Kirk Huntsman: Okay. That’s — Lucas, that’s a great question. Let me — so I’ll remind everyone that back in 1995, I was one of the very first individual entrepreneurs that started the DSO industry. I watched that industry grow, I’m familiar with the players in it. And I cautioned everyone, when we launched our DSO initiatives, because I know these guys. They’re very, very cautious from an operational standpoint, introducing anything into — anything like what dental sleep medicine entails into a dental practice. It requires a great deal of patients, a great deal of commitment and a great deal of energy and time by the DSO. So we never really expected the DSOs to be any sort of an immediate sort of revenue panacea. Having said that, we’re making huge strides there.
We have had some amazing success stories that are just really stunning in their — in the way that they’re delivering services to patients within the DSOs. And we’re gaining a lot of traction. In fact, I have people right now at the largest annual DSO conference going on right now in Orlando. But we are — we really think that, that’s a little bit of a slow burn. The opportunity there is huge. But it’s a little bit of a slow burn. The DSOs are just very cautious and very careful. Several of them have been burned by trying to implement fleet programs into their organizations in the past. And they’ve never had a company like Vivos that has solved all the barriers to entry. So it’s proceed with caution with those guys, and it’s going to take a little bit of time.
But once they flip the switch, once they realize and they are starting to realize how big this opportunity exists, they will come on strong. I would say that we really won’t see any significant revenues from the DSOs until the latter part of this year and going into next. For the DMEs, it’s almost the opposite. The DME companies are thirsty. From our experience so far, they are craving and looking for somebody to come along and help them navigate the world of dental sleep medicine. They’ve tried, it’s been difficult and working with dentists is not always easy. The fact that we have a nationwide network is a very, very appealing thing. The fact that we have different price point opportunities from the POD to a mandibular advancement to our care devices which can take their patients and take them from a low-cost, low entry, quick fix type thing to — all the way to potentially resolving their OSA.
The DME companies are all over this. I fully expect the DME companies to be a primary driver for our revenues, as we go throughout 2023 and into 2024. And yes, the opportunity there is unlike anything we’ve ever seen. We think the DME companies are a total game changer for Vivos. We’re deep into contract negotiations and pilots with — beginning pilots with several of these guys, and we’re excited about what we’re seeing there and we’re excited about their enthusiasm for what we have. And we see the DMEs as being much more immediate in terms of revenue drivers.
Lucas Ward: Okay. I just had a couple of financial questions, possibly for Brad or whoever wants to take it. Can you say what your revenues in the fourth quarter would have been, without the revenue recognition change? So instead of $4 million, would it have been $5 million or higher?
Brad Amman: Yes, it’s very difficult to look at it like on a quarter-over-quarter basis, we talked about $2.5 million moving from recognition of revenue into deferred revenue, and — but that will be recognized at some point in time. So it’s not like that revenue goes away, that revenue just gets deferred. We used to recognize revenue over 12 months, and now it’s up to 18 months on the longest piece. So it’s more of a deferral program than it is anything else.
