Dental laser company Biolase and its subsidiaries voluntarily filed on October 1 for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware and plans to sell its assets for $14 million to competitor Sonendo.
Biolase will seek court approval to continue operating during the bankruptcy proceedings, according to a company press release dated October 1.
As of June 30, 2024, Biolase had total assets of $30.6 million and total debts of $32.7 million, according to bankruptcy filings. Its largest creditors include attorneys and dental manufacturers Oratech and laser processing supplier Optek Systems, according to the company's bankruptcy filings.
"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," Biolase CEO John Beaver said in the release.
Furthermore, Biolase is pursuing a sale of the company in conjunction with the bankruptcy. It has entered into an asset purchase agreement to sell the company for $14 million to Sonendo, developer of the GentleWave root canal disinfection system. Any sale would be subject to review and approval by the bankruptcy court, according to the release.
"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," Beaver said.
Financial problems for Biolase appeared to begin in June 2023. It cut its workforce by about 20% to optimize operations. At the time, the layoffs were projected to save the company about $4 million annually.
In January 2023, PIPStek, a subsidiary of Sonendo, filed a lawsuit against Biolase claiming that Biolase's laser violated two of its patents. Biolase called the claims "meritless."
