| SCHEDULE OF REVENUE FROM CONTRACT WITH CUSTOMERS |
For
the three and six months ended June 30, 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
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| | |
Three
Months Ended June 30, | | |
Six
Months Ended June 30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| | |
| | |
| | |
| | |
| |
| Product revenue | |
| | | |
| | | |
| | | |
| | |
| Appliances | |
$ | 640 | | |
$ | 1,028 | | |
$ | 1,063 | | |
$ | 2,400 | |
| Tooth
Positioners | |
| 715 | | |
| 857 | | |
| 1,732 | | |
| 1,298 | |
| Total
product revenue | |
| 1,355 | (1) | |
| 1,885 | (1) | |
| 2,795 | (1) | |
| 3,698 | (1) |
| | |
| | | |
| | | |
| | | |
| | |
| Service revenue | |
| | | |
| | | |
| | | |
| | |
| Sleep testing services | |
$ | 2,392 | (3) | |
$ | 844 | (3) | |
$ | 4,687 | (3) | |
$ | 1,167 | (3) |
| Treatment centers | |
| 767 | (2) | |
| - | (2) | |
| 1,660 | (2) | |
| - | (2) |
| VIP | |
| 12 | (2) | |
| 130 | (2) | |
| 49 | (2) | |
| 352 | (2) |
| Billing intelligence services | |
| 129 | (3) | |
| 190 | (3) | |
| 275 | (3) | |
| 372 | (3) |
| Myofunctional therapy services | |
| 337 | (2) | |
| 163 | (2) | |
| 462 | (2) | |
| 311 | (2) |
| Sponsorship/seminar/other | |
| (3) | |
| (3) | |
| (3) | |
| (3) |
| Total
service revenue | |
| 3,798 | | |
| 1,935 | | |
| 7,499 | | |
| 3,137 | |
| | |
| | | |
| | | |
| | | |
| | |
| Total
revenue | |
$ | 5,153 | | |
$ | 3,820 | | |
$ | 10,294 | | |
$ | 6,835 | |
| (1) |
Product
revenue from the sale of appliances and preformed appliances 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.
|
| (3) |
Sleep
testing, treatment center, and other revenue is recognized at a point in time. |
|
| SCHEDULE OF CHANGES IN CONTRACT LIABILITIES |
The
key components of changes in contract liabilities related to our legacy model for the six months ended June 30, 2026 and 2025 are as
follows (in thousands):
SCHEDULE
OF CHANGES IN CONTRACT LIABILITIES
| | |
2026 | | |
2025 | |
| | |
| | |
| |
| Beginning balance, January 1 | |
$ | 479 | | |
$ | 993 | |
| New contracts, net of cancellations | |
| 615 | | |
| 212 | |
| Revenue recognized | |
| (511 | ) | |
| (720 | ) |
| Ending balance, June
30 | |
$ | 583 | | |
$ | 485 | |
|