Sale of five San Antonio-space dental clinics’ belongings potential customers to fraud lawsuit in opposition to Dallas buyer

The house owners of five dental clinics in San Antonio and Schertz offered the business belongings to a Dallas business in 2016 for $3.5 million.

But getting customer KP-SA Management and principal Thang “Kido” V. Pham to spend has been like pulling tooth, say the sellers — corporations owned by dentists Scott and Diana Malone of San Antonio.

The Malone companies this week sued KP-SA Management and Pham for fraud, conversion — the unauthorized taking of assets — and breach of agreement in point out District Courtroom in San Antonio.

The clinics run beneath the name Smiley Dental & Orthodontics.

Beneath terms of the deal, KP-SA paid out $300,000 up entrance and financed the remaining $3.2 million with the Malones. The invest in value was comprised of virtually $3.2 million in goodwill, $160,000 in accounts receivable, $100,000 in inventory and $80,000 in fixtures and machines.

KP-SA should have compensated virtually $3 million by now but has only paid out $781,140, the lawsuit alleges. The plaintiffs are trying to get more than $3.8 million in damages and curiosity.

The parties’ settlement grants the Malone corporations an instant suitable to foreclose and consider possession of the collateral upon a default with no going to court, the go well with suggests.

In response to desire letters and foreclosure notices, however, Pham “threatened to abscond and mystery away all collateral” so the plaintiffs would hardly ever locate it, the fit provides.

“Mr. Pham has constantly created these threats and lately has reiterated that he has no challenge with emptying all accounts and hiding all the collateral and devices of the dental procedures,” Scott Malone suggests in a declaration hooked up to the lawsuit.

To prevent that from taking place, the Malone businesses obtained a non permanent restraining get that stops the defendants from distributing any revenue or removing furnishings and devices from the techniques.

It could not be identified if Pham or his associates opposed the request for the order. He could not be achieved for remark Thursday. Austin lawyer John P. Ferguson, who represents the Malone organizations, reported he could not remark with out his clients’ permission.

A hearing to extend the purchase right until a trial is established for Jan. 24

The clinics, 4 in San Antonio and a person in Schertz, had operated possibly as M&M Orthodontics or U Too Dental & Orthodontics prior to the asset sale to KP-SA.

A Malone partnership continued to own the clinics’ serious estate, so it has been KP-SA’s landlord.

The clinics had been rebranded as Smiley Dental & Orthodontics soon after the asset sale closed. One more Dallas firm, Smiley Dental Administration Co., has managed the methods and gets 15 percent of the gains, whilst KP-SA receives 85 % of the profits, the suit says. Smiley Dental has 31 places in Texas, its web page claims.

Smiley Dental Administration is owned by Pham’s ex-wife, dentist Lynh Thy Pham, the

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BIOLASE Reports 46% Revenue Growth In 2021 Third Quarter; Demand For Dental Lasers From New Customers Remains High And Continues To Fuel Growth

Expects Significant Revenue Growth Year-Over-Year in Fourth Quarter 2021

FOOTHILL RANCH, Calif., Nov. 10, 2021 /PRNewswire/ — BIOLASE, Inc. (NASDAQ: BIOL), the global leader in dental lasers, today announced its financial results for its third quarter ended September 30, 2021 and provided fourth quarter 2021 revenue guidance.

BIOLASE Logo (PRNewsfoto/BIOLASE, Inc.)

2021 Third Quarter Operating Highlights (all comparisons are on a year-over-year basis unless specified otherwise):

  • Net revenue grew 46% to $9.5 million:

  • Net revenue was 10% higher than third quarter of 2019, which was the last pre-pandemic comparable period

  • Laser system sales increased 64%

  • Consumables and other revenue increased 21%

  • U.S. and international revenue increased 25% and 101%, respectively, as more dental practices were operating during the 2021 third quarter compared to the year-ago third quarter due to the COVID-19 pandemic

  • Gross margin was 51%, up 1,600 basis points, due to the higher year-over-year revenue, favorable revenue mix and higher average selling prices for products sold during the quarter

  • Maintained strong balance sheet, as cash and cash equivalents totaled $33.4 million at quarter end

“Our strong third quarter performance continues to reflect the rising demand for our industry-leading dental lasers,” commented John Beaver, President and Chief Executive Officer. “Our efforts to both educate and train dental specialists is leading to increased adoption across these large and largely untapped markets. In today’s environment, the fact that BIOLASE lasers provide increased safety to dentists and their patients is generating a high level of acceptance by dental practitioners – and we expect this to be a driving force for the foreseeable future. Our industry-leading dental lasers aim to provide a better standard of care for dental procedures and seek to ensure a safer experience while reducing the risk of future procedure and business disruptions by reducing aerosolization to mitigate the spread of infectious pathogens, such as COVID-19. Looking ahead, we expect significant year-over-year improvement across our key performance metrics, including revenue and gross margin in the fourth quarter as we continue to gain momentum with new customers and dental specialists.”

2021 Third Quarter Financial Results

Net revenue for the third quarter of 2021 was $9.5 million, an increase of 46% compared to net revenue of $6.5 million for the third quarter of 2020, which was impacted by the COVID-19 pandemic as many dental practitioners were forced to suspend procedures. U.S. laser revenue was $3.4 million for the third quarter of 2021, up 25% when compared to U.S. laser revenue of $2.7 million for the third quarter of 2020. U.S. consumables and other revenue for the third quarter of 2021, which consists of revenue from consumable products such as disposable tips, increased 26% compared to the third quarter of 2020. Outside the U.S., laser revenue increased 168% to $2.7 million for the third quarter of 2021, compared to $1.0 million for the third quarter of 2020, and consumables and other revenue increased 13% year over year as recovery from the pandemic improved internationally.

Gross margin for

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