VARIABLE INTEREST ENTITIES

3 Months Ended

Mar. 31, 2026

Organization, Consolidation and Presentation of Financial Statements [Abstract]

VARIABLE INTEREST ENTITIES

NOTE 18 – VARIABLE INTEREST ENTITIES

Variable Interest Entities

We evaluate our involvement with variable interest entities (“VIEs”) to determine whether it is required to consolidate such entities and to provide related disclosures.

Consolidated Variable Interest Entity

AIM Detroit, LLC (“AIM Detroit”) is a limited liability company formed to provide management and administrative services to affiliated clinical practices. We hold an 80% ownership interest in AIM Detroit.

We have determined that AIM Detroit is a variable interest entity because, by design, AIM Detroit’s equity at risk is not sufficient to permit it to finance its activities without additional subordinated financial support. Such support includes, among other things, as-needed member funding during the start-up period and credit support arrangements related to equipment financing.

We are the primary beneficiary of AIM Detroit because we has substantive decision-making authority over the activities that most significantly affect AIM Detroit’s economic performance and have the obligation to absorb losses or the right to receive benefits that could potentially be significant. Accordingly, AIM Detroit is consolidated in the Vivos’ consolidated financial statements.

Assets and Liabilities of Consolidated Variable Interest Entity

The following table presents the carrying amounts of assets and liabilities of AIM Detroit that are included in the consolidated balance sheet as of March 31, 2026 and December 31, 2025. The assets of AIM Detroit can be used only to settle obligations of AIM Detroit, and the creditors of AIM Detroit do not have recourse to the general credit of the Company.

SCHEDULE OF VARIABLE INTEREST ENTITY

		March 31, 2026				December 31, 2025
Current assets
Cash and cash equivalents		$	-			$	20
Accounts receivable, net of allowance			-				3

Total current assets			-				23

Long-term assets
Property and equipment, net			303				318
Operating lease right-of-use asset			65				80
Deposits and other			5				9

Total assets		$	373			$	430

LIABILITIES AND STOCKHOLDERS’ EQUITY/(DEFICIT)
Current liabilities
Accounts payable		$	158			$	126
Accrued expenses			124				78
Current portion of operating lease liability			17				19
Current portion of debt			41				39
Other current liabilities			-				2

Total current liabilities			340				264

Long-term liabilities
Operating lease liability, net of current portion			154				167
Debt, net of current portion			77				87

Total liabilities		$	571			$	518

Noncontrolling Interest

The remaining 20% ownership interest in AIM Detroit is reflected as a noncontrolling interest in the consolidated balance sheets. Net income or loss of AIM Detroit is attributed between the Vivos and the noncontrolling interest in accordance with the AIM Detroit operating agreement. Losses attributable to the noncontrolling interest are allocated even if such allocation results in a deficit noncontrolling interest balance.

Risk Exposure

Vivos’ maximum exposure to loss related to its involvement with AIM Detroit is limited to its investment in AIM Detroit and its variable interests. We have not provided financial or other support to AIM Detroit that it was not previously contractually required to provide. Certain financing arrangements of AIM Detroit include guarantees provided by a related party in their individual capacity; however, the Company is not a guarantor under such arrangements and has no obligation to fund losses beyond its stated exposure.