Laser Photonics (US:LASE)2020-08-19 21:27Financial Position - As of June 30, 2020, the company reported current assets of $1,573,816, which included $300,878 in cash, $480,331 in accounts receivable, and $792,607 in inventory, compared to $495,150 in current assets at December 31, 2019[98]. - Current liabilities as of June 30, 2020, totaled $622,738, a significant increase from $5,280 at December 31, 2019[98]. - The company has a recorded lease liability of $296,220 as of June 30, 2020, which includes current and long-term portions[113]. - The company issued a promissory note of $439,990 with a 6% annual interest rate, with an unpaid principal amount of $337,457 as of June 30, 2020[112]. Financial Performance - The company experienced a net loss of $19,779 for the six months ended June 30, 2020, compared to a net income of $0 for the same period in 2019[105]. - Gross sales for the three months ended June 30, 2020, were $712,971, compared to $0 for the same period in 2019, and for the six months ended June 30, 2020, gross sales were $1,247,621, also compared to $0 in 2019[122][124]. - Recorded revenue for the three months ending June 30, 2020, was $559,851, and for the six months ending June 30, 2020, it was $737,776, with no revenue recorded for the same periods in 2019[123][132]. - Cost of goods sold for the three-month period was $214,227, and for the six-month period, it was $271,546[136]. - Gross profit for the three months ending June 30, 2020, was $345,624, and for the six months, it was $466,230[138]. - Total operating expenses for the three months ended June 30, 2020, were $208,912, and for the six months, they were $486,009[142]. Cash Flow - The company reported net cash used in operating activities of $(449,469) for the six months ended June 30, 2020[105]. Future Plans and Expectations - The company anticipates short-term liquidity needs of approximately $1,300,000 to increase sales staff and manufacturing capacity, with expected gross profits of approximately $2,500,000[102]. - The company plans to develop a new generation of affordable laser cutting systems named the Laser Tower™ material processing family, targeting over a million small and mid-sized companies[88]. - The company expects a decrease in cost of sales over the next several years due to increased capacity and efficiency in production[135]. Accounting and Compliance - The company anticipates that the cost of being a reporting public company will be approximately $250,000 over the next 12 months[99]. - The company adopted ASU 2016-02 effective January 1, 2020, resulting in the recognition of $282,565 of right-of-use assets for operating leases[153]. - The adoption of ASU 2016-02 did not have a material impact on the company's financial statements[154]. - The company is currently reviewing the provisions of ASU 2014-15 to determine any potential impact on its financial condition[158]. - All other newly issued accounting pronouncements but not yet effective have been deemed either immaterial or not applicable[159]. Risk Management - The company has not utilized any derivative financial instruments and believes its exposure to interest rate risk and foreign currency exchange rate changes is not material[111]. - The company recorded no foreign currency gain or loss as of June 30, 2020[147]. - There were no off-balance sheet arrangements reported as of June 30, 2020[160]. - The company did not report any subsequent events[161]. - Interest expense is incurred on various debt financings, with amounts capitalized into property, plant, and equipment[149]. - Income taxes are imposed on the company's income by taxing authorities in the United States[150]. Research and Development - Research and development expenses for the three and six months ending June 30, 2020, were fully expensed, with plans to establish separate accounting for R&D expenses in the near future[144].