Core Insights - Laser Photonics Corporation is under investigation for potential violations of federal securities laws and unlawful business practices [1] - The company disclosed that its previously issued financial statements for the year ended December 31, 2023, and the period ended June 30, 2024, should no longer be relied upon due to an overstatement of deferred revenue identified by its predecessor auditor [2] - Following this announcement, Laser Photonics' stock price dropped by $6.90, or 36.7%, closing at $11.90 per share on September 25, 2024 [2] Company Information - Bragar Eagel & Squire, P.C. is a law firm representing investors in complex litigation, including securities and derivative cases [4] - The firm is based in New York and California and has a national presence in representing both individual and institutional investors [4]

Financial Data and Key Metrics Changes - Revenue decreased by 35.5% to $0.6 million, with CleanTech accounting for over 80% of the revenue mix [7] - Gross profit margin fell to 51% compared to 71% in the previous year [7] - Operating loss increased to negative $2.1 million in Q2 2024 from negative $0.7 million last year [7] - Net loss decreased by 67% to $2.1 million, with loss per share decreasing by 122% to negative $0.20 per share [7] Business Line Data and Key Metrics Changes - CleanTech remains the dominant segment, contributing over 80% to total revenue [7] - New product lines, including SaberTech laser cutting tools and Laser Shield Anti-Drone systems, were introduced to enhance the product portfolio [4][6] Market Data and Key Metrics Changes - The company has built an estimated pipeline of over $70 million, which is expected to improve results in 2024 and support medium to long-term growth [6] Company Strategy and Development Direction - The company is focusing on sales and marketing investments, including a partnership with Echelon 1 to advance CleanTech systems for the Department of Defense [3] - Continuous investment in R&D and product development is aimed at maintaining a technological advantage over competitors [3] - A task force has been formed to optimize marketing strategies and enhance operational excellence [5] Management's Comments on Operating Environment and Future Outlook - Management noted that approximately $1 million in revenue was deferred into the second half of the year due to delays in customer capital expenditure approvals, but they do not see this as a long-term issue [2] - The company is optimistic about future growth prospects, supported by new products and increased sales efforts [6] Other Important Information - A change in accounting treatment has led to higher operating expenses, impacting reported losses [7] - A private placement raised a net total of $2.6 million to support investments in key areas [8] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.

Financial Performance - For the six months ending June 30, 2024, the company recognized revenue of $1,366,426, a decrease of $275,206 compared to $1,641,632 in the same period of 2023[59] - The net income for the same period was $(3,678,958), compared to $(1,936,499) in the same period of 2023, indicating a significant increase in losses[59] - EBITDA for the six months ending June 30, 2024, was $(3,235,119), compared to $(1,752,415) in the same period of 2023[60] - For the three months ending June 30, 2024, the company reported a Net Income (Loss) of $(2,113,562), compared to $(678,894) for the same period in 2023, indicating a significant increase in losses[65] - The EBITDA for the three months ending June 30, 2024, was $(1,855,039), compared to $(577,947) in 2023, reflecting a worsening operational performance[65] - Adjusted EBITDA for the six months ending June 30, 2024, was $(3,235,119), compared to $(1,752,415) in 2023, showing a decline in underlying business operations[65] Cash and Working Capital - The company had a total working capital of $5,048,680 as of June 30, 2024, down from $8,262,302 on December 31, 2023[56] - Cash at the end of the period was $2,747,633, a decrease from $9,884,543 in the previous year[55] Expenses and Investments - Selling and marketing expenses were increased in the first quarter of 2024 to support growth, despite the cyclical nature of capital equipment manufacturing[53] - Depreciation and Amortization expenses for the three months ending June 30, 2024, were $245,894, up from $100,947 in 2023, indicating increased asset usage or investment[65] - The company plans to continue investing in research and development to enhance existing technologies and develop new products[54] Supply Chain and Operations - The company experienced increased lead times for certain parts and components, particularly electronic components, due to supply chain constraints[49] Financial Strategy - The company did not have any off-balance sheet arrangements as of June 30, 2024, which may indicate a conservative financial strategy[66] - The company has not utilized any derivative financial instruments, suggesting a low-risk approach to financial management[67] - There were no borrowings reported, indicating that the company is not currently exposed to interest rate fluctuations[67] - The company operates solely within the United States, thus not affected by foreign currency fluctuations[67] - The company’s Adjusted EBITDA measure may differ from those of other companies, which could impact comparability[64] - The company believes that adequate controls are in place to monitor any hedging activities, despite not engaging in them[67] Product Development - The company is developing the CleanTech™ product line, aimed at making laser cleaning technology accessible to small businesses[48] - Approximately 92% of revenues for the first quarter of 2022 and 91% for the full 2021 fiscal year were derived from customers in materials processing[51]

Financial Performance - For the three months ending March 31, 2024, the company recognized revenue of $742,991, an increase of 9.85% from $676,192 in the same period of 2023[88] - The net income for the same period was $(545,470), improving from $(1,257,605) in the prior year, indicating a reduction in losses[89] - EBITDA for the three months ending March 31, 2024, was $(360,394), an improvement from $(1,174,468) in the same period of 2023[91] - The company experienced a net cash outflow from operating activities of $(866,257) for the quarter ending March 31, 2024, compared to $(1,315,308) in the same period of 2023[82] Working Capital - The company had total working capital of $6,425,822 as of March 31, 2024, down from $11,532,113 on March 31, 2023[83] Research and Development - Research and development expenses are planned to continue to support the development of new products and technologies, which is crucial for maintaining leadership in the laser blasting industry[81] - The company is developing the CleanTech™ product line aimed at small businesses, which previously faced barriers to accessing laser processing equipment[75] Supply Chain and Market Conditions - Supply chain constraints are expected to continue impacting product supply and customer demand, although the company believes it can meet near-term demand[77] - Approximately 92% of revenues for the first quarter of 2022 and 91% for the full 2021 fiscal year were derived from customers in materials processing[79] Financial Metrics and Definitions - EBITDA is used by the company as a supplemental measure for evaluating financial position and core operating performance, excluding depreciation and amortization impacts[20] - Adjusted EBITDA is defined as net income excluding various expenses, including interest, taxes, and stock-based compensation, to provide a clearer performance comparison[20] Risk Exposure - The company has not utilized any derivative financial instruments and does not have borrowings, indicating minimal exposure to interest rate risk[99] - The company operates solely within the United States and is not affected by foreign currency fluctuations or exchange rate changes[99] - The company believes that its exposure to interest rate risk and foreign currency exchange rate changes is not material to its financial condition or results of operations[99] Gross Margin - The gross margin is influenced by factors such as product mix and competition, with higher power products generally yielding better margins[80]

Financial Performance - By December 31, 2023, the company achieved gross sales of $4,520,892 and net sales of $3,939,473, primarily targeting Fortune 1000 companies and U.S. Government agencies[29]. - The company invested nearly $4 million in sales and marketing operations for the year ended December 31, 2023, with a marketing and sales budget equal to 10% of gross sales[90]. - The company has a new product promotional budget of $1.2 million for 2024[90]. - The company expects to grow its business with the U.S. Government from less than 1% of U.S. revenues in 2023 to 25% within the next 12 to 24 months[149]. - The company may need to raise additional capital if it cannot generate sufficient revenues from operations, which could lead to dilution for stockholders[125]. - The company’s future financial performance will depend on its ability to effectively manage growth and improve operational controls[140]. - The company anticipates fluctuations in future revenues and operating results due to various factors, including sales timing and product introduction delays[136]. - The company's financial performance is heavily reliant on the execution of current and future U.S. Government contracts, which are subject to termination for convenience, posing risks to financial stability[153]. - The company may face substantial costs and distractions due to potential litigation related to intellectual property rights, which could adversely affect its operations[185]. Market Opportunities - The laser cleaning market value is estimated at $9 billion in 2021 and projected to reach $12 billion by 2025, driven by demand in robotic cleaning technology and growth in automotive, construction, and metalworking industries[35]. - The MRO industry has a total market value of $150.64 billion as of 2021, with forecast revenue of $178.85 billion for 2028, highlighting significant opportunities for laser cleaning solutions[43]. - The U.S. military is a significant customer, with the Pentagon spending between $21 billion to $22.9 billion annually on rust control and corrosion-related repairs, presenting a substantial market opportunity for the company[62]. - The company aims to broaden its global customer base by differentiating itself through superior product pricing, performance, and service, leveraging its investments in application engineering[57]. Product Development and Innovation - The company offers a range of laser blasting solutions, including handheld systems from 20W to 3000W, with plans to develop a 4000W handheld system[24]. - The CleanTech™ Laser Blaster Cabinet is the only laser cleaning machine globally that combines a fiber laser with a handheld blasting head in a fully enclosed workspace, designed for safety and precision[84]. - The CleanTech Titan Series Laser Blasting System features a working envelope of up to 6′ x 12′, designed for high production and precision environments[85]. - The CleanTech™ Laser Cleaning Robot is the first commercially available AI-capable laser cleaning system in the U.S., allowing for significant cost reductions in laser cleaning[86]. - The company plans to develop and manufacture laser systems for various markets, focusing on applications such as rust removal in shipbuilding and laser de-contamination in the nuclear industry[54]. - The company’s R&D efforts are led by a team of experts, including a PhD particle physicist from CERN, emphasizing its commitment to innovation[23]. Competitive Position - The company is the only U.S.-based manufacturer of high-powered portable industrial laser cleaning systems, which positions it favorably under the "Buy American" agenda, enhancing its competitive edge[72]. - The company’s vertically integrated operations enhance development speed, pricing, quality control, and protection of proprietary technology compared to competitors[30]. - The company’s primary competitive factors include product performance, reliability, and the ability to respond quickly to market demand[106]. Regulatory and Compliance Risks - The company is subject to substantial government regulation, particularly in its U.S. Government contracts, which could impact financial performance[105]. - Compliance with complex procurement rules is critical, as failure to adhere could result in penalties, including contract termination and disqualification from future bidding[155]. - The company is subject to numerous legal and regulatory requirements, and violations could result in significant fines and reputational damage[146]. - The ability to obtain and maintain necessary security clearances is essential for performing on certain anticipated U.S. government contracts, with potential revenue implications[159]. Intellectual Property Risks - The company is exposed to risks related to intellectual property, including challenges in obtaining and enforcing patents, which could hinder competitive advantage[170]. - The patent application process is costly and time-consuming, and failures in patent prosecution could impair the company's ability to protect its technologies[172]. - The company may face litigation risks related to intellectual property infringement, which could divert resources and incur substantial expenses[180]. - The company relies on trade secrets for technology protection, but disclosure to third parties could impair competitive position[177]. Operational Challenges - The company faces intense competition in the market for laser-based cleaning equipment, requiring greater financial resources to maintain competitive advantages[129]. - The company continues to evaluate steps to remediate material weaknesses, but these measures may be time-consuming and costly[208]. - As of December 31, 2023, there are material weaknesses in the company's internal controls, which could adversely affect financial reporting and investor confidence[207]. - The company faces challenges in attracting and retaining qualified officers and directors due to increased compliance costs and regulatory requirements[206]. Market Volatility and Stock Performance - The market price of the company's common stock is likely to be highly volatile, influenced by various external factors[211]. - If the company's common stock is deemed a penny stock, trading activity may decrease significantly due to regulatory requirements[212]. - Substantial sales of common stock by existing stockholders could depress market value and impair the company's ability to raise capital[216]. - The existence of an "overhang" from stockholder sales could negatively impact the market price of the company's common stock[214].

Laser Photonics Corporation (NASDAQ:LASE) Q3 2023 Earnings Conference Call November 14, 2023 11:00 AM ET Company Participants Brian Siegel - IR Wayne Tupuola - CEO Jade Barnwell - CFO Conference Call Participants Operator Greetings, and welcome to the Laser Photonics Third Quarter Financial Results and Webcast. [Operator Instructions]. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brian Siegel, Senior Manager Director Hayden Investor Relations. Thank you, si ...

[PART I – FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents Laser Photonics Corporation's unaudited condensed financial statements, including balance sheets, profit and loss, cash flows, and shareholders' equity, with detailed accounting notes [Condensed Balance Sheets](index=2&type=section&id=CONDENSED%20BALANCE%20SHEETS) The company's total assets decreased from $19.69 million at December 31, 2022, to $16.79 million at September 30, 2023, primarily due to a decrease in cash and cash equivalents Condensed Balance Sheet Summary (in USD) | Metric | Sep 30, 2023 (Unaudited) | Dec 31, 2022 | | :-------------------------------- | :----------------------- | :----------- | | **ASSETS** | | | | Cash and Cash Equivalents | $8,310,519 | $12,181,799 | | Total Current Assets | $12,643,972 | $15,295,630 | | Total Assets | $16,788,482 | $19,694,592 | | **LIABILITIES & SHAREHOLDERS' EQUITY** | | | | Total Current Liabilities | $585,665 | $1,715,897 | | Total Liabilities | $821,758 | $2,203,459 | | Total Stockholders' Equity | $15,966,723 | $17,491,133 | [Statement of Profit and Loss](index=3&type=section&id=STATEMENT%20OF%20PROFIT%20AND%20LOSS) For the three months ended September 30, 2023, the company reported a net loss of $1.10 million, a significant decline from a net income of $0.21 million in the prior year, primarily driven by increased operating expenses Statement of Profit and Loss Summary (in USD) | Metric | 3 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net Revenue | $1,239,554 | $1,224,450 | $3,444,649 | $3,790,176 | | Gross Profit | $906,228 | $553,355 | $2,586,332 | $2,286,096 | | Total Operating Expenses | $2,002,625 | $338,265 | $5,085,742 | $1,363,712 | | Operating Income (Loss) | $(1,096,396) | $215,090 | $(2,499,410) | $922,384 | | Net Income (Loss) | $(1,096,396) | $205,090 | $(2,499,410) | $904,990 | | Basic EPS | $(0.13) | $0.04 | $(0.31) | $0.19 | - Gross margin as a percentage of revenue improved significantly for both the three and nine months ended September 30, 2023, reaching **73%** and **75%** respectively, up from **45%** and **60%** in the prior year periods, primarily due to a favorable product mix and effective utilization of production facilities[64](index=64&type=chunk) [Statements of Cash Flows](index=4&type=section&id=STATEMENTS%20OF%20CASH%20FLOWS) The company experienced a significant net cash outflow from operating activities of $3.55 million for the nine months ended September 30, 2023, a reversal from a net inflow of $0.10 million in the prior year, leading to a substantial decrease in overall cash Statements of Cash Flows Summary (in USD) | Cash Flow Activity | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :-------------------------------- | :-------------------------- | :-------------------------- | | Net Cash Flow from Operating Activities | $(3,545,702) | $102,532 | | Net Cash Flow from Investing Activities | $(325,580) | $(7,283) | | Net Cash Flow from Financing Activities | $- | $(479,012) | | Net Change in Cash | $(3,871,282) | $(383,763) | | Cash - End of Period | $8,310,519 | $231,986 | - Common Stock issued to pay Stock Compensation for Marketing amounted to **$829,500** for the nine months ended September 30, 2023[16](index=16&type=chunk) [Statements of Shareholders' Equity](index=4&type=section&id=STATEMENTS%20OF%20SHAREHOLDERS'%20EQUITY) Total stockholders' equity decreased from $17.49 million at December 31, 2022, to $15.97 million at September 30, 2023, primarily due to a net loss of $2.50 million, partially offset by common stock issued for $0.98 million Statements of Shareholders' Equity Summary (in USD) | Metric | Balance, Dec 31, 2022 | Net Loss (9 Months) | Common Stock Issued | Balance, Sep 30, 2023 | | :---------------------- | :-------------------- | :------------------ | :------------------ | :-------------------- | | Common Stock Shares | 7,878,419 | - | 375,000 | 8,253,419 | | Common Stock Amount | $78,783 | - | $3,750 | $82,533 | | Additional Paid in Capital | $18,140,520 | - | $971,250 | $19,111,770 | | Accumulated Deficit | $(728,170) | $(2,499,410) | - | $(3,227,580) | | Total Stockholders' Equity | $17,491,133 | $(2,499,410) | $975,000 | $15,966,723 | - A correction of stock compensation related errors resulted in a **$71,250** reduction in Additional Paid in Capital for the three months ended September 30, 2023[21](index=21&type=chunk) [Notes to Financial Statements](index=5&type=section&id=NOTES%20TO%20FINANCIAL%20STATEMENTS) The notes provide context for the unaudited financial statements, detailing the basis of presentation, significant accounting policies, revenue recognition, inventory, property, intangible assets, leases, stock-based compensation, related party transactions, earnings per share, commitments, and subsequent events [NOTE 1 – BASIS OF PRESENTATION](index=5&type=section&id=NOTE%201%20%E2%80%93BASIS%20OF%20PRESENTATION) - The unaudited condensed financial statements are prepared in accordance with U.S. GAAP and SEC rules for interim financial information, and should be read in conjunction with the 2022 Form 10-K[22](index=22&type=chunk)[23](index=23&type=chunk) [NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES & USE OF ESTIMATES](index=6&type=section&id=NOTE%202%20%E2%80%93%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES%20%26%20USE%20OF%20ESTIMATES) - There have been no material changes to the company's significant accounting policies during the nine months ended September 30, 2023, from those disclosed in the 2022 Form 10-K[24](index=24&type=chunk) [NOTE 3 – REVENUE](index=6&type=section&id=NOTE%203%20%E2%80%93%20REVENUE) - Revenue is generally recognized when control of goods or services is transferred to customers, primarily on an FOB Origin basis for product sales, meaning title transfers upon placement in the collection warehouse[26](index=26&type=chunk) - During the three months ended September 30, 2023, the Company repurchased four units from two foreign resellers, increasing inventory by **$479,634** and bad debt expense by **$32,501**[28](index=28&type=chunk) [NOTE 4 – ACCOUNTS RECEIVABLE](index=6&type=section&id=NOTE%204%20%E2%80%93%20ACCOUNTS%20RECEIVABLE) Accounts Receivable Summary (in USD) | Metric | Sep 30, 2023 | Sep 30, 2022 | | :---------------------- | :----------- | :----------- | | Collectible Accounts Balance | $1,656,258 | $1,248,045 | | Bad Debt Expense (3 Months) | $164,534 | $- | | Bad Debt Expense (9 Months) | $365,263 | $- | - Bad debt expenses were reclassified as part of General & Administrative expenses in the statement of profit & loss from other income/(expense) in the first and second quarters of 2023[29](index=29&type=chunk) [NOTE 5 – INVENTORY](index=6&type=section&id=NOTE%205%20%E2%80%93%20INVENTORY) Inventory Composition (in USD) | Inventory Type | Sep 30, 2023 | Dec 31, 2022 | | :--------------------- | :----------- | :----------- | | Equipment Parts Inventory | $759,930 | $806,506 | | Finished Goods Inventory | $705,905 | $254,656 | | Sales Demo Inventory | $802,877 | $647,790 | | Work in Process Inventory | $294,971 | $31,434 | | Total Inventory | $2,610,259 | $1,693,810 | [NOTE 6 – PROPERTY, PLANT AND EQUIPMENT](index=7&type=section&id=NOTE%206%20%E2%80%93%20PROPERTY%2C%20PLANT%20AND%20EQUIPMENT) Property, Plant and Equipment (in USD) | Asset Category | Sep 30, 2023 | Dec 31, 2022 | | :-------------------------- | :----------- | :----------- | | Machinery & Equipment | $799,094 | $797,695 | | Office Furniture & Computer Equipment | $204,343 | $80,909 | | Vehicles | $154,085 | $9,989 | | Accumulated Depreciation | $(454,614) | $(298,718) | | Total Property, Plant and Equipment | $760,588 | $627,848 | - Depreciation expense for property, plant and equipment increased significantly, from **$28,048** to **$86,166** for the three months ended September 30, 2023, and from **$82,600** to **$155,896** for the nine months ended September 30, 2023[32](index=32&type=chunk) [NOTE 6 – INTANGIBLE ASSETS](index=7&type=section&id=NOTE%206%20%E2%80%93%20INTANGIBLE%20ASSETS) Intangible Assets (in USD) | Intangible Asset | Sep 30, 2023 | Dec 31, 2022 | | :----------------------- | :----------- | :----------- | | Equipment Design Documentation | $2,675,000 | $2,675,000 | | Operational Software & Website | $342,414 | $305,470 | | Trademarks | $216,800 | $216,800 | | Customer Relationships | $211,000 | $211,000 | | Accumulated Amortization | $(649,627) | $(469,229) | | Total Intangible Assets | $2,795,587 | $2,939,041 | - Amortization expense for intangible assets increased from **$56,805** to **$66,044** for the three months ended September 30, 2023, and from **$176,294** to **$180,398** for the nine months ended September 30, 2023[33](index=33&type=chunk) [NOTE 7 – LEASES](index=7&type=section&id=NOTE%207%20%E2%80%93%20LEASES) Operating Lease Expense (in USD) | Metric | 3 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :-------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Operating Lease Expense | $91,063 | $45,289 | $272,733 | $135,867 | - The increase in lease expense is due to the addition of a second leased facility for the Sales and Marketing group, aligning with the company's strategic plan to improve market reach and growth[35](index=35&type=chunk) [NOTE 8 – STOCK-BASED COMPENSATION](index=8&type=section&id=NOTE%208%20%E2%80%93%20STOCK-BASED%20COMPENSATION) - The company corrected a net impact of revaluation for SG&A expenses related to stock awards, resulting in reduced SG&A for the three months ended September 30, 2023[37](index=37&type=chunk) [NOTE 9 – RELATED PARTY TRANSACTIONS](index=8&type=section&id=NOTE%209%20%E2%80%93%20RELATED%20PARTY%20TRANSACTIONS) Related Party Transactions (in USD) | Service | 3 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2023 | | :-------------------- | :-------------------------- | :-------------------------- | | Accounting & Management Services | $23,100 | $68,686 | - ICT Investments provides accounting and various management services to the Company[38](index=38&type=chunk) [NOTE 10 – NET EARNINGS/LOSS PER SHARE](index=8&type=section&id=NOTE%2010%20%E2%80%93%20NET%20EARNINGS%2FLOSS%20PER%20SHARE) - As of September 30, 2023, the Company had no outstanding agreements that would have a dilutive effect on earnings per share[39](index=39&type=chunk) [NOTE 11 – COMMITMENTS AND CONTINGENCIES](index=8&type=section&id=NOTE%2011%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) - The Company's only commitments involve building leases in Orlando, FL[40](index=40&type=chunk) [NOTE 12 – SUBSEQUENT EVENTS](index=8&type=section&id=NOTE%2012%20%E2%80%93%20SUBSEQUENT%20EVENTS) - Between October 2 and October 13, 2023, the Company repurchased **24,937** shares at fair market value[41](index=41&type=chunk) - On October 17, 2023, the Company entered a one-year lease for an additional **9,000 square feet** adjoining its manufacturing facility, to be used as a Customer Experience Center for sales and marketing[41](index=41&type=chunk) - On October 18, 2023, the Company entered a license agreement with Fonon Technologies, Inc. for exclusive, worldwide, nontransferable rights to High Power Turbo Piercing laser cutting technology, in exchange for **$350,000** cash and **1,000,000** restricted shares of common stock[42](index=42&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=8&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and operational results, highlighting the business model, key factors, and a detailed analysis of revenue, gross margin, operating expenses, net loss, and liquidity [Business Overview](index=9&type=section&id=Business) - Laser Photonics Corporation is a vertically integrated manufacturer of photonics-based industrial products, specializing in disruptive laser cleaning technologies[48](index=48&type=chunk) - The company aims to stay ahead technologically by developing cutting-edge products, including the CleanTech™ product line, targeting both large and small businesses previously unable to afford laser processing equipment[50](index=50&type=chunk) [Factors and Trends That Affect Our Operations and Financial Results](index=9&type=section&id=Factors%20and%20Trends%20That%20Affect%20Our%20Operations%20and%20Financial%20Results) The company's operations and financial results are significantly influenced by supply chain constraints, foreign exchange rate fluctuations, rising interest rates, and global inflation, impacting costs and customer spending - Increased lead times for electronic components and broader supply chain/logistics constraints are expected to continue, potentially impacting product supply and customer demand[52](index=52&type=chunk) - Foreign currency fluctuations, particularly the strengthening U.S. dollar, adversely affect sales from overseas customers and increase cost of goods sold through supply chain expenses[53](index=53&type=chunk)[59](index=59&type=chunk) - Rising interest rates have caused customers to delay capital equipment spending, negatively impacting business in the short term, though the company expects the industry to re-adjust[54](index=54&type=chunk)[58](index=58&type=chunk) - General inflation has increased raw material costs, other inputs, and salaries, negatively impacting gross margin and operating expenses, and may cause customers to reduce or delay orders[55](index=55&type=chunk) [Results of Operations](index=10&type=section&id=Results%20of%20Operations) Net revenue for the three months ended September 30, 2023, saw a slight increase, but decreased for the nine-month period due to supply chain delays and reduced capital expenditure; gross profit and margin significantly improved, but a substantial increase in SG&A expenses led to a net loss Results of Operations Summary (in USD) | Metric | 3 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net Revenue | $1,239,554 (1.2% YoY) | $1,224,450 | $3,444,649 (-9.1% YoY) | $3,790,176 | | Gross Profit | $906,228 (64% YoY) | $553,355 | $2,586,332 (13% YoY) | $2,286,096 | | Gross Margin % | 73% | 45% | 75% | 60% | | Total SG&A Expenses | $1,850,414 | $253,412 | $4,749,448 | $1,104,818 | | Net Income (Loss) | $(1,096,396) | $205,090 | $(2,499,410) | $904,990 | - The decrease in nine-month revenue was primarily due to a major delay in the supply chain for critical components of the LPC2000CTH laser blasting model and delayed capital expenditure spending by major customers[64](index=64&type=chunk) - The significant increase in SG&A expenses is attributed to the strategic plan to increase market reach and sales force, higher personnel costs, professional service fees, SEC compliance costs, and bad debt expenses[66](index=66&type=chunk) [Liquidity and Capital Resources](index=11&type=section&id=Liquidity%20and%20Capital%20Resources) The company's cash and cash equivalents significantly decreased from $12.18 million at December 31, 2022, to $8.31 million at September 30, 2023, primarily due to substantial cash used in operating activities, leading to a decrease in total working capital Liquidity and Capital Resources Summary (in USD) | Metric | Sep 30, 2023 | Dec 31, 2022 | | :-------------------------- | :----------- | :----------- | | Cash and Cash Equivalents | $8,310,519 | $12,181,799 | | Total Working Capital | $12,058,306 | $13,579,732 | Cash Flow Activities (in USD) | Cash Flow Activity | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :-------------------------------- | :-------------------------- | :-------------------------- | | Net cash provided by (used in) Operating Activities | $(3,545,702) | $102,532 | | Net cash used in Investing Activities | $(325,580) | $(7,283) | | Net cash provided by (used in) Financing Activities | $- | $(479,012) | | Net Change in Cash | $(3,871,282) | $(383,763) | [Off-Balance Sheet Arrangements](index=11&type=section&id=Off-Balance%20Sheet%20Arrangements) - The Company did not engage in any off-balance sheet arrangements during the nine months ended September 30, 2023[71](index=71&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=12&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Laser Photonics Corporation is not required to provide quantitative and qualitative disclosures about market risk - The company is a smaller reporting company and is not required to provide information on market risk[72](index=72&type=chunk) [Item 4. Controls and Procedures](index=12&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2023, and steps were taken to address a previously identified material weakness in internal controls - Disclosure controls and procedures were deemed effective as of the evaluation date by the CEO and CFO[73](index=73&type=chunk) - To address a material weakness in internal controls identified in the 2022 audit, the company hired a Chief Financial Officer with a CPA credential and extensive experience, and engaged a third-party for accounting staff to enhance segregation of duties[74](index=74&type=chunk) [PART II – OTHER INFORMATION](index=12&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=12&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any legal proceedings expected to have a material adverse effect on its business, financial condition, or results of operations - The company is not involved in any legal proceedings that are believed to have a material adverse effect on its business[76](index=76&type=chunk) [Item 1A. Risk Factors](index=12&type=page&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, Laser Photonics Corporation is not required to provide a discussion of risk factors - Risk factors disclosure is not applicable to a smaller reporting company[77](index=77&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=12&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the reported period - No sales of unregistered securities occurred during the reported period[78](index=78&type=chunk) [Item 3. Defaults Upon Senior Securities](index=12&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - There were no defaults upon senior securities[79](index=79&type=chunk) [Item 4. Mine Safety Disclosures](index=12&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are not applicable to the company - Mine Safety Disclosures are not applicable[80](index=80&type=chunk) [Item 5. Other Information](index=12&type=section&id=Item%205.%20Other%20Information) No other information was reported under this item - No other information was reported[81](index=81&type=chunk) [Item 6. Exhibits](index=12&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications from the principal executive and financial officers, and XBRL data files Exhibits Filed | Exhibit Number | Description | | :------------- | :------------------------------------------------------------------- | | 31.1 | Rule 13(a)-14(a)/15(d)-14(a) Certification of principal executive officer | | 31.2 | Rule 13(a)-14(a)/15(d)-14(a) Certification of principal financial and accounting officer | | 32.1 | Section 1350 Certification of principal executive officer | | 32.2 | Section 1350 Certification of principal financial and accounting officer | | 101* | XBRL data files of Financial Statements and Notes | - XBRL data files are deemed "furnished" and not "filed" in accordance with Regulation S-T[84](index=84&type=chunk) [Signatures](index=13&type=section&id=Signatures) The report is duly signed on behalf of Laser Photonics Corporation by its President and CEO, Wayne Tupuola, and CFO, Jade Barnwell, on November 14, 2023 - The report was signed by Wayne Tupuola, President and Chief Executive Officer, and Jade Barnwell, Chief Financial Officer, on November 14, 2023[86](index=86&type=chunk)

Laser Photonics Corporation (NASDAQ:LASE) Q2 2023 Results Conference Call August 15, 2023 10:00 AM ET Company Participants Brian Siegel - IR Wayne Tupuola - CEO Jade Barnwell - CFO Conference Call Participants Chuck Lipson - CSL Associates Operator Greetings, and welcome to the Laser Photonics Corp.'s Second Quarter Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brian Siegel, Investor Relations. Thank you, sir. You ma ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Commission File Number: 000-56166 Laser Photonics Corporation (Exact name of registrant as specified in its charter) FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________________ to __________________ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________________ to __________________ Commission File Number: 000-56166 Laser Photonics Corporation (Exact name of registrant as specified in its charter) ...