Vivos Therapeutics, Inc. Update: Debt-for-Equity Swap and Nasdaq Compliance

Vivos Therapeutics (ticker: VVOS) is a medical technology company focused on the "Vivos Method," a non-surgical, non-invasive treatment for mild-to-moderate obstructive sleep apnea and snoring. The company works with a network of dentists and doctors who use its proprietary oral appliance technology. To support these operations and manage recent financial pressure, the company is currently reorganizing its capital structure.

1. What happened?

On June 5, 2026, Vivos signed a deal with its main lender, Streeterville Capital, to restructure its debt:

• The Swap: Vivos will exchange up to $4.5 million of debt for Series B preferred stock and common stock. This is designed to remove a significant portion of the company’s near-term debt obligations from its balance sheet.
• The "Pause" Button: Streeterville has agreed to a 90-day break from debt repayments. Additionally, they signed a 60-day lock-up agreement, meaning they cannot sell any Vivos common stock they receive during that initial period.

2. Why did it happen?

The company is addressing two primary financial hurdles:

• Preserving Cash: By swapping debt for stock, Vivos stops the immediate cash drain caused by principal and interest payments. This allows the company to redirect its remaining cash toward marketing and clinical support for its sleep apnea treatments.
• Nasdaq Compliance: Vivos must meet Nasdaq’s listing rules, which include a minimum requirement for stockholders’ equity. By lowering debt and increasing equity, the company is attempting to strengthen its balance sheet to avoid potential delisting.

3. What this means for you

• The Bull Case: This deal acts as a financial bridge. It lowers the immediate risk of default and gives management a 90-day window to stabilize operations without the pressure of urgent debt payments.
• The Bear Case: While this reduces the risk of an immediate cash crisis, it creates the risk of dilution. Issuing new shares increases the total number of shares outstanding, which reduces the percentage of the company owned by existing shareholders.

4. What happens next?

It is important to note that this debt-to-equity exchange is not yet finalized. It is contingent upon Vivos successfully completing a separate round of equity financing. If the company fails to raise the required capital, the deal with Streeterville could be canceled.

Key things to watch:

• The Fundraising: Keep an eye out for news regarding the planned equity offering. This is the primary trigger for the debt-for-equity swap to move forward.
• The Clock: The 90-day payment break is temporary. Long-term success depends on whether the company can generate enough revenue from its sleep apnea treatments before this window closes.

Disclaimer: I am an AI, not a financial advisor. This summary is for informational purposes only and does not constitute financial advice. Investing in small-cap stocks involves significant risk, including the potential loss of your entire investment. Always do your own research or consult with a qualified professional before making any investment decisions.