Vivos Therapeutics, Inc.

Good day, everyone, and welcome to the Vivos Therapeutics Second Quarter 2021 Conference Call. At this time, participants are in a listen-only mode. A question and answer session will follow management's remarks. This conference call is being recorded, and a replay of today's call will be available on the Investor Relations section of Vivos' website and will remain posted there for the next 30 days. I will now hand the call over to Mr. Edward Lowe, Vivos' Investor Relations Officer, for introductions and the reading of the Safe Harbor Statement. Please go ahead, sir.

Thank you, Operator. Hello, everyone, and welcome to Vivos Therapeutics' second quarter 2021 earnings conference call. A copy of the company's earnings press release is available on the investor relations section of our website at www.vivoslife.com. With us on today's call are Kirk Huntsman, Vivos Chairman and Chief Executive Officer, and Brad Ammon, Chief Financial Officer. Today, we'll review the highlights and financial results for the second quarter 2021, as well as more recent developments. Following these formal remarks, we will be prepared to answer your questions. I would also like to remind everyone that today's call will contain certain forward-looking statements from our management made within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities and Exchange Act of 1934 as amended concerning future events. Words such as may, should, project, expects, intends, plans, believes, anticipates, hopes, estimates, and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the company's control. Actual results, including the results of VBOS's growth strategies, operational plans, future potential results of operations or operating metrics, and other matters to be addressed by VBOS management in this conference call may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, The risk factors described in other disclosures contained in Vivos' filings with the Securities and Exchange Commission, including our second quarter 2021 10Q, which is being filed today, as well as in our most recent form 10K, which can also be accessed on the Vivos Investor Relations website. Except to the extent required by law, Vivos assumes no obligation to update statements as circumstances change. Now, at this time, it is my pleasure to introduce Kirk Huntsman. Chairman and CEO of Zivos. Kirk, please go ahead.

Thanks, Ed. And thank you everyone for joining us today on our second quarter 2021 earnings conference call. I'm excited to review our strong quarterly results and provide you with an update on our progress. Afterwards, our Chief Financial Officer, Brad Ammon, will review the highlights of our second quarter financial results. Following that, we'll be happy to take your questions. Our second quarter revenue results were quite strong, well ahead of our internal forecasts and analysis. This is due to the continued recognition and adoption of our vivo system as a treatment for mild to moderate sleep apnea by members of the medical and dental communities, as well as the benefits of our accelerated growth actions, including a focus on strategic sales and marketing initiatives. We are also beginning to see revenue from beyond our core of VIP enrollment revenue and appliances, such as the value-added services we offer our VIPs and their patients, as well as management revenue from our medical integration division. As we are still relatively new to being a publicly traded company, I'd like to briefly recap our mission and strategy. Vivos is a growing medical technology company. Since the beginning, our mission has been to rid the world of obstructive sleep apnea, or OSA. To realize our goal, vivos is focused on developing and commercializing innovative treatments for adult patients suffering from sleep disorder breathing, including OSA. For those of you not familiar with OSA, it is a chronic illness that impacts nearly 1 billion people globally and over 54 million in the United States. Over 80% of OSA sufferers are unaware they even have a condition. mostly because getting a proper clinical diagnosis is often confusing and costly, especially for children. Because of these challenges, a majority of these sufferers remain undiagnosed and untreated. Those that are properly diagnosed are often left with extremely unattractive treatment options. These include having to wear a CPAP machine every night for the rest of their lives, or subjecting themselves to costly, painful, and invasive surgery. At Vivos, we believe we simply have a better way to treat OSA than the current standard of care. Our highly effective Vivos system treatment is delivered within a comprehensive treatment ecosystem located within specially trained and equipped dental offices and supported by medical and other healthcare professionals. Through our growing network of Vivos trained dentists, we offer an easy-to-use, low-cost screening test using our VivoScore ring recorder device powered by Sleep Image that is dispensed by a dentist or medical doctor. In our experience, about half of patients tested with VivoScore will screen positive for OSA. Once diagnosed by a qualified physician, patients receive a complete evaluation and workup performed onsite by a trusted dentist. From there, they are given a clearly laid out and comprehensive treatment plan offering them specific treatment options. Due to our efforts to educate healthcare and dental professionals, many are choosing vivos treatment, which the majority of patients complete in just 12 to 24 months. Upon completion, 97% of patients report having achieved their primary treatment objectives, and over one in four should see their OSA symptoms completely resolved. In most cases, no further treatment or intervention is required. We have made great progress in spreading the word about the benefits of vivos treatment options through our target audience, the estimated 200,000 general dentists and dental specialists across the US and Canada. As of today, we have trained over 1,250 dentists across North America and internationally in the use and application of the vivos system. Our dentists are enrolled in our vivos integrated practice or VIP program, which offers training and other value-added services in connection with using the VEVO system. Turning now to the second quarter results, we achieved revenue growth of over 37% on a year-over-year basis and 30% over the first quarter of 2021, although I would like to note that the year-over-year comparison does reflect the drag on our revenue last year caused by COVID. We are thrilled with these results, which demonstrate the effects of our accelerated growth measures with rising enrollments by new VIP dentists and sequential quarter increases of 25 and 34% for products and services revenue, respectively. Our increased revenues also reflect our emphasis on strategic sales and marketing initiatives, which have been designed to foster further recognition and adoption of the vivo system. by the medical and dental communities. Given our revenue and VIP growth during the second quarter, I think it's clear that these initiatives have positively impacted our performance. In addition to our top line results, I'm pleased to report that for the second quarter of 2021, we recorded gross profit of approximately 3.6 million, a 33% increase compared to gross profit of approximately 2.7 million for the same period in 2020. We also achieved gross margin of 81% up sequentially compared to gross margin of 78% for the first quarter of 2021, although down slightly year over year. We also exceeded 19,000 total cases treated with the vivo system, and we ended the quarter with cash and cash equivalents of 34.2 million as of June 30th, 2021. Brad will review our financial results with you in more detail. Needless to say, we are very pleased with these results. In addition to our core business lines, during the quarter we also began to see strong demand for our new VivoScore diagnostic product and myocorrect therapy service. As I mentioned earlier, VivoScore is a home sleep test for both children and adults. Within 24 to 48 hours of testing, Patients who test positive receive a telemedicine consult and confirming diagnosis and prescription for treatment from a qualified sleep specialist. Although we generate some revenue from VEVO score, we mainly view this product as a screening and diagnostic tool to get the dentists and their patients talking about and treating sleep apnea with the VEVO system. Our other new product, Myocorrect, is a service where trained therapists will provide vivos trained dentists access to oral facial myofunctional therapy, also known as OMT via telemedicine technology. Both of these offerings were launched in the second quarter, and I'm happy to report that the initial demand we've received for both has exceeded our expectations. Based on this demand, we continue to expect these products will represent meaningful upside to our revenue potential as they build further momentum throughout the remainder of this year. The caveat here is that in Q3 and eventually moving into Q4, there are unknown impacts of the surging Delta variant of COVID on dental practices, patient visits, and consumer sentiment. In addition to our second quarter results, we have also made strides in other areas. In April, we announced the appointment of Dr. Mimi Guarneri, widely acclaimed as a leading integrative cardiologist. as an independent consultant serving in the role of medical director of clinical education. As previously announced, Dr. Guarneri is also one of several physician owners of Vivos' first New Somnia Center, which opened in March and is located in Del Mar, California. In addition to her other responsibilities related to Vivos' first New Somnia Center, from which Vivos earns management fee revenue, her duties as medical director of clinical education include the promotion and expansion of vivos' medical integration division, which was launched in 2020 with the goal of creating strategic alliances between the medical and dental communities so more medical doctors could work directly with dentists, including dentists who participate in the VIP program, for treating sleep disorders in patients. Like vivoscore, we believe this will further the diagnosis and treatment of OSA with the vivos system. Also during the quarter, we completed an underwritten follow on public offering of 4.6 million shares of common stock to support our continued growth. This included the exercise in full of the underwriters option to purchase additional shares of common stock for total net proceeds to the company of 25.4 million. Brad will discuss this in more detail later in today's call. Suffice to say, This has considerably strengthened our balance sheet, leaving us well-positioned to continue our growth during the remainder of this year and beyond. We have also continued to publish exciting new findings from real-world data. Following the quarter end in July, we unveiled new data from a patient survey commissioned by Vivos related to the use of the Vivos system. I'm pleased to report that our findings included a 97% Vivos patient satisfaction rate, In addition, study findings showed that over one in four vivos patients experienced a complete resolution of their OSA from the vivos treatment. After we initially made that particular announcement, there were some online pundits who suggested that these results weren't all that impressive. We emphatically disagree, as we are unaware of any other treatment modality for OSA that can make a similar claim without lifetime intervention or surgery. Moreover, we plan to continue to publish clinical results from ongoing and future studies as they come in, and that we believe will continue to confirm the compelling benefits being realized by vivos patients and providers. Our firm belief is that patient clinical successes are the ultimate driver of our business model. The fact that nearly all patients surveyed reported they had achieved their desired treatment outcome is a powerful statement and is further proof of just how well the Vivos system works. More recently, I'm happy to share that just last week we opened the Vivos Institute International Training Center in Denver, Colorado. This 15,000 square foot state-of-the-art facility was established to augment our current highly acclaimed online training programs to offer advanced postgraduate education and training to dentists, dental teams, and other healthcare professionals from around the world in a live, hands-on setting. Course curricula at the Institute include general courses on sleep and breathing disorders, as well as training in patient screening and understanding sleep tests, various therapeutic protocols and treatment options, medical billing, and best practices for in-office systems and integration of the vivo system. the new training facility can accommodate three to 400 medical professionals per day. Here, we will continue to educate healthcare providers about OSA and Vivos' treatments for OSA within their practice areas, as well as provide dentist training on Vivos' related practice management tools. We are absolutely thrilled to establish this institute, which significantly increases our clinical training capacity while also enabling us to leverage the technology that we've built into the center to provide the highest quality training for dentists all across the world. You can learn more about the Institute by going to www.thevivosinstitute.com. So in closing, the second quarter was a significant period for us. As the nation began to emerge from what now appears to be the first round of COVID infections and lockdowns, we achieved considerable revenue growth. This is the result of our accelerated growth actions, which we implemented by strategically deploying from our December IPO and May follow-on offerings. These actions not only drove our strong second quarter performance, but have also established a strong foundation for our future growth potential in future quarters. In addition to the substantial uptick in VIP growth and appliance sales, which showcases continued adoption of the Vivo system, we have also seen strong demand for our new product offerings, including our VivoScore diagnostic product and Myocorrect therapy services. While these products were only recently launched in Q2, the strong demand we've seen supports our belief that these products represent substantial potential upside to our growth prospects. As we look to the future, working closely with our marketing partner, Osmond Marketing, we are launching aggressive social media and other marketing campaigns along multiple fronts to both providers and consumers. We believe these initiatives will help raise awareness of our brand and the compelling benefits of our treatment for people suffering from OSA. Now that our network of trained clinical dentists is beginning to fill out across the US and Canada, we have begun to reach out directly to a number of dental support organizations or DSOs. According to Morgan Stanley, over 8.3% of practicing dentists in 2019 belonged to DSOs in the United States. And that number is expected to grow to as many as 25 to 30% by 2025. These corporate dental practice operators control thousands of general dentistry and specialty practices throughout North America. We are currently in active discussions with several DSOs and hope to launch pilot programs with them by the end of the third quarter. In addition, we are piloting other initiatives that are intended to make it easier for more dentists to actively screen and refer their patients to VIP dentists. If successful, we will leverage the results to aggressively expand our service offering to a large number of dentists who may not be ready to become fully trained VIPs under our current program. This initiative could open the door for many more dentists to be exposed to vivos and many more patients to receive the care they need for their OSA. Finally, we are actively engaged in forming additional strategic alliances and commercial relationships with industry partners and major health insurance payers, as well as prominent leaders in the medical and dental professions. As those alliances and relationships come about, we will be making further announcements. We are extremely proud of all our accomplishments to date and are even more enthusiastic about our prospects for the future. We look forward to updating you on our progress as we continue to execute on our strategic growth initiatives. This concludes my opening remarks. Now I'll pass the call on to Brad, who will review our financial results. Brad?