Vivos Therapeutics (VVOS) investor relations material

Market opportunity and technology

• Addressable market for sleep apnea treatment is rapidly expanding, with significant demand from cardiology and pediatric sectors.

• Over 85% of cardiovascular disease patients test positive for obstructive sleep apnea (OSA), creating strong referral opportunities.

• Wearable technology is driving increased diagnosis rates for sleep disorders.

• The company’s FDA-cleared oral appliance offers a non-surgical, one-time treatment for severe sleep apnea in adults and children.

• Patient testimonials highlight significant improvements and preference over CPAP devices.

Business model and growth strategy

• Pivoted from a dental-focused model to a medical community approach, leveraging collaborations with cardiology and sleep centers.

• Utilizes a capital-light collaboration model, reducing CapEx per new location by 95% compared to acquisitions.

• Referring providers, such as cardiologists, receive a 20% stake in management companies, aligning incentives and ensuring regulatory compliance.

• The Nevada prototype is being replicated in Arizona and Florida, with plans for national expansion.

• International presence exists but lacks scale; global market potential is estimated at 1 billion people with sleep apnea.

Financial performance and economics

• Sleep centers achieve 50-55% EBITDA margins, with Nevada currently at 35% and trending upward.

• Each sleep optimization team can generate $500,000-$600,000 in monthly revenue with low patient acquisition costs.

• Treatment costs range from $8,000-$11,000, with insurance and financing options available; CPAP and implant alternatives are less preferred.

• Revenue is generated across multiple patient visits, including diagnostics, device fitting, and follow-up care.

• Debt was recently restructured to support a capital-light, cash-generating growth model.