| ORGANIZATION, DESCRIPTION AND SIGNIFICANT ACCOUNTING POLICIES | NOTE
1 - ORGANIZATION, DESCRIPTION AND SIGNIFICANT ACCOUNTING POLICIES Organization BioModeling
Solutions, Inc. (“BioModeling”) was organized on March 20, 2007 as an Oregon limited liability company, and subsequently
incorporated in 2013. On August 16, 2016, BioModeling entered into a share exchange agreement (the “SEA”) with First Vivos,
Inc. (“First Vivos”), and Vivos Therapeutics, Inc. (“Vivos”), a Wyoming corporation established on July 7, 2016
to facilitate this share exchange combination transaction. Vivos was formerly named Corrective BioTechnologies, Inc. until its name changed
on September 6, 2016 to Vivos Biotechnologies and on March 2, 2018 to Vivos Therapeutics, Inc. and had no substantial pre-combination
business activities. First Vivos was incorporated in Texas on November 10, 2015. Pursuant to the SEA, all of the outstanding shares of
common stock and warrants of BioModeling and all of the shares of common stock of First Vivos were exchanged for newly issued shares
of common stock and warrants of Vivos, the legal acquirer. The
transaction was accounted for as a reverse acquisition and recapitalization, with BioModeling as the acquirer for financial reporting
and accounting purposes. Upon the consummation of the merger, the historical financial statements of BioModeling became the Company’s
historical financial statements and recorded at their historical carrying amounts. On
August 12, 2020, Vivos reincorporated from Wyoming to become a domestic Delaware corporation under Delaware General Corporate Law. Accordingly,
as used herein, the term “the Company,” “we,” “us.” “our” and similar terminology refer
to Vivos Therapeutics, Inc., a Delaware corporation and its consolidated subsidiaries. As used herein, the term “Common Stock”
refers to the common stock, $ 0.0001 Reverse
Stock Split On
October 25, 2023, the Company effected a reverse stock split of its outstanding shares of common stock at a ratio of 1-for-25 Description
of Business We
are a medical technology and services company that features a comprehensive suite of proprietary oral appliances and therapeutic
treatments. Our products non-surgically treat certain maxillofacial and developmental abnormalities of the mouth and jaws that are
closely associated with breathing and sleep disorders such as, mild to severe obstructive sleep apnea (“OSA”) and
snoring in adults. The Company offers three separate clinical pathways or programs to providers—Guided Growth and Development,
Lifeline, and Complete Airway Repositioning and Expansion (“CARE”). Each program features certain oral appliances
coupled with specific therapeutic treatments, and each clinical pathway is intended to address the specific needs of a diverse
patient population with different patient journeys. For example, the Guided Growth and Development program features the Vivos Guide
and PE x 2 The
Company’s flagship CARE program, which is part of The Vivos Method, features the Company’s patented DNA, mRNA and mmRNA appliances,
which are also FDA 510(k) cleared for mild-to-severe OSA and snoring in adults. The Vivos Method may also include adjunctive myofunctional,
chiropractic/physical therapy, and laser treatments that, when properly used with the CARE appliances, constitute a powerful non-invasive
and cost-effective means of reducing or eliminating OSA symptoms. In a small subset of a study, the data has actually shown that The
Vivos Method can reverse OSA symptoms in a large portion (up to 80 The
Company offers a suite of diagnostic and support products and services to dental and medical providers and distributors who service patients
with OSA or related conditions. Such products and services include (i) VivoScore home sleep screenings and tests (powered by SleepImage ®
6 8 The
Company’s business model is to teach, train, and support dentists, medical doctors, and distributors in the use of the Company’s
products and services. Dentists who use the Company’s products and services typically enroll in a variety of live or online training
and educational programs offered through the Company’s Vivos Institute—an 18,000 sq. ft. facility located near the Denver
International Airport. Dentists are able to select the specific program or clinical pathway that they want to focus on, such as Guided
Growth and Development or Lifeline or both. They may also enroll in the VIP program for the complete set training, educational, and support
services available in all three clinical pathway programs. Dentists enrolled in the VIP Program are referred to as “VIPs.”
The Company charges up front enrollment fees to educate and train new providers. The Company also charges for the ancillary support services
listed above, and views each product and service as a revenue/profit center. Basis
of Presentation and Consolidation The
accompanying consolidated financial statements, which include the accounts of the Company and its wholly owned subsidiaries (BioModeling,
First Vivos, Vivos Therapeutics (Canada) Inc., Vivos Management and Development, LLC, Vivos Del Mar Management, LLC, Vivos Modesto Management,
LLC, Vivos Therapeutics DSO LLC, a Colorado limited liability company, and Vivos Airway Alliances, LLC, a Colorado limited liability
company), are prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”).
All significant intercompany balances and transactions have been eliminated in consolidation. Emerging
Growth Company Status The
Company is an “emerging growth company” (an “EGC”), as defined in Section 2(a) of the Securities Act, as modified
by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and as a result, the Company may take advantage of certain
exemptions from various reporting requirements that are applicable to other public companies that are not EGCs. These include, but are
not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002
(the “Sarbanes-Oxley Act”), reduced disclosure obligations regarding executive compensation, and exemptions from the requirements
of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously
approved. Further,
Section 102(b)(1) of the JOBS Act exempts EGCs from being required to comply with new or revised financial accounting standards until
private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class
of securities registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) are required to comply
with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition
period and comply with the requirements that apply to non-EGC but any such election to opt out is irrevocable. The Company currently
expects to retain its status as an EGC until the year ending December 31, 2026, but this status could end sooner under certain circumstances. Revenue
Recognition The
Company generates revenue from the sale of products and services. A significant majority of the Company’s revenues are generated
from enrolling dentists as either (i) Guided Growth and Development VIPs; (ii) Lifeline VIPs; (iii) combined Guided Growth and Development
and Lifeline VIPs; or Premier Vivos Integrated Providers (Premier VIPs). Prior to the second quarter of 2023, the majority of VIP enrollments
were Premier VIPs. The other, lower priced enrollments were piloted in prior fiscal quarters on a limited basis. They were officially
adopted during the second quarter of 2023. For each VIP program, revenue is recognized when control of the products or services is transferred
to customers (i.e., VIP dentists ordering such products or services for their patients) in a manner that reflects the consideration the
Company expects to be entitled to in exchange for those products and services. Following
the guidance of ASC Topic 606, Revenue from Contracts with Customers Leases
1) identification
of the promised goods or services in the contract;
2) determination
of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the
contract;
3) measurement
of the transaction price, including the constraint on variable consideration;
4) allocation
of the transaction price to the performance obligations; and
5) recognition
of revenue when, or as the Company satisfies each performance obligation. Service
Revenue VIP
Enrollment Revenue The
Company reviews its VIP enrollment contracts from a revenue recognition perspective using the 5-step method outlined above. All program
enrollees, irrespective of their level of enrollment, are commonly referred to as VIPs, unless it is necessary to specify their particular
program. Once it is determined that a contract exists (i.e., a VIP enrollment agreement is executed and payment is received), service
revenue related to VIP enrollments is recognized when the underlying services are performed. The price of the Premier VIP enrollment
that the VIP pays upon execution of the contract is significant, running at approximately $ 26,200 ,
with different entry levels for the various programs described above The
Company enters into programs that may provide for multiple performance obligations. Commencing in 2018, the Company began enrolling medical
and dental professionals in a one-year program (now known as the Premier VIP Program) which includes training in a highly personalized,
deep immersion workshop format which provides the Premier VIP dentist access to a team who is dedicated to creating a successful integrated
practice. VIP
enrollment fees include multiple performance obligations which vary on a contract-by-contract basis. The performance obligations included
with enrollments may include sleep apnea rings, a six or twelve months BIS subscription, a marketing package, lab credits and the right
to sell our appliances. The Company allocates the transaction price of a VIP enrollment contract to each performance obligation under
such contract using the relative standalone selling price method. The relative standalone price method is based on the proportion of
the standalone selling price of each performance obligation to the sum of the total standalone selling prices of all the performance
obligations in the contract. The
right to sell is similar to a license of intellectual property because without it the VIP cannot purchase appliances from the Company.
The right to sell performance obligation includes the Vivos training and enrollment materials which prepare dentists for treating their
patients using The Vivos Method. Because
the right to sell is never sold outside of VIP contracts, and VIP contracts are sold for varying prices, the Company believes that it
is appropriate to estimate the standalone selling price of this performance obligation using the residual method. As such, the observable
prices of other performance obligations under a VIP contract will be deducted from the contract price, with the residual being allocated
to the right to sell performance obligation. The
Company uses significant judgements in revenue recognition including an estimation of customer life over which it recognizes the right
to sell. The Company has determined that Premier VIPs who do not complete sessions 1 and 2 of training rarely complete training at all
and fail to participate in the Premier VIP program long term. Since the beginning of the Premier VIP program, just under one-third of
new VIP members fall into this category, and the revenue allocated to the right to sell for those VIPs is accelerated at the time in
which it becomes remote that a VIP will continue in the program. Revenue is recognized in accordance with each individual performance
obligation unless it becomes remote the VIP will continue, at which time the remainder of revenue is accelerated and recognized in the
following month. Those VIPs who complete training typically remain active for a much longer period, and revenue from the right to sell
for those VIPs is recognized over the estimated period of which those VIPs will remain active. Because of various factors occurring year
to year, the Company has estimated customer life for each year a contract is initiated. The estimated customer lives are calculated separately
for each year and have been estimated at 15 months for 2020, 14 months for 2021, 18 months for 2022, and 23 months for 2023, as a result
of customers staying active for longer periods of time. The right to sell is recognized on a sum of the years’ digits method over
the estimated customer life for each year as this approximates the rate of decline in VIPs purchasing behaviors we have observed. Other
Service Revenue In
addition to VIP enrollment service revenue, in 2020 the Company launched BIS, an additional service on a monthly subscription basis,
which includes the Company’s AireO2 medical billing and practice management software. Revenue for these services is recognized
monthly during the month the services are rendered. The
Company also offers its VIPs the ability to provide MyoCorrect to the VIP’s patients as part of treatment with The Vivos Method.
The program includes packages of treatment sessions that are sold to the VIPs, and resold to their patients. Revenue for MyoCorrect services
is recognized over the 12-month performance period as therapy sessions occur. Allocation
of Revenue to Performance Obligations The
Company identifies all goods and services that are delivered separately under a sales arrangement and allocates revenue to each performance
obligation based on relative fair values. These fair values approximate the prices for the relevant performance obligation that would
be charged if those services were sold separately, and are recognized over the relevant service period of each performance obligation.
After allocation to the performance obligations, any remainder is allocated to the right to sell under the residual method and is recognized
over the estimated customer life. In general, revenues are separated between durable medical equipment (product revenue) and education
and training services (service revenue). Treatment
of Discounts and Promotions From
time to time, the Company offers various discounts to its customers. These include the following:
1) Discount
for cash paid in full
2) Conference
or trade show incentives, such as subscription enrollment into the SleepImage ® ®
3) Negotiated
concessions on annual enrollment fee
4) Credits/rebates
to be used towards future product orders such as lab rebates The
amount of the discount is determined up front prior to the sale. Accordingly, measurement is determined before the sale occurs and revenue
is recognized based on the terms agreed upon between the Company and the customer over the performance period. In rare circumstances,
a discount has been given after the sale during a conference which is offering a discount to full price. In this situation revenue is
measured and the change in transaction price is allocated over the remaining performance obligation. The
amount of consideration can vary by customer due to promotions and discounts authorized to incentivize a sale. Prior to the sale, the
customer and the Company agree upon the amount of consideration that the customer will pay in exchange for the services the Company provides.
The net consideration that the customer has agreed to pay is the expected value that is recognized as revenue over the service period.
At the end of each reporting period, the Company updates the transaction price to represent the circumstances present at the end of the
reporting period and any changes in circumstances during the reporting period. Product
Revenue In
addition to revenue from services, the Company also generates revenue from the sale of its line of oral devices and preformed guides
(known as appliances or systems) to its customers, the VIP dentists. These include the DNA appliance ® ® The
Company’s appliances are similar to a retainer that is worn in the mouth after braces are removed. Each appliance is unique and
is fitted to the patient. The Company utilizes its network of certified VIPs throughout the United States and in some non-U.S. jurisdictions
to sell the appliances to their customers as well as in two dental centers that the Company operates. The Company utilizes third party
contract manufacturers or labs to produce its unique, patented appliances and preformed guides. The manufacturer designated by the Company
produces the appliance in strict adherence to the Company’s patents, design files, treatments, processes and procedures and under
the direction and specific instruction of the Company, ships the appliance to the VIP who ordered the appliance from the Company. All
of the Company’s contract manufacturers are required to follow the Company’s master design files in production of appliances
or the lab will be in violation of the FDA’s rules and regulations. The Company performed an analysis under ASC 606-10-55-36 through
55-40 and concluded it is the principal in the transaction and is reporting revenue gross. The Company bills the VIP the contracted price
for the appliance which is recorded as product revenue. Product revenue is recognized once the appliance ships to the VIP under the direction
of the Company. In
support of the VIPs using the Company’s appliances for their patients, the Company utilizes a team of trained technicians to measure,
order and fit each appliance. Upon scheduling the patient (which is the Company’s customer in this case), the center takes a deposit
and reviews the patient’s insurance coverage. Revenue is recognized differently for Company owned centers than for revenue from
VIPs. The Company recognizes revenue in the centers after the appliance is received from the manufacturer and once the appliance is fitted
and provided to the patient. The
Company offers certain dentists (known as Clinical Advisors) discounts from standard VIP pricing. This is done to help encourage Clinical
Advisors, who help the VIPs with technical aspects of the Company’s products, to purchase Company products for their own practices.
In addition, from time to time, the Company offers credits to incentivize VIPs to adopt the Company’s products and increase case
volume within their practices. These incentives are recorded as a liability at issuance and deducted from the related product sale at
the time the credit is used. Use
of Estimates The
preparation of financial statements and related disclosures in conformity with U.S. GAAP requires the Company to make judgments, assumptions,
and estimates that affect the amounts reported in its consolidated financial statements and accompanying notes. The Company bases its
estimates and assumptions on existing facts, historical experience, and various other factors that it believes are reasonable under the
circumstances, to determine the carrying values of assets and liabilities that are not readily apparent from other sources. The Company’s
significant accounting estimates include, but are not necessarily limited to, assessing collectability on accounts receivable, the determination
of customer life and breakage related to recognizing revenue for VIP contracts, impairment of goodwill and long-lived assets; valuation
assumptions for assets acquired in asset acquisitions; valuation assumptions for stock options, warrants, warrant liabilities and equity
instruments issued for goods or services; deferred income taxes and the related valuation allowances; and the evaluation and measurement
of contingencies. Additionally, the full impact of COVID-19 is unknown and cannot be reasonably estimated. However, the Company has made
appropriate accounting estimates based on the facts and circumstances available as of the reporting date. To the extent there are material
differences between the Company’s estimates and the actual results, the Company’s future consolidated results of operations
will be affected. Cash
and Cash Equivalents All
highly liquid investments purchased with an original maturity of three months or less that are freely available for the Company’s
immediate and general business use are classified as cash and cash equivalents. Accounts
Receivable, Net Accounts
receivable represents amounts due from customers in the ordinary course of business and are recorded at the invoiced amount and do not
bear interest. Accounts receivable are stated at the net amount expected to be collected, using an expected credit loss methodology to
determine the allowance for expected credit losses. The Company evaluates the collectability of its accounts receivable and determines
the appropriate allowance for expected credit losses based on a combination of factors, including the aging of the receivables, historical
collection trends, and charge-offs. When the Company is aware of a customer’s inability to meet its financial obligation, the Company
may individually evaluate the related receivable to determine the allowance for expected credit losses. The Company uses specific criteria
to determine uncollectible receivables to be charged-off, including bankruptcy filings, the referral of customer accounts to outside
parties for collection, and the length that accounts remain past due. Property
and Equipment, Net Property
and equipment are stated at historical cost less accumulated depreciation. Depreciation is computed using the straight-line method over
the estimated useful lives of the assets, which ranges from 4 5 5 7 Intangible
Assets, Net Goodwill
is the excess of acquisition cost of an acquired entity over the fair value of the identifiable net assets acquired. Goodwill is not
amortized but tested for impairment annually or whenever indicators of impairment exist. These indicators may include a significant change
in the business climate, legal factors, operating performance indicators, competition, sale or disposition of a significant portion of
the business or other factors. We test for impairment annually as of December 31. There were no quantitative or qualitative indicators
of impairment that occurred for the year ended December 31, 2023, and no impairment was required. Intangible
assets consist of assets acquired from First Vivos and costs paid to (i) MyoCorrect, from whom the Company acquired certain assets related
to its OMT service in March 2021, (ii) Lyon Management and Consulting, LLC and its affiliates (“Lyon Dental”), from whom
the Company acquired certain medical billing and practice management software, licenses and contracts in April 2021 (including the software
underlying AireO2) for work related to the Company’s acquired patents, intellectual property and customer contracts and (iii) AFD,
from whom the Company acquired certain U.S. and international patents, trademarks, product rights, and other miscellaneous intellectual
property in March 2023. The identifiable intangible assets acquired from First Vivos and Lyon Dental for customer contracts are amortized
using the straight-line method over the estimated life of the assets, which approximates 5 15 Intangible assets consist of assets acquired from First Vivos and costs
paid to (i) MyoCorrect, from whom the Company acquired certain assets related to its OMT service in March 2021, (ii) Lyon Management and
Consulting, LLC and its affiliates (“Lyon Dental”), from whom the Company acquired certain medical billing and practice management
software, licenses and contracts in April 2021 (including the software underlying AireO2) for work related to the Company’s acquired
patents, intellectual property and customer contracts and (iii) AFD, from whom the Company acquired certain U.S. and international patents,
trademarks, product rights, and other miscellaneous intellectual property in March 2023. The identifiable intangible assets acquired from
First Vivos and Lyon Dental for customer contracts are amortized using the straight-line method over the estimated life of the assets,
which approximates 5 15 Impairment
of Long-lived Assets We
review and evaluate the recoverability of long-lived assets whenever events or changes in circumstances indicate that an asset’s
carrying amount may not be recoverable. Such circumstances could include, but are not limited to, (1) a significant decrease in the market
value of an asset, (2) a significant adverse change in the extent or manner in which an asset is used, or (3) an adverse action or assessment
by a regulator. We measure the carrying amount of the asset against the estimated undiscounted future cash flows associated with it.
Should the sum of the expected future net cash flows be less than the carrying value of the asset being evaluated, an impairment loss
would be recognized. The impairment loss would be calculated as the amount by which the carrying value of the asset exceeds its fair
value. The fair value is measured based on quoted market prices, if available. If quoted market prices are not available, the estimate
of fair value is based on various valuation techniques, including the discounted value of estimated future cash flows. The evaluation
of asset impairment requires us to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions
require significant judgment and actual results may differ from assumed and estimated amounts. There were no quantitative or qualitative
indicators of impairment that occurred for the year ended December 31, 2023, and no impairment was required. Equity
Offering Costs Commissions,
legal fees and other costs that are directly associated with equity offerings are capitalized as deferred offering costs, pending a determination
of the success of the offering. Deferred offering costs related to successful offerings are charged to additional paid-in capital in
the period it is determined that the offering was successful. Deferred offering costs related to unsuccessful equity offerings are recorded
as expense in the period when it is determined that an offering is unsuccessful. Accounting
for Payroll Protection Program Loan The
Company accounted for its U.S. Small Business Administration’s (“SBA”) Payroll Protection Program (“PPP”)
loan as a debt instrument under ASC 470, Debt 1.3 Employee
Retention Tax Credit The
employee retention tax credit (“ERTC”) for 2020 was established under the Coronavirus Aid, Relief, and Economic Security
Act of 2020 (the “CARES Act”) and amended by the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (the “Relief
Act”). The ERTC provided for changes in the employee retention credit for 2020 and provided an additional credit for the first,
second and third calendar quarters of 2021. Employers are eligible for the credit if they experienced either a full or partial suspension
of operations during any calendar quarter because of governmental orders due to the COVID-19 pandemic or if they experienced a significant
decline in gross receipts based on a comparison of quarterly revenue results for 2020 and/or 2021 and the corresponding quarters in 2019.
The ERTC is a refundable credit that employers can claim on qualified wages paid to employees, including certain health insurance costs. According
to the Internal Revenue Service (“IRS”) Notice 2021-20, “Guidance on the Employee Retention Credit under Section 2301
of the Coronavirus Aid, Relief, and Economic Security Act,” the period during which there is a significant decline in gross receipts
is determined by identifying the first quarter in 2020 in which the gross receipts are less than 50 Section
2301(c)(3)(A)(ii) of the CARES Act also provides that if an eligible employer averaged 100 or fewer employees in 2019 (a “small
eligible employer”), qualified wages are those wages paid by the eligible employer with respect to an employee during any period
described in section 2301(c)(2)(A)(ii)(I) of the CARES Act (relating to a calendar quarter for which the operation of a trade or business
is fully or partially suspended due to a governmental order) or during a calendar quarter within the period described in section 2301(c)(2)(A)(ii)(II)
of the CARES Act (relating to a significant decline in gross receipts). The Company averaged fewer than 80 employees in 2019 and is therefore
considered a small eligible employer under the CARES Act. Healthcare
plan expenses were not included in the analysis, although they are eligible if an employee has paid health insurance through their paycheck.
Section 2301(c)(5)(B) of the CARES Act provides that “wages” include amounts paid by an eligible employer to provide and
maintain a group health plan (as defined in section 5000(b)(1) of the Code), but only to the extent that the amounts are excluded from
the gross income of employees by reason of section 106(a) of the Code. The Company pays the first $500 of healthcare insurance for each
employee, which generally covers the monthly cost of their insurance. Because of this, the Company conservatively did not include any
of the cost of insurance in its analysis. Additionally, PPP loan amounts were deducted from the amount of total wages paid before calculating
the qualified ERTC wages. The Company applied for the ERTC using Vivos Therapeutics Inc.’s payroll, which covers 95% of its employees As
indicated above, for 2020, companies were eligible for a credit equal to 50 percent of the first ten thousands of qualified wages paid
per employee in the aggregate of each eligible quarter. Therefore, the maximum ERTC for the Company for 2020 is five thousand ($5,000)
per employee. For the second and fourth quarters of 2020, the total eligible credit was limited to approximately $0.5 million For
2021, the ERTC was 70 0.7 Contingencies 1.2 Loss
and Gain Contingencies The
Company is subject to the possibility of various loss contingencies arising in the ordinary course of business. An estimated loss contingency
is accrued when it is probable that an asset has been impaired, or a liability has been incurred, and the amount of loss can be reasonably
estimated. If some amount within a range of loss appears to be a better estimate than any other amount within the range, the Company
accrues that amount. Alternatively, when no amount within a range of loss appears to be a better estimate than any other amount, the
Company accrues the lowest amount in the range. If the Company determines that a loss is reasonably possible and the range of the loss
is estimable, then the Company discloses the range of the possible loss. If the Company cannot estimate the range of loss, it will disclose
the reason why it cannot estimate the range of loss. The Company regularly evaluates current information available to it to determine
whether an accrual is required, an accrual should be adjusted and if a range of possible loss should be disclosed. Legal fees related
to contingencies are charged to general and administrative expense as incurred. Contingencies that may result in gains are not recognized
until realization is assured, which typically requires collection in cash. Share-Based
Compensation The
Company measures the cost of employee and director services received in exchange for all equity awards granted, including stock options,
based on the fair market value of the award as of the grant date. The Company computes the fair value of stock options using the Black-Scholes-Merton
(“BSM”) option pricing model. The Company estimates the expected term using the simplified method which is the average of
the vesting term and the contractual term of the respective options. The Company determines the expected price volatility based on the
historical volatilities of shares of the Company’s peer group as the Company does not have a sufficient trading history for its
Common Stock. Industry peers consist of several public companies in the bio-tech industry similar to the Company in size, stage of life
cycle and financial leverage. The Company intends to continue to consistently apply this process using the same or similar public companies
until a sufficient amount of historical information regarding the volatility of the Company’s own stock price becomes available,
or unless circumstances change such that the identified companies are no longer similar to the Company, in which case, more suitable
companies whose share prices are publicly available would be utilized in the calculation. The Company recognizes the cost of the equity
awards over the period that services are provided to earn the award, usually the vesting period. For awards granted which contain a grad |
