
Financial Data and Key Metrics Changes - The company reported total revenue of $4.5 million for Q3 2021, a 38% increase compared to $3.3 million in Q3 2020 [52] - Gross profit for Q3 2021 was approximately $3.2 million, up 23% from $2.6 million in Q3 2020, with a gross margin of 70% compared to 78% in the previous year [15][59] - The net loss for Q3 2021 was approximately $5.5 million, compared to $1.8 million in Q3 2020, primarily due to increased general and administrative and sales and marketing expenses [66] Business Line Data and Key Metrics Changes - Revenue from VIP enrollments was approximately $2.3 million in Q3 2021, compared to $1.7 million in Q3 2020, despite a dip in enrollments due to the COVID-19 Delta variant [53] - The company sold 2,996 oral appliance arches for approximately $1.6 million in Q3 2021, an increase from 2,245 arches for $1.3 million in Q3 2020 [54] - For the nine months ended September 30, 2021, total revenue increased 28% to approximately $12.5 million compared to $9.8 million for the same period in 2020 [55] Market Data and Key Metrics Changes - The company has treated over 22,000 patients with the Vivos System as of Q3 2021, compared to just over 13,000 in Q3 2020 [16] - The number of trained dentists globally increased to over 1,350 as of September 30, 2021, from just over 1,000 in the same period last year [16] Company Strategy and Development Direction - The company is focusing on expanding its sales and marketing activities, particularly through collaborations with dental support organizations (DSOs) [20][22] - The introduction of the VivoScore diagnostic product is seen as a strategic tool to increase awareness and usage of the Vivos system [18] - The company aims to establish a strong foundation for future growth by advancing strategic growth actions to drive VIP enrollment and appliance sales [51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth prospects for 2022, despite challenges posed by COVID-19 [106] - The company is actively engaging with DSOs and expects to launch pilot programs in target markets [23][50] - Management noted that the DSO market represents a significant opportunity for growth, as many DSOs currently lack sleep programs [104] Other Important Information - The company opened the Vivos Institute Training Center in Denver, Colorado, to provide advanced education and training to healthcare professionals [31] - The FDA granted 510(K) market clearance for the mmRNA device for treating mild to moderate OSA, which is expected to expand insurance reimbursement coverage [34][36] Q&A Session Summary Question: Can you speak to your new marketing initiatives and the build-out of the sales team? - Management confirmed the establishment of three sales teams capable of generating about 60 new enrollments a month, with ongoing updates to their marketing model to appeal to a broader dental community [74][75] Question: Any update on the status of the Stanford study and sales growth into 2022? - Management indicated that the Stanford study is ready to commence and expressed optimism about sales growth, particularly through the DSO market and the Airway Alliance program [81][83] Question: How should we think about gross margins going forward? - Management acknowledged a temporary decline in gross margins due to bundling strategies but expects margins to rebound into the mid-70s or upper 70s as they refine their offerings [86][87]