Vivos Therapeutics Secures Lifeline in Race to Fund Strategic Pivot

LITTLETON, Colo. – June 22, 2026 – Vivos Therapeutics, a medical technology company aiming to revolutionize sleep apnea treatment, has secured a critical extension on a strategic financing agreement, buying it more time to solidify its financial footing and execute a major business model transformation. The company announced today that its senior lender, Streeterville Capital, LLC, has extended the timeframe for a significant debt-for-equity swap to August 31, 2026.

The agreement provides a much-needed breathing room for Vivos (NASDAQ: VVOS) as it grapples with Nasdaq compliance warnings and the heavy capital demands of its new growth strategy. Streeterville has reaffirmed its commitment to convert up to $4.5 million of Vivos' outstanding debt into a mix of perpetual preferred stock and common shares, a move contingent on Vivos successfully raising new equity.

A Financial Tightrope Walk

The extension addresses what Vivos called a timeline that was "too short to complete its planned equity raise in an organized manner." The original deal, struck earlier in June, gave the company until June 15 to meet certain capital-raising milestones. The new August 31 deadline is intended to allow Vivos to raise a required $2.6 million, which will trigger the debt conversion, and to launch a previously announced rights offering for existing shareholders.

This financial maneuvering is not happening in a vacuum. The company is walking a financial tightrope, facing pressure from multiple sides. On April 17, 2026, Vivos received a notice from Nasdaq for failing to meet the minimum stockholders' equity requirement of $2.5 million. As of the end of 2025, the company reported a negative stockholders' equity of approximately $1.55 million. More recently, on June 5, 2026, it received a second delisting warning for its stock price falling below the $1.00 minimum bid requirement.

The debt-to-equity conversion is a core component of Vivos' plan to remedy the stockholders' equity deficiency. By converting debt into equity, the company can strengthen its balance sheet without a direct cash outlay, a crucial step toward regaining and maintaining its Nasdaq listing. The extension from Streeterville signals the lender's continued support for this plan.

"We are grateful to Streeterville for their cooperation in agreeing to extend," said R. Kirk Huntsman, Chairman and Chief Executive Officer of Vivos Therapeutics, in the press release. "The extra time will allow the Company to raise the needed equity in an organized fashion and to allow the announced rights offering to start during that timeframe."

Fueling a Strategic Overhaul

The debt itself is a direct result of Vivos' ambitious strategic pivot. In June 2025, the company took on an $8.2 million senior secured loan from Streeterville to fund the acquisition of The Sleep Center of Nevada (SCN). This acquisition marked a fundamental shift in Vivos' business model, moving away from primarily training and supplying independent dentists with its oral appliances to a more vertically integrated approach.

The new strategy focuses on acquiring or partnering with medical sleep providers and diagnostic centers to create a direct-to-patient sales channel. The goal is to build a network of Vivos-owned or affiliated centers that diagnose sleep disorders and sell the company's proprietary treatments directly. The company has already followed up its SCN acquisition with a new collaboration, announced June 10, 2026, with a Florida-based cardiology group to diagnose and treat sleep apnea in cardiovascular patients.

Early results show the strategy is boosting the top line. Vivos reported a 70% year-over-year revenue increase in the first quarter of 2026 to $5.1 million, largely driven by revenue from SCN's diagnostic and treatment services. However, this growth has come at a cost. The company's net loss widened significantly to over $21 million in 2025, and it continues to burn through cash, reporting negative free cash flow of nearly $20 million over the last twelve months. The costs of integrating SCN and staffing for the new model have substantially increased operating expenses.

"We believe the Company has successfully pivoted over to its new strategic business model and is performing well on the new strategy," Huntsman stated, expressing confidence that the plan will ultimately lead to higher growth and a path to profitability.

The Cost of Capital: Dilution on the Horizon

For current and prospective shareholders, the path to financial stability comes with a significant trade-off: dilution. The conversion of $4.5 million in debt will create new perpetual preferred shares and an undetermined number of new common shares, reducing the ownership percentage of existing stockholders. While analysts see such moves as a necessary evil for a company in Vivos' position, the impact is real.

Furthermore, the planned rights offering, while giving existing shareholders the opportunity to increase their stake, will also be dilutive for those who choose not to or are unable to participate. The company intends to offer rights to purchase shares at a set price, potentially providing a much-needed capital infusion. However, this will further increase the total number of shares outstanding.

Analysts covering the company have noted that share dilution "may be inevitable" as Vivos secures the capital required to fund its operations and strategic expansion. The challenge for management is to convince investors that the long-term value created by its innovative technology and new business model will ultimately outweigh the short-term pain of dilution.

Innovating in a Crowded Market

At the heart of Vivos' strategy is its technology. The company's Complete Airway Repositioning and Expansion (CARE) devices are oral appliances that offer a non-surgical, non-invasive, and non-pharmaceutical treatment for obstructive sleep apnea (OSA). Affecting nearly a billion adults worldwide, OSA is a chronic disorder linked to serious health conditions, and its market is vast.

While the CPAP machine remains the standard of care, patient compliance is notoriously low. Vivos aims to capture a share of this market by offering a solution that treats the underlying anatomical issues of the airway. Its technology boasts significant regulatory milestones, including FDA 510(k) clearance to treat severe OSA in adults and, notably, the first-ever clearance for treating moderate to severe OSA in children.

By integrating diagnostics through its VivoScore home sleep test and treatment through its CARE devices within a single provider network, Vivos is attempting to build a comprehensive ecosystem for sleep disorder treatment. The success of this ambitious plan now hinges on its ability to execute its capital-raising strategy within the new timeframe provided by its lender.