For
the three months ended March 31, 2026 and 2025, 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
| | |
Three Months Ended March 31, | |
| | |
2026 | | |
2025 | |
| | |
| | |
| |
| Product revenue | |
| | | |
| | |
| Appliances | |
$ | 422 | | |
$ | 1,273 | |
| Tooth positioners | |
| 1,018 | | |
| 540 | |
| Total product revenue | |
| 1,440 | (1) | |
| 1,813 | (1) |
| | |
| | | |
| | |
| Service revenue | |
| | | |
| | |
| Sleep testing services | |
$ | 2,296 | (3) | |
$ | 323 | (3) |
| VIP | |
| 37 | (2) | |
| 223 | (2) |
| Billing intelligence services | |
| 145 | (3) | |
| 181 | (3) |
| Myofunctional therapy services | |
| 125 | (2) | |
| 148 | (2) |
| Treatment centers | |
| 892 | (2) | |
| - | (2) |
| Sponsorship/seminar/other | |
| (3) | |
| (3) |
| Total service revenue | |
| 3,701 | | |
| 1,203 | |
| | |
| | | |
| | |
| Total revenue | |
$ | 5,141 | | |
$ | 3,016 | |
| (1) |
Product revenue from the
sale of appliances and tooth positioners 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 service 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. |
| |
|
| (3) |
Sleep testing, treatment
center, and other revenue is recognized at a point in time. |
|