Laser Photonics (US:LASE)2020-11-13 23:42Financial Performance - For the three months ended September 30, 2020, gross sales were $1,060,432 compared to $0 for the same period in 2019, and for the nine months ended September 30, 2020, gross sales totaled $2,308,053 compared to $0 in 2019[125]. - For the three months ended September 30, 2020, the company recorded gross sales of $1,060,432 and GAAP revenue of $607,687, compared to no revenue recorded for the same period in 2019[126][135][134]. - GAAP revenue for the three months ended September 30, 2020, was $607,687, and for the nine months ended September 30, 2020, it was $1,345,463, compared to no income recorded for the same periods in 2019[134]. - Gross profit for the three months ending September 30, 2020, was $346,623, and for the nine months, it was $812,853[140]. - Total expenses for the three months ended September 30, 2020, amounted to $326,291, with payroll expenses being the largest component at $217,238[144]. - Total expenses for the three months ended September 30, 2020, were $326,291, and for the nine months, they were $812,299[144]. Assets and Liabilities - As of September 30, 2020, current assets were $1,994,153, including $281,996 in cash, $878,829 in accounts receivable, and $833,328 in inventory, compared to $495,150 in current assets at December 31, 2019[103]. - Current liabilities as of September 30, 2020, totaled $1,024,958, a significant increase from $5,280 at December 31, 2019[103]. - The company recorded a lease liability of $225,055 as of September 30, 2020, related to its manufacturing facility[115]. - The total lease payments for operating leases amounted to $268,188 as of September 30, 2020[118]. - As of September 30, 2020, the company recognized $282,565 of right-of-use assets for operating leases due to the adoption of ASU 2016-02[155]. Liquidity and Financing - The company anticipates short-term liquidity needs of approximately $1,300,000 to increase sales staff and manufacturing capacity, with expected gross profits of around $2,500,000[107]. - The company received a loan of $198,750 under the Paycheck Protection Program, which is expected to be mostly forgiven if used for eligible purposes[101]. - The company anticipates minimal long-term liquidity needs, which are expected to be met through short-term borrowings or equity financing[107]. - The company expects to incur approximately $250,000 in costs over the next 12 months to comply with public company reporting requirements[104]. Research and Development - The company is developing the Laser Tower™ material processing family of equipment aimed at making laser processing affordable for over a million small and mid-sized companies[94]. - Research and development expenses for the three and nine months ended September 30, 2020, were fully expensed, with plans to establish separate accounting for R&D expenses in the near future[146]. Expenses and Cost Management - The cost of goods sold for the three-month period ended September 30, 2020, was $261,063, resulting in a gross profit of $346,623 for the same period[138][140]. - The company expects a decrease in cost of sales over the next several years due to increased capacity and efficiency in production, although this may be offset by underutilization of manufacturing capacity[137]. - The company anticipates an increase in selling, general, and administrative expenses in the near term to support business growth, but expects these expenses to decline as a percentage of net sales over time[142]. - The company recorded rent expenses of $43,162 for the three months ended September 30, 2020, related to its manufacturing facility lease[148]. - For the nine months ended September 30, 2020, the company recorded rent expense of $129,456[148]. Compliance and Accounting - The company has not utilized any derivative financial instruments and does not have borrowings, thus is not affected by interest rate changes[113]. - The company has not incurred any foreign currency gain or loss as of September 30, 2020[149]. - The company did not have any off-balance sheet arrangements as of September 30, 2020[162]. - Income taxes are imposed on the company's income by taxing authorities in various jurisdictions, principally the United States[152]. - The company is currently reviewing the provisions of ASU 2014-15 to determine any impact on its results of operations, cash flows, or financial condition[160]. - The adoption of ASU 2016-02 did not have a material impact on the company's financial statements[156]. - Significant estimates and assumptions include depreciation and the fair value of stock, stock-based compensation, and deferred tax assets[153].