Vivos Therapeutics, Inc., a medical device company, announced today that it has outlined a plan to maintain its Nasdaq listing after previously failing to meet the stockholders’ equity requirement.
On May 16, 2024, Vivos was notified by Nasdaq that as of March 31, 2024, the company did not comply with the minimum stockholders’ equity of $2.5 million. In response, Vivos successfully raised $7.5 million through a private equity placement on June 10, 2024, which the company believes satisfies the equity requirement.
Following a meeting with the Nasdaq Hearings Panel on June 27, 2024, Vivos received a favorable decision on July 5, 2024, allowing the continued listing of its securities on Nasdaq. This is contingent upon the company filing its quarterly report by August 15, 2024, demonstrating compliance with the equity threshold.
Despite these efforts, Vivos acknowledges the risk of not being able to raise sufficient capital or achieve the required operating results to maintain compliance with the Equity Requirement. A potential Nasdaq delisting could negatively impact the company’s stock price, trading liquidity, capital raising capabilities, and overall reputation.
The information in this report is based on a press release statement.
In other recent news, Vivos Therapeutics reported mixed results for the first quarter of 2024. The company's total revenue was $3.4 million, a decrease from the previous year due to reduced VIP enrollments and appliance sales. However, the company achieved a gross profit of $1.9 million with a 57% gross margin and reduced operating expenses by 22%, leading to a lower operating loss of $3.8 million for the quarter.
In a recent development, Vivos Therapeutics has formed a strategic alliance with a network of Colorado sleep treatment centers, which is anticipated to contribute positively to the company's revenue growth. Concurrently, Vivos secured a $7.5 million equity growth investment from New Seneca Partners, a private equity firm, intended to support this strategic alliance and possibly aid in establishing further alliances.
Furthermore, Vivos Therapeutics announced the results of a 7-month pilot program, which showed high patient preference for the company's oral appliance therapy over other treatment options. The company's new marketing and distribution model, involving collaborations with dentists and sleep treatment providers, was tested in this program and showed promising results.
InvestingPro Insights
In light of Vivos Therapeutics' recent efforts to maintain its Nasdaq listing, a dive into the company's financials and market performance offers valuable context. According to real-time data from InvestingPro, Vivos Therapeutics has a market capitalization of roughly $8.24 million USD. The company's revenue for the last twelve months as of Q1 2024 stood at $13.36 million USD, indicating a decline of 17.7% year-over-year. This contraction in revenue underscores the challenges Vivos faces as it seeks to improve its financial standing and stockholders' equity.
InvestingPro Tips highlight that Vivos is rapidly depleting cash and is not expected to be profitable this year. Additionally, the stock's price movements have been quite volatile, with a significant drop of nearly 70% over the last six months. These factors, combined with the company's short-term obligations exceeding its liquid assets, may contribute to investor caution. However, it's worth noting that the company operates with a moderate level of debt, which could offer some financial flexibility in its efforts to stabilize and grow.
For investors and stakeholders looking to delve deeper into the financial health and future prospects of Vivos Therapeutics, additional InvestingPro Tips are available, including insights on valuation, profitability, and stock performance trends. There are 10 more tips available, providing a comprehensive analysis of Vivos' potential risks and opportunities. Access these valuable insights by visiting https://www.investing.com/pro/VVOS and consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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