Part I [Business](index=5&type=section&id=Item%201.%20Business) BIOLASE, Inc. is a leading global provider of advanced dental laser systems, including Waterlase and diode products, consistently facing recurring net losses despite revenue growth - Key Financial Performance (2020-2022) | Metric | 2022 (in millions) | 2021 (in millions) | 2020 (in millions) | | :--- | :--- | :--- | :--- | | Net Revenue | $48.5 | $39.2 | $22.8 | | Net Loss | $28.6 | $16.2 | $16.8 | | Total Assets (Year-End) | $38.2 | $55.3 | N/A | - The company operates in a single reportable business segment focused on advanced laser systems for the dental industry[35](index=35&type=chunk) - As of December 31, 2022, BIOLASE has sold over **45,500 laser systems** in more than **80 countries** and holds approximately **259 active and 24 pending patents**, primarily for its Waterlase technology[34](index=34&type=chunk) - In 2022, laser system sales accounted for about **65% of total sales**, with consumables, accessories, and services making up the remaining **35%**[17](index=17&type=chunk) [Overview](index=5&type=section&id=Item%201.%20Business-Overview) BIOLASE offers minimally invasive Waterlase and diode dental laser systems, providing clinical benefits over traditional instruments, despite a history of net losses - The company's proprietary systems are designed for a broad range of minimally invasive dental procedures, aiming to offer superior clinical results with benefits like less pain, faster healing, and fewer appointments for patients[27](index=27&type=chunk) - BIOLASE offers two main categories of laser systems: Waterlase for all-tissue procedures and diode systems for soft tissue, pain therapy, and cosmetic applications[34](index=34&type=chunk) [Our Products and Solutions](index=6&type=section&id=Item%201.%20Business-Our%20Products%20and%20Solutions) The company's core product portfolio includes Waterlase all-tissue and Epic diode soft-tissue laser systems, alongside the EdgePro endodontic irrigation device developed via an OEM partnership - **Waterlase All-Tissue Systems:** These flagship products (Waterlase iPlus, Express, MDX) use proprietary technology combining laser and water to cut hard and soft tissue, often eliminating the need for anesthesia and improving healing times[22](index=22&type=chunk) - **Diode Soft-Tissue Systems:** The Epic series (Epic X, Epic Hygiene, Epic 10) are designed for soft tissue procedures, pain relief, and cosmetic applications like teeth whitening. The Epic Hygiene is specifically cleared for Laser Bacterial Reduction (LBR)[40](index=40&type=chunk) - BIOLASE developed the EdgePro, a microfluidic irrigation device for root canals, in its first exclusive OEM agreement with EdgeEndo, a leading endodontic company[6](index=6&type=chunk) [Business Strategy](index=9&type=section&id=Item%201.%20Business-Business%20Strategy) BIOLASE's strategy focuses on increasing market penetration and adoption of its laser technologies through enhanced awareness, strengthened sales channels, improved product quality, and expanded offerings via OEM partnerships - Key strategic elements include: * Increasing awareness and education through webinars, tradeshows, and trial programs * Strengthening customer training, with plans for a new world-class training facility * Improving product quality, including ramping up in-house manufacturing of key components * Strengthening global sales and distribution capabilities, particularly in the U.S * Expanding the product portfolio and leveraging technology for adjacent medical applications through OEM partnerships[690](index=690&type=chunk)[718](index=718&type=chunk)[722](index=722&type=chunk) [Marketing and Sales](index=11&type=section&id=Item%201.%20Business-Marketing%20and%20Sales) The company markets globally via a direct U.S. sales force and international distributors, focusing on clinical benefits and educational programs, with international sales at **30.1%** in 2022 and a **12%** customer concentration risk - Net Revenue by Geographic Location (in thousands) | Region | 2022 (in thousands) | 2021 (in thousands) | 2020 (in thousands) | | :--- | :--- | :--- | :--- | | United States | $33,876 | $25,384 | $16,195 | | International | $14,586 | $13,804 | $6,585 | | **Total Net Revenue** | **$48,462** | **$39,188** | **$22,780** | - In the U.S., sales are primarily direct through a field sales force and an in-house team. Internationally, the company relies on a network of distributors[52](index=52&type=chunk)[701](index=701&type=chunk) - As of December 31, 2022, one customer accounted for approximately **12% of total gross accounts receivable**[762](index=762&type=chunk) [Government Regulations](index=14&type=section&id=Item%201.%20Business-Government%20Regulations) BIOLASE's products are extensively regulated by the FDA and international agencies, requiring compliance with manufacturing, marketing clearance, and post-market surveillance, alongside healthcare fraud, privacy, and anti-bribery laws - Products are subject to extensive regulation by the FDA, including premarket clearance (510(k)) or approval (PMA), and compliance with Quality System Regulation (QSR) for manufacturing[57](index=57&type=chunk) - For sales in the European Union, the company must comply with the Medical Device Regulation (MDR) and affix a CE mark to its products, with different requirements based on device classification (Class I, IIa, IIb)[62](index=62&type=chunk)[737](index=737&type=chunk) - The company is subject to federal and state anti-kickback statutes, which prohibit remuneration to induce referrals for items or services reimbursable by federal healthcare programs. Violations can lead to criminal fines, civil penalties, and exclusion from programs like Medicare and Medicaid[66](index=66&type=chunk) - As an international operator, BIOLASE is subject to the Foreign Corrupt Practices Act (FCPA), which prohibits bribery of non-U.S. officials[68](index=68&type=chunk) [Information about Our Executive Officers](index=21&type=section&id=Item%201.%20Business-Information%20about%20Our%20Executive%20Officers) As of March 28, 2023, BIOLASE's executive leadership team comprises the President and CEO, CFO, and COO, bringing diverse experience from medical device, finance, and commercial sectors - Executive Officers (as of March 28, 2023) | Name | Age | Title | | :--- | :-: | :--- | | John R. Beaver | 61 | President and Chief Executive Officer | | Jennifer Bright | 52 | Chief Financial Officer | | Steven Sandor | 42 | Chief Operating Officer | [Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including going concern doubts, capital needs, NASDAQ delisting risk, reliance on third-party suppliers, regulatory compliance, and debt covenant adherence - **Going Concern:** Recurring losses, negative cash flow, and the need for additional capital raise substantial doubt about the company's ability to continue as a going concern[106](index=106&type=chunk) - **Financial Performance:** The company has a history of net losses, with an accumulated deficit of **$296.2 million** as of December 31, 2022[107](index=107&type=chunk) - **Capital Needs:** The company may need to raise additional capital, and there is no guarantee that funds will be available on acceptable terms, if at all[82](index=82&type=chunk) - **NASDAQ Listing:** The company received a deficiency letter from NASDAQ in January 2023 for its stock price closing below the **$1.00 minimum bid price requirement**, posing a risk of delisting[190](index=190&type=chunk) - **Operational Risks:** The company relies on third-party distributors for a significant portion of its sales and depends on single-source suppliers for key components of its Waterlase systems[83](index=83&type=chunk)[800](index=800&type=chunk) - **Debt Covenants:** Failure to comply with financial covenants in its Credit Agreement with SWK could result in an event of default and acceleration of debt repayment[98](index=98&type=chunk)[122](index=122&type=chunk) [Unresolved Staff Comments](index=37&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved comments from the SEC staff - There are no unresolved staff comments[237](index=237&type=chunk) [Properties](index=37&type=section&id=Item%202.%20Properties) As of December 31, 2022, BIOLASE leased approximately **52,000 square feet** globally, including its Lake Forest headquarters and Corona manufacturing facility, deemed sufficient for current operations - The company leases its corporate headquarters in Lake Forest, CA (approx. **12,000 sq. ft.**) and its manufacturing facility in Corona, CA (approx. **26,000 sq. ft.**)[238](index=238&type=chunk) [Legal Proceedings](index=37&type=section&id=Item%203.%20Legal%20Proceedings) BIOLASE is involved in ongoing legal proceedings, notably a January 2023 patent infringement lawsuit filed by PIPStek, LLC concerning its Waterlase product, which the company intends to defend - On January 4, 2023, PIPStek, LLC (a Sonendo, Inc. subsidiary) filed a lawsuit against BIOLASE alleging patent infringement by the Waterlase dental laser product[213](index=213&type=chunk) - The company establishes reserves for legal actions deemed probable and estimable, but notes that the ultimate outcomes are uncertain[239](index=239&type=chunk) [Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[241](index=241&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=39&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) BIOLASE's common stock trades on NASDAQ under "BIOL", with no anticipated cash dividends due to growth retention and credit agreement restrictions - The company's common stock trades on the NASDAQ Capital Market under the symbol **"BIOL"**[216](index=216&type=chunk) - The company does not expect to pay cash dividends in the foreseeable future and is restricted from doing so by its credit agreement[216](index=216&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights a **24%** revenue increase to **$48.5 million** in 2022, but a widened net loss of **$28.6 million** due to higher expenses and inventory charges, raising substantial doubt about the company's going concern ability - The company's financial condition, including recurring losses and negative cash flow, raises substantial doubt about its ability to continue as a going concern[311](index=311&type=chunk) - As of December 31, 2022, the company had **$4.2 million** in cash and cash equivalents, a significant decrease from **$29.97 million** at the end of 2021[336](index=336&type=chunk)[427](index=427&type=chunk) - Recent developments include the acquisition of Med-Fiber LLC in September 2022 and a public equity raise of approximately **$9.9 million** in January 2023[220](index=220&type=chunk)[672](index=672&type=chunk) [Results of Operations](index=45&type=section&id=Item%207.%20MD%26A-Results%20of%20Operations) Net revenue grew **24%** in 2022 and **72%** in 2021, but gross profit decreased in 2022 due to an inventory charge, leading to a significantly widened net loss of **$28.6 million** - Comparison of Results: 2022 vs. 2021 (in millions) | Metric | 2022 (in millions) | 2021 (in millions) | Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Revenue | $48.5 | $39.2 | +$9.3 | +24% | | Gross Profit | $15.9 | $16.5 | -$0.6 | -4% | | Operating Expenses | $41.2 | $33.0 | +$8.2 | +25% | | Net Loss | ($28.6) | ($16.2) | ($12.4) | +77% | - **2022 vs 2021:** The **24% revenue increase** was driven by higher adoption and a new OEM product. The net loss widened due to a **$2.7 million inventory charge**, higher sales & marketing expenses (**$6.3 million increase**), and increased interest expense[295](index=295&type=chunk)[296](index=296&type=chunk)[324](index=324&type=chunk)[326](index=326&type=chunk) - **2021 vs 2020:** The **72% revenue increase** was primarily due to the recovery from COVID-19 pandemic restrictions. Gross profit margin improved from **27% to 42%** due to higher sales volume, better absorption of fixed costs, and a CARES Act employee retention credit[276](index=276&type=chunk)[329](index=329&type=chunk) [Liquidity and Capital Resources](index=49&type=section&id=Item%207.%20MD%26A-Liquidity%20and%20Capital%20Resources) The company's liquidity is a major concern, with cash and cash equivalents decreasing to **$4.2 million** by year-end 2022 due to **$26.8 million** in operating cash outflow, raising substantial doubt about its going concern ability - Consolidated Cash Flows (in thousands) | Activity | 2022 (in thousands) | 2021 (in thousands) | 2020 (in thousands) | | :--- | :--- | :--- | :--- | | Operating Activities | ($26,761) | ($16,710) | ($12,795) | | Investing Activities | ($3,727) | ($707) | ($96) | | Financing Activities | $4,603 | $29,954 | $24,349 | - Cash used in operating activities in 2022 was **$26.8 million**, primarily driven by the net loss of **$28.6 million** and a **$5.8 million increase in inventory**[346](index=346&type=chunk) - Cash provided by financing activities in 2022 was **$4.6 million**, mainly from a **$5.6 million direct offering**, offset by a **$1.0 million loan repayment**[347](index=347&type=chunk) - Contractual Obligations as of Dec 31, 2022 (in thousands) | Obligation | Total (in thousands) | Less Than 1 Year (in thousands) | 1 to 3 Years (in thousands) | 3 to 5 Years (in thousands) | More Than 5 Years (in thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating lease obligations | $2,239 | $833 | $1,406 | $— | $— | | Purchase obligations | $29,079 | $28,165 | $914 | $— | $— | | Loan principal & interest | $19,096 | $2,563 | $16,285 | $18 | $230 | | **Total** | **$50,414** | **$31,561** | **$18,605** | **$18** | **$230** | [Financial Statements and Supplementary Data](index=53&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section incorporates by reference the company's consolidated financial statements and the independent registered public accounting firm's report, located at the end of the Form 10-K - All required financial statements are listed in Part IV, Item 15 and begin on page F-1 of the report[323](index=323&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=53&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reported no changes in or disagreements with its accountants regarding accounting and financial disclosure - None reported[376](index=376&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures, along with internal control over financial reporting, were effective as of December 31, 2022, with no material changes during the fourth quarter - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2022[353](index=353&type=chunk) - Management concluded that internal control over financial reporting was effective as of December 31, 2022, based on the COSO Framework (2013)[354](index=354&type=chunk) [Other Information](index=54&type=section&id=Item%209B.%20Other%20Information) The company reported no other information for this item - None[356](index=356&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=55&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) This section incorporates by reference information on directors, executive officers, and corporate governance from the 2023 Proxy Statement, with the Code of Business Conduct and Ethics available online - Information regarding directors and corporate governance is incorporated by reference from the 2023 Proxy Statement[359](index=359&type=chunk) - The company's Code of Business Conduct and Ethics applies to all employees, officers, and directors[382](index=382&type=chunk) [Executive Compensation](index=55&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive and director compensation is incorporated by reference from the company's 2023 Proxy Statement - Details on executive compensation are incorporated by reference from the 2023 Proxy Statement[383](index=383&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=55&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section incorporates security ownership information from the 2023 Proxy Statement and details equity compensation plans, including the 2018 Long-Term Incentive Plan, with **994,000** securities to be issued as of December 31, 2022 - Equity Compensation Plan Information as of December 31, 2022 | Plan Category | Securities to be Issued Upon Exercise/Vesting | Weighted-Average Exercise Price of Options | Securities Remaining for Future Issuance | | :--- | :--- | :--- | :--- | | Approved by Stockholders | 994,000 | $15.36 | 55,000 | | Not Approved by Stockholders | — | — | — | | **Total** | **994,000** | **$15.36** | **55,000** | - The company's stockholders approved the 2018 Long-Term Incentive Plan, which replaced the 2002 Stock Incentive Plan for future equity awards[385](index=385&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=56&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships, related-party transactions, and director independence is incorporated by reference from the company's 2023 Proxy Statement - Details on related transactions and director independence are incorporated by reference from the 2023 Proxy Statement[387](index=387&type=chunk) [Principal Accountant Fees and Services](index=56&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding fees paid to the principal accountant and services rendered is incorporated by reference from the company's 2023 Proxy Statement - Information on principal accountant fees and services is incorporated by reference from the 2023 Proxy Statement[388](index=388&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=57&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section provides an index of financial statements, schedules, and exhibits filed with the Annual Report on Form 10-K, including various corporate and debt agreements - This section provides an index of all financial statements, schedules, and exhibits filed with the 10-K[402](index=402&type=chunk) [Form 10-K Summary](index=58&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company indicates no Form 10-K summary is provided in this report - None provided[391](index=391&type=chunk)

BIOLASE, Inc. (NASDAQ:BIOL) Q3 2022 Earnings Conference Call November 10, 2022 4:30 PM ET Company Participants Todd Kehrli - Investor Relations John Beaver - President and Chief Executive Officer Jennifer Bright - Chief Financial Officer Conference Call Participants Kyle Bauser - Lake Street Capital Markets Anthony Vendetti - the Maxim Group Bruce Jackson - The Benchmark Company Operator Good day and welcome to the BIOLASE Third Quarter 2022 Financial Results Conference Call. Please note, this call is being ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading symbol(s) Name of each exchange on which registered Common stock at par value $0.001 per share BIOL The NASDAQ Stock Market LLC (NASDAQ Capital Market) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transiti ...

BIOLASE, Inc. (OTCQB:BIOL) Q2 2022 Earnings Conference Call August 11, 2022 4:30 PM ET Company Participants Todd Kehrli - EVC Group John Beaver - President, CEO & Director Jennifer Bright - CFO Conference Call Participants Kyle Bauser - Lake Street Capital Markets Anthony Vendetti - Maxim Group Ed Woo - Ascendiant Capital Markets Operator Good day, and welcome to the BIOLASE Second Quarter 2022 Financial Results Conference Call. [Operator Instructions]. Please note, this event is being recorded. I would now ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading symbol(s) Name of each exchange on which registered Common stock at par value $0.001 per share BIOL The NASDAQ Stock Market LLC (NASDAQ Capital Market) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition pe ...

Company Overview - BIOLASE is a global leader in dental lasers, with over 43,000 laser systems sold in 80 countries[3,4] - The company possesses a large IP portfolio, including 301 issued and 32 pending patents, valued at $30 million[4,5] Market Opportunity & Growth Strategy - Only 7% to 8% of U.S dental practices currently incorporate all-tissue lasers, representing a significant growth opportunity[4,6] - Every additional 1% increase in U.S adoption of all-tissue lasers could generate over $50 million in new revenue for BIOLASE[4,10] - Targeted growth strategies focus on penetrating the DSO, pediatric, periodontics, endodontics, hygiene, and general practice markets[10] - Increased marketing, education, and training efforts are driving increased sales, with over 78% of U.S Waterlase sales in 2021 generated from new customers and over 40% coming from dental specialists[22] Clinical & Safety Advantages - Minimally invasive Waterlase REPAIR protocols achieve superior patient outcomes with equivalent clinical results to open flap techniques[12,16] - Waterlase dentistry uses 80% less water than traditional handpieces, reducing the risk of cross-contamination due to aerosol production[21] Financial Performance - Revenue increased 25% year-over-year to $10.2 million for the three months ended March 31, 2022[27,28] - Gross margin was 47%, up 12,700 basis points, due to higher revenue and average selling prices[27,28] - The company maintained a strong balance sheet with $22 million in cash and cash equivalents as of March 31, 2022[27,28]

BIOLASE, Inc. (OTCQB:BIOL) Q1 2022 Earnings Conference Call May 12, 2022 4:30 PM ET Company Participants Todd Kehrli - Investor Relations, EVC Group John Beaver - President and Chief Executive Officer Jennifer Bright - Vice President of Finance Conference Call Participants Bruce Jackson - The Benchmark Company Matt Bullock - Maxim Group Kyle Bauser - Lake Street Operator Good day, and welcome to the BIOLASE First Quarter 2022 Results Conference Call. All participants will be in a listen-only mode. [Operato ...

4 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading symbol(s) Name of each exchange on which registered FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: ...

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $12.4 million, representing 46% growth year-over-year, and finished 2021 with total revenue of $39.2 million, up 72% year-over-year [9][21] - Gross margin improved significantly to 40%, a 2,100 basis points expansion year-over-year, reflecting increased sales and favorable absorption of fixed expenses [24] - GAAP net loss for the quarter was $5.3 million or $0.03 per share, compared to a net loss of $6.1 million or $0.07 per share for the fourth quarter of 2020 [26] Business Line Data and Key Metrics Changes - US laser system sales increased 39% compared to 2020 and 61% compared to 2019, while US consumable sales increased 40% compared to 2020 and 75% compared to 2019 [22] - International laser system sales increased 87% compared to 2020 but were down 11% compared to 2019, and international consumable sales increased 29% compared to 2020 and 61% compared to 2019 [22] Market Data and Key Metrics Changes - BIOLASE owns approximately 60% of the all-tissue laser dental market, but the penetration rate of dental lasers in the overall dental market is only about 7% in the US and less than 2% worldwide [10] - Each 1% increase in adoption of all-tissue laser technology in the US could equal $50 million in additional revenue for BIOLASE, assuming the same 60% historical market share [10] Company Strategy and Development Direction - The company has a 3-pronged growth strategy focusing on dental specialists, general practitioners, and corporate dentists to drive market penetration [11][16] - The first prong involves forming specialist academies to increase awareness among dental specialists, which has resulted in at least a third of total US Waterlase revenue coming from specialists [12] - The second prong includes the Waterlase exclusive trial program, which allows general practitioners to trial the laser at no cost, with a goal of increasing the win rate for sales [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive sustainable and profitable revenue growth in 2022 and beyond, citing a well-developed roadmap for growth [20][56] - The company is forecasting revenue for the first quarter of 2022 to exceed $9 million, representing growth of at least 11% year-over-year, and anticipates a minimum of 10% revenue increase for the full year [28] Other Important Information - The company plans to ask shareholders for approval of a reverse stock split to meet NASDAQ listing requirements and attract more institutional investors [30][31] - Management acknowledged inflationary pressures impacting costs but decided to hold pricing firm in 2022 to accelerate laser adoption in dentistry [46] Q&A Session Summary Question: Is the company still considering a reverse stock split? - Yes, the company plans to ask shareholders for approval of a reverse stock split to achieve the minimum stock price required by NASDAQ [30][31] Question: What are the company's plans for the next five years and strategy to increase revenue? - The company believes it has a large market opportunity and a well-developed roadmap for growth leveraging its product offerings, with a 3-pronged growth plan already generating positive results [32] Question: What is the plan to increase shareholder returns? - The company plans to execute its growth plan to increase penetration of laser technology in the dental market, expecting profitability by the end of 2023 [33] Question: How has access to dental offices been affected by the Omicron wave? - Access to dental offices has improved, and while there were some cancellations in January and February, the company is back on track [35] Question: How was the guidance for 2022 determined? - The guidance considers the potential contribution from EdgePRO and is somewhat conservative due to current global events and inflation [38] Question: What is the company's strategy regarding dental service organizations (DSOs)? - The company is working with several DSOs, focusing on retraining and identifying practices that previously used legacy lasers [50]

| --- | --- | --- | |-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Safe Harbor Statement Statements made in this presentation and during discussions with BIOLASE representative's that refer to BIOLASE's estimated or anticipated future results or other non-historical facts are forward-looking statements, as are any statements its representatives make concerning BIOLASE's strategic initiatives, anticipated financial performance and product lau ...