‘ProSomnus, incorporated Continues to Grow with Record Third Quarter Revenue\n\nProSomnus, incorporated has announced its financial results for the third quarter ended September 30, 2023. The company generated record revenues of $7.1 million, representing a 41.5% increase year-over-year compared to the third quarter of 2022. This growth was primarily driven by increased unit volume due to increased sales and marketing investments and a mix shift to the new EVO Products.\n\nThe company also completed a $10.4 million financing during the third quarter, with the net proceeds being used to fund operations as the company works towards achieving cash flow breakeven. Additionally, ProSomnus reduced its operating expenses by 19% sequentially, including a 24% reduction in General and Administrative expenses.\n\nProSomnus continued to generate and share clinical data, advancing enrollment in the Severe Obstructive Sleep Apnea (SOS) study. Data from the Front Line Obstructive Sleep Apnea Treatment (FLOSAT) study was also presented at five medical meetings during the third quarter, and new data affirming the efficacy of ProSomnus devices was presented at the IBEDDSSMA and World Sleep congresses. The company also secured 13485:2016 Certification from Intertek.\n\nLen Liptak, ProSomnus Chief Executive Officer, stated, “ProSomnus delivered another record setting quarter, further establishing itself as the leading non-CPAP therapy for Obstructive Sleep Apnea. Our record revenue performance reflects our sales, marketing, and medical affairs execution, as well as the growing number of physicians prescribing ProSomnus.”\n\nLooking ahead, the company aims to fine-tune its operations with the goal of achieving cash flow breakeven, while continuing to deliver strong top-line growth and the best possible therapy for providers and patients.\n\nRevenue for the three months ended September 30, 2023, totaled $7.1 million, reflecting a 41.5% increase over the same period in 2022. This growth was primarily driven by increased unit volume due to increased sales and marketing investments and a mix shift to the new EVO Products. The company’s gross margin remained consistent at 49%, and it expects to improve this margin as volumes increase.\n\nSales and marketing expenses increased by $0.9 million, or 39.7%, compared to the same period in 2022. This increase was primarily due to an expansion of the sales team and travel and in-person events. Research and development expenses also increased by $0.4 million, or 51.1%, driven by an increase in headcount-related personnel and research and development. General and administrative expenses increased by $1.8 million, or 117.3%, primarily due to professional services and legal fees, headcount-related personnel costs, and various other expenses.’