| SCHEDULE OF CONTRACT LIABILITY |
For
the three and six months ended June 30, 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):
SCHEDULE OF REVENUE FROM CONTRACT WITH CUSTOMERS
| | |
2025 | | |
2024 | | |
2025 | | |
2024 | |
| | |
Three Months Ended June 30, | | |
Six Months Ended June 30, | |
| | |
2025 | | |
2024 | | |
2025 | | |
2024 | |
| | |
| | |
| | |
| | |
| |
| Product revenue | |
| | | |
| | | |
| | | |
| | |
| Appliances | |
| 1,028 | | |
| 1,576 | | |
| 2,400 | | |
| 2,916 | |
| Guides | |
| 857 | | |
| 399 | | |
| 1,298 | | |
| 734 | |
| Total product revenue | |
| 1,885 | (1) | |
| 1,975 | (1) | |
| 3,698 | (1) | |
| 3,650 | (1) |
| | |
| | | |
| | | |
| | | |
| | |
| Service revenue | |
| | | |
| | | |
| | | |
| | |
| VIP | |
| 130 | (2) | |
| 1,174 | (2) | |
| 352 | (2) | |
| 2,081 | (2) |
| Billing intelligence services | |
| 190 | | |
| 213 | | |
| 372 | | |
| 438 | |
| Sleep testing services | |
| 844 | | |
| 318 | | |
| 1,167 | | |
| 625 | |
| Myofunctional therapy services | |
| 163 | | |
| 150 | | |
| 311 | | |
| 320 | |
| Total service revenue | |
| 1,935 | | |
| 2,079 | | |
| 3,137 | | |
| 3,823 | |
| | |
| | | |
| | | |
| | | |
| | |
| Total revenue | |
$ | 3,820 | | |
$ | 4,054 | | |
$ | 6,835 | | |
$ | 7,473 | |
| (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 related to our legacy model for the three and six months ended June 30, 2025 and
2024 are as follows (in thousands):
SCHEDULE OF CONTRACT LIABILITY
| | |
2025 | | |
2024 | |
| | |
| | |
| |
| |
| Beginning balance, January 1 | |
$ | 993 | | |
$ | 2,427 | |
| New contracts, net of cancellations | |
| 23 | | |
| 1,466 | |
| Revenue recognized | |
| (422 | ) | |
| (962 | ) |
| Ending balance, March 31 | |
$ | 594 | | |
$ | 2,931 | |
| | |
| | | |
| | |
| New contracts, net of cancellations | |
| 189 | | |
| 411 | |
| Revenue recognized | |
| (298 | ) | |
| (1,195 | ) |
| Ending balance, June 30 | |
$ | 485 | | |
$ | 2,147 | |
|
| SCHEDULE OF CONTRACT LIABILITY |
The
key components of changes in contract liabilities related to our legacy model for the three and six months ended June 30, 2025 and
2024 are as follows (in thousands):
SCHEDULE OF CONTRACT LIABILITY
| | |
2025 | | |
2024 | |
| | |
| | |
| |
| |
| Beginning balance, January 1 | |
$ | 993 | | |
$ | 2,427 | |
| New contracts, net of cancellations | |
| 23 | | |
| 1,466 | |
| Revenue recognized | |
| (422 | ) | |
| (962 | ) |
| Ending balance, March 31 | |
$ | 594 | | |
$ | 2,931 | |
| | |
| | | |
| | |
| New contracts, net of cancellations | |
| 189 | | |
| 411 | |
| Revenue recognized | |
| (298 | ) | |
| (1,195 | ) |
| Ending balance, June 30 | |
$ | 485 | | |
$ | 2,147 | |
|