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REVENUE, CONTRACT ASSETS AND CONTRACT LIABILITIES | 9 Months Ended
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Sep. 30, 2025
Revenue from Contract with Customer [Abstract] |
REVENUE, CONTRACT ASSETS AND CONTRACT LIABILITIES | NOTE 4 - REVENUE, CONTRACT ASSETS AND CONTRACT LIABILITIES Net Revenue For the three and nine months ended September 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 September 30, |  |  | Nine Months Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Product revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Appliances |  |  | 1,405 |  |  |  | 1,583 |  |  |  | 3,805 |  |  |  | 4,498 |
Guides |  |  | 790 |  |  |  | 375 |  |  |  | 2,088 |  |  |  | 1,110 |
Total product revenue |  |  | 2,195 | (1) |  |  | 1,958 | (1) |  |  | 5,893 | (1) |  |  | 5,608 | (1)
Service revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
VIP |  |  | 82 | (2) |  |  | 926 | (2) |  |  | 435 | (2) |  |  | 3,007 | (2)
Billing intelligence services |  |  | 184 |  |  |  | 206 |  |  |  | 556 |  |  |  | 644 |
Sleep testing services |  |  | 2,560 |  |  |  | 329 |  |  |  | 3,727 |  |  |  | 954 |
Myofunctional therapy services |  |  | 205 |  |  |  | 147 |  |  |  | 516 |  |  |  | 472 |
Treatment centers |  |  | 1,321 |  |  |  | - |  |  |  | 1,563 |  |  |  | - |
Sponsorship/seminar/other |  |  | 236 |  |  |  | 294 |  |  |  | 929 |  |  |  | 648 |
Total service revenue |  |  | 4,588 |  |  |  | 1,902 |  |  |  | 7,726 |  |  |  | 5,725 |
Total revenue |  | $ | 6,783 |  |  | $ | 3,860 |  |  | $ | 13,619 |  |  | $ | 11,333 |
(1) | Product revenue from the sale of appliances, pediatric tooth positioners and Lifeline products 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 nine months ended September 30, 2025 and 2024 are as follows (in thousands): SCHEDULE OF CHANGES IN CONTRACT LIABILITIES
|  | 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 |
New contracts, net of cancellations |  |  | 327 |  |  |  | 275 |
Revenue recognized |  |  | (274 | ) |  |  | (931 | )
Ending balance, September 30 |  | $ | 538 |  |  | $ | 1,491 |
The current portion of deferred revenue from our legacy VIP model is approximately $0.5 million, which is expected to be entirely recognized before December 31, 2026, following which there will be no deferred VIP revenue as discussed in Note 1. Additionally, revenue from breakage on contract liabilities was approximately $0 and $0.5 million for the three months ended September 30, 2025 and 2024, respectively, and approximately $0.1 and $1.5 million for the nine months ended September 30, 2025 and 2024, respectively. Changes in Accounts Receivable Our VIP customers (i.e., the dentists under our legacy model) are billed based on fees agreed upon in each customer contract. Receivables from customers were $0.4 million at December 31, 2024 and $2.1 million at September 30, 2025. An allowance is maintained for accounts receivable which is generally based on a combination of factors, including the aging of the receivables, historical collection trends, and charge-offs. Adjustments to the allowance are recorded in bad debt expense under general and administrative expenses in the consolidated statement of operations. An allowance of $0.5 and $0.4 million existed as of September 30, 2025 and December 31, 2024.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-7 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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