Vivos Therapeutics, Inc. (NASDAQ:VVOS) Q4 2023 Earnings Call Transcript

Kirk Huntsman: That’s an excellent question. And here’s what I would say. The scale of the opportunity as you phrased it I think is and always has been extremely large. I think all of us who have been involved in this journey have always believed in the dramatic impact that this technology can have on the population that suffers from sleep apnea. Now that we’ve added the severe segment of that population, it’s even more powerful and more important. The challenge has been that up until now the channel, the primary channel that Vivos has had for the application of this technology and the distribution of this technology has been through the dental community, almost exclusively. And that is what we hope to change. That is what we are already in the process of doing.

And I hesitate to get into too much detail about that just yet because we’d like to make sure that we’ve got all of our ducks in a row with some of the strategic changes that we’re making. But suffice to say that there are — the full realization of the potential of this technology will only be realized once we get this technology through other channels which are the focal point of our efforts today and the new initiatives that we’ve referred to. So I think that you’re spot on with all the confluence of events that I highlighted in my remarks, the things we’re seeing in the marketplace, there is a strong undercurrent of things coming our way and we are repositioning assets and resources. We’ve already begun that process. And so there are things that we will be announcing and we will be addressing here and making public over the next few weeks and months that we’ll continue to just sort of put meat on the bones of what I just said there.

But the opportunity is tremendous and we are refocusing and repositioning this company to be able to put it in a position to really reach its full potential.

Lucas Ward: Okay. I guess related to that then some of the specific initiatives you announced the partnerships, you’ve got Ormco and Noum, Lincare, DEKA. Could you give us an update on some of those external partnerships and what you see happening in 2024?

Kirk Huntsman: I would say that we’re very pleased with the progress of most of those relationships. I think we’re a little frustrated with the Lincare relationship at this point in time in terms of where we’re at. And we’d hope to be a lot further along. I think there’s some logistical things that have happened out there that have made that progress go a little bit slower than what we had hoped but we continue to push through and we hope that that continues to evolve in a positive way. The other relationships that you mentioned are exciting and moving forward. And – they’re going to take a little bit of time, although the Ormco relationship and all that is actually taking off very, very well. We’re very excited about that and the kind of synergistic response we’re getting.

So it’s – no, I think all of those things are starting to bear fruit and it just takes a little bit of time to get it over the hump here. But what we’re starting to see that – one that you did not mention, we’re starting to see I think probably two years ago maybe more we mentioned the entree that Vivos had into the DSO business. And after just slogging it out for the last couple of years, we finally have the attention of the DSO community. And I think we’re fielding more calls and inquiries and have more DSO practices in some stage of early development. And I don’t want to call it testing but just basically early adopters within the DSO community that we’re very, very excited about it. We have doctors in all of the – I’d say all of them I think most of the major DSO companies and the results that they’re getting and the progress that they’ve made has really caught the eye of senior management.

And I think finally, we’re starting to see some traction in the DSO business. I’ve always said that that would be a low – sort of a slow boil but it starts – it feels like here, especially since we got our latest clearance. It feels like the interest level and the interactions have become much more productive, much more encouraging to our entire team. So that’s – that’s an area that we see that will also continue to grow throughout the years ahead. So very encouraged by that.

Lucas Ward: Wonderful. If I may, I was wondering about the AFD acquisition sort of nine months on, whatever it is I guess maybe it’s almost a year. How is that going from a revenue standpoint? Obviously, you don’t break it out but are you – is it – are you as pleased with it now as you were at the beginning.

Kirk Huntsman: Yes. It’s actually still a very, very important void in our product line. And also it gives us a piece of technology that we have found and discovered to have some incredible potential and some incredible and powerful impact. I mentioned in my prepared remarks that there were some significant advances that we’ve made internally around here on treatment protocols and whatnot. And that technology was referred to as The Unilateral BiteBlock Technology and other things that we’re doing are actually bearing great amounts of fruit. That line of products is the fastest-growing line in our entire product line today. So we’re very excited about that. The future is really strong. It’s everything that we thought it was going to be when we acquired it and more, so, very excited about that. Thanks for asking about that. I haven’t referenced that earlier.