Vivos Therapeutics Inc To Participate in Online Fireside Chat with Water Tower Research Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Robert Sassoon - Water Tower Research LLC - Analyst : So let me start. As the year draws to a close, 2025 stands out as one of the most pivotal in the company's history. It marked the launch of a potentially transformative shift in Vivos' business model, highlighted by the June acquisition of the Sleep Center of Nevada or SCN. Before we get into the operational progress of the transition, Kirk, could you start by sharing what motivated the strategic pivot and how you're bringing it to life? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 16, 2025 / 4:00PM, VVOS.OQ - Vivos Therapeutics Inc To Participate in Online Fireside Chat with Water Tower Research

Question: Robert Sassoon - Water Tower Research LLC - Analyst : Right. Well, I'll probably get into that a little later. Now you own Sleep Center of Nevada for approaching six months. How do you assess the progress on its integration and the broader business model shift? And have any of the operational elements evolved faster than expected? Or conversely, are there any lagging areas that are behind schedule? And how are you addressing any of those challenges? Maybe either both of you could sort of answer that sort of -- those questions.

Question: Robert Sassoon - Water Tower Research LLC - Analyst : Great. So you mentioned the third-quarter results you recently reported, and you reported a 76% year on year surge in revenues to approaching $7 million. And that was really driven by the first full quarter contribution from SCN. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 16, 2025 / 4:00PM, VVOS.OQ - Vivos Therapeutics Inc To Participate in Online Fireside Chat with Water Tower Research But can you break down how much of the growth -- I mean, you've already mentioned just maybe to re-emphasize, how much of the growth came from SCN integration versus new business generated through the model pivot, specifically converting diagnostics into treatment using care products? Additionally, what conversion rates do you anticipate in the coming quarters as SCN's sleep optimization teams continue to scale, and what conversion rates and what number of fully scaled -- SCN teams do you require for Vivos to actually achieve positive cash flow, all other things being equal?

Question: Robert Sassoon - Water Tower Research LLC - Analyst : Right. Okay. So as a follow-up, maybe Kirk can address this at first. You have said that CPAP remains the go-to first-line treatment option, and I think I remember you closing it maybe in an earnings call that up to 95% of patients first diagnosed with sleep apnea, despite the limitations and challenges of the treatment, they are recommended to do the CPAP. So beyond the scaling the sleep optimization teams, are there any additional strategies or initiatives you're implementing to drive adoption of your alternative solutions and grab a good chunk of a large market opportunity?

Question: Robert Sassoon - Water Tower Research LLC - Analyst : Well, it seems from me that I think in the number you quoted in the previous -- to the answer to the previous question that 64% of those diagnosed at least in the Nevada Sleep Center are choosing the alternative.

Question: Robert Sassoon - Water Tower Research LLC - Analyst : That's pretty encouraging. Okay. So on the -- let's go back to your results. On the expense side, in the third quarter, they increased sharply. I think I calculated up $5 million year over year. That's up 77% up across cost of sales and operating expenses. How much of this increase is actually would you consider -- could be considered non-recurring and tied to the SCN acquisition and integration versus what should be now considered the new baseline due to the expansion? Additionally, can you provide your insight on cost dynamics in the coming quarters, particularly balancing the cost of scaling, sleep optimization teams against expected productivity gains from more subs teams that you have? Maybe that's a question for Brad. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 16, 2025 / 4:00PM, VVOS.OQ - Vivos Therapeutics Inc To Participate in Online Fireside Chat with Water Tower Research

Question: Robert Sassoon - Water Tower Research LLC - Analyst : So this is going to be sort of an evolution over a few quarters, I guess, and you continue to scale up? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 16, 2025 / 4:00PM, VVOS.OQ - Vivos Therapeutics Inc To Participate in Online Fireside Chat with Water Tower Research

Question: Robert Sassoon - Water Tower Research LLC - Analyst : Right. Right. So while you're going to continue to integrate SCN, you've already begun executing -- you mentioned this at the beginning of our fireside chat. We've already begun executing strategy to expand Vivos' sleep center ecosystem in the US. And you recently partnered with a Michigan-based sleep specialist that you've mentioned in the greater Detroit area. How is that partnership structured? How do the economics of an affiliate arrangement differ from an ownership model? And additionally, can you update us on the progress of the Michigan partnership and its potential financial impact on Vivos?

Question: Robert Sassoon - Water Tower Research LLC - Analyst : Great. Now going on to take that a step further, you've as I say, you've just -- you've recently announced that Michigan partnership. You've also stated that you're also -- you're conducting negotiations with several other potential candidates, both acquisition and affiliation prospects in various key markets. Can you say which region markets you are really prioritizing in your growth plans? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 16, 2025 / 4:00PM, VVOS.OQ - Vivos Therapeutics Inc To Participate in Online Fireside Chat with Water Tower Research

Question: Robert Sassoon - Water Tower Research LLC - Analyst : And do you see yourself as really in the pole position to be really consolidated the sleep center treatment business?

Question: Robert Sassoon - Water Tower Research LLC - Analyst : Great. So from what you and Brad have been conveying to us in the fireside chat they've been doing it for a while, it seems like Vivos has a pretty exciting growth story unfolding. But the investor response to the strategic pivot has been a bit muted in my -- and the stock continues to trade at a fairly deep discount to peers in the OSA treatment market. So it would be interesting to get your take on that. But in doing so, could you address probably one of the major concerns and maybe the major concern, the sort of block on the landscape, if you like, as part of the strategic shift, you have taken on a significant amount of debt, and that's actually reasonably topped up, I understand. And can you walk us through both of you, your financial strategy to derisk the balance sheet and ameliorate these concerns?

Question: Robert Sassoon - Water Tower Research LLC - Analyst : Anything to add to that, Brad?

Question: Robert Sassoon - Water Tower Research LLC - Analyst : Okay. That's great. Thanks. Unfortunately, we've run out of time, and we'll have to leave it there. But thanks. That was great. Kirk and Brad for -- thank you for the conversation and keeping us surprised at the latest strategic and financial developments of Vivos. If you have more questions for Kirk and Brad, please send them to me and I'll be sure to pass them on. For our analysis of the company, please refer to our Open Access website at www Finally, let me close by reminding viewers that the views expressed in this fireside chat may not necessarily reflect the views of Water Tower Research and are provided for informational purposes only. Once again, I'd like to thank Kirk and Brad for their participation and everyone for joining us in this fireside chat. Have a great day.