Laser Photonics (LASE) - 2024 Q1 - Quarterly Report

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]