我們只是依靠牙醫通過自己的實踐來獲取自己的病例並做到這一點。我們不畏艱險，將患者帶到我們最好的醫療服務提供者那裡。因此，我們正在通過我們所討論的治療導航器、氣道聯盟和分銷網絡積極追求。我們正在積極努力推動患者進入他們的辦公室。這是我們強行推向市場的一種非常不同的範式轉變。因此，隨著您的前進，我認為隨著其他一些分銷渠道的啟動，我們希望看到這些數字回升。

Okay, great. Thank you. Final question, Kirk. Brad set a pretty high bar for you, getting to $8 million a quarter. How do you expect -- what are the levers you're going to pull to get there from here? How much do you get from the AFD acquisition -- is it the DMEs? Just in big picture terms, what are the levers you got to pull to get from here to there? Thank you.

好的，太好了。謝謝。最後一個問題，柯克。布拉德為你設定了一個相當高的標準，每季度達到 800 萬美元。您有何期望——您將採取什麼手段來實現這一目標？您從 AFD 收購中獲得了多少收益——是 DME 嗎？從大局來看，你需要拉動哪些槓桿才能從這裡到達那裡？謝謝。

Thank you, Scott. I think that's a great question. And all I can say is, is that -- there is a huge challenge in the CPAP community, in the CPAP world with patient compliance and with patients abandoning their treatment. And when patients abandon CPAP, which 90% of patients who get -- 90% of patients who are diagnosed with OSA get CPAP machines. In the first 90 days, a fourth of them will stop using their CPAP, and eventually, about half are known to stop using their CPAP machines.

謝謝你，斯科特。我認為這是一個很好的問題。我只能說，在 CPAP 社區、CPAP 世界中，患者的依從性和患者放棄治療都面臨著巨大的挑戰。當患者放棄 CPAP 治療時，90% 的患者 - 90% 被診斷患有 OSA 的患者都會使用 CPAP 機器。在最初的 90 天內，其中四分之一的人將停止使用 CPAP 呼吸機，最終大約有一半的人將停止使用 CPAP 呼吸機。

So there's a huge, huge number of people. It's in the millions of people out there in the United States, Canada, and around the world who have tried CPAP and are intolerant to it. They don't use it, they won't use it, they can't use it for a variety of reasons. Some of them psychological, some of them physiological, some of them just preferential. They just hate having it.

所以人數非常非常多。美國、加拿大和世界各地有數百萬嘗試過 CPAP 呼吸機但無法耐受的人。他們不使用它，他們不會使用它，他們出於各種原因不能使用它。有些是心理上的，有些是生理上的，有些只是偏好。他們只是討厭擁有它。

But what do those people do? Well, we've now unlocked the secret, if you will, to how to access those patients and what to do. We've established some really clear and very -- I think reasonable and market-based distribution agreements with people that know where those patients reside and who they are. And we're going to be going after them. And then there's so much of that out there. It's really hard for us to say at this point how many of those patients will come in and convert into Vivos therapy.

但那些人做什麼呢？好吧，如果你願意的話，我們現在已經解開瞭如何接觸這些患者以及該怎麼做的秘密。我們已經與了解這些患者居住在哪里以及他們是誰的人建立了一些非常明確且非常——我認為合理且基於市場的分銷協議。我們將追捕他們。然後還有很多這樣的事情。目前我們真的很難說有多少患者會接受 Vivos 治療。

But we and our distributors are very optimistic that that number will far exceed what we've been doing in the past. And we're very optimistic about it. So it's not inconceivable at all for us to hit those numbers or exceed those numbers as we go forward.

但我們和我們的經銷商非常樂觀地認為這個數字將遠遠超過我們過去所做的。我們對此非常樂觀。因此，在我們前進的過程中，達到或超過這些數字並不是不可想像的。

Now whether that happens in the fourth quarter of this year or the first quarter of next year or -- the timeframes that we've given is hard to say. But we're -- as we look at it, and we're in the trenches every day with these distributors, we're very optimistic about it, and we'll see what happens. I mean, as we've talked before, it's time for this company to put up and so we're moving every resource we have to make this happen and to demonstrate that we can grow this company. So that's why we're optimistic. So yeah, this is a -- it's a high bar, but we're very optimistic about it right now, and that's our -- that's where we stand today.

現在，無論是在今年第四季度還是明年第一季度，或者我們給出的時間表都很難說。但我們——正如我們所看到的那樣，我們每天都與這些分銷商一起努力，我們對此非常樂觀，我們會看看會發生什麼。我的意思是，正如我們之前所說，現在是這家公司成立的時候了，因此我們正在動用我們所擁有的一切資源來實現這一目標，並證明我們可以發展這家公司。這就是我們樂觀的原因。所以，是的，這是一個很高的標準，但我們現在對此非常樂觀，這就是我們今天的立場。

Okay, great. Thank you for taking the questions.

好的，太好了。感謝您提出問題。

Lucas Ward, Ascendiant Capital Markets.

盧卡斯·沃德，上升資本市場。

Thank you. Hi, guys, and congratulations on meeting your business goals and getting closer to your two-year goals. I'm also interested in the revenue aspect. I was wondering if you could quantify the impact of sales through the DME and the DSO channel -- like near term or in a few quarters. Just so we can understand how big that really is.

謝謝。大家好，恭喜您實現了業務目標，並且距離兩年目標又近了一步。我也對收入方面感興趣。我想知道您是否可以量化通過 DME 和 DSO 渠道銷售的影響——比如近期或幾個季度的影響。這樣我們就可以了解它到底有多大。

Yeah. So thank you for that. I think on the last call, we've been talking about DSOs now for a year and a half. And what we've learned -- and we said in the very beginning that the opportunity with DSOs was huge. There's 40,000 dental offices across the United States that have corporate ownership in these organizations called DSOs. So the opportunity is huge, but these guys are also very cautious and it's a slow boil for that. And that's -- been exactly what's happened.

是的。非常感謝你的幫忙。我想在上次通話中，我們已經討論 DSO 一年半了。我們從一開始就說過，DSO 的機會是巨大的。美國有 40,000 家牙科診所擁有這些稱為 DSO 的組織的企業所有權。所以機會是巨大的，但這些人也非常謹慎，而且這是一個緩慢的過程。這正是所發生的事情。

The opportunity as we now get into -- where some of our pilot tests are maturing and feedback is percolating up to the C-suite and these DSOs, we expect to start to see more expansion of that. But it is still going to be a very cautious rollout and a slow boil. I expect that to be the case for another probably 12 months.

當我們現在進入的機會 - 我們的一些試點測試正在成熟並且反饋正在滲透到最高管理層和這些 DSO 時，我們預計將開始看到更多的擴展。但這仍然是一個非常謹慎的推出和緩慢的過程。我預計這種情況可能還會持續 12 個月。

At some point, we'll reach a tipping point with these guys where they will all collectively realize the opportunity that's before them in managing sleep, which is multibillion-dollar opportunity for these DSOs. The fact that we now have a product suite with simpler, easier, better price points for DSO-type customers, patients, I think makes it infinitely easier for us to crack that market.

在某個時刻，我們將與這些人一起達到一個轉折點，他們將共同意識到在管理睡眠方面擺在他們面前的機會，這對這些 DSO 來說是數十億美元的機會。事實上，我們現在為 DSO 類型的客戶、患者提供了更簡單、更容易、價格更優惠的產品套件，我認為這讓我們更容易打入這個市場。

On the DSO front then, I would say expect it to be -- still continue to grow. We're still signing on new relationships. There are innovative new models such -- I mentioned Toothpillow. I highlighted that because they're kind of an innovative direct-to-market type DSO, or direct-to-consumer type DSO. And I would say that they will continue to contribute. And frankly, if you talk to the guys at Toothpillow, their goals or the number of children they expect to be able to address in the first year is just off the charts. But they have established a baseline with influencers, social media influencers lined up, famous individuals with children that have been through treatment now and have had tremendous results.

在 DSO 方面，我想說預計它仍然會繼續增長。我們仍在簽署新的合作關係。有一些創新的新模型，例如我提到的牙枕。我強調這一點是因為它們是一種創新的直接面向市場類型的 DSO，或直接面向消費者類型的 DSO。我想說他們將繼續做出貢獻。坦率地說，如果你與 Toothpillow 的工作人員交談，你會發現他們的目標或他們期望在第一年能夠解決的兒童數量簡直是超乎想像的。但他們已經與有影響力的人、社交媒體有影響力的人、有孩子的名人建立了基線，這些人現在已經接受了治療，並取得了巨大的成果。

We've published a few papers, we're publishing some more on the efficacy of what we're doing with children. So we have a pending FDA clearance on that, that we're hoping to get here real soon. So we have a number of things that's going to drive that market. That's the first thing.

我們已經發表了幾篇論文，我們還將發表更多關於我們對兒童所做的事情的有效性的論文。因此，我們正在等待 FDA 的批准，我們希望盡快得到批准。因此，我們有很多事情可以推動這個市場。這是第一件事。

On the DME front, again, the magnitude of that opportunity is staggering. And it's just hard to say just exactly how to quantify that. I think by the time that we convene our next earnings call, I think we'll have a much clearer picture of what that's going to entail. But when you think about the condition that these millions and millions of patients are in, who have been diagnosed with sleep apnea, who know they suffer from it, but who are unable for a variety of reasons to use their CPAP machines, they really don't have any other options. Short of some type of radical surgery or an implant like Inspire or something else, it's very difficult for them to know what to do or how to treat their condition.

在 DME 方面，機會的大小再次令人震驚。很難確切地說如何量化這一點。我認為，當我們召開下一次財報電話會議時，我們將對這將意味著什麼有更清晰的了解。但是，當您想到數以百萬計的患者所處的狀況時，他們被診斷患有睡眠呼吸暫停，他們知道自己患有這種疾病，但由於各種原因無法使用他們的 CPAP 機器，他們真的不知道沒有任何其他選擇。如果沒有某種類型的根治性手術或像 Inspire 這樣的植入物或其他東西，他們很難知道該怎麼做或如何治療他們的病情。

And Vivos represents a huge alternative first line of defense type opportunity. And I think we're creating relationships with payers, and we're creating relationships with employers, and we're creating relationships with these DME companies that are all going to be in a position to refer patients into Vivos providers across the country. The fact that we have a network nationwide, the fact that we now have lower price point products and services, the fact that we have on differentiated technology is all very, very appealing to these groups.

Vivos 代表了一個巨大的替代第一道防線類型的機會。我認為我們正在與付款人建立關係，我們正在與雇主建立關係，我們正在與這些 DME 公司建立關係，這些公司都將能夠將患者轉介給全國各地的 Vivos 提供商。事實上，我們擁有全國性的網絡，我們現在擁有更低價位的產品和服務，我們擁有差異化技術，這些事實對這些群體都非常非常有吸引力。

And I just think we're kind of at that inflection point where it's hard for us to predict, but we're cautiously optimistic about what we're seeing and the feedback we're getting. And as Scott rightly pointed out, the bar has been set pretty high, and we're shooting for it.

我只是認為我們正處於一個拐點，我們很難預測，但我們對我們所看到的和我們得到的反饋持謹慎樂觀的態度。正如斯科特正確指出的那樣，標準已經設定得相當高，我們正在努力實現這一目標。

So -- but I would say that by this time, by the time we report on Q2, and we start talking about what's going on with these new relationships, we'll start to be able to grasp what this is going to mean. But I think it's a definite inflection point for us, and we expect revenue and volume to increase dramatically here as we go into the second half of the year.

所以，但我想說，到了這個時候，到我們報告第二季度的時候，我們開始討論這些新關係的進展情況時，我們將開始能夠理解這意味著什麼。但我認為這對我們來說是一個明確的拐點，我們預計隨著下半年的到來，收入和銷量將大幅增加。

Okay, thanks, Kirk. One more question. You guys have mentioned that the AFD acquisition fills out an important product gap for you guys in terms of having more economical solutions for providers. Could you give us an update on the sales traction of the AFD devices?

好的，謝謝，柯克。還有一個問題。你們提到，收購 AFD 填補了你們的重要產品空白，為供應商提供了更經濟的解決方案。您能否向我們介紹 AFD 設備銷售情況的最新情況？

Yeah. That's going to be an easy one. Those are not yet reflected in any of our financials or returns. These products are a little bit technical. They're a very different kind of technology than what we have in our -- historically. So what we've had to do is create a whole new training program -- but what we do know is that -- because these products have been used by the Advanced Facialdontics doctors, they have been used for years and years. And there's really several thousand patients that have benefited from the use of these products.

是的。這將是一件容易的事。這些尚未反映在我們的任何財務或回報中。這些產品有點技術性。它們是一種與我們歷史上所擁有的技術非常不同的技術。因此，我們必須做的是創建一個全新的培訓計劃 - 但我們所知道的是 - 因為這些產品已被高級面部牙科醫生使用，並且已經使用了很多年。確實有數千名患者從這些產品的使用中受益。

So we have a very good grasp of what the products do, how efficacious they are. And now it's time for us to train our doctors, retrain them on certain aspects of how to use products like the pod, and the sleep pod, and other devices. But these products, they're simpler, they require less chair time than our traditional products do. They don't do all the things that our traditional products do, which is an important distinction. But from a doctor standpoint, they can fill and meet a need -- they can fill a gap and meet a need at a very, very cost effective way with minimal chair time and very high levels of patient satisfaction.

因此，我們非常了解產品的用途和功效。現在是我們對醫生進行培訓的時候了，對他們進行有關如何使用 Pod、Sleep Pod 和其他設備等產品的某些方面的再培訓。但這些產品比我們的傳統產品更簡單，需要的椅子時間更少。他們不做我們傳統產品所做的所有事情，這是一個重要的區別。但從醫生的角度來看，他們可以填補並滿足需求——他們可以以非常非常具有成本效益的方式填補空白並滿足需求，用最少的主席時間和非常高的患者滿意度。

So as we mentioned -- before, in the product offering was a little bit binary in that a patient either agreed to an $8,000 to $10,000 treatment plan or we really didn't have anything to offer. It was really that the doctors, if they were going to take the case on, they were going to get paid well for it or they weren't going to do it. Now the doctor can say, well, Mrs. Jones, if you're not quite ready for this treatment, we've got several other options for you here that might be more appealing. And while they don't do the same thing that the more expensive treatment does, we can still give you some relief -- and may be relief from your migraine headaches, your TMD pain, your congested nasal passages -- there's a number of different ways in which the patients can be benefited at a much lower price point.

正如我們之前提到的，產品提供有點二元化，患者要么同意 8,000 到 10,000 美元的治療計劃，要么我們真的沒有任何東西可以提供。事實上，如果醫生要接手這個案子，他們就會得到豐厚的報酬，否則他們就不會這麼做。現在醫生可以說，瓊斯夫人，如果您還沒有準備好接受這種治療，我們這里為您提供了其他幾種可能更有吸引力的選擇。雖然它們的作用與更昂貴的治療方法不同，但我們仍然可以給您帶來一些緩解——並且可能會緩解您的偏頭痛、TMD 疼痛、鼻道堵塞——有許多不同的治療方法患者可以以低得多的價格受益的方式。

So instead of that patient walking out the door feeling like they couldn't afford the treatment, now they walk out the door with having spent $1,500 to $3,500 and it's affordable. And it's -- again, it might not do everything, but it's going to the patient a long way to being better. So we feel very good about that. Our provider network is very excited about this.

因此，患者走出家門時不再感覺自己無力承擔治療費用，現在他們走出家門時已經花費了 1,500 至 3,500 美元，而且費用是可以承受的。再說一次，它可能並不能解決所有問題，但它會讓患者的病情好轉。所以我們對此感覺非常好。我們的提供商網絡對此感到非常興奮。

There's a buzz out there around the pod and what its potential is. We have started some research at some universities with the pod. We're in the process of starting that right now, as I mentioned. And so we've got some very exciting things to come on that.

人們對這個吊艙以及它的潛力有很多議論。我們已經在一些大學開始使用該吊艙進行一些研究。正如我提到的，我們現在正在開始這項工作。因此，我們將迎來一些非常令人興奮的事情。

But I think it's the ability to offer a very cost effective treatment protocol or treatment modality that will actually make the difference for our doctors. It gives them something else to deal with patients who may not yet be ready to afford or pay for. Even with insurance benefits, there's still an out of pocket portion there. And it just gives them an alternative. So I think that we're going to see some -- and that's rolling out even as we speak. That's being rolled out right now. We finished our training, preparations with videos, online training, all of the resource materials that needed to be done and created for that. And now it's been rolled out to our provider network.

但我認為，提供非常具有成本效益的治療方案或治療方式的能力實際上會對我們的醫生產生影響。它為他們提供了其他方法來應對可能尚未準備好承擔或支付費用的患者。即使有保險福利，仍然有一部分是自掏腰包的。這只是給了他們一個選擇。所以我認為我們將會看到一些——就在我們說話的時候，這些已經開始出現。現在正在推出。我們完成了培訓、視頻準備、在線培訓以及為此需要完成和創建的所有資源材料。現在它已推廣到我們的提供商網絡。

So again, Q3, Q4, you're going to start to see the impact of the new product lines more fully realized in Q3 and Q4.

因此，第三季度、第四季度，您將開始看到新產品線的影響在第三季度和第四季度得到更充分的體現。

Okay, great. Thank you very much.

好的，太好了。非常感謝。

Okay.

好的。

Ladies and gentlemen, there are no further questions at this time. I'd like to turn the call back over to management for closing remarks.

女士們、先生們，目前沒有其他問題了。我想將電話轉回管理層以供結束語。

Well, thank you, everyone, for being here today. We, as you can probably tell, we feel like this is an exciting time in our history. We truly believe that someday we'll look back and see this particular time as a watershed moment in the history of this company. And we're excited about what the future holds in store. We appreciate all of your support and the patience you've had as we've gotten to this point. We look forward to sharing our continued progress with you in the future. So thank you very much, and have a great evening.

好的，謝謝大家今天來到這裡。正如您可能知道的那樣，我們覺得這是我們歷史上激動人心的時刻。我們堅信，有一天，當我們回顧過去時，我們會發現這一特殊時刻是公司歷史上的分水嶺。我們對未來的發展感到興奮。感謝您在我們走到這一步時所給予的支持和耐心。我們期待未來與您分享我們不斷取得的進步。非常感謝您，祝您度過一個愉快的夜晚。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。