Core Insights - Vivos Therapeutics reported an 8% year-over-year increase in product revenue and a 5% decrease in operating expenses, indicating a strategic shift towards a new marketing and distribution model [1][6][3] - The company is in the process of acquiring The Sleep Center of Nevada, which is expected to enhance its market presence and patient access to its products [3][6][5] Financial Performance - Total revenue for Q1 2025 was $3.0 million, down from $3.4 million in Q1 2024, primarily due to a decline in service revenue as the company pivots away from its legacy VIP model [6][21] - Product revenue increased to $1.8 million from $1.7 million year-over-year, with a total of 3,736 oral appliance arches sold in Q1 2025 compared to 1,996 in Q1 2024 [6][21] - Gross profit for Q1 2025 was $1.5 million, down from $1.9 million in the same period last year, leading to a gross margin decrease from 57% to 50% [6][21] - Operating expenses decreased to $5.4 million from $5.7 million year-over-year, reflecting cost-cutting measures [6][21] Strategic Initiatives - The company is focusing on direct sales of its FDA-cleared OSA treatments and is pursuing strategic alliances and acquisitions of sleep-focused medical practices [3][5] - The implementation of CPT medical codes for its CARE oral medical devices is expected to simplify reimbursement processes, potentially increasing adoption among providers [5] - Vivos is engaging in discussions with several potential provider partners to expand its reach and diversify revenue streams [5][6] Market Position - Vivos aims to lead the industry in innovative treatments for obstructive sleep apnea (OSA), leveraging cutting-edge technology and strategic partnerships [7] - The acquisition of The Sleep Center of Nevada is anticipated to provide access to thousands of OSA patients monthly, significantly enhancing the company's market potential [6][3]