Vivos Therapeutics Inc (VVOS) 2023 Q2 法說會逐字稿

Good day, everyone and welcome to Vivos Therapeutics' second quarter earnings call. (Operator Instructions) This conference call is being recorded. And a replay of today's call will be available on the investor relation section of Vivo's website and will remain posted there for the next 30 days. I will now hand over the call to Julie Gannon, Vivos' Investor Relation officer for the introductions and the reading of the safe harbor statement. Please go ahead.

大家好，歡迎參加 Vivos Therapeutics 第二季度財報電話會議。 （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 Vivo 網站的投資者關係部分提供，並將在未來 30 天內持續發布。我現在將把電話轉交給 Vivos 投資者關係官員 Julie Gannon，以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. With us on today's call are Kirk Huntsman, Vivos Chairman and Chief Executive Officer, and Brad Amman, Chief Financial Officer.

謝謝你，接線生。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 的投資者關係部分取得。參加今天電話會議的有 Vivos 董事長兼執行長 Kirk Huntsman 和財務長 Brad Amman。

Today, we'll review the highlights and financial results for the second quarter of 2023 as well as more recent developments and deals plans for the remainder of 2023. Following these formal remarks, we will be happy to take questions. I would also like to remind everyone that today's call will contain certain forward-looking statements from our management made within the meaning of Section 27 A of the Securities Act of 1933 as amended and Section 21 E of the Securities and Exchange Act of 1934, as amended concerning future events.

今天，我們將回顧 2023 年第二季度的亮點和財務業績，以及 2023 年剩餘時間的最新進展和交易計劃。在這些正式發言之後，我們將很樂意回答問題。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27 A 條和1934 年《證券交易法》第21 E 條的含義做出的某些前瞻性聲明，關於未來事件的修改。

Words such as "may", "should", "expects", "projects," "intends", "plans", "believes", "anticipates", "hopes", "estimates", "goal" and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve significant known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant risks, uncertainties and contingencies and many of which are beyond the company's control.

諸如「可能」、「應該」、「期望」、「專案」、「打算」、「計畫」、「相信」、「預期」、「希望」、「估計」、「目標」等字眼及其變體詞語和類似表達旨在識別前瞻性陳述。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。

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 saving plans and plans to generate revenue as well as future potential results of operations or operating metrics, such as the potential for Vivos to achieve future positive cash flows 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.

實際結果，包括但不限於 Vivos 成長策略、營運計劃（包括銷售、行銷、產品收購和整合、研發、監管舉措、成本節約計劃和創收計劃）以及未來潛在結果營運或營運指標，例如Vivos 實現未來正現金流量的潛力以及Vivos 管理階層在本次電話會議中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有重大且不利的差異。

Factors that could cause actual results to differ materially include, but are not limited to the risk factors described in 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 including the 10 Q filed with the SEC today.

可能導致實際結果有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包含的其他揭露中所述的風險因素，包括我們截至年度的 10 K 表格中的風險因素和其他揭露2022 年12 月31 日，以及我們向SEC 提交的其他文件，包括今天向SEC 提交的10 Q。

All of which are already accessible on the Investor Relations section of Vivos website as well the SEC's website. Except to the extent required by law, Vivos assumes no obligation to update statements as circumstances change. 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.

所有這些都可以在 Vivos 網站的投資者關係部分以及 SEC 網站上存取。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。最後，請注意，美國食品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。

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 clinical discretion of the treating doctor and are not part of the Vivos treatment protocol. Now at this time, it is my pleasure to introduce Kirk Huntsman, Chairman and CEO of Vivos. Kirk, please go ahead.

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 患者的治療是由主治醫師自行臨床酌情進行的標籤外治療，且不屬於 Vivos 治療方案的一部分。此時此刻，我很高興向您介紹 Vivos 董事長兼執行長柯克‧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. In 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 second 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。稍後，我將電話轉接給我們的財務長 Brad Amman，他將向您介紹我們 2023 年第二季財務和營運績效的亮點。

Once Brad has finished. I'll come back on and speak with you about the highlights of what we've accomplished at Vivos during the first half of 2023 and more recently, following the quarter end, I'll discuss our strategic revenue initiatives, including our previously announced acquisition of product rights and patents from advanced [special DataX], which has expanded our product offerings and to a lesser and to address a broader spectrum of patient needs and price points to drive long-term revenue growth.

一旦布拉德完成。我將回來與您討論我們在 2023 年上半年和最近在季度末之後在 Vivos 所取得的成就的亮點，我將討論我們的戰略收入計劃，包括我們之前宣布的收購先進的[特殊DataX] 的產品權利和專利，這擴大了我們的產品範圍，並滿足更廣泛的患者需求和價格點，從而推動長期收入成長。

I'll also talk about our progress with our pilot tests with certain Dental service organizations known as DSOs, including the execution of new and existing pilots during the quarter with eight regional and national DSOs representing over 1,000 locations nationwide. I'll also talk more about our distribution agreement with a nationally recognized durable medical equipment company, known as a DME that serves close to 2 million patients nationwide who are seeking alternatives to permanently being on CPAP machines.

我還將討論我們與某些稱為 DSO 的牙科服務組織進行試點測試的進展，包括本季度與代表全國 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。我還將更多地討論我們與一家全國公認的耐用醫療設備公司（稱為 DME）的分銷協議，該公司為全國近 200 萬患者提供服務，這些患者正在尋求永久使用 CPAP 機器的替代方案。

Then I'll talk about our previously announced actions to improve our organizational infrastructure. This is a series of steps we took to increase operational efficiencies, reduce expenses and to position Vivos to capitalize on the growth opportunities available to us. As our results indicate, we've already been seeing the benefits of these actions, including a substantially reduced operating expenses on both a sequential quarter and year-over-year basis.

然後我會談談我們先前宣布的改善組織基礎設施的行動。這是我們採取的一系列措施，旨在提高營運效率、減少開支，並使 Vivos 能夠充分利用我們現有的成長機會。正如我們的結果所示，我們已經看到了這些行動的好處，包括環比和同比營運費用的大幅減少。

As an update, we previously disclosed that our goal was to decrease our costs and increase our revenues during 2023, with the aim of becoming cash flow positive from operations by the first quarter of 2024 without the need for additional financing if possible. Although we've implemented cost savings measures and significantly reduced our cash used in operations as we seek to achieve the positive cash flow from operations in the foreseeable future.

作為更新，我們先前揭露，我們的目標是在 2023 年期間降低成本並增加收入，目標是在 2024 年第一季之前實現營運現金流為正，如果可能，無需額外融資。儘管我們已經實施了成本節約措施，並大幅減少了營運中使用的現金，因為我們力求在可預見的未來實現營運中的正現金流。

Our sales have not grown during 2023 as we desired. As such in all likelihood, we will be required to obtain additional financing to satisfy our cash needs. After that, I'll talk about our plans for the rest of the year into 2024, leveraging what we've already achieved to accelerate revenue generation in the future.

2023 年我們的銷售額並未達到我們預期的成長。因此，我們很可能需要獲得額外的融資來滿足我們的現金需求。之後，我將討論我們到 2024 年剩餘時間的計劃，利用我們已經取得的成就來加速未來的創收。

After that we'll take your questions. Now let me turn it over to Brad for to review our financials. Brad, please go ahead.

之後我們將回答您的問題。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 second quarter and first half of 2023 financial results. For information on our results for the three- and six-month periods ended June 30, 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 Vivos website at vivos.com/investor-relations.

謝謝柯克，大家下午好。今天，我將回顧 2023 年第二季和上半年財務表現的財務亮點。有關我們截至 2023 年 6 月 30 日的三個月和六個月期間業績的資訊。請參閱我們今天早些時候發布的收益報告以及我們的 10-Q 表格季度報告，該報告可在Vivos 網站投資者關係部分的SEC 備案部分：vivos.com/investor-relations。

First, I wanted to provide a little more color around the slight delay we experienced in the filing of our quarterly results. We applied for an employee retention tax credit or ERTC under Section 2301 of the Coronavirus Aid Relief and Economic Securities Act and in and fourth quarter of 2022, we applied and received approximately $1.2 million of ERTC funds from the IRS in April and May of this year.

首先，我想就我們在提交季度業績時所經歷的輕微延遲提供更多資訊。我們根據《冠狀病毒援助救濟和經濟證券法》第2301 條申請了員工保留稅收抵免或ERTC，並於2022 年第四季度申請並於今年4 月和5 月從IRS 收到了約120 萬美元的ERTC 資金。

On March 7, 2023, the IRS issued a renewed warning regarding the ERTC urging taxpayers to carefully review the ERTC guidelines. After reviewing the guidance with our independent registered public accountants, we elected to disclose the funds received as a separate line item under long-term liabilities on the balance sheet until more information becomes available.

2023 年 3 月 7 日，IRS 再次發出有關 ERTC 的警告，敦促納稅人仔細審查 ERTC 指南。在與我們的獨立註冊會計師審查了指導意見後，我們選擇將收到的資金作為資產負債表上長期負債下的單獨項目進行披露，直到獲得更多資訊。

As a result, for the period ending June 30, 2023, approximately $1.2 million was recorded under long -term liabilities. For more information regarding this, I'd like to direct you to our second quarter Form 10-Q filed today with the SEC. Today, we reported second quarter 2023 total revenue of $3.4 million compared to $4.2 million for the second quarter of 2022. The quarter-over-quarter decrease was due to lower revenue generated quarter over quarter from appliance sales.

因此，在截至 2023 年 6 月 30 日的期間，長期負債項下記錄了約 120 萬美元。如需了解更多相關信息，請參閱我們今天向 SEC 提交的第二季度 10-Q 表格。今天，我們報告 2023 年第二季的總收入為 340 萬美元，而 2022 年第二季的總收入為 420 萬美元。環比下降的原因是家電銷售產生的收入環比下降。

Revenue from Vivos Integrated Provider or VIP enrollments as well as lower center revenue. This was partially offset by increased home sleep testing service revenue and an increase in conference and training related revenue both billing intelligence services and myofunctional therapy revenue were flat quarter over quarter.

來自 Vivos 整合提供者或 VIP 註冊的收入以及較低的中心收入。這部分被家庭睡眠測試服務收入的增加以及會議和培訓相關收入的增加所抵消，計費情報服務和肌肉功能治療收入環比持平。

During the second quarter of 2023, we enrolled 43 VIPs and recognized revenue of approximately $900,000 compared to 58 VIPs for a total of $1.2 million in revenue during the same period last year.Revenue growth was impacted by new entry levels into the VIP program ranging from $2,500 to $50,000 and adding a $8,000 pediatric program, which was received very positively by our providers but overall had the impact of decreasing our average enrollment price. We sold 2083 oral appliance arches during the second quarter of 2023 for a total of approximately $1.5 million compared to 3,321 during the second quarter of 2022 for $2.1 million.

2023 年第二季度，我們註冊了 43 名 VIP，確認收入約為 90 萬美元，而去年同期為 58 名 VIP，收入總額為 120 萬美元。收入增長受到 VIP 計劃新進入級別的影響，包括2,500 美元到50,000 美元，並增加8,000 美元的兒科項目，我們的提供者對此非常積極地接受，但總體而言，我們的平均入學價格有所下降。我們在 2023 年第二季售出了 2083 個口腔矯正器拱門，總價值約為 150 萬美元，而 2022 年第二季我們售出了 3,321 個口腔矯正器拱門，總價值為 210 萬美元。

During both the second quarters of 2023 and 2022, we recognized approximately $300,000 in revenue from myofunctional therapy services and $200,000 in billing intelligence service revenue. Lastly, during the second quarter of 2023, we recognized less than $100,000 in center product revenue compared to $200,000 during the same period in 2022 and over $300,000 in revenue from our home sleep tests ring lease program compared to $200,000 in the comparable 2022 period.

在 2023 年和 2022 年第二季度，我們確認了約 30 萬美元的肌肉功能治療服務收入和 20 萬美元的計費情報服務收入。最後，在 2023 年第二季度，我們確認中心產品收入不到 100,000 美元，而 2022 年同期為 200,000 美元，而我們的家庭睡眠測試環租賃計劃的收入超過 300,000 美元，而 2022 年同期為 200,000 美元。

For the six months ended June 30, 2023, revenue was $7.3 million compared to $7.8 million for the six months ended June 30, 2022. This decrease was attributable to the same factors I mentioned earlier for the quarter.During the first six months of 2023, we enrolled 81 VIPs for revenue of $2.2 million, an increase of 8% compared to 90 VIPs and revenue of $2.1 million for the same period in 2022.

截至2023 年6 月30 日的六個月，收入為730 萬美元，而截至2022 年6 月30 日的六個月為780 萬美元。這一下降歸因於我之前提到的本季度的相同因素。2023 年前六個月，我們註冊了 81 位 VIP，收入為 220 萬美元，與 2022 年同期的 90 位 VIP 和收入 210 萬美元相比增長了 8%。

During the first six months ended June 30, 2023, we sold 4,452 oral appliance arches for a revenue of $3.2 million, an 18% decrease compared to the six months ended June 30, 2022, when we sold 6,286 oral appliance arches for revenue of approximately $3.9 million.We attribute the decrease in product sales in part due to a CBS news report that came out in March of this year regarding an unrelated oral device that was not cleared for use by the FDA and was being used off-label.

截至2023年6月30日的前六個月，我們售出了4,452個口腔矯正器拱門，收入為320萬美元，與截至2022年6月30日止的六個月相比下降了18%，當時我們售出了6,286個口腔矯正器拱門，收入約為320萬美元。390 萬美元。我們將產品銷售額下降的部分原因歸咎於哥倫比亞廣播公司(CBS) 今年3 月發布的一篇新聞報道，該報告涉及一種不相關的口腔裝置，該裝置未經FDA 批准使用，並且正在標籤外使用。

As Kirk will discuss in greater detail, the device created serious issues with a patient's detention [intention in jaws] resulting in the loss of [four Front] teeth. Although Vivos CARE devices are cleared by the FDA. Based on our continuing discussions with our dentist customers, we believe that some practitioners paused purchases until they learn more about the issue.

正如柯克將更詳細討論的那樣，該裝置對患者的滯留（下顎意圖）造成了嚴重問題，導致[四顆門牙]脫落。儘管 Vivos CARE 設備已獲得 FDA 批准。根據我們與牙醫客戶的持續討論，我們認為一些從業者暫停了購買，直到他們了解更多有關該問題的資訊。

Additionally, for both the six months ended June 30, 2023, and June 30, 2022, we had approximately 0.5 million in myofunctional therapy revenue. For the six months ended June 30, 2023, we had $400,000 in Billing Intelligence Service revenue compared to 700,000 in the prior year period. Lastly, for the six months ended June 30, 2023, we recognized [600,000] in home sleep testing service revenue compared to 200,000 for the six months ended June 30, 2022 and 100,000 in-center product revenue compared to 400,000 for the six months ended June 30, 2022.

此外，截至2023年6月30日和2022年6月30日的六個月，我們的肌肉功能治療收入約為50萬美元。截至 2023 年 6 月 30 日的六個月，我們的計費智慧服務收入為 40 萬美元，而去年同期為 70 萬美元。最後，在截至2023年6月30日的六個月中，我們確認了[600,000]的家庭睡眠測試服務收入，而截至2022年6月30日的六個月為200,000，以及100,000的中心產品收入，而截至2022年6月30日止的六個月為400,000 2022 年 6 月 30 日。

Gross profit was $2.1 million for the second quarter of 2023 compared to gross profit of $2.6 million for the comparable period in 2022. Gross margin remained the same for second quarter of 2023 at 62% when compared to the same period in 2022.

2023 年第二季的毛利為 210 萬美元，而 2022 年同期的毛利為 260 萬美元。與 2022 年同期相比，2023 年第二季的毛利率保持不變，為 62%。

Gross profit for the first six months of 2023 was $4.4 million compared to $5.1 million for the first six months of 2022. Gross margin for the first six months of 2023 was 61% compared to 66% for the six months of last year. Sales and marketing expense decreased by $1.1 million to $600,000 for the second quarter of 2023 compared to $1.7 million for second quarter of 2022.

2023 年前六個月的毛利為 440 萬美元，而 2022 年前六個月的毛利為 510 萬美元。2023 年前六個月的毛利率為 61%，而去年同期為 66%。 2023 年第二季的銷售和行銷費用減少了 110 萬美元，至 60 萬美元，而 2022 年第二季的銷售和行銷費用為 170 萬美元。

This decrease was primarily driven by decreased sales commissions on lower sales and a reduction in associated sales related expenses. For the six months ended June 30, 2023, sales and marketing expense decreased by $1.7 million to $1.2 million compared to $2.9 million for the six months ended June 30 last year.

這一下降主要是由於銷售額下降導致銷售佣金減少以及相關銷售相關費用減少。截至2023年6月30日的六個月，銷售和行銷費用減少了170萬美元，至120萬美元，而去年截至6月30日的六個月為290萬美元。

Importantly, general and administrative expenses decreased by $1.8 million or 24% to $5.9 million for the second quarter of 2023 compared to $7.7 million for the second quarter of last year. This year -over-year decrease reflects the substantial impact our previously announced cost-cutting efforts are making. We believe these important efforts will reduce our cash burn as we seek to ramp up revenues and move toward cash flow-positive operations.

重要的是，2023 年第二季的一般和管理費用減少了 180 萬美元，或 24%，至 590 萬美元，而去年第二季為 770 萬美元。這一同比下降反映了我們先前宣布的成本削減努力所產生的重大影響。我們相信，這些重要的努力將減少我們的現金消耗，因為我們尋求增加收入並轉向正營運現金流。

For the six months ended June 30, 2023, G&A expenses decreased $3.1 million or 20% to $12.4 million compared to $15.5 million for the six months ended last year. Total operating expenses for the second quarter of 2023 decreased by a significant amount, $2.9 million or 31% versus the second quarter of 2022, reflecting Vivos cost-cutting initiatives.

截至 2023 年 6 月 30 日的六個月，一般及行政費用減少 310 萬美元，或 20%，至 1,240 萬美元，而去年截至 6 個月的 1,550 萬美元。 2023 年第二季的總營運支出較 2022 年第二季大幅下降 290 萬美元，即 31%，反映出 Vivos 的成本削減措施。

For the six months ended June 30, 2023, operating expenses decreased by $4.7 million or 25% compared to the same period in 2022. Operating loss was $4.5 million and $9.5 million for the three and six months ended June 30, 2023, compared to $7 million and $13.6 million for the comparable periods last year.

截至2023年6月30日的六個月，營運費用比2022年同期減少470萬美元，即25%。截至2023年6月30日的三個月和六個月，營運虧損分別為450萬美元和950萬美元，而截至2023年6月30日的三個月和六個月營運虧損為7美元1,360 萬美元，去年同期為 1,360 萬美元。

The year over year decrease in operating loss was primarily from lower G&A due to expense cuts and the other factors I just discussed. Net loss was $5.5 million for the second quarter of 2023 compared to $7 million for the second quarter of 2022. The reduction in net loss was mainly due to the cost cutting initiatives I described earlier.

營業虧損年減主要是因為費用削減和我剛才討論的其他因素導致一般管理費用下降。 2023 年第二季的淨虧損為 550 萬美元，而 2022 年第二季的淨虧損為 700 萬美元。淨虧損的減少主要歸功於我之前描述的成本削減措施。

Net loss for the six months ended June 30, 2023, was $7.2 million compared to $12.3 million for the first six months of 2022. Turning to our statement of cash flows, cash burn from operations for the six months ended June 30, 2023, was $6.4 million, a decrease of approximately $4.3 million compared to $10.7 million during the comparable prior year period.

截至2023 年6 月30 日的六個月的淨虧損為720 萬美元，而2022 年前六個月的淨虧損為1,230 萬美元。談到我們的現金流量表，截至2023 年6 月30 日的六個月的營運現金消耗為640 萬美元，比去年同期的 1,070 萬美元減少約 430 萬美元。

This is further evidence of the positive impact of our cost-cutting initiatives. For the six months ended June 30, 2023, net cash used in investing activities consisted of capital expenditures for software of $0.5 million related to the development of VIP ordering software for internal use, which is expected to be placed in service in late 2023, as well as a purchase of patents and other intellectual property in February of this year.

這進一步證明了我們削減成本措施的正面影響。截至 2023 年 6 月 30 日止六個月，投資活動所用現金淨額包括與開發供內部使用的 VIP 訂購軟體相關的 50 萬美元軟體資本支出，該軟體預計將於 2023 年底投入使用，具體如下：以及今年二月購買的專利和其他智慧財產權。

This compares to net cash used in investing activities of [600,000] in the comparable 2022 period arising from capital expenditures for the internally developed ordering software. As of June 30, 2023, we had $3.9 million in cash and cash equivalents compared to $3.5 million as of December 31, 2022. We previously disclosed that our goal was to decrease our costs and increase our revenues during 2023 with the aim of becoming cash flow positive from operations by the first quarter of 2024 without the need for additional financing if possible.

相較之下，2022 年同期投資活動所使用的淨現金為 [600,000]，源自內部開發的訂購軟體的資本支出。截至2023 年6 月30 日，我們擁有390 萬美元的現金和現金等價物，而截至2022 年12 月31 日為350 萬美元。我們先前披露，我們的目標是在2023 年降低成本並增加收入，以期成為現金到 2024 年第一季度，營運將產生正流量，如果可能，無需額外融資。

Although we have implemented cost savings measures and significantly reduced our cash used in operations as we seek to achieve positive cash flow operationally, our sales have not grown during 2023 as we desired. As such in all likelihood, we will be required to obtain additional financing to satisfy our cash needs. Therefore, we are reviewing all options to obtain additional financing. With that, I'll now turn the call back over to Kirk.

儘管我們在尋求實現正現金流的過程中實施了成本節約措施，並大幅減少了營運中使用的現金，但我們的銷售額在 2023 年並未達到我們預期的成長。因此，我們很可能需要獲得額外的融資來滿足我們的現金需求。因此，我們正在審查所有獲得額外融資的選項。這樣，我現在將把電話轉回給柯克。

Thank you, Brad. It should come as no surprise to those of you who follow Vivos closely that this company has always held the promise of doing great things, things that could change the world. After all, no company has ever come to market with a technology that has been proven time and time again in both clinical studies and in actual practice to reverse or eliminate sleep apnea in a majority of patients without lifelong nightly intervention.

謝謝你，布拉德。對於那些密切關注 Vivos 的人來說，這家公司始終承諾做偉大的事情，那些可以改變世界的事情，這應該不足為奇。畢竟，沒有一家公司向市場推出的技術已在臨床研究和實際實踐中一次又一次被證明可以逆轉或消除大多數患者的睡眠呼吸暫停，而無需終身夜間幹預。

And because sleep apnea either causes or contributes to virtually every major chronic health condition out there, we believe that what we're doing here at Vivos is and will continue to be a very big deal. By practically any measure, our sleep apnea solutions are superior to everything else on the market. Generally speaking, Vivos treatment is less expensive, less invasive more effective, more comfortable longer-lasting as safe as CPAP and safer than neurostimulation implants.

由於睡眠呼吸中止症會導致或促成幾乎所有主要的慢性健康狀況，因此我們相信，我們在 Vivos 所做的事情現在並將繼續是一件非常重要的事情。實際上，從任何標準來看，我們的睡眠呼吸中止症解決方案都優於市場上的其他產品。一般來說，Vivos 治療更便宜、侵入性更小、更有效、更舒適、更持久，與 CPAP 一樣安全，比神經刺激植入物更安全。

Yet those technologies, despite being undesirable last resorts continue to dominate the marketplace and the companies behind them command multibillion-dollar market caps, but we didn't come this far to take second or third place. We're playing to win, we have to win. There are far too many patients counting on us to prevail. So I'm sure the question on everybody's mind is how do you explain the results with a virtually unlimited blue ocean type of market to work with and tens of millions of suffering patients yearning for an alternative solution to CPAP and surgery.

然而，這些技術儘管是不受歡迎的最後手段，但仍然主導著市場，而且它們背後的公司擁有數十億美元的市值，但我們並沒有走到這一步來佔據第二或第三位。我們打球是為了贏，我們必須贏。有太多的患者指望我們能夠獲勝。因此，我確信每個人心中的問題是，面對幾乎無限的藍海市場，以及數以千萬計的患者渴望獲得 CPAP 和手術的替代解決方案，您如何解釋這些結果。

Why has Vivos garnered more market share and what's going to be different this time around? I'd like to take a moment and make the case that the issue is not and never has been our technology or the science behind it or anything of the sort. It has never been our strategy or the effectiveness of management in executing the strategy, disruptive innovation and new technologies simply take time to dislodge old technologies and old paradigms of thought and practice, but here's why we believe the time has finally come for Vivos.

為什麼 Vivos 獲得了更多的市場份額？這次會有什麼不同？我想花點時間說明一下，問題不是、也從來不是我們的技術或其背後的科學或類似的東西。從來都不是我們的策略或管理階層執行策略的有效性，顛覆性創新和新技術只是需要時間來推翻舊技術和舊的思想和實踐範式，但這就是為什麼我們相信 Vivos 的時機終於到來了。

First, we finally have a true national network of Vivos providers, armed with a comprehensive suite of products and services that will enable them to serve larger numbers of new patients. It takes lots of dentists who are especially trained and confident who are conveniently located to where the patients really are.

首先，我們終於擁有了一個真正的全國性 Vivos 供應商網絡，配備了一整套產品和服務，使他們能夠為更多的新患者提供服務。這需要大量經過專門培訓且充滿信心的牙醫，他們可以輕鬆到達患者真正所在的地方。

It also takes a comprehensive product offering to address a wide range of diverse patient needs from disease prevention to disease management and even rehabilitation, developing and growing that national dental provider network and the suite of product offerings aimed at treating OSA is what we have spent the last five years creating.

它還需要提供全面的產品來滿足從疾病預防到疾病管理甚至康復的廣泛多樣的患者需求，開發和發展全國牙科提供者網絡以及旨在治療 OSA 的產品組合是我們花費了過去五年創作。

This was always Phase 1 of our go-to-market strategy because without a national network of competent committed Vivos oral appliance providers, armed with an assortment of evidence-based, highly effective products, the patients need and want, nothing else really matters.

這一直是我們進入市場策略的第一階段，因為如果沒有一個由有能力的、忠誠的Vivos 口腔矯正器供應商組成的全國網絡，並配備各種基於證據的高效產品，滿足患者的需要和想要，其他一切都不重要。

But dentists cannot do this alone or in isolation from other health care providers such as primary care physicians, ENTs, neurologists, pulmonologist, pediatricians, cardiologists, functional medicine doctors, chiropractors and physical therapists, all of whom see patients suffering from breathing and sleep disorders such as OSA every single day.

但牙醫不能單獨完成這項工作，也不能與其他醫療保健提供者分開，例如初級保健醫生、耳鼻喉科醫生、神經科醫生、肺科醫生、兒科醫生、心臟科醫生、功能醫學醫生、脊椎按摩師和物理治療師，他們都接診患有呼吸和睡眠障礙的患者例如 OSA 每一天。

And what do all these patients have in common, they dislike or are unable to tolerate their CPAP treatment and are looking for something better. So one way or another, patients must come from and through those other health care providers while making their way into specially trained dental offices such as Vivos VIP offices to receive treatment, facilitating the referral of medical patients with sleep apnea into our network of the of trained Vivos offices, thus becomes Phase 2 of our go-to-market strategy.

所有這些患者的共同點是，他們不喜歡或無法忍受 CPAP 治療，並正在尋找更好的治療方法。因此，無論怎樣，患者必須來自或透過其他醫療保健提供者，同時進入經過專門培訓的牙科診所（例如Vivos VIP 診所）接受治療，從而促進將患有睡眠呼吸中止症的醫療患者轉診到我們的醫療網路中。訓練有素的 Vivos 辦事處，因此成為我們進入市場策略的第二階段。

Fortunately, we've been finding new and creative ways to drive failed or disgruntled CPAP patients into Vivos treatment. Our recently executed national distribution agreement with a major durable medical equipment company or DME company is a prime example. On June 1, 2023, we entered into a nonexclusive distribution agreement with a leading supplier in the United States of home health and respiratory products such as CPAP equipment. Our new distributor currently provides respiratory products to approximately 1.8 million patients nationwide.

幸運的是，我們一直在尋找新的、創造性的方法來推動失敗或心懷不滿的 CPAP 患者接受 Vivos 治療。我們最近與一家大型耐用醫療設備公司或 DME 公司簽署的全國分銷協議就是一個很好的例子。 2023 年 6 月 1 日，我們與美國一家領先的家庭健康和呼吸產品（例如 CPAP 設備）供應商簽訂了非獨家經銷協議。我們的新經銷商目前為全國約 180 萬名患者提供呼吸產品。

Pursuant to this agreement, our distributor has begun to distribute certain of our products in the United States, including the [Vita Vita, sleep and Versa], all of which we acquired earlier this year. The agreement called for an initial 90 day trial period in Colorado and Florida, which made the contract subject to potential cancellation.

根據該協議，我們的經銷商已開始在美國分銷我們的某些產品，包括我們今年稍早收購的 [Vita Vita、sleep 和 Versa]。該協議要求在科羅拉多州和佛羅裡達州進行 90 天的初步試用期，這使得該合約有可能被取消。

However, within weeks of starting the trial, our distributor reported an initial 36% positive patient response along with other positive feedback and requested a modification to our agreement that would make it exclusive for the period of one year.

然而，在試驗開始後的幾週內，我們的經銷商報告了最初 36% 的患者積極反應以及其他積極反饋，並要求修改我們的協議，使其在一年內獨家。

We are currently negotiating the potential terms of exclusivity, plans are already underway to extend the scope of the distribution territories beyond the initial two markets into Texas, Virginia, North Carolina and New Jersey, and at least one other major market, a nationwide rollout is expected to follow soon thereafter.

我們目前正在談判潛在的獨家條款，計劃將分銷區域範圍從最初的兩個市場擴展到德克薩斯州、維吉尼亞州、北卡羅來納州和新澤西州，以及至少一個其他主要市場，在全國範圍內推廣預計不久後將跟進。

Our hope is to be able to share with the market even more definitive information about this exciting development in the near future. Regardless of the outcome of our present negotiations for exclusivity, we are confident that this new form of arrangement with DME companies will help us increase our product revenues during the second half of 2023 and beyond.

我們希望能夠在不久的將來與市場分享有關這一令人興奮的發展的更明確的訊息。無論我們目前的獨家經營權談判結果如何，我們相信與 DME 公司的這種新形式的安排將幫助我們在 2023 年下半年及以後增加產品收入。

There are many more such DME companies out there, some of which are substantial public company serving millions of patients in the United States and Canada. With widely recognized adherence rates of just 30% to 60%.

類似的 DME 公司還有很多，其中一些是大型上市公司，為美國和加拿大的數百萬名患者提供服務。廣受認可的遵守率僅為 30% 至 60%。

Every DME company, depending on its size, has the records of thousands or tens of thousands and perhaps hundreds of thousands of known OSA patients who have failed CPAP. Often, these patients have nowhere to go and do nothing further to treat their OSA until they get desperate enough to tried neurostimulation implants or surgery.

每個 DME 公司，根據其規模，都有數千或數萬甚至數十萬已知 CPAP 失敗的 OSA 患者的記錄。通常，這些患者無處可去，也沒有採取進一步的措施來治療 OSA，直到他們絕望地嘗試神經刺激植入或手術。

As an authorized Vivos distributor, DME companies can now offer their OSA patients a much more attractive nonsurgical alternative therapy. Launching our distribution model in the DME space is a milestone achievement. We now have the model, the infrastructure, the product line and the provider network to service large numbers of patients.

作為 Vivos 授權經銷商，DME 公司現在可以為 OSA 患者提供更具吸引力的非手術替代療法。在 DME 領域推出我們的經銷模式是一項里程碑式的成就。我們現在擁有為大量患者提供服務的模型、基礎設施、產品線和提供者網路。

We believe this model will appeal to many other DME companies as it gives them an easy way to monetize and reengage patients who are not currently receiving treatment for their OSA. Each month in the United States, DME companies distribute roughly 500,000 new CPAP units to freshly diagnosed OSA patients. And every month, about half of that number stop using their CPAP units. If the current rate of 36% of such patients expressing interest in oral appliance treatment holds true over time than the number of new prospects flowing into Vivos VIP offices could be substantial.

我們相信這種模式將吸引許多其他 DME 公司，因為它為他們提供了一種簡單的方法來貨幣化和重新吸引目前未接受 OSA 治療的患者。在美國，DME 公司每個月都會向新診斷的 OSA 患者分發約 50 萬個新的 CPAP 裝置。每個月，大約有一半的人停止使用 CPAP 設備。如果目前此類患者中有 36% 的人對口腔矯正器治療感興趣，那麼隨著時間的推移，流入 Vivos VIP 辦公室的新潛在客戶數量可能會很大。

With roughly just 2,500 new case starts per month from DMEs or about 1% of the total monthly failures, CPAP failures, Vivos revenues could easily double advancing us toward our goal of becoming cash flow positive. In our current DME distribution effort, we don't yet know the final conversion rate of these patients. But what we do know so far is that 36% of the CPAP failed patients contacted by our current DME partners are saying, yes, to seeking oral appliance therapy at a Vivos provider.

由於 DME 每月大約只有 2,500 個新病例，約佔每月故障、CPAP 故障總數的 1%，Vivos 的收入可以輕鬆翻倍，推動我們實現正現金流的目標。在我們目前的 DME 分發工作中，我們尚不知道這些患者的最終轉換率。但到目前為止我們所知道的是，我們目前的 DME 合作夥伴聯繫的 CPAP 失敗患者中有 36% 表示願意向 Vivos 提供者尋求口腔矯正器治療。

Historically, our experience suggests that conversion rates for such patients are around 80%. Within a few weeks, we should have reliable data on conversion rates, which should then allow for more accurate forecasts. In addition to our DME distribution model, a select few Vivos' trained dentists or VIPS has seen great success by actively seeking patient referrals from a wide variety of local medical doctors such as cardiologists, primary care physicians, ENTs, neurologists, pediatricians and other health care providers who see patients with OSA every day.

從歷史上看，我們的經驗顯示此類患者的轉化率約為 80%。幾週內，我們應該會獲得可靠的轉換率數據，以便進行更準確的預測。除了我們的DME 分銷模式外，一些Vivos 訓練有素的牙醫或VIPS 還透過積極尋求來自各種當地醫生（如心臟病專家、初級保健醫生、耳鼻喉科醫生、神經科醫生、兒科醫生和其他健康專家）的患者轉診而取得了巨大成功每天接診 OSA 患者的護理人員。

Some of these Vivos' trained dentists, known as VIPs, are generating millions of dollars per year in oral appliance airway treatments from their independent practices. It is a model that we believe is working across multiple offices and we believe it is therefore replicable and scalable.

其中一些經過 Vivo 培訓的牙醫（稱為 VIP）每年透過其獨立執業的口腔矯正器氣道治療賺取數百萬美元的收入。我們相信這種模式適用於多個辦事處，因此我們相信它是可複製和可擴展的。

As a second key part of our Phase 2 go-to-market strategy, we are more sharply focused on establishing medical referrals into our VIP doctor practices on a much broader scale. Along with DME company referrals, we believe these initiatives will bring significant new growth opportunities to Vivas in the months and years ahead.

作為我們第二階段進入市場策略的第二個關鍵部分，我們更加專注於在更廣泛的範圍內將醫療轉診納入我們的 VIP 醫生診所。加上 DME 公司的推薦，我們相信這些舉措將在未來幾個月乃至數年為 Vivas 帶來重大的新成長機會。

We see them augmenting and accelerating our other VIP and DSO enrollment efforts because as we are able to deliver more and more new patients to Vivos trained VIPs, the intrinsic value proposition for becoming a VIP or DSO affiliate increases significantly. In the long run, that is how we see our business unfolding over the next 18 to 24 months.

我們看到它們增強並加速了我們其他 VIP 和 DSO 註冊工作，因為隨著我們能夠向 Vivos 培訓的 VIP 提供越來越多的新患者，成為 VIP 或 DSO 附屬機構的內在價值主張顯著增加。從長遠來看，這就是我們對未來 18 至 24 個月業務發展的看法。

Now, earlier in this call, we alluded to an unforeseen market event that occurred during the second quarter that had an adverse impact on our revenue. In early March, a televised CBS news story broke about a widely publicized lawsuit in ensuing governmental, including criminal investigations into an unrelated non Vivos non-FDA cleared oral appliance called the AGGA purporting to treat sleep apnea.

現在，在本次電話會議的早些時候，我們提到了第二季度發生的不可預見的市場事件，對我們的收入產生了不利影響。 3 月初，哥倫比亞廣播公司(CBS) 的一則電視新聞報道報道了隨後政府提起的一項廣為人知的訴訟，其中包括對一款與Vivos 無關、未經FDA 批准、名為AGGA 的口腔器具進行刑事調查，該器具據稱可以治療睡眠呼吸中止症。

Although Vivos was not named in either of the lawsuit or any of the initial publicity, rumors, speculation and viral misinformation created significant confusion and concern among both dentists and patients. This occurred despite our best efforts to counter such misinformation.

儘管 Vivos 在訴訟或任何最初的宣傳中都沒有被提及，但謠言、猜測和病毒式錯誤訊息在牙醫和患者中造成了極大的困惑和擔憂。儘管我們盡了最大努力來反擊此類錯誤訊息，但這種情況還是發生了。

By reminding our customers that all Vivos appliances are duly registered or cleared by the FDA and have been proven both safe and effective in numerous studies as well as in treating over 40,000 patients. Not long after reports of this matter begin to circulate, Vivos began to experience declines in both new VIP enrollments and CARE appliance sales.

透過提醒我們的客戶，所有 Vivos 設備均經過 FDA 正式註冊或批准，並已在眾多研究以及超過 40,000 名患者的治療中被證明安全有效。有關此事的報導開始流傳後不久，Vivos 的新 VIP 註冊人數和 CARE 設備銷售就開始下降。

Our CARE devices are the oral appliances most likely to be confused with the AGGA oral appliance noted above. These declines may also have been impacted by certain second quarter personnel cuts to our practice adviser support teams. Regardless the decline in CARE appliance sales continued throughout the second quarter. Importantly, through the end of the second quarter, units of our guide appliances for pediatric growth and development rose 89% year to date compared to the same period in 2022.

我們的 CARE 裝置是最有可能與上述 AGGA 口腔矯正器混淆的口腔矯正器。這些下降也可能受到第二季度實踐顧問支援團隊人員削減的影響。不管怎樣，CARE 電器銷售在整個第二季度持續下降。重要的是，截至第二季末，我們用於兒科生長發育的引導器具的數量與 2022 年同期相比，今年迄今成長了 89%。

Guide appliances are high margin products but priced much lower than CARE devices. So it takes larger unit growth of guides to be able to overcome the decrease in CARE unit sales. In addition, our non-guide non-CARE devices, which we began to introduce in the second quarter also showed tremendous growth.

Guide 設備是高利潤產品，但價格遠低於 CARE 設備。因此，指南的銷售需要更大的成長才能克服 CARE 銷售的下降。此外，我們從第二季開始推出的非開機非CARE設備也出現了巨大的成長。

These product lines have continued to grow rapidly here in the third quarter, and we remain very optimistic about the continued growth going forward. During previous calls and filings, we stated that our goal was to decrease costs and increase revenues during 2023, with the aim of becoming cash flow positive from operations by the first quarter 2024 without the need for additional financing if possible.

這些產品線在第三季度繼續快速成長，我們對未來的持續成長仍然非常樂觀。在先前的電話會議和文件中，我們表示，我們的目標是在 2023 年期間降低成本並增加收入，目標是到 2024 年第一季實現營運現金流為正，如果可能，無需額外融資。

As Brad stated earlier, Vivos has successfully implemented cost savings measures and significantly reduced cash used in operations. However, sales have not grown during 2023 as anticipated due to the external factors just mentioned. As such, Vivos now anticipates that it will likely be required to obtain additional financing to satisfy cash needs as Vivos works towards increasing revenue and achieving cash flow positive operations in the foreseeable future.

正如布拉德之前所說，Vivos 成功實施了成本節約措施，並大幅減少了營運中使用的現金。然而，由於剛才提到的外部因素，2023年的銷售額並未達到預期的成長。因此，Vivos 現在預計，隨著 Vivos 致力於在可預見的未來增加收入並實現現金流正運營，它可能需要獲得額外融資來滿足現金需求。

We are presently working to determine the best path forward to ensure Vivos has the necessary resources to meet the opportunities before us. As previously highlighted, throughout this year, we significantly reduced our cash burn, which was aided greatly by the 31% quarter-over-quarter and 25% year-over-year reduction in operating expenses we achieved in the second quarter.

我們目前正在努力確定最佳的前進道路，以確保 Vivos 擁有必要的資源來迎接我們面前的機會。正如之前所強調的，今年全年，我們大幅減少了現金消耗，這得益於第二季營運費用較去年同期減少 31%、年減 25%。

At the same time, we strategically expanded our product offerings to address a broader spectrum of patient needs and price points to drive long-term revenue growth. This included our acquisition of certain key patents, trademarks, product rights and trade secrets earlier in 2023, which fill certain gaps in our product offerings to providers and patients.

同時，我們策略性地擴大了產品範圍，以滿足更廣泛的患者需求和價格點，從而推動長期收入成長。這包括我們在 2023 年初收購了某些關鍵專利、商標、產品權利和商業機密，這填補了我們向提供者和患者提供的產品的某些空白。

This strategic move has already shown great promise as these new products prove critical to Vivos landing in this national distribution agreement with the large DME company during the second quarter and which will add significantly to our revenue over time. As we just highlighted, those new product lines have also been growing at a significantly faster rate than our care products, which is fully in line with our expectations as those products filled some important gaps in our product line offerings.

這項策略性舉措已經顯示出巨大的前景，因為這些新產品對於 Vivos 在第二季與大型 DME 公司簽訂全國分銷協議至關重要，隨著時間的推移，這將顯著增加我們的收入。正如我們剛才強調的那樣，這些新產品線的成長速度也明顯快於我們的護理產品，這完全符合我們的預期，因為這些產品填補了我們產品線中的一些重要空白。

We believe that we'll continue to see solid revenue improvement here in the second half of 2023. We continue to look at opportunities to expand our product offerings and partnerships and just recently signed an agreement with DEKA to offer DEKA digital lasers to Vivos clients through the Vivos Institute.

我們相信，到2023 年下半年，我們將繼續看到收入的穩健增長。我們將繼續尋找擴大產品供應和合作夥伴關係的機會，最近剛與DEKA 簽署了一項協議，透過以下方式向Vivos 客戶提供DEKA 數位雷射：維沃斯研究所。

DEKA recently introduced new advanced technology that can be used to effectively treat snoring as well as swollen tonsils and other soft tissues that can obstruct the human airway. DEKA is the dental laser subsidiary of the world's largest laser manufacturer, El.En.Group, an $800 million Italian public company.

DEKA 最近推出了新的先進技術，可用於有效治療打鼾以及扁桃體腫脹和其他可能阻塞人體呼吸道的軟組織。 DEKA 是世界上最大的雷射製造商 El.En.Group 的牙科雷射子公司，El.En.Group 是一家市值 8 億美元的義大利上市公司。

Other product distribution and collaboration agreements are in advance discussions and will be announced if and as they are cuts consummated. Management believes that such product representation and collaboration agreements will continue to build revenue and growth lines for Vivos in the months and years ahead.

其他產品分銷和合作協議正在提前討論中，並將在削減完成後宣布。管理層相信，此類產品代理和合作協議將在未來數月甚至數年繼續為 Vivos 創造收入和成長線。

So while we face some headwinds in the market on the revenue side, we also see new revenue opportunities emerging as marketplace momentum and sales build across our entire suite of products. The second quarter also saw continued progress in our pilot tests with DSOs, including the execution of new and existing pilots during the quarter with eight regional and national DSOs representing over 1,000 locations nationwide.

因此，儘管我們在收入方面面臨市場上的一些阻力，但隨著市場動力和我們整套產品的銷售不斷增強，我們也看到了新的收入機會的出現。第二季度我們的 DSO 試點測試也持續取得進展，包括在本季度與代表全國 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。

As an indicator of our momentum in the DSO space. Since the close of the second quarter, we have progressed to having advanced discussions, including on-site meetings with an additional 5 DSO groups with another 12 groups being added to our sales funnel after expressing high levels of interest.

作為我們在 DSO 領域動力的指標。自第二季末以來，我們已進行深入討論，包括與另外 5 個 DSO 小組舉行現場會議，另外 12 個小組在表達了高度興趣後被添加到我們的銷售管道中。

We are also pleased to report significant progress from our ongoing efforts to obtain additional FDA clearances and indications of use for our products. We now have submitted several rounds of what we believe to be compelling data to the FDA pursuant to our applications to expand the scope of authorization for use of our medical devices.

我們也很高興地報告，我們不斷努力為我們的產品獲得更多 FDA 許可和使用適應症，並取得了重大進展。現在，我們已根據我們的申請向 FDA 提交了幾輪我們認為具有說服力的數據，以擴大我們醫療設備使用的授權範圍。

We believe such applications and requests are in the latter stages of consideration. If and as any such new clearances are received, we will publish those milestones immediately. In addition, our clinical advisory Board led by Dr. Clete Kushida of Stanford University, along with certain independent clinicians and researchers, have continued to work diligently to publish new data and peer-reviewed papers, providing further scientific validation of the efficacy and safety of our technology.

我們相信此類申請和請求已進入後期考慮階段。如果收到任何此類新許可，我們將立即發布這些里程碑。此外，由史丹佛大學 Clete Kushida 博士領導的臨床顧問委員會以及某些獨立臨床醫生和研究人員繼續努力工作，發表新數據和同行評審論文，為藥物的有效性和安全性提供進一步的科學驗證。我們的技術。

Currently, five new papers have been submitted and accepted for publication and presentation at medical professional conferences over the next few months. At least two additional papers have also been submitted and are currently under peer review. Through the combination of our strategic revenue initiatives, internal operating cost reductions and new capital raising initiatives, we believe we have positioned Vivos to achieve revenue growth and ultimately cash flow, positive operations and profitability in the foreseeable future.

目前，五篇新論文已提交並接受，將在未來幾個月的醫學專業會議上發表和展示。至少還有另外兩篇論文已提交，目前正在接受同儕審查。透過結合我們的策略收入計劃、降低內部營運成本和新的融資計劃，我們相信我們已經使 Vivos 在可預見的未來實現收入成長並最終實現現金流、積極營運和盈利。

In summary, while the larger economic and market environment is creating challenges for both medical and dental communities, Vivos has taken steps to address those challenges, and our long-term growth drivers remain in place. With our innovative evidence-based technology and network of trained providers, we remain committed to our core mission of addressing the crisis of sleep apnea and breathing related sleep issues.

總之，雖然更大的經濟和市場環境為醫療和牙科界帶來了挑戰，但 Vivos 已採取措施應對這些挑戰，我們的長期成長動力仍然存在。憑藉我們創新的實證技術和訓練有素的提供者網絡，我們仍然致力於解決睡眠呼吸中止危機和呼吸相關睡眠問題的核心使命。

For all of those reasons and more, we are undaunted by the current challenges, and we remain fully committed to our core mission and purpose. We believe Vivos has positioned now better than ever to do great things and to begin to realize its full potential. We thank you for your patience and support. We know it has taken longer to get here than we had expected, but we see a very bright future ahead. This concludes our prepared remarks. Now we'll be happy to take questions.

基於所有這些原因以及更多原因，我們對當前的挑戰毫不畏懼，我們仍然完全致力於我們的核心使命和宗旨。我們相信，Vivos 現在比以往任何時候都更能做出偉大的事情，並開始充分發揮其潛力。我們感謝您的耐心與支持。我們知道到達這裡所花費的時間比我們預期的要長，但我們看到了一個非常光明的未來。我們準備好的演講到此結束。現在我們很樂意回答問題。

(Operator Instructions) Scott Henry, Roth Capital

（操作員指令）Scott Henry，Roth Capital

Thank you and good afternoon. Couple of questions, first, the negative impact of this AGGA device, do you still-- are you still noticing any impact at this point in time, or it's blown over?

謝謝你，下午好。有幾個問題，首先，這個 AGGA 設備的負面影響，你現在是否仍然注意到任何影響，或者它已經被吹掉了？

Good question. It's blown over. But there's good news or let's just say bad news travels fast and good news takes a little while to get out there. So and we responded to this situation very proactively. And I think we got out ahead of it as much as we could.

好問題。已經吹完了但也有好消息，或者說壞消息傳播得很快，而好消息則需要一段時間才能傳出。因此，我們非常積極地應對這種情況。我認為我們已經盡可能地領先了。

But there were still doctors who had been tremendous providers, I was back in New York a couple of weeks ago, and I met with one of our leading producers, and he said he just completely shut down just out of sheer fear over this whole thing and that he's just now-- I spoke with him again last night, and he is just now getting back into putting patients in to Vivos care devices.

但仍然有一些醫生是巨大的提供者，幾週前我回到了紐約，我會見了我們的一位主要製片人，他說他完全出於對整件事的恐懼而完全關閉了他剛剛— —昨晚我再次與他交談，他現在剛重新開始將病人放入Vivos 護理設備中。

So I think it's blown over Scott. I would say we are starting to see some rebounds take place, but it was a it was a body blow. There's just no getting around it. It was a body blow that we did not anticipate and could not have foreseen, but I do believe we've weathered the storm. We've made it very clear that this was an unrelated non Vivos device that uses a completely different mechanism of action to evoke the changes that it purports to do. And it was not an FDA cleared device. There's no research that we could find out there about it.

所以我認為斯科特已經被炸毀了。我想說的是，我們開始看到一些反彈的發生，但這是一次沉重的打擊。這是無法迴避的。這是我們沒有預料到、也無法預見的重大打擊，但我相信我們已經度過了難關。我們已經明確表示，這是一款不相關的非 Vivos 設備，它使用完全不同的作用機制來引發其聲稱要做的更改。而且它不是 FDA 批准的設備。我們在那裡找不到任何關於它的研究。

It's just a some guy hawking these things out of the back of this car type thing. And we just tried to distance ourselves as far as we could from it. So I feel good about the fact that it's behind us. There might be some residual doctors out there that we need to still sort of bring back on board. But I think for the most part, we're seeing we're seeing most of these guys come back around.

只是一個傢伙從這種汽車類型的東西後面兜售這些東西。我們只是盡力與它保持距離。所以我對它在我們身後這一事實感到很高興。可能還有一些剩餘的醫生我們仍然需要帶回船上。但我認為在很大程度上，我們看到這些人中的大多數都回來了。

Okay. And then I know you made some comments on growth in the second half of '23, but more specifically, Q3, you expect sequential growth over Q2? I mean, Q2 kind of a lower base, just want to get a sense you expect improvement over that number?

好的。然後我知道您對 23 年下半年的成長發表了一些評論，但更具體地說，第三季度，您預計第二季度會持續成長嗎？我的意思是，第二季的基數較低，只是想了解您預計該數字會有所改善嗎？

We do. Another great question. And I believe in my last earnings call, you'll recall that I said, look I think Q2 is probably not going to be anything to write home about, it's probably going to be relatively flat. We ended up being down a little bit because of this AGGA debacle.

我們的確是。另一個很好的問題。我相信在我上次的財報電話會議上，你會記得我說過，我認為第二季度可能不會有什麼值得大書特書的，它可能會相對持平。由於 AGGA 的失敗，我們最終有點沮喪。

But I think we're seeing some nice things happening here in Q3. I think we can probably expect a much better report in Q3 than we have here in Q2. But I will say that the second half of the year is gaining momentum and most of the gains are going to be towards the latter part of the year as we move into 2024.

但我認為我們在第三季看到了一些美好的事情發生。我認為我們可能會期待第三季的報告比第二季好得多。但我要說的是，今年下半年的勢頭正在增強，隨著我們進入 2024 年，大部分收益將在今年下半年實現。

This is going to be due to the to the revenue ramp that we see coming out of [Lincare] out of this company that we talked about. And so we will be keeping everybody apprised of how that goes.

這將歸因於我們所討論的這家公司 [Lincare] 的收入成長。因此，我們將隨時向所有人通報進度。

Okay. And then on the spending side, when you look at the 2Q numbers, do you expect cost cutting beyond there or should we think about 2Q as a base?

好的。然後在支出方面，當您查看第二季度的數據時，您是否預計成本削減會超出該水平，或者我們是否應該考慮第二季度作為基礎？

We're continuing to cut costs. We've implemented some pay cuts. We've implemented some further reductions in staff. We've just-- we're continuing to watch this, and we're trying not to cut into the bone of sales. One of the things that I had mentioned earlier in this call was that we think some of the loss of revenue was due to some of the cuts we made of our boots on the ground practice advisors. And in retrospect, I think we did the right thing.

我們正在繼續削減成本。我們已經實施了一些減薪措施。我們進一步裁員。我們只是——我們正在繼續關注這一點，並且我們試圖不削減銷售的基礎。我之前在這次電話會議中提到的一件事是，我們認為部分收入損失是由於我們對地面練習顧問的一些削減造成的。回想起來，我認為我們做了正確的事。

I think we-- the overhead that was associated with having those people on board was just not consistent with -- it just was unsustainable. But when we did do the staff reductions there, it did have an impact on sales to some degree.

我認為我們——與讓這些人加入相關的管理費用與——這是不可持續的。但當我們確實在那裡裁員時，確實對銷售產生了一定程度的影響。

So I think we've-- basically everybody is adjusted to the new reality now, and I think we're going forward. But I think with the routine and sort of everyday sort of the automatic feed of patients from the DME distribution companies, I think we're going to see a much more steady and predictable flow of patients, and I think that's going to be good for everyone.

所以我認為我們基本上每個人都已經適應了新的現實，我認為我們正在向前邁進。但我認為，隨著 DME 分銷公司對患者進行例行和日常的自動輸送，我認為我們將看到更穩定且可預測的患者流動，我認為這將有利於每個人。

Okay. Great. Final question from me. In 2Q, the revenue per VIP sign up was down a bit from Q1, what do you think is more reflective going forward, Q1 or Q2 or somewhere in between?

好的。偉大的。我的最後一個問題。第二季度，每個 VIP 註冊的收入比第一季略有下降，您認為哪一個更能反映未來的情況，是第一季還是第二季度，還是介於兩者之間？

Q2 had such an anomaly in it. It's hard to predict right now. I could do a better job of answering that for you, unless Brad has some color to add. I can do a better job of answering that for you in when we get another quarter without this anomaly of this market situation with the AGGA. Do you have any color to add to that, Brad?

Q2就有這樣的反常現象。現在很難預測。我可以更好地為你回答這個問題，除非布拉德有一些補充。當我們再過一個季度，AGGA 的市場狀況不再出現這種異常情況時，我可以更好地為您解答這個問題。布拉德，你還有什麼要補充的嗎？

Yeah, I mean, we did lower the entrance prices for certain VIPs doing just pediatric or just doing some math devices and so forth. So that has the impact of lowering the average sales price on.

是的，我的意思是，我們確實降低了某些只做兒科或只是做一些數學設備等的 VIP 的入場費。這會降低平均銷售價格。

And I think he was asking, correct me if I'm wrong, Scott, but I think you asked about the productivity per the VIP, is that right?

我認為他是在問，如果我錯了，請糾正我，斯科特，但我認為您問的是 VIP 的生產力，對嗎？

No, I was talking about revenue per VIP sign up.

不，我說的是每個 VIP 註冊的收入。

Okay. I misunderstood.

好的。我誤解了。

If I take the VIP number divided by 43.

如果我將 VIP 號碼除以 43。

Yeah. So one of the things that we learned. We have regular interactions with our VIP community. And one of the things we learned is that we were presenting a very binary product offering to the world. And it was either you sign up and you pay relatively high entry fee to play or we don't really have an option for you.

是的。這是我們學到的一件事。我們與 VIP 社群定期互動。我們學到的一件事是，我們向世界展示了一個非常二元的產品。要嘛你註冊並支付相對較高的入場費才能玩，要嘛我們真的沒有給你選擇。

And so we created, strategically, we created a number of lower price entry points. So if somebody wanted to just do pediatric guided growth and development appliances, there's an entry point that's $7,000 or $8,000. If somebody wanted to do a midlines series of mandibular advancement devices, which we call our lifeline products, they could do that for the same.

因此，我們從策略上創造了許多較低價格的切入點。因此，如果有人只想做兒科引導生長和發育設備，入門價格是 7,000 美元或 8,000 美元。如果有人想做中線系列下顎前移裝置（我們稱之為生命線產品），他們也可以這樣做。

So there's different entry points at a fraction of the cost of what we had before, but they don't get access to our CARE devices. So if somebody wants to come in and get access to the full thing. It requires more training.

因此，有不同的入口點，成本只是我們以前的一小部分，但他們無法存取我們的 CARE 設備。因此，如果有人想進來並獲得完整的資訊。它需要更多的培訓。

And that means more of a burden on support and systems and training and everything else. So you will see that number continue to decline, we hope to see the actual number as we go into the second half of this year.

這意味著支援、系統、培訓和其他方面的負擔更大。所以你會看到這個數字繼續下降，我們希望在今年下半年看到實際數字。

The actual number of enrollees accelerate or increase because theoretically more doctors should come onboard at lower price points. And if they want to expand the scope of what they're able to do, they can always sign up for more programs internally with us and they can go from guided growth to our [Lifeline] program to our full care device program and become a full-fledged VIP.

實際投保人數加速或增加，因為理論上應該有更多的醫生以更低的價格加入。如果他們想擴大他們能夠做的事情的範圍，他們可以隨時在我們內部註冊更多計劃，他們可以從引導成長到我們的[生命線]計劃再到我們的全面護理設備計劃，並成為一個完全成熟的VIP。

But right now, what we've tried to do is give doctors a chance to put their toe in the water, test drive some of our products and appliances and our systems and our support. And then once they get hooked, then we can bring them onto the full measure of what they want to do. It's really-- it breaks down like this, it breaks down. Do you want to do preventive things with the pediatric guided growth and development? That's a preventive type product. Do you want to manage this disease state, which is our lifeline products, which are the [Vita, the Versa, the Venus sleep].

但現在，我們試圖做的是給醫生一個嘗試的機會，試駕我們的一些產品和設備以及我們的系統和我們的支援。一旦他們著迷，我們就可以讓他們充分了解他們想做的事情。真的是——就這樣崩潰了，崩潰了。您想透過兒科引導生長發育來預防嗎？這是一種預防型產品。你想管理這種疾病狀態嗎，這是我們的生命線產品，也就是【Vita、Versa、Venus sleep】。

Those are our lifeline products that we mentioned earlier and then, or do you want to rehabilitate this condition in your patients? And that's what we call our care line, that's the mRNA DNA, mmRNA. Thus, the full measure of the more complex appliances, the more expensive appliances. And it's really now up to a doctor to say, okay, this is how I want to play the game. I want to get trained to do this. And then I'll maybe later, do that or maybe I'll go all in. Now, they have a choice, before we didn't give them a choice.

這些是我們之前提到的生命線產品，或是您想讓您的患者恢復這種狀況嗎？這就是我們所說的護理線，也就是 mRNA DNA、mmRNA。由此可見，全面衡量的家電越複雜，家電越貴。現在確實需要醫生說，好吧，這就是我想要玩遊戲的方式。我想接受培訓來做到這一點。然後我也許稍後會這樣做，或者也許我會全力以赴。現在，在我們沒有給他們選擇之前，他們有選擇。

But now that we have a broader spectrum of products. It makes it a much easier entry point and much easier way for these guys to get started.

但現在我們擁有更廣泛的產品範圍。它使它成為這些人更容易的切入點和更容易的入門方式。

Okay. All right. Great. Thank you for the color and thank you for taking the question.

好的。好的。偉大的。謝謝你的顏色，也謝謝你問問題。

Thank you, there are no further questions at this time. I would like to turn the floor back over to management for closing comments.

謝謝，目前沒有其他問題。我想將發言權交還給管理層以徵求結束意見。

Thank you, operator. We were grateful for the opportunity to be where we are. We wish that things had gone a little bit better for us in the second quarter. We wish that situation that happened with the AGGA device, it never happened, but it did, and we are where we are.

謝謝你，接線生。我們很感激有機會到達現在的位置。我們希望第二季的情況能好一點。我們希望 AGGA 設備發生的情況永遠不會發生，但它確實發生了，而且我們現在就在現在的位置。

But regardless of all that, the future that we see around here with our new relationships and the new opportunities that are before us seems very bright. We are not that far away from cash flow breakeven. We need about 2,500 new units a month, and we have from our distribution effort with this DME company, which for them it doesn't seem like it's a big lift.

但無論如何，我們在這裡看到的新關係和擺在我們面前的新機會的未來似乎非常光明。我們距離現金流損益兩平並不遙遠。我們每個月需要大約 2,500 個新設備，這是我們透過與這家 DME 公司的分銷努力獲得的，這對他們來說似乎並不是一個很大的提升。

And we're currently, as we mentioned in discussions for an exclusive relationship there, we hope to have further information to be able to report on that as it goes. But we feel very, very confident and very bright about the future.

正如我們在討論那裡的獨家關係時提到的那樣，我們目前希望獲得更多信息，以便能夠及時報告這一情況。但我們對未來感到非常非常有信心和光明。

We know we're going to have to go raise some money. We wish we didn't have to do that. We tried very hard not to have to do that, but here we are. So we're leaning into the win, and we're headed forward, and we're going to make this work. So we appreciate everybody's patience and hanging in there with us, and we'll just --we'll leave it at that. Thank you everyone for being here today and listening to us, and we'll turn it back over to the operator.

我們知道我們必須去籌集一些資金。我們希望我們不必這樣做。我們非常努力地不想這樣做，但我們還是到了。因此，我們正朝著勝利的方向前進，我們將會成功。因此，我們感謝每個人的耐心和與我們一起堅持下去，我們就這樣吧。感謝大家今天來到這裡並聆聽我們的講話，我們會將其轉回給接線生。

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

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。