NOTE 3 - REVENUE, CONTRACT ASSETS AND CONTRACT LIABILITIES

 

Net Revenue

 

For the years ended December 31, 2024 and 2023, the components of revenue from contracts with customers and the related timing of revenue recognition is set forth in the table below (in thousands):

 

   2024   2023 
         
Product revenue          
Appliances  $5,601   $6,081 
Guides   2,273    189 
Total product revenue   7,874(1)   6,270 
           
Service revenue          
VIP  $2,485(2)  $3,922 
Billing intelligence services   840    887 
Sleep testing services   1,282    1,185 
Myofunctional therapy services   609    861 
Sponsorship/seminar/other   1,941    676 
Total service revenue   7,157    7,531 
           
Total revenue  $15,031   $13,801 

 

(1) Product revenue from the sale of appliances and guides 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 services 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.

 

 

Changes in Contract Liabilities

 

The key components of changes in contract liabilities for years ended December 31, 2024 and 2023 are as follows (in thousands):

 

   2024   2023 
         
Beginning balance, January 1  $2,427   $3,038 
           
New contracts, net of cancellations   2,117    3,730 
Revenue recognized   (3,551)   (4,341)
           
Ending balance, December 31  $993   $2,427 

 

The current portion of deferred revenue is approximately $0.9 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 $1.7 and $0.7 million for the years ended December 31, 2024 and 2023 respectively.

 

Changes in Accounts Receivable

 

Our customers are billed based on fees agreed upon in each customer contract. Receivables from customers were $0.4 million at December 31, 2024, $0.2 million at December 31, 2023 and $0.5 million at January 1, 2023. Adjustment to the allowance are recorded in bad debt expense under general and administrative expenses in the consolidated statement of operations. An allowance of $0.4 and $0.3 million existed as of December 31, 2024 and 2023.

 

Free Sentinel

Want the next Vivos Therapeutics, Inc. revenue disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment Vivos Therapeutics, Inc.'s next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

Historical Timeline

Fiscal YearFiled
2024Mar 31, 2025Showing above
2022Mar 30, 2023

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.