BIOLASE, Inc. reported significant financial challenges in its latest 10-Q filing for the period ending September 30, 2024. The company, which specializes in advanced laser systems for the dental industry, filed for Chapter 11 bankruptcy on October 1, 2024, and is currently operating under the jurisdiction of the Bankruptcy Court. This filing followed a series of financial difficulties, including a substantial working capital deficit of approximately $11.4 million as of September 30, 2024.

For the three months ended September 30, 2024, BIOLASE recorded net revenue of $10.9 million, a slight decrease of 0.7% from $10.9 million in the same period of 2023. For the nine months ended September 30, 2024, net revenue was $32.5 million, down 9% from $35.7 million in the prior year. The decline in revenue was attributed to a 21.3% decrease in sales from laser systems, which accounted for 52.4% of total revenue, while revenue from consumables and services showed modest growth.

Despite the revenue decline, the company reported an increase in gross profit for the three months ended September 30, 2024, totaling $4.4 million, up from $3.7 million in the same period of 2023. This improvement was driven by a reduction in cost of revenue, which fell by 9.9%. Operating expenses also decreased significantly, with total operating expenses for the three months ending September 30, 2024, at $5.1 million, down from $7.4 million in the prior year.

BIOLASE's net loss for the three months ended September 30, 2024, was approximately $1.4 million, a notable improvement compared to a net loss of $4.6 million for the same period in 2023. For the nine months ended September 30, 2024, the net loss was $10.7 million, down from $15.3 million in the previous year. The company attributed this reduction in losses to lower operating expenses and improved gross profit margins.

Strategically, BIOLASE entered into an Asset Purchase Agreement with Sonendo, Inc. for the acquisition of substantially all of its assets, valued at $14 million, subject to working capital adjustments. The Bankruptcy Court approved bidding procedures for this transaction, with an auction for the sale of assets commencing on November 4, 2024. The successful bid was submitted by MegaGen Implant Co., LTD, with a backup bid from Sonendo.

As of September 30, 2024, BIOLASE's total assets were reported at $27.2 million, down from $35.1 million at the end of 2023, while total liabilities increased significantly to $32.5 million from $19.7 million. The company’s accumulated deficit reached $327.5 million, reflecting ongoing financial struggles and raising substantial doubt about its ability to continue as a going concern.