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 this strategic pivot and how you're bringing it to life?
Yeah, absolutely. You know, we've known for a long time that we have an extraordinary technology. We've known that we can have a huge impact in this space of obstructive sleep apnea, which is a disease that is so common and commonly associated with other comorbidities such as hypertension, all forms of cardiovascular disease, cancer. It just goes on and on and on. The list of chronic illnesses that are comorbid with obstructive sleep apnea is second only to obesity in the world. And so we have a major health crisis going on in that more and more people are coming up with breathing and sleep disorders, a nd the most difficult of that is this obstructive sleep apnea. And for 45 years, the go-to solution for the medical community has been to put people on CPAP, a nd nobody wants a CPAP machine.
There's nobody that gets a smile on their face when they're told they got to wear that thing for the rest of their life. And so we've had this amazing technology where within less than a year, in most cases, we can correct this disorder or at least ameliorate the symptoms to the point where it's no longer a life-threatening or a real problem with other comorbidities. And so we've been on this journey for quite a while. We initially, because our technology is mediated through an oral appliance device, we launched this initiative going after the dental community as our primary channel of distribution. And what we discovered was that the dentists are just not going to do it. Some of them did. Some of them jumped in and were great and are doing really wonderful with their patients.
The vast majority of dentists are more concerned about dental things than they are sleep apnea, a nd so we pivoted, as you mentioned here in 2025. This has been in the works for a couple of years, quite honestly, just planning, preparing, making sure that we had the right formula, the right systems to go in and operate practices. You know, my team here at Vivos has been previously involved in the DSO business, which is the dental support organization business, where it's the corporate roll-up of multiple dental offices around the country. We were a leading edge group in that role and in the development of that whole movement. And so for us to operate medical dental practices is just really, you know, we know how to do that. So we launched with this first acquisition, as you mentioned, Sleep Center of Nevada.
It just was a transaction that we'd had some exposure to, i t kind of fell into our lap, a nd we said, you know what, this is a perfect opportunity for us to test our thesis around, you know, what this could mean for this company. And so, you know, we plunged in and it's been a great ride so far, a nd things are panning out. It's taken us a little longer, a few road bumps that we've encountered. But honestly, everything that we had hoped for, everything that we were expecting out of this is coming to pass. So we're very excited about this, a nd what this means for investors, what this means for this company is not only a tremendous opportunity from a growth standpoint, but the profitability here is outstanding.
When we were in the dental business, if we had a professional practice that threw off a 20% EBITDA margin at the practice level, we were excited about that. These practices are throwing off 50%, 55%, 60% EBITDA. So we're really excited about what that means for this company. The growth opportunities appear to be, you know, unlimited, a nd so it's just a matter of us continuing to execute, continuing to roll out. We announced this morning, as you might have noticed, we announced just this morning another rollout in Detroit, Michigan. This one is an affiliation where we retain nearly all of the economics, but we don't have the upfront costs of acquisition. So very minimal CapEx, very capital-efficient way to grow the business. Lots and lots of opportunity there to partner up with sleep centers to do that on a partnering basis.
Right. We'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 advanced 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 those questions.
Let me take a first shot at it, and then I'll hand it over to Brad. The surprise to us out there has been just the overwhelming demand. We knew that there were going to be a lot of patients coming our way. I think we were somewhat caught off guard by the way that these patients responded and came down. We intervene when the patients are on their patient journey, when they've gone through the sleep testing process and I've conferred with their sleep doctor about their treatment options, then the sleep doctor refers them over to what we call our Sleep and Airway Medicine Center, and j ust the sheer number of patients that were desirous to do that so they could be evaluated for our technology and for our treatment has really taken us a little bit back.
And so we're scrambling to catch up, w e've almost doubled the size of our facility's footprint out there. We've added doctors and staff as fast as we could to keep up with this demand. But we are currently booking into next March for some of these patients on the revenue visit that we have them do. So they come in for an initial evaluation, but the main revenue happens on a visit with a doctor that we, and we just need more doctors. So we've got those people in place. They're in the process of getting licensed and trained and ready to go. And come the first of the year here, we'll be just about where we need to be to handle the demand. So we're excited about that. Brad, do you want to add any color to that?
Yeah, you bet. Thanks, Kirk. The legacy, there's a two-prong approach to the success out there. In the third quarter, SCN had $2.2 million of their own revenue, the diagnostic service revenue, and then, like Kirk had said, they hand that off to Vivos for the treatment side, and then on the treatment side, in the third quarter, we had $1.3 million of treatment revenue, so this is really, you can see this is really a synergistic approach to this being able to offer a soup-to-nuts solution for patients. They get diagnosed with OSA, and then once they get diagnosed, there's a handoff to Vivos side for the treatment, so it's really a vertically integrated solution, it's, you know, t he first full quarter of operations was the third quarter.
We're really seeing some great pull-through in terms of not only the diagnostic side of the revenue, which was two-thirds of the business, which was $2.2 million of revenue, but then the additional Vivos side. So there's a lot better pull-through when you have patients that are waiting to have treatment once they're diagnosed than there is looking at the dentist model, which the dentists are tasked with looking at their patient base and seeing if any of their patients have OSA. This just gets us closer to the patient and is a much better vertically integrated solution for the patient.
Great. So you mentioned the third quarter results you recently reported, and y ou reported a 76% year-on-year surge in revenues to approaching $7 million. That was really driven by the first full quarter contribution from SCN. But can you break down how much of the growth, I mean, you've already mentioned just maybe to reemphasize, 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 SO teams do you require for Vivos to actually achieve positive cash flow, all other things being equal?
Okay, so you've got a lot of questions there, Robert.
Yeah.
I'll see if I can pick them off a little bit here. So just to sort of put this in a little bit of context, one of the things to keep in mind as you look at these revenue surges is that we're also in a declining state of reporting the revenue from our historic VIP model. So that revenue has just about evaporated, a nd I believe there was $800,000 or $900,000 in difference between the prior year quarter, what we reported, and then what was reported here this year. So not only are we reporting less from those activities, but then the surge of revenue out there happens to, you know, it has to overcome that decline in revenue plus the others, s o we feel really good about this.
We're pretty much on target with where we had expected to be in terms of coming out of the gate on this. One of the challenges has been getting our providers onboarded. I think I mentioned that a minute ago, a nd then the credentialing of these providers with the insurance payers. In just the past few weeks, since the close of the third quarter, which we reported on, we have had a number of these payers that have come forward and credentialed our doctors. So in the third quarter, we didn't have any of the payers having fully credentialed all of our doctors. Now we have all of our current doctors credentialed with several payers: UnitedHealthcare, a large Workman's Comp group out there, several of the other large payers out there in this market, TRICARE, for example, a big military program and federal government program.
All of these groups have now given us clearance. So starting in the fourth quarter and moving forward, we now have most of the payers, not all the big payers, but most of the payers have credentialed our doctors, s o that's a huge bump in revenues. It allows us to bill for services that we could not bill for before. So that right there makes a huge difference in our ability to generate revenue out of our model, a nd so there is a little bit of a lag time. We thought the lag time was going to be 60-90 days. It turns out it's more like six months, as we're learning, at least in that market. I don't think other markets will be quite as long, but in that market, it turns out to be that way.
But one of the things I think we should note is that when a patient is referred to one of our centers, so this is a patient that has been tested positive for OSA or has failed their CPAP, they are referred over. Those patients that come in for a visit, 94% of those patients will move on to a second visit for further evaluation and for a treatment plan. So in the first visit where they're actually introduced to the technology and they are given, they're shown their options, we talk about the various things that they can do to treat this disease, their sleep disorder, a nd 94% of those patients come back for a second visit. And that's really important because it's at the second visit that they actually are introduced to a doctor that they work, first of all, in the first visit with a nurse practitioner.
Then they're introduced to a dentist who is going to give them sort of a full evaluation and talk to them about their treatment and the treatment options using Vivos technology and other options that they have before them. We have adjunctive technologies such as laser, myofunctional therapy, other things that we do with these patients, a nd so they're shown the complete gamut of what's there, a nd 64% of those patients are accepting treatment. And so we have basically a funnel here where at the top of the funnel, you have all these people that are being referred in. And then you have 94% from the first visit will take a second visit. 64% will then accept treatment. And then trying to get those patients in for that second visit is where our choke point has been because we have not had enough providers.
Starting in January, we will have more providers coming on board, and throughout the month and throughout Q1, those providers will come on board in our days out. Right now, we're booking patients for that visit two, that second visit into March, and so once we get those accelerated and brought forward to where we're able to keep patients with some good momentum going through the funnel, then we expect to see further accretions in revenue generation. Brad, did you want to add anything to that?
Yeah, just on, you know, on the quarter side of things, you know we had a 50%. We talked about a 76% increase year- over- year in revenue. Of the $6.8 million that we had in third quarter, 50% of that related to the new Nevada services. So about 20% was related to the diagnostic. I'm sorry, the treatment side of the house, and about 30% was on the SCN diagnostic side of the house.
Right. Okay. Thanks for that. 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 quoting 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 a CPAP. So beyond 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?
We are actively educating physicians about what's going on here. For many years, physicians have defaulted to CPAP because there really was nothing else. I mean, literally, unless you opted for a surgical procedure, and this is where the implant devices from the neurostimulation devices from Inspire Medical or other groups come into play, and then there's other surgical procedures as well, they're not quite as effective, b ut the medical community has not had any other great solutions. And so part of the preference for CPAP is that there was really nothing else, a nd this has happened since 1980. The early 1980s is when CPAP first came on the scene and was introduced in the United States. I mean, you can imagine 45 years of really just very marginal, sort of at the periphery changes in the core technology of CPAP, and nothing new has come to market.
And meanwhile, obstructive sleep apnea every couple of years is found to be more comorbid with more and more chronic illnesses. And so while the condition appears to be more and more debilitating, more and more dangerous to our health and wellness, the solution never changed. And we found that people were avoiding getting tested because they didn't want to be told that they had to wear one of those CPAP units, a nd so a lot of people, 50% of patients in the first year, will reject their CPAP machine, a nd so what are we left with? We're left with a broken and dysfunctional sleep medicine community, sleep medicine program. And so these patients are left out there wondering, well, what do I do if I don't want to go get surgery, if I don't want to do this? Well, along comes Vivos, a nd we need to educate.
We are shouting it from the rooftops with professional groups and educational forums. And I mean, we attend medical shows now. We no longer attend dental shows. We attend medical shows. I was just at one out in Las Vegas this weekend, a nd we are shouting from the rooftops that sleep matters and that there is an alternative because what's really important here for investors to understand, Robert, Vivos has the only oral appliance devices in the world that are approved or that are cleared. I have to use the right term, i t's FDA cleared for moderate to severe obstructive sleep apnea. All the other oral devices on the market, there's over 200 of them, they are cleared only for mild to moderate and snoring. We are able to go toe to toe with the CPAP option for treatment because we're the only one cleared to treat for severe.
The other issue is that the treatment with us is limited in its duration. It only takes six to nine months, sometimes as much as a year to get the full benefit that a patient's going to get with our treatment. So there's no more lifelong wearing this thing around. I get on airplanes and I see people schlepping their CPAPs on the airplane, a nd I'm like, I hand out my card and say, there is a choice, folks. You have a choice here. And so our thing to educate the medical community, we're enlisting key opinion leaders to get the word out, a nd this is becoming, we're using social media. We're in the process. We'll have a brand new website rolled out here in the next month or so.
So we're really upping our game when it comes to getting the word out there to the medical community so they know that their patients have a choice.
It seems from the, I think the number you just quoted in the answer to the previous question that 64% of those diagnosed, at least in the Nevada Sleep Center are choosing the alternative.
We have 64% for us is not a great number. We have had experience in the past. I told you we spent two years ramping up to this, a nd the conversion rates that we had while we were ramping up were 80%-90%. What we've seen here in Sleep Center of Nevada is that the patient population there in the demographics that we're serving is quite low. And so we're running into some issues there with sort of people sort of trying to figure out how they're going to navigate how to afford this and pay for this, what their insurance company doesn't cover. That's why this insurance coverage is so wildly important to us is because now patients won't have to come out of pocket. Now they'll be paying, or at least not as much.
They'll be able to rely more on their insurance to help cover and defray the cost of this, which is a huge, huge. I can't emphasize how important this is. We're actually going back and calling patients who may not have gone forward with treatment to say to them, hey, your insurance will now cover this, a nd so we're getting those patients back in. So we're excited about that opportunity there. And that's a big milestone for us.
That's pretty encouraging.
Yeah.
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% across cost of sales and operating expenses. How much of this increase is actually, would you consider it 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 the more established teams that you have? Maybe that's a question for Brad.
Yeah. Well, you know, for the third quarter, you know, our G&A expenses did increase $3.4 million in the quarter. But keep in mind that of that, there's about $1.8 million of that is payroll and rent and operating expenses of the SCN model. So you know, we've always indicated that you know, the diagnostic side of the house is going to not have the margins that the treatment side has. So we knew that going into this. But I think it's important to know that those are baseline costs on the diagnostic side. Where we really have the margin and where the business model really works is when those patients get diagnosed with OSA and then referred to V ivos for treatment, a nd those where the margins are much, much higher in the 60%-70% plus range.
So one of the things, Robert, that I think is really important to understand, remember what I said in the beginning, we underestimated the demand. And so as we got rolling there and we realized that we did not have enough physical facility space and we did not have enough staff and we did not have enough providers to accommodate the demand that we were seeing, remember that we went ahead and hired people in advance. Most of these costs that you're seeing are us reinvesting in additional staff and facilities. So you're seeing a lot of costs associated with this that yes, they made it look like, yeah, they're growing revenues, but they're also growing at about the same clip they're growing their expenses.
The only reason for that is that we're trying to get ahead of this thing so that when we get the staff trained up, providers onboarded, we're all ready to go and we can start flipping the switch on the revenue generating thing. Our model, we talked about this, you mentioned the sleep optimization teams. Let me give you, and we've disclosed this before, so I don't think this is anything new, but each sleep optimization team should generate about $500,000 a month. The cost of that sleep optimization team is going to be, on a labor basis, is going to be about 25% or so of that. So there's lots of margin above that. But if I'm trying to now hire additional sleep optimization teams, and I'm putting those, I'm burdening that first sleep optimization team with additional personnel and costs.
Now I'm generating the $300,000-$500,000 a month or whatever it's going to end up being. I'm generating that, but I'm also carrying the cost of the next sleep optimization team until we flip the revenue switch, which is just now beginning to happen late here in the fourth quarter and into Q1 of next year. When you look at those numbers on the first quarter, it looks like, okay, both costs and revenue are accelerating at about the same pace. Where's the profit? Well, as soon as we flip the switch to get those other trained employees and providers productive, that will even out.
When we get back to the steady state model for how these things are going to go, we do expect to. We have not encountered any aspect of this that leads us to think that we cannot sustain a contribution margin from these sleep clinics in above 50%. Very, very excited, but temporarily we got to grow into this.
So this is going to be sort of an evolution over a few quarters, I guess, as you continue to scale up.
Yes, and we do expect in 2026, just to be clear, we do expect to continue to add capacity in. So let me just tell you another aspect of this that's happening right now. So there's some very large cardiology practices in Nevada and in Arizona. And these large cardiology practices are also looking at, and in Nevada, they're already referring their cardiology patients. Probably they estimate nine out of ten of their cardiology patients have sleep apnea. And they have not done a good job of doing anything about it. They know their patients need to be treated, they need to be tested, but they've not had a good partner to do that. And they've selected Vivos to be that partner. Now, so what that means is, I mean, one of these cardiology groups sees 30,000 patients a month. The other one sees 20,000 a month.
These are huge numbers, and so we have. We're talking about each sleep optimization team being able to handle just a few hundred case starts a month, so we have a number of additional sleep optimization teams that we're going to need to roll out over the course of 2026 and beyond to meet the demand.
Right. Right. So while you're continuing to integrate SCN, you've already begun executing, you mentioned this at the beginning of our fireside chat. You've already begun executing your strategy to expand Vivos' sleep center ecosystem in the U.S. 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?
Yeah, that's a great question. The model is very similar actually to what we have. The difference being that we don't have the large capital outlays for acquisition. So what we try to do in one of these, like what we just announced this morning in Detroit, is we try to make sure that our interests are totally aligned, a nd we use an MSO model, a tried and proven management services organization model for medicine. We fold in a DSO model so that we're using a management services company that we control. And then the doctor has financial incentives and financial alignment through the management company, which is all cleared with all the regulatory issues with Stark and both state and federal law and all that sort of thing. We've cleared all that. And we have all of those things in place. In Nevada, it's the same model.
It's just we didn't have to spend the millions of dollars to buy these guys to control that patient flow and to sort of get the affiliation going. Now we have a different way of doing it, and it appears to be working. I mean, fingers crossed, we're still in the early stages of this, but so far, very, very excited about what we're seeing there. A lot of alignment, a lot of great progress. The people are excited when they come to know, even professionals, sleep specialists of 30 years are excited to know that there's something new and different and better, perhaps, that they can offer their patients, and so the enthusiasm level is quite high wherever we go.
Right. Great. Now, going on, to take that step further, as I say, you've just recently announced that Michigan partnership. You've also stated that you're conducting negotiations with several other potential candidates, both acquisition and affiliation prospects in various key markets. Can you say which regional markets you are really prioritizing in your growth plans?
Right now, I think we probably have a biased orientation towards the Intermountain West region, California, Arizona, Colorado, Nevada, you know, t hat area, just because that's where we're at, that doesn't mean we're actually talking to groups on the East Coast. We have groups in Florida, in North and South Carolina, w e have Maryland, w e have groups across the country, really, that have reached out to us. They've heard about what we're doing. There's a lot of people in the sleep business that are keeping their eye on Vivos. There's a lot of people that are aware of what we do. They're aware of our technology. They're aware of our FDA clearances. And so we've got a bit of a presence. And so people in the industry know who we are, a nd they're actually reaching out to us to say, hey, come do this for me.
I explained this in the press release that we issued this morning, but I really want to emphasize the sleep business in the United States is dependent upon high volume and low margins. It's a low margin business, and so you have to have a high volume. So the number of sleep clinics in the United States has contracted over time, and it's because there's been a compression in the reimbursements. And now what's happened is that with the advent of the technology from home sleep tests, there's more and more demand for treatment because more and more people are being tested through the home sleep testing technologies, and so there's going to be almost three million sleep tests being done this year in the United States. That's unprecedented, and the home sleep test business has grown 20-fold over the last decade.
And so as this technology becomes more ubiquitous, more people will get tested. And as more people get tested, more people are going to have that quintessential question of, and now what do I do? I've got this. It's not going to go away. What do I do? And for most people, it's not just about losing weight. That's a misnomer and a stereotype. This is not just a disease of old fat males. This is a disease that affects females and children and the elderly and young people. One of the largest demographics of the new patients that we're getting today is the 21 to 35-year-olds. So that whole millennial type generation up to maybe 40, that millennial generation is having all kinds of breathing and sleep issues.
I think we're very excited about what the technology is doing and how it's driving people to want to affiliate with us because we do control the only real option to CPAP for their sleep apnea patients.
So do you see yourself as really in the pole position to be really a consolidator of the sleep center treatment business?
Absolutely. Absolutely. Without a doubt. I mean, we are the number one game in town. I got to tell you, out at this medical conference this last weekend, I mean, people were lining up to talk to us. The functional medicine world, which is sort of operated at the periphery, has suddenly sort of started to come alive, a nd these doctors know that the one thing that they've not ever had access to in their arsenal of solutions for chronic disease patients is something to properly address their sleep and breathing disorders. And for them to find somebody at their conference that was talking about that was just off the charts good. So they were very, very excited about what we had to say.
Yeah, great. So from what you and Brad have been conveying to us in this fireside chat, you'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 pitch 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'll 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 a blot on the landscape, if you like, as part of the strategic shift, you have taken on a significant amount of debt, a nd that's actually recently topped up, I understand.
Can you walk us through, both of you, your financial strategy to de-risk the balance sheet and ameliorate these concerns?
I'm under the, for myself, I'm sort of a fundamentalist guy. I believe that when you turn consistently profitable, the money will follow. All good things will sort themselves out. I can't really say, except for some of the concerns that have been expressed that you just stated. I can't speak for why our stock has not gone up to a level commensurate with peers and whatnot. I can say there's probably a little investor fatigue out there because Vivos did. We stuck by this primary distribution model of going through the dentist. One of the reasons for that, quite frankly, was pre-COVID, we did not experience what we experienced post-COVID. So it did take us a minute to try to readjust our sights because pre-COVID, our growth rate was like this amongst our providers. The dentists were adopting the technology, t hey were integrating it.
They were presenting to patients. When dentistry reconstituted itself after the COVID closures and a lot of dental practices disbanded, a lot of hygienists got out of dentistry. When dentistry reconstituted itself, dentists just had a different idea about where their priorities were, and sleep apnea was not one of them, and so we wrestled with that for years thinking that we were going to be able to get back to our pre-COVID days, and so we might have had a little bit of investor fatigue over that. There may be a little bit of skepticism around whether our team can execute, but I can tell you, we're executing right now out there, and we continue to do that, and we'll address the debt. I think we're feeling very good about the cash because this is so accretively profitable. We believe that we will be able to service the debt.
We believe that we'll be able to eventually retire that debt or refinance that debt with lower-cost debt as we go forward. We're moving as rapidly as possible to make that happen. I realize it looks like we've taken on some debt. It's a little bit expensive. We get that. We're sophisticated enough to understand that. But as some of these new revenue streams come on board that require minimal capital outlays and have high accretion, i.e., things like we did in Detroit, other things like we're doing with these cardiology clinics and others, these things are minimal capital outlays and high, high revenue potential things. That activity is going to drive us to be able to service our debt, retire the debt, and really generate the kind of profits that this company and the investors make.
Right. Anything to add on that, Brad?
Brad, do you want to add to that?
Yeah, you bet. You know, I think that Kirk outlined it very succinctly. We raised equity and debt to purchase SCN back in June. We did that acquisition because not only do we get the $2.2 million revenue that we got in the third quarter of the diagnostic side, but we also, the real funnel in the, we bought a patient pipeline as well as the treatment in the diagnostic side of the new revenue stream. That really helps our top line. But we're going to be seeing a lot more dropping down the bottom line as we get more patients through the pipeline and into treatment. The Detroit side of things allows us, without the upfront capital expenditure, to really have the same or similar economics.
We still have the same hiring that we need of the dentist, the same personnel to help support the dentist, and the same capital outlays, about $250,000 of equipment to have the imaging equipment, the IT, the leasehold improvements, and so forth. But these new models, which we really want to explore and integrate going forward, like Detroit, are going to really help us without having to raise a lot of additional capital, help us to get to cash flow positive quicker because we have that same pipeline and we participate with the medical doctor in the net income from that. So it's a really great model for us and allows us to scale without having to raise capital to do acquisitions.
Not that the acquisitions are going to be going away, but it's a great model for us to acquire that pipeline that allows us to drive top line revenue on the treatment side.
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 the conversation. Thank you for the conversation and keeping us apprised of the latest strategic and financial developments at 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.watertowerresearch.com. 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.
Thank you, Robert.