Biolase (BIOLQ) 10-Q 4 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 30, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Trading Symbol	BIOL
Entity Registrant Name	BIOLASE, INC
Entity Central Index Key	811,240
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		102,380,238

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 8,479	$ 11,645
Restricted cash equivalent	251	251
Accounts receivable, less allowance of $997 in 2018 and $802 in 2017	9,739	10,124
Inventory, net	13,401	12,298
Prepaid expenses and other current assets	1,714	1,732
Total current assets	33,584	36,050
Property, plant, and equipment, net	3,424	3,674
Goodwill	2,926	2,926
Other assets	450	334
Total assets	40,384	42,984
Current liabilities:
Accounts payable	5,785	5,109
Accrued liabilities	5,119	5,609
Customer deposits	41	27
Deferred revenue, current portion	2,187	2,625
Total current liabilities	13,132	13,370
Lines of credit	1,823
Deferred income taxes, net	106	104
Deferred revenue, long-term	8	11
Loan payable, long-term	111
Warranty accrual, long-term	124	70
Other liabilities, long-term	143	169
Total liabilities	15,447	13,724
Commitments, contingencies, and subsequent event (Notes 10 and 14)
Stockholders' equity:
Preferred stock, par value $0.001 per share; 1,000,000 shares authorized; 0 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively
Common stock, par value $0.001 per share; 200,000,000 shares authorized, 102,380,238 and 102,339,682 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively	102	102
Additional paid-in-capital	225,524	224,910
Accumulated other comprehensive loss	(492)	(576)
Accumulated deficit	(200,197)	(195,176)
Total stockholders' equity	24,937	29,260
Total liabilities and stockholders' equity	$ 40,384	$ 42,984

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Allowance for accounts receivable	$ 997	$ 802
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	102,380,238	102,339,682
Common stock, shares outstanding	102,380,238	102,339,682

Consolidated Statements Of Oper

Consolidated Statements Of Operations And Comprehensive Loss (Unaudited) - USD ($) shares in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Products and services revenue	$ 10,017,000	$ 10,842,000
License fees and royalty revenue	3,000	32,000
Net revenue	10,020,000	10,874,000
Cost of revenue	6,987,000	6,921,000
Gross profit	3,033,000	3,953,000
Operating expenses:
Sales and marketing	3,891,000	4,184,000
General and administrative	3,037,000	2,416,000
Engineering and development	1,289,000	1,429,000
Total operating expenses	8,217,000	8,029,000
Loss from operations	(5,184,000)	(4,076,000)
Gain (loss) on foreign currency transactions	207,000	(1,000)
Interest expense (income), net	(12,000)	9,000
Non-operating income, net	195,000	8,000
Loss before income tax provision	(4,989,000)	(4,068,000)
Income tax provision	32,000	40,000
Net loss	(5,021,000)	(4,108,000)
Other comprehensive income item:
Foreign currency translation adjustment	84,000	30,000
Comprehensive loss	$ (4,937,000)	$ (4,078,000)
Net loss per share:
Basic	$ (0.05)	$ (0.06)
Diluted	$ (0.05)	$ (0.06)
Shares used in the calculation of net loss per share:
Basic	102,347	67,583
Diluted	102,347	67,583

Consolidated Statements Of Cash

Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash Flows from Operating Activities:
Net loss	$ (5,021)	$ (4,108)
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities:
Depreciation and amortization	264	290
Provision for bad debts, net	200	10
Provision for inventory excess and obsolescence		225
Amortization of discounts on lines of credit	4
Amortization of debt issuance costs	7
Stock-based compensation	701	379
Deferred income taxes	2	15
Earned interest income, net	(1)	(9)
Changes in operating assets and liabilities:
Accounts receivable	186	564
Inventory	(1,103)	(1,395)
Prepaid expenses and other current assets	(34)	146
Customer deposits	14	(7)
Accounts payable and accrued liabilities	460	(885)
Deferred revenue	(441)	(347)
Net cash and cash equivalents used in operating activities	(4,762)	(5,122)
Cash Flows from Investing Activities:
Purchases of property, plant, and equipment	(102)	(208)
Net cash and cash equivalents used in investing activities	(102)	(208)
Cash Flows from Financing Activities:
Principal payments under capital lease obligation	(46)	(43)
Borrowings under lines of credit	1,823
Payments of debt issue costs	(74)
Payments of equity offering costs	(81)
Proceeds from exercise of stock options	2
Net cash and cash equivalents provided by (used in) financing activities	1,624	(43)
Effect of exchange rate changes	74	25
Decrease in cash, cash equivalents and restricted cash	(3,166)	(5,348)
Cash, cash equivalents and restricted cash, beginning of period	11,896	9,175
Cash, cash equivalents and restricted cash, end of period	8,730	3,827
Supplemental cash flow disclosure - Cash Paid:
Interest paid		1
Income taxes paid	24	7
Supplemental cash flow disclosure - Non-cash:
Accrued capital expenditures and tenant improvement allowance	$ 4	$ 174

Description of Business and Bas

Description of Business and Basis of Presentation	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Description of Business and Basis of Presentation	NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION The Company BIOLASE, Inc. (“BIOLASE” and, together with its consolidated subsidiaries, the “Company”), incorporated in Delaware in 1987, is a medical device company that develops, manufactures, markets, and sells laser systems in dentistry and medicine and also markets, sells, and distributes dental imaging equipment, including three-dimensional CAD/CAM intra-oral scanners and digital dentistry software. Basis of Presentation The unaudited consolidated financial statements include the accounts of BIOLASE and its wholly-owned subsidiaries and have been prepared on a basis consistent with the December 31, 2017 audited consolidated financial statements and include all material adjustments, consisting of normal recurring adjustments and the elimination of all material intercompany transactions and balances, necessary to fairly present the information set forth therein. These unaudited, interim, consolidated financial statements do not include all the footnotes, presentations, and disclosures normally required by accounting principles generally accepted in the United States of America (“GAAP”) for complete consolidated financial statements. Certain amounts have been reclassified to conform to current period presentations. The consolidated results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results for the full year. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2017, included in BIOLASE’s Annual Report on Form 10-K for the year ended December 31, 2017 filed with the Securities and Exchange Commission (the “SEC”) on March 14, 2018 (the “2017 Form 10-K”). Liquidity and Management’s Plans The Company incurred a loss from operations, incurred a net loss, and used cash in operating activities for the three months ended March 31, 2018. The Company also suffered recurring losses from operations during the three years ended December 31, 2017. The Company’s recurring losses, level of cash used in operations, and potential need for additional capital, along with uncertainties surrounding the Company’s ability to raise additional capital, raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. On March 6, 2018, BIOLASE and two of its wholly-owned subsidiaries entered into a Business Financing Agreement (the “Business Financing Agreement”) with Western Alliance Bank (“Western Alliance”), which provides for borrowings of up to $6.0 million. The Company had approximately $1.8 million of borrowings outstanding under these lines of credit as of March 31, 2018. See Note 9 – Lines of Credit for additional information. As of March 31, 2018, the Company had working capital of approximately $20.5 million. The Company’s principal sources of liquidity as of March 31, 2018 consisted of approximately $8.7 million in cash and cash equivalents, and restricted cash and $9.7 million of accounts receivable. In order for the Company to continue operations beyond the next 12 months and be able to discharge its liabilities and commitments in the normal course of business, the Company must increase sales of its products directly to end-users and through distributors, establish profitable operations through the combination of increased sales and decreased expenses, generate cash from operations or obtain additional funds when needed. The Company intends to improve its financial condition and ultimately improve its financial results by increasing revenues through expansion of its product offerings, continuing to expand and develop its field sales force and distributor relationships, both domestically and internationally, forming strategic arrangements within the dental and medical industries, educating dental and medical patients as to the benefits of its advanced medical technologies, and reducing expenses. Additional capital requirements may depend on many factors, including, among other things, continued losses, the rate at which the Company’s business grows, demands for working capital, manufacturing capacity, and any acquisitions that the Company may pursue. From time to time, the Company could be required, or may otherwise attempt, to raise capital, through either equity or debt offerings, or enter into an additional line of credit facility. As discussed in Note 9, on March 6, 2018, BIOLASE entered into the Business Financing Agreement, providing for a secured line of credit. The Company cannot provide assurance that it will be able to successfully consummate any equity or debt financings, or enter into any other line of credit facility in the future. The Company also cannot provide assurance that the required capital would be available on acceptable terms, if at all, or that any such financing activity would not be dilutive to the Company’s stockholders.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of these consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect amounts reported in the consolidated financial statements and the accompanying notes. Significant estimates in these consolidated financial statements include allowances on accounts receivable, inventory, and deferred taxes, as well as estimates for accrued warranty expenses, the ability of goodwill to be realized, revenue deferrals, effects of stock-based compensation and warrants, contingent liabilities, and the provision or benefit for income taxes. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may differ materially from those estimates. Critical Accounting Policies Information with respect to the Company’s critical accounting policies, which management believes could have the most significant effect on the Company’s reported results and require subjective or complex judgments by management is contained in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of the 2017 Form 10-K. Management believes that there have been no significant changes during the three months ended March 31, 2018 in the Company’s critical accounting policies from those disclosed in Item 7 of the 2017 Form 10-K. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market (or, if none exists, the most advantageous market) for the specific asset or liability at the measurement date (referred to as the “exit price”). The fair value is based on assumptions that market participants would use, including a consideration of nonperformance risk. Under the accounting guidance for fair value hierarchy there are three levels of measurement inputs. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs reflect input other than quoted prices included in Level 1 that are observable, either directly or through collaboration with observable market data, other than Level 1. Level 3 inputs are unobservable due to little or no corroborating market data. The Company’s financial instruments, consisting of cash, cash equivalents and restricted cash, accounts receivable, accounts payable, and accrued liabilities, approximate fair value because of the short maturity of these items. Recent Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined not to be applicable or are expected to have minimal impact on the Company’s consolidated financial position and results of operations. Adopted Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein. ASU 2014-09 supersedes existing guidance on revenue recognition with a five-step model for recognizing and measuring revenue from contracts with customers. The objective of the new standard is to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries, and across capital markets. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance also requires a number of disclosures regarding the nature, amount, timing, and uncertainty of revenue and the related cash flows. The guidance can be applied retrospectively to each prior reporting period presented (full retrospective method) or retrospectively with a cumulative effect adjustment to retained earnings for initial application of the guidance at the date of initial adoption (modified retrospective method). The Company adopted the new standard effective January 1, 2018 using the modified retrospective method applied to those contracts that were not completed or substantially completed as of January 1, 2018. The timing and measurement of revenue recognition under the new standard is not materially different than under the old standard. The adoption of the new standard did not have an impact on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) (“ASU 2016-15”). The updated standard addresses eight specific cash flow issues with the objective of reducing diversity in practice. ASU 2016-15 is effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. Early adoption is permitted. The Company adopted ASU 2016-15 as of January 1, 2018. The adoption of ASU 2016-15 did not have an impact on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) (“ASU 2016-18”). The updated standard requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718) (“ASU 2017-09”). The updated standard clarifies when an entity must apply modification accounting to changes in the terms or conditions of a share-based payment award. ASU 2017-09 is effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. Early adoption is permitted. The Company adopted ASU 2017-09 as of January 1, 2018. The adoption of ASU 2017-09 did not have a material effect on the Company’s consolidated financial statements. Recently Issued Accounting Standards In February 2016, FASB issued ASU 2016-02, Leases (“ASU 2016-02”). The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact of its pending adoption of ASU 2016-02 on its consolidated financial statements. In July 2017, FASB issued ASU 2017-11 (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception (“ASU 2017-11”). The new standard simplifies the accounting for certain financial instruments with down round features. Part I of ASU 2017-11 changes the classification analysis of certain equity-linked financial instruments, such as warrants and embedded conversion features, such that a down round feature is disregarded when assessing whether the instrument is indexed to an entity’s own stock under Subtopic 815-40, Contracts in Entity’s Own Equity. As a result, a down round feature, by itself, no longer requires an instrument to be remeasured at fair value through earnings each period, although all other aspects of the indexation guidance under Subtopic 815-40 continue to apply. Part II of ASU 2017-11 recharacterizes the indefinite deferral of certain provisions of Topic 480, Distinguishing Liabilities from Equity, (currently presented as pending content in the Codification) as a scope exception. No change in practice is expected as a result of these amendments. The new standard is effective for fiscal years beginning after December 15, 2018, Early adoption is permitted. The amendments in Part II have no accounting impact and therefore do not have an associated effective date. The Company is currently evaluating the impact of its pending adoption of ASU 2017-11 on its consolidated financial statements.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2018
Revenue Recognition [Abstract]
Revenue Recognition	NOTE 3 – REVENUE RECOGNITION Contracts with Customers Revenue for sales of products and services is derived from contracts with customers. The products and services promised in contracts include delivery of laser systems, imaging systems, and consumables as well as certain ancillary services such as training and extended warranties. Contracts with each customer generally state the terms of the sale, including the description, quantity and price of each product or services. Payment terms are stated in the contract and vary according to the arrangement. Because the customer typically agrees to a stated rate and price in the contract that does not vary over the life of the contract, the Company’s contracts do not contain variable consideration. The Company establishes a provision for estimated warranty reserves. For further information on warranty, see Note 8 – Accrued Liabilities Performance Obligations At contract inception, the Company assesses the products and services promised in its contracts with customers. The Company then identifies performance obligations to transfer distinct products or services to the customers. In order to identify performance obligations, the Company considers all of the products or services promised in contracts regardless of whether they are explicitly stated or are implied by customary business practices. Revenue from products and services transferred to customers at a single point in time accounted for 83% of net revenue for the three-month period ended March 31, 2018. The majority of the Company’s revenue recognized at a point in time is for the sale laser systems, imaging systems, and consumables. Revenue from these contracts is recognized when the customer is able to direct the use of and obtain substantially all of the benefits from the product which generally coincides with title transfer during the shipping process. Revenue from services transferred to customers over time accounted for 17% of net revenue for the three-month period ended March 31, 2018. The majority of the Company’s revenue that is recognized over time relates to training and extended warranties. Transaction Price Allocation The transaction price for a contract is allocated to each distinct performance obligation and recognized as revenue when, or as, each performance obligation is satisfied. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using the best estimate of the standalone selling price of each distinct good or service in a contract. The primary method used to estimate standalone selling price is the observable price when the good or service is sold separately in similar circumstances and to similar customers. Significant Judgments Revenue is recorded for extended warranty over time as the customer benefits from the warranty coverage. This revenue will be recognized equally throughout the contract period as the customer receives benefits from the Company's promise to provide such services. Revenue is recorded for training as the customer attends a training program or upon the expiration of the obligation. The Company also has contracts that include both the product sales and training as performance obligations. In those cases, the Company records revenue for product at the point in time when the product has been shipped. The customer obtains control of the product when it is shipped, as all shipments are made FOB shipping point, and Accounts Receivable Accounts receivable are stated at estimated net realizable value. The allowance for doubtful accounts is based on an analysis of customer accounts and the Company’s historical experience with accounts receivable write-offs. Contract Liabilities The Company performs its obligations under a contract with a customer by transferring products and/or services in exchange for consideration from the customer. The Company typically invoices its customers as soon as control of an asset is transferred and a receivable for the Company is established. The Company, however, recognizes a contract liability when a customer prepays for goods and/or services and the Company has not transferred control of the goods and/or services. The opening and closing balances of the Company’s contract liabilities are as follows (in thousands): March 31, December 31, 2018 2017 Undelivered elements (training and product and support services; installation for 2017) $ 583 $ 980 Extended warranty contracts 1,592 1,634 Deferred royalties 20 22 Total deferred revenue 2,195 2,636 Less long-term amounts: Deferred royalties 8 11 Total deferred revenue - long-term 8 11 Total deferred revenue - current $ 2,187 $ 2,625 The balance of contract assets was immaterial as the Company did not have a significant amount of uninvoiced receivables in the periods ended March 31, 2018 and December 31, 2017. The amount of revenue recognized during the period that was included in the opening contract liability balance related to undelivered elements was $502,000, related to extended warranty contracts was $648,000 and deferred royalties was $3,000. Disaggregation of Revenue The Company disaggregates revenue from contracts with customers into geographical regions and by the timing of when goods and services are transferred. The Company determined that disaggregating revenue into these categories depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by regional economic factors. The Company’s revenues related to the following geographic areas were as follows for the periods indicated (in thousands): Three Months Ended March 31, 2018 2017 United States $ 5,693 $ 6,843 International 4,327 4,031 $ 10,020 $ 10,874 Information regarding revenues disaggregated by the timing of when goods and services are transferred is as follows (in thousands): Three months ended March 31, 2018 Revenue recognized over time $ 1,697 Revenue recognized at a point in time 8,323 Total $ 10,020 The Company’s sales by end market were as follows for the periods indicated (in thousands): Three months ended March 31, 2018 2017 End-customer $ 6,107 $ 7,145 Distributors 3,913 3,729 $ 10,020 $ 10,874 The Company acts as the principal in all its imaging equipment distribution sales. The Company takes possession and control of the equipment before they are sold and transferred to the customer. The Company provides the equipment and any related services directly to the customer. The Company has inventory risk before the equipment is transferred to a customer. The Company purchases and obtains the goods before obtaining a contract with a customer. The Company also has discretion in establishing the price sold to the customer for the equipment. The percentages of the Company’s sales by product line were as follows for the periods indicated: Three months ended March 31, 2018 2017 Waterlase (laser systems) 35.0 % 39.9 % Diodes (laser systems) 22.0 % 22.0 % Imaging systems 5.8 % 5.7 % Consumables and other 20.3 % 15.6 % Services 16.9 % 16.5 % License fees and royalties — % 0.3 % 100.0 % 100.0 % Shipping and Freight Costs Shipping and freight costs are treated as fulfillment costs. For shipments to end-customers, the customer bears the shipping and freight costs and has control of the product upon shipment. For shipments to distributors, the distributor bears the shipping and freight costs, including insurance, tariffs and other import/export costs. Practical Expedients For the period ended March 31, 2018, the Company elected the following practical expedients: In accordance with Subtopic 340-40 "Other Assets and Deferred Costs - Contracts with Customers,” the Company elected to expense the incremental costs of obtaining a contract when the amortization period for such contracts would have been one year or less. The Company has made an accounting policy election to exclude all taxes by governmental authorities from the measurement of the transaction price.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Stockholders' Equity	NOTE 4—STOCKHOLDERS’ EQUITY Stock-Based Compensation The Company currently has one stock-based compensation plan, the 2002 Stock Incentive Plan (as amended effective as of May 26, 2004, November 15, 2005, May 16, 2007, May 5, 2011, June 6, 2013, October 30, 2014, April 27, 2015, and May 6, 2016) (the “2002 Plan”), which will expire on May 5, 2019. Persons eligible to receive awards under the 2002 Plan include officers, employees, and directors of the Company, as well as consultants. As of March 31, 2018, a total of 15.6 million shares of BIOLASE common stock have been authorized for issuance under the 2002 Plan, of which 4.0 million shares of BIOLASE common stock have been issued pursuant to options that were exercised and restricted stock units (“RSUs”) that were settled in common stock, 10.8 million shares of BIOLASE common stock have been reserved for outstanding options and unvested RSUs, and 0.8 million shares of BIOLASE common stock remain available for future grants. The Company recognized stock-based compensation expense of $0.7 million and $0.4 million, for the three months ended March 31, 2018 and 2017, respectively , The following table summarizes the income statement classification of compensation expense associated with share-based payments (in thousands): Three Months Ended March 31, 2018 2017 Cost of revenue $ 57 $ 40 Sales and marketing 80 73 General and administrative 467 193 Engineering and development 97 73 $ 701 $ 379 The stock option fair values, under the 2002 Plan, were estimated using the Black-Scholes option-pricing model with the following assumptions: Three Months Ended March 31, 2018 2017 Expected term 5.9 years 5.8 years Volatility 81.4 % 79.4 % Annual dividend per share $ — $ — Risk-free interest rate 2.46 % 1.98 % A summary of option activity under the 2002 Plan for the three months ended March 31, 2018 is as follows (in thousands, except per share data) Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Shares Exercise Price Term (Years) Value(1) Options outstanding, December 31, 2017 6,737 $ 1.80 7.21 $ — Granted at fair market value 2,519 0.42 Exercised (6 ) 0.42 Forfeited, cancelled, or expired (471 ) 3.58 Options outstanding at March 31, 2018 8,779 $ 1.40 7.43 $ — Options exercisable at March 31, 2018 4,264 $ 1.88 5.62 $ — Vested options expired during the quarter ended March 31, 2018 920 $ 2.79 (1) The intrinsic value calculation does not include negative values. This can occur when the fair market value on the reporting date is less than the exercise price of the grant. A summary of unvested stock option activity under the 2002 Plan for the three months ended March 31, 2018 is as follows (in thousands, except per share data): Weighted Average Grant Shares Date Fair Value Unvested options at December 31, 2017 3,283 $ 0.95 Granted 2,519 $ 0.29 Vested (630 ) $ 0.83 Forfeited or cancelled (38 ) $ 1.19 Unvested options at March 31, 2018 5,134 $ 0.69 Cash proceeds, along with fair value disclosures related to grants, exercises, and vested options under the 2002 Plan are as follows for the three months ended March 31 (in thousands, except per share amounts): Three Months Ended March 31, 2018 2017 Proceeds from stock options exercised $ 2 $ — Tax benefit related to stock options exercised (1) N/A N/A Intrinsic value of stock options exercised (2) $ — $ — Weighted-average fair value of options granted during period $ 0.29 $ 1.05 Total fair value of shares vested during the period $ 520 $ 334 (1) Excess tax benefits received related to stock option exercises are presented as financing cash inflows. The Company currently does not receive a tax benefit related to the exercise of stock options due to the Company’s net operating losses. (2) The intrinsic value of stock options exercised is the amount by which the market price of the stock on the date of exercise exceeded the market price of the stock on the date of grant. Effective January 25, 2018, the Compensation Committee of the BIOLASE board of directors (the “Board”) awarded 1.8 million non-qualified stock options to purchase shares of BIOLASE common stock to certain employees of the Company. These awards were valued at $0.42 per share, the closing market price of BIOLASE common stock on the grant date, and expire 10 years from the grant date. The options vest ratably over the 36-month period, commencing on February 25, 2018. Restricted Stock Units E ffective January 26, 2018, the Board issued 200,000 RSUs to the Company’s President and Chief Executive Officer. This award was valued at $0.40 per share, the closing market price of BIOLASE common stock on the grant date, and will vest upon the achievement of specific annual Company performance criteria. A summary of unvested RSU activity under the 2002 Plan for the three months ended March 31, 2018 is as follows Shares Unvested restricted stock units at December 31, 2017 1,789 Granted 223 Vested (35 ) Forfeited or cancelled — Unvested restricted stock units at March 31, 2018 1,977 Warrants The Company issues warrants to acquire shares of BIOLASE common stock as approved by the Board. A summary of warrant activity for the three months ended March 31, 2018 Weighted Average Shares Exercise Price Warrants outstanding, December 31, 2017 6,126 $ 1.93 Granted or Issued 258 $ 0.47 Exercised — $ — Forfeited, cancelled, or expired — $ — Warrants outstanding at March 31, 2018 6,384 $ 1.87 Warrants exercisable at March 31, 2018 6,249 $ 1.82 Vested warrants expired during the quarter ended March 31, 2018 — $ — On March 6, 2018, in connection with the execution of the Business Financing Agreement, the Company issued to Western Alliance warrants (the “Western Alliance Warrants”) to purchase up that number of shares of BIOLASE common stock equal to $120,000 divided by the applicable exercise price at the time such warrants are exercised. The Western Alliance Warrants are fully vested and exercisable. The initial exercise price of the warrants was $0.47 per share, which was the closing market price of BIOLASE common stock on March 6, 2018. See Note 9 – Lines of Credit for further discussion. Net Loss Per Share – Basic and Diluted Basic net income (loss) per share is computed by dividing income (loss) available to common stockholders by the weighted-average number of shares of BIOLASE common stock outstanding for the period. In computing diluted net income (loss) per share, the weighted average number of shares outstanding is adjusted to reflect the effect of potentially dilutive securities. Outstanding stock options, RSUs and warrants to purchase approximately 18.8 million shares were not included in the calculation of diluted loss per share for the three months ended March 31, 2018

Inventory

Inventory	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Inventory	NOTE 5—INVENTORY Inventory is valued at the lower of cost or net realizable value and is comprised of the following (in thousands): March 31, December 31, 2018 2017 Raw materials $ 3,709 $ 3,953 Work-in-process 1,604 1,162 Finished goods 8,088 7,183 Inventory, net $ 13,401 $ 12,298 Inventory is net of a provision for excess and obsolete inventory totaling $1.7 million and $1.9 million as of March 31, 2018 and December 31, 2017, respectively.

Property, Plant, and Equipment

Property, Plant, and Equipment	3 Months Ended
	Mar. 31, 2018
Property Plant And Equipment [Abstract]
Property, Plant, and Equipment	NOTE 6—PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment, net is comprised of the following (in thousands): March 31, December 31, 2018 2017 Building $ 229 $ 220 Leasehold improvements 2,006 2,005 Equipment and computers 6,887 6,883 Furniture and fixtures 634 634 Construction in progress 1,186 1,182 10,942 10,924 Accumulated depreciation and amortization (7,695 ) (7,426 ) 3,247 3,498 Land 177 176 Property, plant, and equipment, net $ 3,424 $ 3,674 Depreciation and amortization expense related to property, plant, and equipment totaled $0.3 million and $0.3 million for the three months ended March 31, 2018 and 2017, respectively.

Intangible Assets and Goodwill

Intangible Assets and Goodwill	3 Months Ended
	Mar. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible Assets And Goodwill	NOTE 7—INTANGIBLE ASSETS AND GOODWILL The Company conducted its annual impairment test of goodwill as of June 30, 2017 and determined that there was no impairment. The Company also tests its intangible assets and goodwill between the annual impairment tests if events occur or circumstances change that would more likely than not reduce the fair value of the Company or its assets below their carrying amounts. For intangible assets subject to amortization, the Company performs its impairment test when indicators, such as reductions in demand or significant economic slowdowns, are present. No events have occurred since June 30, 2017 through the date of these consolidated financial statements that would trigger further impairment testing of the Company’s intangible assets and goodwill. As of March 31, 2018 and December 31, 2017, the Company had goodwill (indefinite life) of $2.9 million. As of March 31, 2018 and December 31, 2017, all intangible assets have been fully amortized. There was no amortization expense for the three months ended March 31, 2018 or 2017.

Accrued Liabilities

Accrued Liabilities	3 Months Ended
	Mar. 31, 2018
Payables And Accruals [Abstract]
Accrued Liabilities and Deferred Revenue	NOTE 8—ACCRUED LIABILITIES Accrued liabilities are comprised of the following (in thousands): March 31, December 31, 2018 2017 Payroll and benefits $ 2,244 $ 2,115 Warranty accrual, current portion 1,090 1,120 Taxes 441 544 Accrued professional services 695 584 Accrued insurance premium 197 870 Other 452 376 Total accrued liabilities $ 5,119 $ 5,609 Changes in the initial product warranty accrual and the expenses incurred under the Company’s initial and extended warranties for the three months ended March 31, 2018 and 2017 are included within accrued liabilities on the Consolidated Balance Sheets and were as follows (in thousands): Three Months Ended March 31, 2018 2017 Initial warranty accrual, beginning balance $ 1,190 $ 1,706 Provision for estimated warranty cost 246 (23 ) Warranty expenditures (222 ) (223 ) 1,214 1,460 Less warranty accrual, long-term 124 487 Total warranty accrual, current portion $ 1,090 $ 973 The Company’s Waterlase laser systems sold worldwide are covered by a warranty against defects in material and workmanship for a period of up to 16 months from the date of sale by the Company or a distributor to the end-user. The Company’s Diode systems sold worldwide are covered by a warranty against defects in material and workmanship for a period of up to 28 months from the date of sale by the Company or a distributor to the end-user.

Lines of Credit

Lines of Credit	3 Months Ended
	Mar. 31, 2018
Line Of Credit Facility [Abstract]
Lines of Credit	NOTE 9—LINES OF CREDIT On March 6, 2018, BIOLASE and two of its wholly-owned subsidiaries (such subsidiaries, together with BIOLASE, the “Borrower”) entered into the Business Financing Agreement. As of March 31, 2018, the Company had outstanding borrowings totaling approximately $1.8 million, including $0.6 million subject to the domestic credit limit and $1.2 million subject to the EXIM credit limit. There were no restricted cash balances as of March 31, 2018. The Company’s obligations are generally secured by substantially all of the Company’s assets. The total amount available under the Business Financing Agreement as of March 31, 2018 was $2.8 million. The Business Financing Agreement requires the Company to maintain compliance with certain financial and non-financial covenants, as defined therein. If a default occurs, Western Alliance may declare the amounts outstanding under the Business Financing Agreement immediately due and payable. As of March 31, 2018, the Company was in compliance with these covenants. Amounts outstanding under the Business Financing Agreement bear interest at a per annum floating rate equal to the greater of 4.5% or the “Prime Rate” published in the Money Rates section of the Western Edition of The Wall Street Journal (or such other rate of interest publicly announced from time to time by Western Alliance as its “Prime Rate”), plus 1.5% with respect to advances made under the line of credit, plus an additional 5.0% during any period that an event of default has occurred and is continuing. The commitment fee under the Business Financing Agreement is 0.25% of the domestic credit limit and 1.75% of the EXIM credit limit and is payable on March 6, 2018 and each anniversary thereof. As of March 31, 2018, the interest rate on both the Domestic Revolver and EXIM Revolver was 6.25%. Pursuant to the Business Financing Agreement, the Company paid the first of two annual commitment fees totaling $67,500, being 0.25% of the aggregate $6.0 million commitment for the Domestic Revolver and 1.75% of the aggregate $3.0 million commitment for the EXIM Revolver. The commitment fees and the legal costs associated with acquiring the credit facilities were capitalized and are being amortized on a straight-line basis as interest expense over the term of the Business Financing Agreement. As additional consideration for the lines of credit, the Company also issued the Western Alliance Warrants. For additional information on the Western Alliance Warrants, see Note 4 – Stockholders’ Equity

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 10—COMMITMENTS AND CONTINGENCIES Leases The Company leases its 57,000 square foot corporate headquarters and manufacturing facility located at 4 Cromwell, Irvine, California. In March 2015, the corporate headquarters and manufacturing facility lease was amended to extend the term through April 30, 2020, modify provisions for a tenant improvement allowance of up to $0.4 million, and adjust the basic rent terms. Future minimum rental commitments under operating lease agreements with non-cancelable terms greater than one year for the years ending December 31 are listed below. The Company also leases certain office equipment and automobiles under various operating lease arrangements. In February 2015, the Company entered into a 30-month capital lease agreement for information technology equipment. In February 2018, the Company extended the agreement for information technology equipment for an additional lease term of 18 months. In accordance with relevant accounting guidance, the renewal of this lease constituted a new lease and is classified by the Company as an operating lease. Future minimum rental commitments under lease agreements, including both operating and capital leases (principle and interest), with non-cancelable terms greater than one year for each of the years ending December 31 are as follows (in thousands): 2018 $ 731 2019 827 2020 283 2021 12 Thereafter — Total future minimum lease obligations $ 1,853 Employee arrangements and other compensation Certain members of management are entitled to severance benefits payable upon termination following a change in control, which would approximate $1.7 million, in the aggregate, at March 31, 2018. The Company also has agreements with certain employees to pay bonuses based on targeted performance criteria. As of March 31, 2018, approximately $0.1 million was accrued for performance bonuses, which is included in accrued liabilities in the Consolidated Balance Sheets. Purchase commitments The Company generally purchases components and subassemblies for its products from a limited group of third-party suppliers through purchase orders. As of March 31, 2018, the Company had $13.2 million of purchase commitments for which the Company has not received certain goods or services that are expected to be purchased within one year. These purchase commitments were made to secure better pricing and to ensure the Company will have the necessary parts to meet anticipated near-term demand. Although open purchase orders are considered enforceable and legally binding, the Company may be able to cancel, reschedule or adjust requirements prior to supplier fulfillment. Litigation The Company discloses material loss contingencies deemed to be reasonably possible and accrues for loss contingencies when, in consultation with its legal advisors, management concludes that a loss is probable and reasonably estimable. The ability to predict the ultimate outcome of such matters involves judgments, estimates, and inherent uncertainties. The actual outcome of such matters could differ materially from management’s estimates. Intellectual Property Litigation On April 24, 2012, CAO Group, Inc. (“CAO”) filed a lawsuit against BIOLASE in the District of Utah alleging that BIOLASE’s ezlase dental laser infringes on U.S. Patent No. 7,485,116 (the “116 Patent”). On September 9, 2012, CAO amended its complaint, adding claims for (1) business disparagement/injurious falsehood under common law and (2) unfair competition under 15 U.S.C. Section 1125(a). The additional claims stem from a press release that BIOLASE issued on April 30, 2012, which CAO claims contained false statements that are disparaging to CAO and its diode product. The amended complaint seeks injunctive relief, treble damages, attorneys’ fees, punitive damages, and interest. Until January 24, 2018, this lawsuit was stayed in connection with United States Patent and Trademark Office proceedings relating to the 116 Patent, which proceedings ultimately culminated in a January 27, 2017 decision by the United States Court of Appeals for the Federal Circuit, affirming the findings of the Patent Trial and Appeal Board, which were generally favorable to the Company. On January 25, 2018, CAO moved for leave to file a second amended complaint to add certain claims, which filing the Company did not oppose. The Utah matter has since been transferred to the Central District of California and the two matters have been consolidated with the matter described below. On January 23, 2018, CAO filed a lawsuit against BIOLASE in the Central District of California alleging that BIOLASE’s diode lasers infringe on U.S. Patent Nos. 8,337,097, 8,834,497, 8,961,040

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Segment Information	NOTE 11—SEGMENT INFORMATION The Company currently operates in a single business segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. For the three months ended March 31, 2018 and 2017, sales to customers in the United States accounted for approximately 57% and 63% of net revenue, respectively, and international sales accounted for approximately 43% and 37% of net revenue, respectively. No individual country, other than the United States, represented more than 10% of total net revenue during the three months ended March 31, 2018 or 2017. Net revenue by geographic location based on the location of customers was as follows (in thousands): Three Months Ended March 31, 2018 2017 United States $ 5,693 $ 6,843 International 4,327 4,031 $ 10,020 $ 10,874 Property, plant, and equipment by geographic location was as follows (in thousands): March 31, December 31, 2018 2017 United States $ 3,088 $ 3,347 International 336 327 $ 3,424 $ 3,674

Concentrations

Concentrations	3 Months Ended
	Mar. 31, 2018
Risks And Uncertainties [Abstract]
Concentrations	NOTE 12—CONCENTRATIONS Revenue from the Company’s products for the three months ended March 31, 2018 and 2017 are as follows: Three Months Ended March 31, 2018 2017 Laser systems $ 5,703 57.0 % $ 6,729 61.9 % Imaging systems 583 5.8 % 626 5.7 % Consumables and other 2,034 20.3 % 1,692 15.6 % Services 1,697 16.9 % 1,795 16.5 % License fees and royalties 3 0.0 % 32 0.3 % Total revenue $ 10,020 100.0 % $ 10,874 100.0 % No individual customer represented more than 10% of the Company’s revenue for the three months ended March 31, 2018 or 2017. The Company maintains its cash and cash equivalent accounts with established commercial banks. Such cash deposits periodically exceed the Federal Deposit Insurance Corporation insured limit. No individual customer represented more than 10% of the Company’s accounts receivable at March 31, 2018 or December 31, 2017. The Company currently purchases certain key components of its products from single suppliers. Although there are a limited number of manufacturers of these key components, management believes that other suppliers could provide similar key components on comparable terms. A change in suppliers, however, could cause delays in manufacturing and a possible loss of sales, which could adversely affect the Company’s business, results of operations and financial condition.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 13—INCOME TAXES The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Management evaluates the need to establish a valuation allowance for deferred tax assets based upon the amount of existing temporary differences, the period in which they are expected to be recovered, and expected levels of taxable income. A valuation allowance to reduce deferred tax assets is established when it is “more likely than not” that some or all of the deferred tax assets will not be realized. Based on the Company’s net losses in prior years, management has determined that a full valuation allowance against the Company’s net deferred tax assets is appropriate. Accounting for uncertainty in income taxes prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company has elected to classify interest and penalties as a component of its income tax provision. With respect to the liability for unrecognized tax benefits, including related estimates of penalties and interest, the Company did not record a liability for unrecognized tax benefits for the three months ended March 31, 2018 and 2017. The Company does not expect any changes to its unrecognized tax benefit for the next 12 months that would materially impact its consolidated financial statements. During the three months ended March 31, 2018 and 2017, the Company recorded an income tax provision of $32,000 and $40,000, respectively, resulting in an effective tax rate of 0.6% and 1.0%, respectively. The income tax provisions for the three months ended March 31, 2018 and 2017 were calculated using the discrete year-to-date method. The effective tax rate differs from the statutory tax rate of 34% primarily due to the existence of valuation allowances against net deferred tax assets and current liabilities resulting from the estimated state income tax liabilities and foreign tax liability. On December 22, 2017, the U.S. federal government enacted the Tax Cuts and Jobs Act (the “2017 Tax Act”), which enacts a broad range of changes to the Internal Revenue Code of 1986, as amended. Many of the provisions of the 2017 Tax Act take effect for tax years beginning after December 31, 2017, including changes to the U.S. federal corporate tax rate to a flat 21%, significant additional limitations on the deductibility of interest and net operating losses, the allowance for the expensing of certain capital expenditures, and a number of changes impacting operations outside of the United States. The Company’s deferred tax assets and liabilities have been revalued at newly enacted rate in the year of enactment, the impact of which was mostly absorbed by the existing valuation allowance.

Subsequent Event

Subsequent Event	3 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
Subsequent Event	NOTE 14—SUBSEQUENT EVENT Effective April 10, 2018, Harold C. Flynn, Jr. resigned from the Board and the Company’s President and Chief Executive Officer. The Company and Mr. Flynn entered into a Separation Agreement, dated as of April 30, 2018 (the “Separation Agreement”), which provides for Mr. Flynn’s general release of all claims against the Company and contains various restrictive covenants, including a 10-year non-disparagement provision and a two-year non-solicitation period. In consideration for Mr. Flynn’s entry into the Separation Agreement and Mr. Flynn’s continued compliance with the terms of the Separation Agreement, Mr. Flynn is entitled to receive the following: (i) severance in an amount of $365,000, payable in equal installments on regular payroll dates beginning on the first regular payroll cycle following June 30, 2018 and ending on December 28, 2018, (ii) Company-paid COBRA premiums for Mr. Flynn (and his eligible dependents) until April 9, 2019, subject to Mr. Flynn’s timely election of COBRA continuation coverage, (iii) continued vesting of all of Mr. Flynn’s time-based stock options through April 9, 2020 and an extension of the time to exercise such options through December 31, 2021 and (iv) continued vesting of the time-based restricted stock unit award granted to Mr. Flynn on February 6, 2017 through February 6, 2019 (in the case of (iii) and (iv) subject to immediate vesting upon a change of control). Any unvested stock options following April 9, 2020 will be cancelled and will not vest, and any restricted stock units that are unvested following February 6, 2019 will be canceled and will not vest.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The unaudited consolidated financial statements include the accounts of BIOLASE and its wholly-owned subsidiaries and have been prepared on a basis consistent with the December 31, 2017 audited consolidated financial statements and include all material adjustments, consisting of normal recurring adjustments and the elimination of all material intercompany transactions and balances, necessary to fairly present the information set forth therein. These unaudited, interim, consolidated financial statements do not include all the footnotes, presentations, and disclosures normally required by accounting principles generally accepted in the United States of America (“GAAP”) for complete consolidated financial statements. Certain amounts have been reclassified to conform to current period presentations. The consolidated results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results for the full year. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2017, included in BIOLASE’s Annual Report on Form 10-K for the year ended December 31, 2017 filed with the Securities and Exchange Commission (the “SEC”) on March 14, 2018 (the “2017 Form 10-K”).
Liquidity and Management's Plans	Liquidity and Management’s Plans The Company incurred a loss from operations, incurred a net loss, and used cash in operating activities for the three months ended March 31, 2018. The Company also suffered recurring losses from operations during the three years ended December 31, 2017. The Company’s recurring losses, level of cash used in operations, and potential need for additional capital, along with uncertainties surrounding the Company’s ability to raise additional capital, raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. On March 6, 2018, BIOLASE and two of its wholly-owned subsidiaries entered into a Business Financing Agreement (the “Business Financing Agreement”) with Western Alliance Bank (“Western Alliance”), which provides for borrowings of up to $6.0 million. The Company had approximately $1.8 million of borrowings outstanding under these lines of credit as of March 31, 2018. See Note 9 – Lines of Credit for additional information. As of March 31, 2018, the Company had working capital of approximately $20.5 million. The Company’s principal sources of liquidity as of March 31, 2018 consisted of approximately $8.7 million in cash and cash equivalents, and restricted cash and $9.7 million of accounts receivable. In order for the Company to continue operations beyond the next 12 months and be able to discharge its liabilities and commitments in the normal course of business, the Company must increase sales of its products directly to end-users and through distributors, establish profitable operations through the combination of increased sales and decreased expenses, generate cash from operations or obtain additional funds when needed. The Company intends to improve its financial condition and ultimately improve its financial results by increasing revenues through expansion of its product offerings, continuing to expand and develop its field sales force and distributor relationships, both domestically and internationally, forming strategic arrangements within the dental and medical industries, educating dental and medical patients as to the benefits of its advanced medical technologies, and reducing expenses. Additional capital requirements may depend on many factors, including, among other things, continued losses, the rate at which the Company’s business grows, demands for working capital, manufacturing capacity, and any acquisitions that the Company may pursue. From time to time, the Company could be required, or may otherwise attempt, to raise capital, through either equity or debt offerings, or enter into an additional line of credit facility. As discussed in Note 9, on March 6, 2018, BIOLASE entered into the Business Financing Agreement, providing for a secured line of credit. The Company cannot provide assurance that it will be able to successfully consummate any equity or debt financings, or enter into any other line of credit facility in the future. The Company also cannot provide assurance that the required capital would be available on acceptable terms, if at all, or that any such financing activity would not be dilutive to the Company’s stockholders.
Use of Estimates	Use of Estimates The preparation of these consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect amounts reported in the consolidated financial statements and the accompanying notes. Significant estimates in these consolidated financial statements include allowances on accounts receivable, inventory, and deferred taxes, as well as estimates for accrued warranty expenses, the ability of goodwill to be realized, revenue deferrals, effects of stock-based compensation and warrants, contingent liabilities, and the provision or benefit for income taxes. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may differ materially from those estimates.
Critical Accounting Policies	Critical Accounting Policies Information with respect to the Company’s critical accounting policies, which management believes could have the most significant effect on the Company’s reported results and require subjective or complex judgments by management is contained in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of the 2017 Form 10-K. Management believes that there have been no significant changes during the three months ended March 31, 2018 in the Company’s critical accounting policies from those disclosed in Item 7 of the 2017 Form 10-K.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market (or, if none exists, the most advantageous market) for the specific asset or liability at the measurement date (referred to as the “exit price”). The fair value is based on assumptions that market participants would use, including a consideration of nonperformance risk. Under the accounting guidance for fair value hierarchy there are three levels of measurement inputs. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs reflect input other than quoted prices included in Level 1 that are observable, either directly or through collaboration with observable market data, other than Level 1. Level 3 inputs are unobservable due to little or no corroborating market data. The Company’s financial instruments, consisting of cash, cash equivalents and restricted cash, accounts receivable, accounts payable, and accrued liabilities, approximate fair value because of the short maturity of these items.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined not to be applicable or are expected to have minimal impact on the Company’s consolidated financial position and results of operations. Adopted Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein. ASU 2014-09 supersedes existing guidance on revenue recognition with a five-step model for recognizing and measuring revenue from contracts with customers. The objective of the new standard is to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries, and across capital markets. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance also requires a number of disclosures regarding the nature, amount, timing, and uncertainty of revenue and the related cash flows. The guidance can be applied retrospectively to each prior reporting period presented (full retrospective method) or retrospectively with a cumulative effect adjustment to retained earnings for initial application of the guidance at the date of initial adoption (modified retrospective method). The Company adopted the new standard effective January 1, 2018 using the modified retrospective method applied to those contracts that were not completed or substantially completed as of January 1, 2018. The timing and measurement of revenue recognition under the new standard is not materially different than under the old standard. The adoption of the new standard did not have an impact on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) (“ASU 2016-15”). The updated standard addresses eight specific cash flow issues with the objective of reducing diversity in practice. ASU 2016-15 is effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. Early adoption is permitted. The Company adopted ASU 2016-15 as of January 1, 2018. The adoption of ASU 2016-15 did not have an impact on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) (“ASU 2016-18”). The updated standard requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718) (“ASU 2017-09”). The updated standard clarifies when an entity must apply modification accounting to changes in the terms or conditions of a share-based payment award. ASU 2017-09 is effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. Early adoption is permitted. The Company adopted ASU 2017-09 as of January 1, 2018. The adoption of ASU 2017-09 did not have a material effect on the Company’s consolidated financial statements. Recently Issued Accounting Standards In February 2016, FASB issued ASU 2016-02, Leases (“ASU 2016-02”). The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact of its pending adoption of ASU 2016-02 on its consolidated financial statements. In July 2017, FASB issued ASU 2017-11 (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception (“ASU 2017-11”). The new standard simplifies the accounting for certain financial instruments with down round features. Part I of ASU 2017-11 changes the classification analysis of certain equity-linked financial instruments, such as warrants and embedded conversion features, such that a down round feature is disregarded when assessing whether the instrument is indexed to an entity’s own stock under Subtopic 815-40, Contracts in Entity’s Own Equity. As a result, a down round feature, by itself, no longer requires an instrument to be remeasured at fair value through earnings each period, although all other aspects of the indexation guidance under Subtopic 815-40 continue to apply. Part II of ASU 2017-11 recharacterizes the indefinite deferral of certain provisions of Topic 480, Distinguishing Liabilities from Equity, (currently presented as pending content in the Codification) as a scope exception. No change in practice is expected as a result of these amendments. The new standard is effective for fiscal years beginning after December 15, 2018, Early adoption is permitted. The amendments in Part II have no accounting impact and therefore do not have an associated effective date. The Company is currently evaluating the impact of its pending adoption of ASU 2017-11 on its consolidated financial statements.
Income Tax Uncertainties	Accounting for uncertainty in income taxes prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company has elected to classify interest and penalties as a component of its income tax provision. With respect to the liability for unrecognized tax benefits, including related estimates of penalties and interest, the Company did not record a liability for unrecognized tax benefits for the three months ended March 31, 2018 and 2017. The Company does not expect any changes to its unrecognized tax benefit for the next 12 months that would materially impact its consolidated financial statements.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue Recognition [Abstract]
Summary of Opening and Closing Balances of Contract Liabilities	The Company performs its obligations under a contract with a customer by transferring products and/or services in exchange for consideration from the customer. The Company typically invoices its customers as soon as control of an asset is transferred and a receivable for the Company is established. The Company, however, recognizes a contract liability when a customer prepays for goods and/or services and the Company has not transferred control of the goods and/or services. The opening and closing balances of the Company’s contract liabilities are as follows (in thousands): March 31, December 31, 2018 2017 Undelivered elements (training and product and support services; installation for 2017) $ 583 $ 980 Extended warranty contracts 1,592 1,634 Deferred royalties 20 22 Total deferred revenue 2,195 2,636 Less long-term amounts: Deferred royalties 8 11 Total deferred revenue - long-term 8 11 Total deferred revenue - current $ 2,187 $ 2,625
Summary of Disaggregation of Revenues Related to Geographic Areas	The Company’s revenues related to the following geographic areas were as follows for the periods indicated (in thousands): Three Months Ended March 31, 2018 2017 United States $ 5,693 $ 6,843 International 4,327 4,031 $ 10,020 $ 10,874
Summary of Revenues Disaggregated by Timing of Goods and Services Transferred	Information regarding revenues disaggregated by the timing of when goods and services are transferred is as follows (in thousands): Three months ended March 31, 2018 Revenue recognized over time $ 1,697 Revenue recognized at a point in time 8,323 Total $ 10,020
Summary of Sales by End Market	The Company’s sales by end market were as follows for the periods indicated (in thousands): Three months ended March 31, 2018 2017 End-customer $ 6,107 $ 7,145 Distributors 3,913 3,729 $ 10,020 $ 10,874
Summary of Percentages of Sales by Product line	The percentages of the Company’s sales by product line were as follows for the periods indicated: Three months ended March 31, 2018 2017 Waterlase (laser systems) 35.0 % 39.9 % Diodes (laser systems) 22.0 % 22.0 % Imaging systems 5.8 % 5.7 % Consumables and other 20.3 % 15.6 % Services 16.9 % 16.5 % License fees and royalties — % 0.3 % 100.0 % 100.0 %

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Summary of Income Statement Classification of Compensation Expense	The following table summarizes the income statement classification of compensation expense associated with share-based payments (in thousands): Three Months Ended March 31, 2018 2017 Cost of revenue $ 57 $ 40 Sales and marketing 80 73 General and administrative 467 193 Engineering and development 97 73 $ 701 $ 379
Assumptions on Estimation of Stock Option Fair Values	The stock option fair values, under the 2002 Plan, were estimated using the Black-Scholes option-pricing model with the following assumptions: Three Months Ended March 31, 2018 2017 Expected term 5.9 years 5.8 years Volatility 81.4 % 79.4 % Annual dividend per share $ — $ — Risk-free interest rate 2.46 % 1.98 %
Summary of Option Activity	A summary of option activity under the 2002 Plan for the three months ended March 31, 2018 is as follows (in thousands, except per share data) Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Shares Exercise Price Term (Years) Value(1) Options outstanding, December 31, 2017 6,737 $ 1.80 7.21 $ — Granted at fair market value 2,519 0.42 Exercised (6 ) 0.42 Forfeited, cancelled, or expired (471 ) 3.58 Options outstanding at March 31, 2018 8,779 $ 1.40 7.43 $ — Options exercisable at March 31, 2018 4,264 $ 1.88 5.62 $ — Vested options expired during the quarter ended March 31, 2018 920 $ 2.79 (1) The intrinsic value calculation does not include negative values. This can occur when the fair market value on the reporting date is less than the exercise price of the grant.
Summary of Unvested Stock Option Activity	A summary of unvested stock option activity under the 2002 Plan for the three months ended March 31, 2018 is as follows (in thousands, except per share data): Weighted Average Grant Shares Date Fair Value Unvested options at December 31, 2017 3,283 $ 0.95 Granted 2,519 $ 0.29 Vested (630 ) $ 0.83 Forfeited or cancelled (38 ) $ 1.19 Unvested options at March 31, 2018 5,134 $ 0.69
Cash Proceeds, Along With Fair Value Disclosures Related to Grants, Exercises, and Vesting Options	Cash proceeds, along with fair value disclosures related to grants, exercises, and vested options under the 2002 Plan are as follows for the three months ended March 31 (in thousands, except per share amounts): Three Months Ended March 31, 2018 2017 Proceeds from stock options exercised $ 2 $ — Tax benefit related to stock options exercised (1) N/A N/A Intrinsic value of stock options exercised (2) $ — $ — Weighted-average fair value of options granted during period $ 0.29 $ 1.05 Total fair value of shares vested during the period $ 520 $ 334 (1) Excess tax benefits received related to stock option exercises are presented as financing cash inflows. The Company currently does not receive a tax benefit related to the exercise of stock options due to the Company’s net operating losses. (2) The intrinsic value of stock options exercised is the amount by which the market price of the stock on the date of exercise exceeded the market price of the stock on the date of grant.
Summary of Unvested Restricted Stock Units	A summary of unvested RSU activity under the 2002 Plan for the three months ended March 31, 2018 is as follows Shares Unvested restricted stock units at December 31, 2017 1,789 Granted 223 Vested (35 ) Forfeited or cancelled — Unvested restricted stock units at March 31, 2018 1,977
Summary of Warrant Activity	The Company issues warrants to acquire shares of BIOLASE common stock as approved by the Board. A summary of warrant activity for the three months ended March 31, 2018 Weighted Average Shares Exercise Price Warrants outstanding, December 31, 2017 6,126 $ 1.93 Granted or Issued 258 $ 0.47 Exercised — $ — Forfeited, cancelled, or expired — $ — Warrants outstanding at March 31, 2018 6,384 $ 1.87 Warrants exercisable at March 31, 2018 6,249 $ 1.82 Vested warrants expired during the quarter ended March 31, 2018 — $ —

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Components of Inventory	Inventory is valued at the lower of cost or net realizable value and is comprised of the following (in thousands): March 31, December 31, 2018 2017 Raw materials $ 3,709 $ 3,953 Work-in-process 1,604 1,162 Finished goods 8,088 7,183 Inventory, net $ 13,401 $ 12,298

Property, Plant, and Equipment

Property, Plant, and Equipment (Tables)	3 Months Ended
	Mar. 31, 2018
Property Plant And Equipment [Abstract]
Summary of Property, Plant, and Equipment	Property, plant, and equipment, net is comprised of the following (in thousands): March 31, December 31, 2018 2017 Building $ 229 $ 220 Leasehold improvements 2,006 2,005 Equipment and computers 6,887 6,883 Furniture and fixtures 634 634 Construction in progress 1,186 1,182 10,942 10,924 Accumulated depreciation and amortization (7,695 ) (7,426 ) 3,247 3,498 Land 177 176 Property, plant, and equipment, net $ 3,424 $ 3,674

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	3 Months Ended
	Mar. 31, 2018
Payables And Accruals [Abstract]
Components of Accrued Liabilities	Accrued liabilities are comprised of the following (in thousands): March 31, December 31, 2018 2017 Payroll and benefits $ 2,244 $ 2,115 Warranty accrual, current portion 1,090 1,120 Taxes 441 544 Accrued professional services 695 584 Accrued insurance premium 197 870 Other 452 376 Total accrued liabilities $ 5,119 $ 5,609
Changes in Initial Product Warranty Accrual and Expenses Under Initial and Extended Warranties	Changes in the initial product warranty accrual and the expenses incurred under the Company’s initial and extended warranties for the three months ended March 31, 2018 and 2017 are included within accrued liabilities on the Consolidated Balance Sheets and were as follows (in thousands): Three Months Ended March 31, 2018 2017 Initial warranty accrual, beginning balance $ 1,190 $ 1,706 Provision for estimated warranty cost 246 (23 ) Warranty expenditures (222 ) (223 ) 1,214 1,460 Less warranty accrual, long-term 124 487 Total warranty accrual, current portion $ 1,090 $ 973

Commitments and Contingencies

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2018
Commitments And Contingencies Disclosure [Abstract]
Future minimum rental commitments under non-cancelable Operating and Capital Leases	Future minimum rental commitments under lease agreements, including both operating and capital leases (principle and interest), with non-cancelable terms greater than one year for each of the years ending December 31 are as follows (in thousands): 2018 $ 731 2019 827 2020 283 2021 12 Thereafter — Total future minimum lease obligations $ 1,853

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Summary of Net Revenue by Geographic Location	Net revenue by geographic location based on the location of customers was as follows (in thousands): Three Months Ended March 31, 2018 2017 United States $ 5,693 $ 6,843 International 4,327 4,031 $ 10,020 $ 10,874
Summary of Property, Plant and Equipment by Geographic Location	Property, plant, and equipment by geographic location was as follows (in thousands): March 31, December 31, 2018 2017 United States $ 3,088 $ 3,347 International 336 327 $ 3,424 $ 3,674

Concentrations (Tables)

Concentrations (Tables)	3 Months Ended
	Mar. 31, 2018
Risks And Uncertainties [Abstract]
Summary of Net Revenue from Various Products	Revenue from the Company’s products for the three months ended March 31, 2018 and 2017 are as follows: Three Months Ended March 31, 2018 2017 Laser systems $ 5,703 57.0 % $ 6,729 61.9 % Imaging systems 583 5.8 % 626 5.7 % Consumables and other 2,034 20.3 % 1,692 15.6 % Services 1,697 16.9 % 1,795 16.5 % License fees and royalties 3 0.0 % 32 0.3 % Total revenue $ 10,020 100.0 % $ 10,874 100.0 %

Description of Business and B29

Description of Business and Basis of Presentation - Additional Information (Detail) - USD ($)	Mar. 31, 2018	Mar. 06, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Description Of Business And Basis Of Presentation [Line Items]
Line of credit, outstanding borrowings	$ 1,823,000
Working capital	20,500,000
Cash and cash equivalents, including restricted cash	8,730,000		$ 11,896,000	$ 3,827,000	$ 9,175,000
Accounts receivable	9,739,000		$ 10,124,000
Business Financing Agreement
Description Of Business And Basis Of Presentation [Line Items]
Line of credit facility, maximum borrowing capacity		$ 6,000,000
Western Alliance | Business Financing Agreement
Description Of Business And Basis Of Presentation [Line Items]
Line of credit, outstanding borrowings	$ 1,800,000

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2018USD ($)
Disaggregation Of Revenue [Line Items]
Revenue from products and services transferred to customers, percentage	83.00%
Revenue from services transferred to customers over time, percentage	17.00%
Revenue recognized from contract liability	$ 502,000
Extended warranties recognized	648,000
Deferred royalties recognized	$ 3,000
Maximum
Disaggregation Of Revenue [Line Items]
Amortization period to expense incremental costs	1 year

Summary of Opening and Closing

Summary of Opening and Closing Balances of Contract Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Revenue Recognition [Abstract]
Undelivered elements (training and product and support services; installation for 2017)	$ 583	$ 980
Extended warranty contracts	1,592	1,634
Deferred royalties	20	22
Total deferred revenue	2,195	2,636
Less long-term amounts:
Deferred royalties	8	11
Total deferred revenue - long-term	8	11
Total deferred revenue - current	$ 2,187	$ 2,625

Summary of Disaggregation of Re

Summary of Disaggregation of Revenues Related to Geographic Areas (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation Of Revenue [Line Items]
Revenue	$ 10,020	$ 10,874
United States
Disaggregation Of Revenue [Line Items]
Revenue	5,693	6,843
International
Disaggregation Of Revenue [Line Items]
Revenue	$ 4,327	$ 4,031

Summary of Revenues Disaggregat

Summary of Revenues Disaggregated by Timing of Goods and Services Transferred (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation Of Revenue [Line Items]
Net revenue	$ 10,020	$ 10,874
Revenue Recognized Over Time
Disaggregation Of Revenue [Line Items]
Net revenue	1,697
Revenue Recognized at a Point in Time
Disaggregation Of Revenue [Line Items]
Net revenue	$ 8,323

Summary of Sales by End Market

Summary of Sales by End Market (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation Of Revenue [Line Items]
Revenue	$ 10,020	$ 10,874
End-customer
Disaggregation Of Revenue [Line Items]
Revenue	6,107	7,145
Distributors
Disaggregation Of Revenue [Line Items]
Revenue	$ 3,913	$ 3,729

Summary of Percentages of Sales

Summary of Percentages of Sales by Product line (Detail)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation Of Revenue [Line Items]
Percentage of sales	100.00%	100.00%
Waterlase (laser systems)
Disaggregation Of Revenue [Line Items]
Percentage of sales	35.00%	39.90%
Diodes (laser systems)
Disaggregation Of Revenue [Line Items]
Percentage of sales	22.00%	22.00%
Imaging systems
Disaggregation Of Revenue [Line Items]
Percentage of sales	5.80%	5.70%
Consumables and Other
Disaggregation Of Revenue [Line Items]
Percentage of sales	20.30%	15.60%
Services
Disaggregation Of Revenue [Line Items]
Percentage of sales	16.90%	16.50%
License fees and royalties
Disaggregation Of Revenue [Line Items]
Percentage of sales		0.30%

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($)	Jan. 26, 2018	Jan. 25, 2018	Mar. 31, 2018	Mar. 31, 2017	Mar. 06, 2018
Stockholders Equity [Line Items]
Compensation expense related to stock options			$ 700,000	$ 400,000
Net impact of stock-based compensation expense to earnings per basic share			$ (0.01)	$ (0.01)
Net impact of stock-based compensation expense to earnings per diluted share			$ (0.01)	$ (0.01)
Total unrecognized compensation cost			$ 3,300,000
Unrecognized share based compensation cost to be recognized over weighted-average period			2 years
Reversal of share based compensation expense			$ 0	$ 400,000
Outstanding stock options, RSUs and warrants excluded from diluted loss per share			18,800,000	22,900,000
Western Alliance Warrant
Stockholders Equity [Line Items]
Initial exercise price of warrants					$ 0.47
Western Alliance Warrant | Maximum
Stockholders Equity [Line Items]
Warrants issued to purchase shares of common stock equal value					$ 120,000
Stock Options | Employees
Stockholders Equity [Line Items]
Stock options granted		1,800,000
Awards valued per share		$ 0.42
Options expiration period		10 years
Options vesting description			The options vest ratably over the 36-month period, commencing on February 25, 2018.
Share-based Compensation Arrangement by Share-based Payment Award, Monthly Ratable Award Vesting Period		36 months
Share Based Compensation Arrangement By Share Based Payment Award, Vesting Commencement Date		Feb. 25, 2018
Restricted Stock Units (RSUs)
Stockholders Equity [Line Items]
Granted			223,000
Restricted Stock Units (RSUs) | President And Chief Executive Officer
Stockholders Equity [Line Items]
Awards valued per share	$ 0.40
Granted	200,000
2002 Stock Incentive Plan
Stockholders Equity [Line Items]
Plan expiration date			May 5, 2019
Common stock authorized for issuance under the 2002 Plan			15,600,000
Common stock issued pursuant to options exercised			4,000,000
Options and restricted stock units outstanding			10,800,000
Options available for future grants			800,000

Classification of Compensation

Classification of Compensation Expense Associated with Share-Based Payments (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 701	$ 379
Cost Of Revenue
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Allocated Share-based Compensation Expense	57	40
Sales and Marketing
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Allocated Share-based Compensation Expense	80	73
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Allocated Share-based Compensation Expense	467	193
Engineering And Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 97	$ 73

Assumptions Used in Estimating

Assumptions Used in Estimating Fair Value of Stock Options Granted (Detail) - 2002 Stock Incentive Plan	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term	5 years 10 months 24 days	5 years 9 months 18 days
Volatility	81.40%	79.40%
Risk-free interest rate	2.46%	1.98%

Summary of Option Activity (Det

Summary of Option Activity (Detail) - 2002 Stock Incentive Plan - $ / shares shares in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Shares
Beginning Balance	6,737
Granted at fair market value	2,519
Exercised	(6)
Forfeited, cancelled, or expired	(471)
Ending Balance	8,779	6,737
Options exercisable at March 31, 2018	4,264
Vested options expired during the quarter ended March 31, 2018	920
Weighted Average Exercise Price
Beginning Balance	$ 1.80
Granted at fair market value	0.42
Exercised	0.42
Forfeited, cancelled, or expired	3.58
Ending Balance	1.40	$ 1.80
Options exercisable at March 31, 2018	1.88
Vested options expired during the quarter ended March 31, 2018	$ 2.79
Weighted Average Remaining Contractual Term (Years)
Options outstanding	7 years 5 months 4 days	7 years 2 months 15 days
Options exercisable	5 years 7 months 13 days

Summary of Unvested Stock Optio

Summary of Unvested Stock Option Activity (Detail) - $ / shares shares in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Weighted Average Grant Date Fair Value
Granted	$ 0.29	$ 1.05
Stock Options
Shares
Beginning Balance	3,283
Granted	2,519
Vested	(630)
Forfeited or cancelled	(38)
Ending Balance	5,134
Weighted Average Grant Date Fair Value
Beginning Balance	$ 0.95
Granted	0.29
Vested	0.83
Forfeited or cancelled	1.19
Ending Balance	$ 0.69

Cash Proceeds Along with Fair V

Cash Proceeds Along with Fair Value Disclosures Related to Grants, Exercises, and Vested Options (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Proceeds from stock options exercised	$ 2
Weighted-average fair value of options granted during period	$ 0.29	$ 1.05
Total fair value of shares vested during the period	$ 520	$ 334

Summary of Unvested Restricted

Summary of Unvested Restricted Stock Units (Detail) - Restricted Stock Units (RSUs) shares in Thousands	3 Months Ended
	Mar. 31, 2018shares
Shares
Beginning Balance	1,789
Granted	223
Vested	(35)
Ending Balance	1,977

Summary of Warrant Activity (De

Summary of Warrant Activity (Detail) - Warrants shares in Thousands	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Shares
Beginning Balance | shares	6,126
Granted or Issued | shares	258
Ending Balance | shares	6,384
Warrants exercisable at March 31, 2018 | shares	6,249
Weighted Average Exercise Price
Beginning Balance | $ / shares	$ 1.93
Granted or Issued | $ / shares	0.47
Ending Balance | $ / shares	1.87
Warrants exercisable at March 31, 2018 | $ / shares	$ 1.82

Components of Inventory (Detail

Components of Inventory (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Components of inventory, net of allowances
Raw materials	$ 3,709	$ 3,953
Work-in-process	1,604	1,162
Finished goods	8,088	7,183
Inventory, net	$ 13,401	$ 12,298

Inventory - Additional Informat

Inventory - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Provision for excess and obsolete inventory	$ 1.7	$ 1.9

Summary of Property, Plant, and

Summary of Property, Plant, and Equipment (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Property Plant And Equipment [Line Items]
Property, plant, and equipment gross, excluding land	$ 10,942	$ 10,924
Accumulated depreciation and amortization	(7,695)	(7,426)
Property, plant, and equipment net, excluding land	3,247	3,498
Land	177	176
Property, plant, and equipment, net	3,424	3,674
Building
Property Plant And Equipment [Line Items]
Property, plant, and equipment gross, excluding land	229	220
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property, plant, and equipment gross, excluding land	2,006	2,005
Equipment and Computers
Property Plant And Equipment [Line Items]
Property, plant, and equipment gross, excluding land	6,887	6,883
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property, plant, and equipment gross, excluding land	634	634
Construction in Progress
Property Plant And Equipment [Line Items]
Property, plant, and equipment gross, excluding land	$ 1,186	$ 1,182

Property, Plant, and Equipmen47

Property, Plant, and Equipment - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Property Plant And Equipment [Abstract]
Depreciation and amortization expenses	$ 0.3	$ 0.3

Intangible Assets and Goodwill

Intangible Assets and Goodwill - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2017	Dec. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible assets and goodwill impairment			$ 0
Amortization expense	$ 0	$ 0
Goodwill	$ 2,926,000			$ 2,926,000

Components of Accrued Liabiliti

Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Components of accrued liabilities
Payroll and benefits	$ 2,244	$ 2,115
Warranty accrual, current portion	1,090	1,120	$ 973
Taxes	441	544
Accrued professional services	695	584
Accrued insurance premium	197	870
Other	452	376
Total accrued liabilities	$ 5,119	$ 5,609

Changes in Initial Product Warr

Changes in Initial Product Warranty Accrual and Expenses Under Initial and Extended Warranties (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Movement in Standard Product Warranty Accrual
Initial warranty accrual, beginning balance	$ 1,190	$ 1,706
Provision for estimated warranty cost	246	(23)
Warranty expenditures	(222)	(223)
Initial warranty accrual, ending balance	1,214	1,460
Less warranty accrual, long-term	124	487	$ 70
Total warranty accrual, current portion	$ 1,090	$ 973	$ 1,120

Accrued Liabilities - Additiona

Accrued Liabilities - Additional Information (Detail) - Maximum	3 Months Ended
	Mar. 31, 2018
Waterlase Laser Systems
Accrued Liabilities [Line Items]
Product warrant period	16 months
Diode Systems
Accrued Liabilities [Line Items]
Product warrant period	28 months

Lines of Credit - Additional In

Lines of Credit - Additional Information (Detail) - USD ($)	Mar. 31, 2018	Mar. 06, 2018	Mar. 31, 2018
Line Of Credit Facility [Line Items]
Line of credit, outstanding borrowings	$ 1,823,000		$ 1,823,000
Restricted cash balances	0		0
Western Alliance Warrant
Line Of Credit Facility [Line Items]
Warrants expiration period		10 years
Warrants fair value assumptions, expected volatility rate		91.49%
Warrants fair value assumptions annual dividend per share		$ 0
Warrants fair value assumptions, risk-free interest rate		2.88%
Warrants, estimated fair value		$ 100,000
Domestic Revolving Credit Facility
Line Of Credit Facility [Line Items]
Line of credit, outstanding borrowings	$ 600,000		600,000
Line of credit facility, interest rate	6.25%
Export Revolving Credit Facility
Line Of Credit Facility [Line Items]
Line of credit, outstanding borrowings	$ 1,200,000		1,200,000
Line of credit facility, interest rate	6.25%
Business Financing Agreement
Line Of Credit Facility [Line Items]
Borrowings relating to eligible accounts receivable		$ 6,000,000
Line of credit facility expiration date		Mar. 6, 2020
Total amount available	$ 2,800,000		$ 2,800,000
Line of credit facility, interest rate description			Amounts outstanding under the Business Financing Agreement bear interest at a per annum floating rate equal to the greater of 4.5% or the “Prime Rate” published in the Money Rates section of the Western Edition of The Wall Street Journal (or such other rate of interest publicly announced from time to time by Western Alliance as its “Prime Rate”), plus 1.5% with respect to advances made under the line of credit, plus an additional 5.0% during any period that an event of default has occurred and is continuing.
Line of credit facility, commitment fee amount		$ 67,500
Line of credit facility, commitment fee description			the Company paid the first of two annual commitment fees totaling $67,500, being 0.25% of the aggregate $6.0 million commitment for the Domestic Revolver and 1.75% of the aggregate $3.0 million commitment for the EXIM Revolver. The commitment fees and the legal costs associated with acquiring the credit facilities were capitalized and are being amortized on a straight-line basis as interest expense over the term of the Business Financing Agreement.
Business Financing Agreement | Domestic Revolving Credit Facility
Line Of Credit Facility [Line Items]
Borrowings relating to eligible accounts receivable		$ 6,000,000
Maximum borrowing base percentage of eligible accounts receivable		75.00%
Line of credit facility commitment fee percentage		0.25%
Line of credit facility, commitment fee amount		$ 6,000,000
Business Financing Agreement | Export Revolving Credit Facility
Line Of Credit Facility [Line Items]
Borrowings relating to eligible accounts receivable		$ 3,000,000
Maximum borrowing base percentage of eligible accounts receivable		85.00%
Line of credit facility commitment fee percentage		1.75%
Line of credit facility, commitment fee amount		$ 3,000,000
Business Financing Agreement | Line of Credit
Line Of Credit Facility [Line Items]
Variable interest Rate with respect to advances made		1.50%
Line of credit facility interest rate during period in event of default		5.00%
Business Financing Agreement | Line of Credit | Minimum [Member]
Line Of Credit Facility [Line Items]
Line of credit facility bearing floating interest rate per annum		4.50%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	1 Months Ended			3 Months Ended
	Feb. 28, 2018	Mar. 31, 2015USD ($)	Feb. 28, 2015	Mar. 31, 2018USD ($)ft²
Commitment And Contingencies [Line Items]
Area of corporate headquarters and manufacturing facility | ft²				57,000
Extended lease term		Apr. 30, 2020
Provisions for tenant improvement allowance, maximum		$ 400,000
Capital lease agreement term for information technology equipment			30 months
Capital lease agreement extended additional lease term for information technology equipment	18 months
Purchase commitments pending				$ 13,200,000
Employee Arrangements and Other Compensation
Commitment And Contingencies [Line Items]
Change in control, if occurs, may require severance benefits payable				1,700,000
Accrued for performance bonuses				$ 100,000

Future Minimum Rental Commitmen

Future Minimum Rental Commitments Under Lease Agreements (Detail) $ in Thousands	Mar. 31, 2018USD ($)
Commitments And Contingencies Disclosure [Abstract]
2,018	$ 731
2,019	827
2,020	283
2,021	12
Total future minimum lease obligations	$ 1,853

Segment Information - Additiona

Segment Information - Additional Information (Detail) - Sales Revenue, Net - Customer	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Customer Concentration Risk | United States
Segment Reporting Information [Line Items]
Concentration Risk Percentage	57.00%	63.00%
Customer Concentration Risk | International
Segment Reporting Information [Line Items]
Concentration Risk Percentage	43.00%	37.00%
Geographic Concentration Risk | International
Segment Reporting Information [Line Items]
Number of customers which represented more than 10% of the Company's revenue	0	0

Summary of Net Revenue by Geogr

Summary of Net Revenue by Geographic Location (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting Information [Line Items]
Net revenue	$ 10,020	$ 10,874
United States
Segment Reporting Information [Line Items]
Net revenue	5,693	6,843
International
Segment Reporting Information [Line Items]
Net revenue	$ 4,327	$ 4,031

Summary of Property, Plant and

Summary of Property, Plant and Equipment by Geographic Location (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Property, plant, and equipment, net	$ 3,424	$ 3,674
United States
Segment Reporting Information [Line Items]
Property, plant, and equipment, net	3,088	3,347
International
Segment Reporting Information [Line Items]
Property, plant, and equipment, net	$ 336	$ 327

Concentrations - Summary of Net

Concentrations - Summary of Net Revenue from Various Products (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Concentration Risk [Line Items]
Net revenue	$ 10,020	$ 10,874
Product Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Concentration Risk Percentage	100.00%	100.00%
Laser systems
Concentration Risk [Line Items]
Net revenue	$ 5,703	$ 6,729
Laser systems | Product Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Concentration Risk Percentage	57.00%	61.90%
Imaging systems
Concentration Risk [Line Items]
Net revenue	$ 583	$ 626
Imaging systems | Product Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Concentration Risk Percentage	5.80%	5.70%
Consumables and other
Concentration Risk [Line Items]
Net revenue	$ 2,034	$ 1,692
Consumables and other | Product Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Concentration Risk Percentage	20.30%	15.60%
Services
Concentration Risk [Line Items]
Net revenue	$ 1,697	$ 1,795
Services | Product Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Concentration Risk Percentage	16.90%	16.50%
License fees and royalties
Concentration Risk [Line Items]
Net revenue	$ 3	$ 32
License fees and royalties | Product Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Concentration Risk Percentage	0.00%	0.30%

Concentrations - Additional Inf

Concentrations - Additional Information (Detail) - Product Concentration Risk - Customer	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Concentration Risk [Line Items]
Number of customers which represented more than 10% of the Company's accounts receivable	0		0
Sales Revenue, Net
Concentration Risk [Line Items]
Number of customers which represented more than 10% of the Company's revenue	0	0
Concentration Risk Percentage	100.00%	100.00%
Account Receivable
Concentration Risk [Line Items]
Concentration Risk Percentage	10.00%		10.00%
Minimum [Member] | Sales Revenue, Net
Concentration Risk [Line Items]
Concentration Risk Percentage	10.00%	10.00%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Liability for unrecognized tax benefit, including related estimates of penalties and interest	$ 0	$ 0
Income tax provision (benefit)	$ 32,000	$ 40,000
Projected annual effective tax rate	0.60%	1.00%
Statutory tax rate	21.00%	34.00%	34.00%

Subsequent Event - Additional I

Subsequent Event - Additional Information (Detail) - Subsequent Event - President And Chief Executive Officer $ in Thousands	Apr. 10, 2018USD ($)
Subsequent Event [Line Items]
Non-disparagement provision period	10 years
Non-solicitation period	2 years
Severance payable	$ 365,000
Description of post employment benefits	In consideration for Mr. Flynn’s entry into the Separation Agreement and Mr. Flynn’s continued compliance with the terms of the Separation Agreement, Mr. Flynn is entitled to receive the following: (i) severance in an amount of $365,000, payable in equal installments on regular payroll dates beginning on the first regular payroll cycle following June 30, 2018 and ending on December 28, 2018, (ii) Company-paid COBRA premiums for Mr. Flynn (and his eligible dependents) until April 9, 2019, subject to Mr. Flynn’s timely election of COBRA continuation coverage, (iii) continued vesting of all of Mr. Flynn’s time-based stock options through April 9, 2020 and an extension of the time to exercise such options through December 31, 2021 and (iv) continued vesting of the time-based restricted stock unit award granted to Mr. Flynn on February 6, 2017 through February 6, 2019 (in the case of (iii) and (iv) subject to immediate vesting upon a change of control). Any unvested stock options following April 9, 2020 will be cancelled and will not vest, and any restricted stock units that are unvested following February 6, 2019 will be canceled and will not vest.