Sonendo Inc., the Laguna Hills-based maker of dental equipment, has been struggling to stay afloat.
The company, known for its trademarked GentleWave root canal therapy solution, has been undergoing a financial restructuring since being delisted last year from the New York Stock Exchange.
“We have significantly improved the liquidity profile of the company, and we expect to deliver additional gross margin expansion and further reductions in operating losses and free cash flow burn in 2025,” Chief Executive and President Bjarne Bergheim said in a statement.
Earlier this month, Sonendo reported that first quarter sales climbed 5% to $7.4 million while its adjusted EBITDA loss narrowed to $3.9 million. The company said it reduced its quarterly operating cash burn by 58% to $4.5 million.
The company on June 4 forecast revenue this year of $31 million to $32 million, implying flat growth from 2024. It’s also projecting an adjusted EBITDA loss of $11 million to $14 million and expects to burn $12 million to $15 million this year.
It had $7.2 million in cash and short-term investments as of March 31. It’s also adding another net $4.7 million from a private placement investment that will go toward the company’s cost restructuring program.
Shares in Sonendo rose as much as 32% to a high of $1.50 in the two trading sessions following the May 1 announcement. At press time, the stock traded around $1.15 with a $500,000 market cap (OTCPK: SONX).
Loses Bid to Buy Biolase
Following Sonendo’s delisting from the NYSE, the company began trading on the OTXQX Best Market.
The company, in its 10-K annual report, gave an update on its $14 million purchase agreement to acquire the assets of Foothill Ranch-based Biolase Inc. after it filed for Chapter 11 bankruptcy. Sonendo in 2023 sued Biolase, alleging violation of two patents involving laser technologies for dental applications.
Sonendo was initially selected as the stalking horse bidder for Biolase, but a subsequent auction last November resulted in South Korean dental implant company MegaGen Implant Co. emerging as the winning bidder.
Sonendo also sold the assets of its software segment, comprised of TDO Software, to Quebec company Valsoft Corporation Inc. for approximately $16 million.
“Moving forward, this divestiture allows Sonendo to focus solely on growing awareness and adoption of the GentleWave procedure,” Bergheim said in a statement.
Shares Down 90% Since IPO
Sonendo was founded in 2006 by Bergheim and his father, Olav Bergheim, who still sits on the board. Olav Bergheim is a longtime OC entrepreneur who co-founded the ophthalmic device company Glaukos Corp. (NYSE: GKOS) in Aliso Viejo, which is now valued at $5.7 billion.
In 2017, the company received Food and Drug Administration approval for its GentleWave system, which uses fluids to flush the entire canal of the tooth without the need to remove tooth structure.
Sonendo went public in 2021 when it raised $93.6 million. Since going public, Sonendo’s shares have fallen more than 90%.
