Vivos Therapeutics, Inc. Revenue Disclosure
NOTE 4 - REVENUE, CONTRACT ASSETS AND CONTRACT LIABILITIES
Net Revenue
For the years ended December 31, 2025 and 2024, the components of revenue from contracts with customers and the related timing of revenue recognition is set forth in the table below (in thousands):
| 2025 | 2024 | |||||||
| Product revenue | ||||||||
| Appliances | $ | 3,277 | $ | 5,601 | ||||
| Tooth Positioners | 3,210 | 2,273 | ||||||
| Total product revenue | 6,487 | (1) | 7,874 | (1) | ||||
| Service revenue | ||||||||
| Sleep testing services | $ | 6,041 | (3) | $ | 1,282 | (3) | ||
| VIP | 491 | (2) | 2,485 | (2) | ||||
| Billing intelligence services | 686 | (3) | 840 | (3) | ||||
| Myofunctional therapy services | 337 | (2) | 609 | (2) | ||||
| Treatment centers | 2,179 | (2) | (2) | |||||
| Sponsorship/seminar/other | 1,222 | (3) | 1,941 | (3) | ||||
| Total service revenue | 10,956 | 7,157 | ||||||
| Total revenue | $ | 17,443 | $ | 15,031 | ||||
| (1) | Product revenue from the sale of appliances and tooth positioners is typically fixed at the inception of the contract and is recognized at the point in time when shipment of the related products occurs. |
| (2) | Service revenue from the sale of VIP enrollments, billing service and therapy is typically fixed at the inception of the contract and is recognized ratably over time as the services are performed and the performance obligations completed. |
| (3) | Sleep testing, treatment center, and other revenue is recognized at a point in time. |
Changes in Contract Liabilities
The key components of changes in contract liabilities for years ended December 31, 2025 and 2024 are as follows (in thousands):
| 2025 | 2024 | |||||||
| Beginning balance, January 1 | $ | 993 | $ | 2,427 | ||||
| New contracts, net of cancellations | 969 | 2,117 | ||||||
| Revenue recognized | (1,483 | ) | (3,551 | ) | ||||
| Ending balance, December 31 | $ | 479 | $ | 993 | ||||
The current portion of deferred revenue is approximately $0.5 million, which is expected to be recognized over the next 12 months from the date of the period presented. Additionally, revenue from breakage on contract liabilities was approximately $0.1 and $1.7 million for the years ended December 31, 2025 and 2024 respectively.
Changes in Accounts Receivable
Our customers are billed based on fees agreed upon in each customer contract. Receivables from customers were $1.6 million at December 31, 2025, $0.4 million at December 31, 2024 and $0.2 million at January 1, 2024. Adjustment to the allowance are recorded in bad debt expense under general and administrative expenses in the consolidated statement of operations. An allowance of $0.9 and $0.4 million existed as of December 31, 2025 and 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 15, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Mar 28, 2024 | |
| 2022 | Mar 30, 2023 | |
| 2020 | Mar 25, 2021 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.