EX-99.1 2 biol-ex99_1.htm EX-99.1 EX-99.1

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Exhibit 99.1

 

BIOLASE REPORTS 2024 SECOND QUARTER RESULTS; ACHIEVES 40% GROSS MARGIN AS GLOBAL CONSUMABLE SALES STRENGTHEN

 

LAKE FOREST, Calif., August 8, 2024 – BIOLASE, Inc. (NASDAQ: BIOL), a leader in dental laser technology, today reported its financial results for the second quarter ended June 30, 2024.

“We experienced another strong quarter in consumable revenue, recording our second-highest mark ever and achieving over 600 recurring subscriptions,” commented John Beaver, President and Chief Executive Officer of BIOLASE. “This success translates to over $2 million in scheduled shipments over the next twelve months. Our gross margin increased to 40%, up from 33% in the first quarter of 2024, due to cost reduction efforts implemented earlier in the year. Despite ongoing revenue challenges due to higher interest rates, I believe our performance shows that we are well-positioned for greater gains once our market returns to normal and dental practitioners have the purchasing power they have historically been accustomed to in the past. The positive response to the U.S. launch of our Waterlase iPlus Premier laser system last quarter underscores the strong interest in our industry-leading products and our commitment to innovation and customer satisfaction.”

Second Quarter Financial Results

Net revenue for the quarter ended June 30, 2024, was $11.6 million compared to net revenue of $14.3 million for the quarter ended June 30, 2023. U.S. laser revenue was $3.6 million for the quarter ended June 30, 2024, compared to U.S. laser revenue of $6.3 million for the quarter ended June 30, 2023. U.S. consumables and other revenue for the quarter ended June 30, 2024, which consists of revenue from consumable products such as disposable tips, decreased 5% year over year. International laser revenue was $2.4 million for the quarter ended June 30, 2024, compared to $2.5 million for the quarter ended June 30, 2023. International consumables and other revenue for the quarter ended June 30, 2024, which consists of revenue from consumable products such as disposable tips, decreased 12% year over year.

Gross margin for the quarter ended June 30, 2024, was 40% compared to 43% for the quarter ended June 30, 2023. Total operating expenses were $7.8 million for the quarter ended June 30, 2024, compared to $10.0 million for the quarter ended June 30, 2023, a 22% decrease year over year. Operating loss for the quarter ended June 30, 2024, was $3.2 million, compared to an operating loss of $3.9 million for the quarter ended June 30, 2023, an improvement of 17% year over year.

The Company had cash and cash equivalents of approximately $5.3 million on June 30, 2024.

Net Loss and Adjusted EBITDA

The reconciliation of GAAP Net Loss to Adjusted EBITDA at the end of this news release provides the details of the Company's non-GAAP disclosures and the reconciliation of GAAP net loss and net loss per share to the Company's Adjusted EBITDA and Adjusted EBITDA per share.

Net loss attributable to common stockholders for the quarter ended June 30, 2024, was $2.8 million, or $0.08 per share, compared to a net loss of $14.2 million, or $26.14 per share, for the quarter ended June 30, 2023. Adjusted EBITDA for the quarter ended June 30, 2024, was a loss of $2.5 million, or $0.08 per share, compared with an Adjusted EBITDA loss of $2.3 million, or $4.24 per share, for the quarter ended June 30, 2023.

Full Year 2024 Financial Guidance

 

 

Based on six months of operating and financial results, current market uncertainty, as well as the outlook for the remainder of the year the Company is updating full-year 2024 financial guidance. The Company now expects 2024 full year revenue to be similar to that achieved in 2023, reflecting the headwinds the Company experienced in the first half of 2024 and a somewhat lower capital equipment revenue forecast for the last half of 2024.

The Company is also updating its Adjusted EBITDA expectations for the full year of 2024 based on the performance in the first half of 2024 to a loss of between $6 million and $8 million, an improvement over the full-year 2023 Adjusted EBITDA loss of $12.8 million (Adjusted EBITDA is defined as net loss before interest, taxes, depreciation and amortization, severance expense, stock-based and other non-cash compensation, stock warrant issuance costs, gain or losses on warrants, and the change in inventory reserves and allowance for doubtful accounts).

About BIOLASE

BIOLASE is a medical device company that develops, manufactures, markets and sells laser systems in dentistry and medicine. BIOLASE's products advance the practice of dentistry and medicine for patients and healthcare professionals. As of December 31, 2023, BIOLASE's proprietary laser products incorporate approximately 241 active patents and 21 patent-pending technologies designed to provide biologically and clinically superior performance with less pain and faster recovery times. BIOLASE's innovative products provide cutting-edge technology at competitive prices to deliver superior results for dentists and patients. BIOLASE's principal products are dental laser systems that perform a broad range of dental procedures, including cosmetic and complex surgical applications. From 1998 through December 31, 2023, BIOLASE has sold over 47,700 laser systems in over 80 countries around the world. Laser products under development address BIOLASE's core dental market and other adjacent medical and consumer applications.

For updates and information on Waterlase iPlus®, Waterlase Express™, and laser dentistry, find BIOLASE online at www.biolase.com, Facebook at www.facebook.com/biolase, Twitter at www.twitter.com/biolaseinc, Instagram at www.instagram.com/waterlase_laserdentistry, and LinkedIn at www.linkedin.com/company/biolase.

BIOLASE®, Waterlase® and Waterlase iPlus® are registered trademarks of BIOLASE, Inc.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties, including statements, regarding BIOLASE’s expected revenue and revenue growth. Forward-looking statements can be identified through the use of words such as “may,” “might,” “will,” “intend,” “should,” “could,” “can,” “would,” “continue,” “expect,” “believe,” “anticipate,” “estimate,” “predict,” “outlook,” “potential,” “plan,” “seek,” and similar expressions and variations or the negatives of these terms or other comparable terminology. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect BIOLASE’s current expectations and speak only as of the date of this release and includes statements regarding being well-positioned for greater gains once our market returns to normal and dental practitioners have the purchasing power they have historically been accustomed to in the past, the strong interest in our industry-leading products and our commitment to innovation and customer satisfaction, the expectation that 2024 full year revenue to be similar to that achieved in 2023, reflecting the headwinds the Company experienced in the first half of 2024 and a somewhat lower capital equipment revenue forecast for the last half of 2024 and expected Adjusted EBITDA results for the full year of 2024. Actual results may differ materially from BIOLASE’s current expectations depending upon a number of factors. These factors include, among others, the ability to sustain growth, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, and ability to increase revenue, risks associated with managing the growth of the business, substantial doubt regarding BIOLASE's ability to continue as a going concern, and those other risks and uncertainties that are described in the "Risk Factors" section of BIOLASE's most recent annual report on Form 10-K and quarterly report on Form 10-Q filed

 

 

with the Securities and Exchange Commission. Except as required by law, BIOLASE does not undertake any responsibility to revise or update any forward-looking statements.

For further information, please contact:

EVC Group LLC

Michael Polyviou / Todd Kehrli

(732) 933-2754

mpolyviou@evcgroup.com / tkehrli@evcgroup.com

 

 

BIOLASE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited, in thousands, except per share data)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net revenue

 

$

11,555

 

 

$

14,286

 

 

$

21,687

 

 

$

24,753

 

Cost of revenue

 

 

6,946

 

 

 

8,168

 

 

 

13,741

 

 

 

15,299

 

Gross profit

 

 

4,609

 

 

 

6,118

 

 

 

7,946

 

 

 

9,454

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

3,694

 

 

 

6,189

 

 

 

7,077

 

 

 

10,812

 

General and administrative

 

 

3,064

 

 

 

2,357

 

 

 

6,260

 

 

 

4,815

 

Engineering and development

 

 

1,071

 

 

 

1,444

 

 

 

2,354

 

 

 

2,991

 

Total operating expenses

 

 

7,829

 

 

 

9,990

 

 

 

15,691

 

 

 

18,618

 

Loss from operations

 

 

(3,220

)

 

 

(3,872

)

 

 

(7,745

)

 

 

(9,164

)

Loss on foreign currency transactions

 

 

(112

)

 

 

(235

)

 

 

(208

)

 

 

(215

)

Interest expense, net

 

 

(586

)

 

 

(583

)

 

 

(1,208

)

 

 

(1,160

)

Other income (loss), net

 

 

1,140

 

 

 

(147

)

 

 

(82

)

 

 

(147

)

Non-operating income (loss), net

 

 

442

 

 

 

(965

)

 

 

(1,498

)

 

 

(1,522

)

Loss before income tax provision

 

 

(2,778

)

 

 

(4,837

)

 

 

(9,243

)

 

 

(10,686

)

Income tax provision

 

 

(20

)

 

 

(31

)

 

 

(40

)

 

 

(31

)

Net loss

 

 

(2,798

)

 

 

(4,868

)

 

 

(9,283

)

 

 

(10,717

)

Other comprehensive loss items:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(20

)

 

 

39

 

 

 

(106

)

 

 

119

 

Comprehensive loss

 

$

(2,818

)

 

$

(4,829

)

 

$

(9,389

)

 

$

(10,598

)

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(2,798

)

 

$

(4,868

)

 

$

(9,283

)

 

$

(10,717

)

Deemed dividend on convertible preferred stock

 

 

—

 

 

 

(9,377

)

 

 

—

 

 

 

(9,377

)

Net loss attributable to common stockholders

 

$

(2,798

)

 

$

(14,245

)

 

$

(9,283

)

 

$

(20,094

)

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

$

(0.08

)

 

$

(26.14

)

 

$

(0.36

)

 

$

(45.98

)

Shares used in the calculation of net loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

 

33,391

 

 

 

545

 

 

 

25,616

 

 

 

437

 

 

 

 

 

BIOLASE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands, except per share data)

 

 

 

June 30,

 

 

December 31,

 

 

 

2024

 

 

2023

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

5,272

 

 

$

6,566

 

Accounts receivable, less allowance of $329 and $244 as of June 30, 2024 and December 31, 2023, respectively

 

 

4,842

 

 

 

5,483

 

Inventory

 

 

10,904

 

 

 

11,433

 

Prepaid expenses and other current assets

 

 

1,076

 

 

 

1,381

 

Total current assets

 

 

22,094

 

 

 

24,863

 

Property, plant, and equipment, net

 

 

4,263

 

 

 

5,525

 

Goodwill

 

 

2,926

 

 

 

2,926

 

Right-of-use assets, leases

 

 

1,101

 

 

 

1,519

 

Other assets

 

 

257

 

 

 

268

 

Total assets

 

$

30,641

 

 

$

35,101

 

LIABILITIES, CONVERTIBLE REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

5,491

 

 

$

6,065

 

Accrued liabilities

 

 

7,662

 

 

 

7,518

 

Stock warrant liability

 

 

2,616

 

 

 

1,363

 

Deferred revenue, current portion

 

 

2,132

 

 

 

2,452

 

Current portion of term loans, net of discount

 

 

13,275

 

 

 

2,265

 

Total current liabilities

 

 

31,176

 

 

 

19,663

 

Deferred revenue

 

 

186

 

 

 

256

 

Warranty accrual

 

 

843

 

 

 

593

 

Non-current term loans

 

 

150

 

 

 

11,782

 

Non-current operating lease liability

 

 

315

 

 

 

772

 

Other liabilities

 

 

97

 

 

 

79

 

Total liabilities

 

 

32,767

 

 

 

33,145

 

Mezzanine Equity:

 

 

 

 

 

 

Series H Convertible Redeemable Preferred stock, par value $0.001 per share

 

 

346

 

 

 

346

 

Series J Convertible Redeemable Preferred stock, par value $0.001 per share

 

 

1,857

 

 

 

1,857

 

Total mezzanine equity

 

 

2,203

 

 

 

2,203

 

Stockholders' equity (deficit):

 

 

 

 

 

 

Common stock, par value $0.001 per share

 

 

33

 

 

 

3

 

Additional paid-in capital

 

 

322,380

 

 

 

317,103

 

Accumulated other comprehensive loss

 

 

(659

)

 

 

(553

)

Accumulated deficit

 

 

(326,083

)

 

 

(316,800

)

Total stockholders' equity (deficit)

 

 

(4,329

)

 

 

(247

)

Total liabilities, convertible redeemable preferred stock and
 stockholders' equity (deficit)

 

$

30,641

 

 

$

35,101

 

 

 

 

BIOLASE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

 

 

 

Six Months Ended

 

 

 

June 30,

 

 

 

2024

 

 

2023

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

Net loss

 

$

(9,283

)

 

$

(10,717

)

Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities:

 

 

 

 

 

 

Depreciation

 

 

1,310

 

 

 

1,573

 

Provision for bad debts

 

 

86

 

 

 

42

 

Provision for inventory excess and obsolescence

 

 

76

 

 

 

—

 

Amortization of debt issuance costs

 

 

242

 

 

 

214

 

Change in fair value of warrants

 

 

(514

)

 

 

(78

)

Issuance costs for common stock warrants

 

 

830

 

 

 

224

 

Stock-based compensation

 

 

67

 

 

 

775

 

Gain on disposal of fixed assets

 

 

(232

)

 

 

—

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

555

 

 

 

82

 

Inventory

 

 

374

 

 

 

(163

)

Prepaid expenses and other current assets

 

 

734

 

 

 

713

 

Accounts payable and accrued liabilities

 

 

(527

)

 

 

(1,903

)

Deferred revenue

 

 

(390

)

 

 

18

 

Net cash and cash equivalents used in operating activities

 

 

(6,672

)

 

 

(9,220

)

Cash Flows from Investing Activities:

 

 

 

 

 

 

Purchases of property, plant, and equipment

 

 

(27

)

 

 

(944

)

Proceeds from disposal of property, plant, and equipment

 

 

284

 

 

 

—

 

Net cash and cash equivalents provided by (used in) investing activities

 

 

257

 

 

 

(944

)

Cash Flows from Financing Activities:

 

 

 

 

 

 

Proceeds from the sale of common stock and pre-funded warrants, net of fees

 

 

2,786

 

 

 

8,502

 

Proceeds from the sale of Series H Convertible Preferred Stock, net of fees

 

 

—

 

 

 

2,738

 

Proceeds from the sale of warrants, net of fees

 

 

3,020

 

 

 

918

 

Principal payment on loan

 

 

(865

)

 

 

—

 

Proceeds from the exercise of common stock warrants

 

 

8

 

 

 

115

 

Proceeds from the exercise of preferred share warrants

 

 

270

 

 

 

520

 

Net cash and cash equivalents provided by financing activities

 

 

5,219

 

 

 

12,793

 

Effect of exchange rate changes

 

 

(98

)

 

 

120

 

(Decrease) increase in cash and cash equivalents

 

 

(1,294

)

 

 

2,749

 

Cash and cash equivalents, beginning of period

 

 

6,566

 

 

 

4,181

 

Cash and cash equivalents, end of period

 

$

5,272

 

 

$

6,930

 

Supplemental cash flow disclosure:

 

 

 

 

 

 

Cash paid for interest

 

$

968

 

 

$

930

 

Cash received for interest

 

$

3

 

 

$

5

 

Cash paid for income taxes

 

$

42

 

 

$

12

 

Cash paid for operating leases

 

$

157

 

 

$

159

 

Non-cash property, plant and equipment additions acquired under inventory

 

$

78

 

 

$

—

 

Common stock issued upon cashless warrant exercise

 

$

1,989

 

 

$

—

 

Common stock issued upon exercise of preferred stock

 

$

528

 

 

$

10,980

 

Non-cash right-of-use assets obtained in exchange for lease obligation

 

$

—

 

 

$

483

 

 

 

 

 

Non-GAAP Financial Measures

In addition to the financial information prepared in conformity with generally accepted accounting principles in the U.S. (“GAAP”), this press release includes certain historical non-GAAP financial information. Management believes that these non-GAAP financial measures assist investors in making comparisons of period-to-period operating results and that, in some respects, these non-GAAP financial measures are more indicative of the Company’s ongoing core operating performance than their GAAP equivalents.

Adjusted EBITDA is defined as net loss before interest, taxes, depreciation, stock-based and other non-cash compensation, severance expense, change in allowance for doubtful accounts, increase in inventory reserves, stock warrant issuance costs, and loss on warrants. Management uses Adjusted EBITDA in its evaluation of the Company’s core results of operations and trends between fiscal periods and believes that these measures are important components of its internal performance measurement process. Therefore, investors should consider non-GAAP financial measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. Further, the non-GAAP financial measures presented by the Company may be different from similarly named non-GAAP financial measures used by other companies.

 

BIOLASE, INC.

Reconciliation of GAAP Net Loss to Adjusted EBITDA and

GAAP Net Loss Per Share to Adjusted EBITDA Per Share

(Unaudited, in thousands, except per share data)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

GAAP net loss attributable to common stockholders

 

$

(2,798

)

 

$

(14,245

)

 

$

(9,283

)

 

$

(20,094

)

Deemed dividend on convertible preferred stock

 

 

—

 

 

 

9,377

 

 

 

—

 

 

 

9,377

 

GAAP net loss

 

$

(2,798

)

 

$

(4,868

)

 

$

(9,283

)

 

$

(10,717

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

586

 

 

 

583

 

 

 

1,208

 

 

 

1,160

 

Income tax provision

 

 

20

 

 

 

31

 

 

 

40

 

 

 

31

 

Depreciation

 

 

650

 

 

 

1,424

 

 

 

1,310

 

 

 

1,573

 

Severance expense

 

 

—

 

 

 

229

 

 

 

182

 

 

 

229

 

Change in allowance for doubtful accounts

 

 

113

 

 

 

59

 

 

 

86

 

 

 

42

 

Stock-based and other non-cash compensation

 

 

(46

)

 

 

84

 

 

 

67

 

 

 

775

 

Stock warrant issuance costs

 

 

—

 

 

 

224

 

 

 

830

 

 

 

224

 

Gain on warrants

 

 

(1,070

)

 

 

(77

)

 

 

(514

)

 

 

(77

)

Adjusted EBITDA

 

$

(2,545

)

 

$

(2,311

)

 

$

(6,074

)

 

$

(6,760

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss attributable to common stockholders
   per share, basic and diluted

 

$

(0.08

)

 

$

(26.14

)

 

$

(0.36

)

 

$

(45.98

)

Deemed dividend on convertible preferred stock

 

 

—

 

 

 

17.21

 

 

 

—

 

 

 

21.46

 

GAAP net loss per share, basic and diluted

 

$

(0.08

)

 

$

(8.93

)

 

$

(0.36

)

 

$

(24.52

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

0.02

 

 

 

1.07

 

 

 

0.05

 

 

 

2.66

 

Income tax provision

 

 

—

 

 

 

0.06

 

 

 

—

 

 

 

0.07

 

Depreciation

 

 

0.02

 

 

 

2.61

 

 

 

0.05

 

 

 

3.59

 

Severance expense

 

 

—

 

 

 

0.42

 

 

 

0.01

 

 

 

0.52

 

Change in allowance for doubtful accounts

 

 

—

 

 

 

0.11

 

 

 

—

 

 

 

0.10

 

Stock-based and other non-cash compensation

 

 

—

 

 

 

0.15

 

 

 

—

 

 

 

1.77

 

Stock warrant issuance costs

 

 

—

 

 

 

0.41

 

 

 

0.03

 

 

 

0.51

 

Gain on warrants

 

 

(0.04

)

 

 

(0.14

)

 

 

(0.02

)

 

 

(0.17

)

Adjusted EBITDA per share, basic and diluted

 

$

(0.08

)

 

$

(4.24

)

 

$

(0.24

)

 

$

(15.47

)