Financial Data and Key Metrics Changes - In Q2 2025, revenue decreased by approximately 6% to $3.8 million compared to $4.1 million in 2024, reflecting additional expenses related to the transition and integration of the Sleep Center of Nevada (SCN) [8][10] - Operating loss widened to $4.9 million in Q2 and $8.8 million for 2025, primarily due to higher expenses and lower revenues during the strategic transition [11][12] - Cash and cash equivalents stood at $4.4 million with total liabilities of $21.5 million as of June 30, 2025 [12] Business Line Data and Key Metrics Changes - VIP enrollment revenue declined by $1 million in Q2, while sleep testing service revenue saw an uplift of $500,000 attributable to SCN [9][10] - Oral appliance sales decreased by 5% in Q2, with 4,116 units sold for $1.9 million, reflecting a shift towards higher volume guide sales [10][11] Market Data and Key Metrics Changes - The integration of SCN has led to increased patient demand, with the company currently servicing significantly less than 40% of potential new patients being tested each month at SCN [18][19] - The company has identified a significant number of legacy SCN patients dissatisfied with CPAP units, indicating a strong market opportunity for VIVOS's treatment alternatives [18] Company Strategy and Development Direction - The company is focusing on a new sales, marketing, and distribution model centered around sleep center provider alliances and acquisitions, with the SCN acquisition being a key milestone [6][12] - VIVOS plans to expand its operations by deploying additional Sleep Optimization (SO) teams to meet growing patient demand, with potential for up to eight teams at SCN based on current demand [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the integration of SCN and the initial patient demand exceeding expectations, leading to plans for facility expansion and additional staff recruitment [14][18] - The company anticipates becoming cash flow positive by the fourth quarter of 2025 as it ramps up the deployment of SO teams [49] Other Important Information - The company has secured significant debt and equity financing, providing $11.5 million in net cash from financing activities [11][12] - VIVOS is actively pursuing additional acquisition and affiliation opportunities across the country, with ongoing negotiations with several potential candidates [22][39] Q&A Session Summary Question: How should revenue in Q3 and Q4 be viewed relative to Q2? - Management indicated that revenue will track the deployment of SO teams, with expectations for growth as the new model replaces the old one [26][27] Question: Will the strength in sleep testing services continue? - Management noted that the increase in testing revenue is a direct reflection of SCN's operations and expects continued growth as more testing centers are brought online [28][29] Question: What is the expected operating expense moving forward? - Management acknowledged that there were one-time costs associated with the SCN acquisition, but some ongoing costs will remain [31][32] Question: How is the recruitment of SO teams progressing? - Management reported robust demand for positions and efficient training processes for new teams [35][36] Question: What is the financial strategy regarding debt? - Management is focused on reducing the cost of capital and is exploring opportunities for refinancing as the business model matures [44][45] Question: When does management expect to reach cash breakeven? - Management is targeting cash flow positivity by the fourth quarter of 2025 as they expand operations [49]