ProSomnus emerged from Ch.11 and posted record revenue for a CPAP alternative.

ProSomnus makes a precision oral appliance as a non-CPAP treatment for obstructive sleep apnea, but it was burning cash and carrying debt while trying to scale dentist and clinician adoption. It filed Chapter 11 in May 2024 to restructure.

The plan became effective August 5, 2024, leaving ProSomnus with a reorganized structure and new capital aimed at future growth, rather than a shutdown of the product line.

Demand had not disappeared. Q2 2024 revenue was a record $9.1M, up 31% over the same quarter of 2023 and 22% over Q1 2024, marking the ninth record quarter in ten, while year-to-date revenue rose 30% to $16.6M and operating expenses fell 25%.

The company used the reset to keep investing in the device and its clinical evidence, betting that a cheaper, non-invasive alternative to CPAP could keep growing once the balance sheet stopped siphoning cash.

Re-emerged Aug 5, 2024 with restructured debt and fresh capital; Q2 2024 revenue hit a record $9.1M, up 31% YoY, with orders still climbing.

The product had proven, growing demand.

Debt service, not the device, was consuming the cash.

Fresh capital funded the go-to-market and clinical work.

Reorganization bought time without diluting the core technology.

A product with real clinical demand can survive a balance-sheet failure; fixing the capital structure is what let ProSomnus keep selling the device.

With new investors and a reorganized structure, ProSomnus kept expanding dentist adoption of its oral appliance and continued investing in clinical evidence for non-CPAP treatment.