Lucas Ward's questions to Vivos Therapeutics (VVOS) leadership • Q1 2025
Question
Asked for details on the financial impact of the SCN acquisition, including its effect on the P&L, the timing of accretion, future operating expenses, and the valuation methodology for the $9 million purchase price.
Answer
The SCN acquisition is expected to be accretive in Q3 2025. While operating expenses will temporarily increase to support the integration, the significant revenue increase from direct-to-patient sales is projected to quickly outpace costs and lead to positive cash flow. The $9 million valuation was based on SCN's existing profitability, high patient volume in a concentrated market, and a deal structure ($6M cash, $3M stock with incentives) designed to align interests and ensure a smooth transition.