As of October 1, 2024, Biolase—a global leader in dental laser technology—has voluntarily filed for bankruptcy under Chapter 11 proceedings. In conjunction with the filing, the company will be pursuing a sale process under Section 363 of the Bankruptcy Code that will allow medical equipment manufacturer Sonendo to acquire all substantial Biolase assets through a Court-supervised auction process.1
In addition to their $14 million purchase agreement with Sonendo, Biolase has also secured $2.5 million in debtor-in-possession financing from SWK Funding to conduct its financial operations throughout the proceedings.1 The company will continue to compensate employees and manage shipments and orders, amongst other obligations.
Despite Biolase's Waterlase iPlus Premier earning a spot in Dentistry Today's Top 100 Products of 2024, this decision comes after a multi-million-dollar loss over the past year. The company reported earning $14.3 million in net revenue for the second quarter of 2023, but only $11.6 million for the second quarter of 2024. At the same time, the company also saw a decrease in U.S. laser revenue—bringing in $3.6 million during the second quarter of this year compared to $6.3 million for the same period in 2023.2
On this decision, Biolase CEO John Beaver said: "After carefully considering a range of alternatives, we are confident that pursuing Chapter 11 provides the most viable long-term path for Biolase to address its liquidity challenges. Our portfolio includes some of the most renowned dental laser products in the industry, and we are eager to partner with Sonendo, leveraging their extensive expertise in the dental sector to continue advancing our mission. We deeply appreciate the ongoing support from our customers and suppliers throughout this process, and we also want to recognize the dedication of our talented employees."1
References
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Biolase voluntarily initiates Chapter 11 proceedings. Biolase. October 2024. https://ir.biolase.com/news-events/press-releases/detail/417/biolase-voluntarily-initiates-chapter-11-proceedings
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Portalatin A. Biolase files for bankruptcy, plans sale to Sonendo: 6 notes. Becker's Dental + DSO Review. October 2024. https://www.beckersdental.com/dental-technology/44624-biolase-files-for-bankruptcy-plans-sale-to-sonendo-6-notes
