BIOLASE, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Accrued Liabilities

Accrued Liabilities

9 Months Ended

Sep. 30, 2023

Payables and Accruals [Abstract]

Accrued Liabilities

NOTE 8—ACCRUED LIABILITIES

Accrued liabilities are comprised of the following (in thousands):


	September 30,		December 31,
	2023		2022
Payroll and benefits	$	2,541	$	4,674
Preferred stock warrant liability		1,529		—
Warranty accrual, current portion		1,364		1,293
Operating lease liability		877		638
Accrued professional services		359		591
Taxes		301		432
Accrued insurance premium		—		490
Other		642		1,092
Accrued liabilities	$	7,613	$	9,210

Changes in the initial product warranty accrual and the expenses incurred under the Company’s initial and extended warranties are included within accrued liabilities and were as follows (in thousands):


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2023			2022			2023			2022
Balance, beginning of period	$	1,772		$	1,233		$	1,653		$	1,086
Provision for estimated warranty cost		997			1,255			2,957			2,715
Warranty expenditures		(942	)		(1,011	)		(2,783	)		(2,324	)
Balance, end of period		1,827			1,477			1,827			1,477
Less: long-term portion of warranty accrual		463			416			463			416
Current portion of warranty accrual	$	1,364		$	1,061		$	1,364		$	1,061

The Company's Waterlase laser systems sold domestically are covered by a warranty against defects in material and workmanship for a period of up to one year from the date of sale to the end-user by the Company or a distributor. The Company's diode systems sold domestically are covered by a warranty against defects in material and workmanship for a period of up to two years from the date of sale to the end-user by the Company or a distributor. Waterlase systems and diode systems sold internationally are covered by a warranty against defects in material and workmanship for a period of up to 24 months from date of sale to the international distributor. The Company's laser systems warranty covers parts and service for sales in its North American territories and parts only for international distributor sales.

In North America and select international locations, the Company sells extended warranty contracts to its laser systems end-users that cover the period after the expiration of the Company's standard warranty coverage for its laser systems. Extended warranty coverage provided under the Company's service contracts varies by the type of system and the level of service desired by the customer. Products or accessories remanufactured, refurbished, or sold by unauthorized parties, voids all warranties in place for such products and exempts the Company from liability issues relating to the use of such products.