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, 2024

☐	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)

Delaware		84-3628771
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1101 N. Keller Road, Suite G Orlando, FL		32810
(Address of Principal Executive Offices)		Zip Code

(407) 804 1000

Registrant’s Telephone Number, Including Area Code

Not Applicable

Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: NONE

COMMON STOCK, $0.01 PAR VALUE

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock		LASE		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting Company, or an emerging growth Company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting Company,” and “emerging growth Company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated Filer	☒	Smaller reporting Company	☒
		Emerging growth company	☒

If an emerging growth Company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Indicate by check mark whether the registrant is a shell Company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐ No ☒

As of May 07, 2024, the registrant had 9,270,427 shares of common stock, par value $.01 per share, issued and outstanding.

TABLE OF CONTENTS

		Page No.
PART I – FINANCIAL INFORMATION

Item 1.	Financial Statements	3

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	19

Item 4.	Controls and Procedures	21

PART II – OTHER INFORMATION

Item 1.	Legal Proceedings	22

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22

Item 3.	Defaults Upon Senior Securities	22

Item 4.	Mine Safety Disclosures	22

Item 5.	Other Information	22

Item 6.	Exhibits	22

Signatures		23

Certifications

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PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

LASER PHOTONICS CORPORATION

CONDENSED BALANCE SHEETS

	2024			2023
	As of March 31, 2024			As of December 31, 2023
	(Unaudited)			(Audited)
Assets
Current Assets:
Cash and Cash Equivalents	$	5,173,125		$	6,201,137
Accounts Receivable, Net		443,309			816,364
Inventory		2,167,000			2,277,816

Other Assets	$	114,757		$	39,190

Total Current Assets	$	7,898,191		$	9,334,507

Property, Plant, & Equipment, Net	$	1,013,638		$	952,811

Intangible Assets, Net		4,195,597			4,279,986

Operating Lease Right-of-Use Asset	$	477,363		$	597,143

Total Assets	$	13,584,789		$	15,164,447

Liabilities & Stockholders’ Equity
Current Liabilities:
Accounts Payable	$	306,302		$	223,040
Deferred Revenue		772,686			701,234
Current Portion of Operating Lease		314,373			434,152
Accrued Expenses	$	79,007		$	161,538
Total Current Liabilities	$	1,472,368		$	1,519,964

Long Term Liabilities:
Lease liability - less current	$	162,991		$	162,991
Total Long Term Liabilities	$	162,991		$	162,991
Total Liabilities	$	1,635,359		$	1,682,955

Commitments and Contingencies (Note 3)	$	-		$	-

Stockholders’ Equity:
Preferred stock Par value $0.001: 10,000,000 shares authorized. 0 Issued: 0 shares were outstanding as of March 31, 2024, and December 31, 2023	$	-		$	-

Common Stock Par Value $0.001: 100,000,000 shares authorized; 9,253,419 and 7,878,419 issued and outstanding as of March 31, 2024, and December 31,2023		92,703		$	92,533

Additional Paid in Capital		18,110,923			19,097,445

Retained Earnings (Deficit)		(6,228,956	)		(5,683,246	)

Treasury Stock		(25,240	)		(25,240	)

Total Stockholders’ Equity	$	11,949,430		$	13,481,492

Total Liabilities & Stockholders’ Equity	$	13,584,789		$	15,164,447

See accompanying notes to financial statements.

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LASER PHOTONICS CORPORATION

STATEMENTS OF PROFIT AND LOSS

(UNAUDITED)

	2024			2023
	March 31,
	2024			2023
Net Sales	$	742,991		$	676,192

Cost of Sales		357,123			269,897

Gross Profit	$	385,868		$	406,295

Operating Expenses:

Sales & Marketing	$	136,610		$	262,925

General & Administrative		356,265			575,866

Depreciation & Amortization		185,316			83,137

Payroll Expenses		208,455			343,702

Research and Development Cost	$	47,691		$	40,254

Total Operating Expenses	$	934,338		$	1,305,882

Operating Income (Loss)	$	(548,470	)	$	(899,588	)
Other Income (Expenses):
Total Other Income (Loss)		2,760			(358,017	)

Income (Loss) Before Tax		(545,709	)		(1,257,605	)

Tax Provision	$	-		$	0
Net Income (Loss)	$	(545,709	)	$	(1,257,605	)

Income (Loss) per Share:
Basic	$	(0.06	)	$	(0.14	)
Diluted	$	(0.06	)	$	(0.14	)
WASO		9,270,425			9,008,910

See accompanying notes to financial statements.

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LASER PHOTONICS CORPORATION

STATEMENTS OF CASH FLOWS

(UNAUDITED)

	2024			2023
	March 31,
	2024			2023
Cash Flows From:
OPERATING ACTIVITIES
Net Income (Loss)	$	(545,709	)	$	(1,257,605	)
Adjustments to Reconcile Net Income (Loss) to Net Cash Flow from Operating Activities:
Shares issued for compensation		33,336			-
Distribution to affiliate		(1,019,687	)		-
Depreciation & Amortization		185,316			83,137
Change in Operating Assets & Liabilities:
Accounts Receivable	$	373,055		$	319,123
Inventory		110,816			(228,129	)
Prepaids & Other Current Assets		(75,565	)		(98,942	)
Accounts Payable		83,261			218,608
Accrued Expenses		(82,531	)		(351,500	)
21030 · Deferred Revenue		71,453			-
Net Cash From (Used In) Operating Activities	$	(866,257	)	$	(1,315,308	)

INVESTING ACTIVITIES
Purchase of Machinery & Equipment	$	(2,869	)	$	(1,399	)
Affiliate companies		(1	)		-
Purchase of R&D Equipment		(4,095	)		-
Office & Computer Equipment		(3,738	)		(49,402	)
Leasehold Improvements		(151,052	)		-
Net Cash From (Used In) Investing Activities	$	(161,754	)	$	(50,801	)

FINANCING ACTIVITIES
Proceeds from Sale of Common Stock	$	-		$	-
Net Cash From (Used In) Financing Activities	$	0		$	0
Net Cash Flow for Period	$	(1,028,011	)	$	(1,366,109	)
Cash - Beginning of Period	$	6,201,137		$	12,181,799
Cash - End of Period	$	5,173,126		$	10,815,690
NON-CASH INVESTING AND FINANCING ACTIVITIES
Shares issued on conversion of debt		-			-
Share issued for purchase of license		-			-
SUPPLEMENTARY CASH FLOW INFORMATION
Cash Received / Paid During the Period for:
Income Taxes	$	-		$	-
Interest	$	-		$	-

See accompanying notes to financial statements

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LASER PHOTONICS CORPORATION

STATEMENTS OF SHAREHOLDERS’ EQUITY (DEFICIT)

(UNAUDITED)

	Shares		Amount		Shares		Amount		Shares		Amount		Stock			Capital			Gain/Deficit			loss	(Deficit)
	Three months ended March 31, 2024
	Preferred Stock				Common Stock				Shares to be issued.				Treasury Stock			Additional Paid-in Capital			Accumulated Gain			Accumulated Comprehensive	Stockholders’ Equity
	Shares		Amount		Shares		Amount		Shares		Amount		(Deficit)			(Deficit)			(Deficit)			loss	(Deficit)
	#		$		#		$		#		$		$			$			$			$	$

As at December 31, 2023 (Audited)		-		-		9,253,419		92,533		-		-		(25,240	)		19,097,445			(5,683,246	)	-		13,481,492

Net loss		-		-				-		-		-		-						(545,709	)	-		(545,709	)

Stock Issued for compensation		-		-		17,008		170		-		-		-			33,165			-		-		33,335

Distributions to affiliate		-		-		-		-		-		-		-			(1,019,687	)		-		-		(1,019,687	)

Stock issued for compensation				-																				-
As at March 31, 2024		-		-		9,270,427		92,703		-		-		(25,240	)		18,110,923			(6,228,955	)	-		11,949,430

	Shares		Amount		Shares		Amount		Shares		Amount		Stock		Capital		Gain/Deficit			loss		(Deficit)
	Three months ended March 31, 2023
	Preferred Stock				Common Stock				Shares to be issued.				Treasury Stock		Additional Paid-in Capital		Accumulated Gain			Accumulated Comprehensive		Stockholders’ Equity
	Shares		Amount		Shares		Amount		Shares		Amount		(Deficit)		(Deficit)		(Deficit)			loss		(Deficit)
	#		$		#		$		#		$		$		$		$			$		$

As at December 31, 2022 (Audited)		-		-		7,878,419		78,783		350,000		829,500		-		18,140,520		(1,917,314	)		-		17,131,489

Net loss		-		-		-		-		-		-		-		-		(1,257,605	)		-		(1,257,605	)
Net profit (loss)								-				-		-				(1,257,605	)		-		(1,257,605	)

As at March 31, 2023		-		-		7,878,419		78,783		350,000		829,500		-		18,140,520		(3,174,919	)		-		15,873,884

See accompanying notes to financial statements

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LASER PHOTONICS CORPORATION

NOTES TO FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 1 –BASIS OF PRESENTATION

The accompanying unaudited condensed financial statements and notes of Laser Photonics Corporation (the “Company”) are presented in United States dollars and have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, those do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These financial statements should be read in conjunction with the financial statements, notes and significant accounting policies included in our Annual Report on Form 10-K for the year ended December 31, 2023.

Equity activity

The following description of our securities and certain provisions of our amended and restated certificate of incorporation and amended and restated bylaws are summaries and are qualified by reference to the amended and restated certificate of incorporation and our bylaws that will be in effect on the closing of this offering. Copies of these documents have been filed with the SEC as exhibits to our registration statement, of which this prospectus forms a part. The descriptions of the Shares, and preferred stock reflect changes to our capital structure that will be in effect on the closing of this offering.

Preferred Stock

	●	Par value: $0.001
	●	Authorized: 10,000,000
	●	Issued: There were no preferred shares issued and outstanding as of March 31, 2024

Common Stock

	●	Par value: $0.001
	●	Authorized: 100,000,000
	●	Issued: 9,270,427 as of March 31, 2024

On February 2^nd 2024 17,000 Shares of Common stock were issued to Jade Barnwell, the former Laser Photonics CFO, under the terms of employment.

Warrants

As of March 31, 2024 there were 180,000 Warrants Outstanding

Options

As of March 31, 2024 there were no Options Issued or Outstanding

Restatement of Q1 2023.

Q1 2023 was unaudited and as we were preparing our Q1 2024 filing we noticed the balances in our ledger did not match what was filed. Our system of record current financials is the basis for the financials as they are presented, not the prior Q1 2023 filing.

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Restatement of Q1 2023 Reconciliation:

SCHEDULE OF RESTATEMENT OF RECONCILIATION

Note 1. Restatement of Previously Issued Financial Statements Q1 2023

Balance Sheet	As Filed		Adjustments		As Restated
			Restatement
Balance Sheet	As Filed		Adjustments		As Restated
Assets
Cash and cash equivalent	$	10,815	$	0	$	10,816
Accounts receivable, net	$	1,747	$	-1,645	$	102
Prepaid expenses and other current assets	$	0	$	161	$	161
Inventory	$	1,951	$	-677	$	1,274
Total current assets	$	14,513	$	-2,160	$	12,353
Other Assets	$	183	$	-161	$	22
PP&E	$	652	$	463	$	1,115
Intangible Assets Net	$	2,882	$	0	$	2,882
Operating Lease Right of Use Asset	$	742	$	0	$	742
				0
Total assets	$	18,972	$	-1,858	$	17,114

Liabilities
Current Liabilities				0
Accounts payable	$	421	$	-12	$	409
Bofa Master CC 7430	$	-	$	-	$	11
Deferred revenue	$	0	$	0	$	0
Current Portion of Operating Lease	$	345	$	0	$	345
Accrued expenses	$	1,750	$	-1,672	$	78
Total current liabilities	$	2,516	$	-1,673	$	843
Long Term Liabilities	$	-	$	0	$	-
Lease Liability less current	$	397	$	-52	$	345
Total Long Term liabilities	$	397	$	-234	$	163
Total Liabilitiy	$	2,913	$	-1,907	$	1,006
Stockholders’ Equity	$
Preferred Stock	$	0	$	0	$	0
Common Stock	$	78	$	0	$	78
Shares to be issued	$	0	$	830	$	830
Additional paid-in capital	$	18,141	$	0	$	18,141
Retained Earnings	$	-728	$	-1,189	$	-1,917
Net Income (Loss)		-1,432		174		-1,258
Total stockholders’ equity	$	16,059	$	-185	$	15,874
Total liabilities and stockholders’ equity	$	18,972	$	-2,092	$	16,880

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	As Filed		Adjustments		As Restated
			Restatement
	As Filed		Adjustments		As Restated
Statement of operations
Net Sales	$	1,237	$	-561	$	676
Other income	$	0	$	0	$	0
Cost of Sales	$	241	$	29	$	270
Gross Profit	$	996	$	-590	$	406
Operating Expenses:
Sales & Marketing	$	1,068	$	-805	$	263
General & Administrative	$	1,077	$	-501	$	576
Depreciation & Amortization	$	83	$	0	$	83
Payroll Expenses	$	0	$	344	$	344
Total other Income Expense	$	-	$	0	$	0
Research & Development	$	0	$	40	$	40
Total Operating Expenses	$	2,228	$	-922	$	1,306
Operating Income (Loss)	$	-1,232	$	332	$	-900
Interest Expense	$	-200	$	200	$	0
Income (Loss) Before Tax	$	-1,432	$	532	$	-900
Onter income	$	-	$	-358	$	-358
Net Income (Loss)	$	-1,432	$	174	$	-1,258

Income (Loss) per Share
Basic	$	-0.18	$	0.04	$	-0.14
Diluted	$	-0.18	$	0.04	$	-0.14

	As Filed		Adjustments		As Restated
			Restatement
	As Filed		Adjustments		As Restated
Statement of cash flows
OPERATING ACTIVITIES
Net Income (Loss)	$	-1,432	$	174		-1,258
Adjustments to Reconcile Net Income (Loss) to Net Cash Flow from Operating Activities:	$	0	$	0	$	0
Shares to be issued as consideration for services	$	0	$	0		0
Depreciation & Amortization	$	83	$	0		83
Lease liability - less current	$	0	$	0		0
Operating lease right-of-use	$	0	$	0		0
Net Change, Right-of-Use Asset & Liabilities	$	0	$	0		0
Change in Operating Assets & Liabilities:	$	0	$	0		0
Accounts Receivable	$	-400	$	719		319
Other current assets	$	-110		110		0
Inventory	$	-257	$	29		-228
Prepaids & Other Current Assets	$	0	$	-98		-98
Stock Account	$	0	$	0		0
Accounts Payable	$	230	$	-12		218
Accrued Expenses	$	570	$	-922		-352
21030 · Deferred Revenue	$	0	$	0		0
24240 · Lease liability Current Portion	$	0	$	0		0
Net Cash From (Used In) Operating Activities	$	-1,316	$	0		-1,316

INVESTING ACTIVITIES	$	0	$	0		0
Purchase of Long term assets	$	-51	$	49		-2
Leashold improvments	$	-	$	0		0
Office & Computer Equipment	$	0	$	-49		-49
Purchase of R&D Equipment	$	0	$	0		0
Demonstration Equipment	$	0	$	0		0
Purchase of Intangible Assets	$	0	$	0		0
Net Cash From (Used In) Investing Activities	$	-51	$	0		-51

FINANCING ACTIVITIES
Proceeds from (Repayment of) Notes	$	0	$	0		0
Proceeds from (Repayment of) PPP Loan	$	0	$	0		0
Dividends Paid	$	0	$	0		0
Proceeds from Sale of Common Stock	$	0	$	0		0
Net Cash From (Used In) Financing Activities	$	0	$	0		0
Net Cash Flow for Period	$	-1,367	$	0		-1,367
Cash - Beginning of Period	$	12,182	$	0		12,181
Cash - End of Period	$	10,816	$	0		10,816
NON-CASH INVESTING AND FINANCING ACTIVITIES	$	0	$	0		0
Shares issued on conversion of debt	$	0	$	0		0
Shares issued as consideration for services	$	0	$	0		0
Share issued for purchase of license	$	0	$	0		0
SUPPLEMENTARY CASH FLOW INFORMATION	$	0	$	0		0
Cash Received / Paid During the Period for:	$	0	$	0		0
Income Taxes	$	0	$	0		0
Interest	$	0	$	0		0

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NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES & USE OF ESTIMATES.

Our significant accounting policies are provided in “Note 2 – Summary of Significant Accounting Policies” in our Financial Statements 2023 Form 10-K. There have been no material changes to our significant accounting policies from those disclosed in our 2023 Form 10-K for the fiscal year ended December 31, 2023

Stock Based Compensation

The Company accounts for stock-based payments in accordance with the provision of ASC 718, which requires that all share-based payments issued to acquire goods or services, including grants of employee stock options, be recognized in the statement of operations based on their fair values, net of estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Compensation expense related to share-based awards is recognized over the requisite service period, which is generally the vesting period.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at dates of the financial statements and the reported amounts of revenue and expenses during the periods. Actual results could differ from these estimates. In the opinion of management, our financial statements reflect all adjustments considered necessary by management to fairly state the results of operations, financial position and cash flows of the Company for the periods presented.

Revenue Recognition

Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, we assess the goods or services promised within each contract and determine those that are performance obligations and assess whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

Revenue is then recognized for the transaction price allocated to each respective performance obligation when (or as) the performance obligation is satisfied. For our products, revenue is generally recognized upon shipment or pickup by the customer. At this stage, the title on the manufactured equipment is transferred to the customer, and the customer is responsible for transportation expenses, insurance, and any transport-related damage to the equipment in transit. We do not hold any obligation to deliver beyond the collection warehouse, and it is the customers’ contractual responsibility to ensure their goods reach their destination.

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Refunds and returns, which are minimal, are recorded as a reduction of revenue. Payments received from customers before satisfying the above criteria are recorded as unearned income on the combined balance sheets.

Payments received as deposits for specific purchase orders or future laser equipment sales to customers are recognized as customer deposits and included in liabilities on the balance sheet. Customer deposits are recognized as revenue when control over the ordered equipment is transferred to the customer.

All revenues are reported net of any sales discounts or taxes.

Other Revenue Recognition Matters related to Distributors.

Distributors generally have no right to return unsold equipment. However, in limited circumstances, if the company determines that distributor stock is morally aging beyond the company’s new model releases, it may accept returns and provide the distributor with credit against their trading account at the company’s discretion under its warranty policy. This revenue is recognized on a consignment basis and transfer of control is when an item is sold to end customer at which time the company recognizes revenue.

Cash and Cash Equivalents

Cash and cash equivalents consist of highly liquid investments with an original maturity of three months or less at the date of purchase. Cash and cash equivalents are carried at a cost, which approximates fair value. The company has $5,039,472 in flexible CD account with Bank of America. The terms on this CD if flexible, having a term of 9 months that automatically renews, Full balance and interest can be withdrawn prior to maturity. A penalty of 7 days interest will be imposed for early withdrawals within the first 6 days of the account term.

Accounts Receivable

Trade accounts receivable are recorded net of allowance for expected uncollectible accounts. The Company extends credit to its customers in the normal course of business and performs on-going credit evaluations of its customers. All accounts, or portions thereof, that are deemed uncollectible are written off to bad debt expense, as incurred. In addition, most sales orders are not accepted without a substantial deposit. As of March 31, 2024, the balance of collectible accounts was $443,309. Allowance and amount recognized as bad debt ask of March 31, 2024 is $183,380

Inventory

Inventories are stated at a lower of cost or net realizable value using the first-in first-out (FIFO) method. The Company has four principal categories of inventory:

Sales demonstration inventory - Sales demonstration inventory represents completed product used to support our sales force for demonstrations and held for sale. Sales demonstration inventory is held in our demo facilities or by our sales representatives for up to three years, at which time it would be refurbished and transferred to finished goods as used equipment, stated at the lower of cost or net realizable value. The Company expects these refurbished units to remain in finished goods inventory and sold within 12 months at prices that produce reduced gross margins.

Equipment parts inventory - This inventory represents components and raw materials that are currently in the process of being converted to a certifiable lot of saleable products through the manufacturing and/or equipment assembly process. Inventories include parts and components that may be specialized in nature and subject to rapid obsolescence. The Company periodically reviews the quantities and carrying values of inventories to assess whether the inventories are recoverable. Because of the Company’s vertical integration, a significant or sudden decrease in sales activity could result in a significant change in the estimates of excess or obsolete inventory valuation. The costs associated with provisions for excess quantities, technological obsolescence, or component rejections are charged to cost of sales as incurred.

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Work in process inventory - Work in process inventory consists of inventory that is partially manufactured or not fully assembled as of the date of these financial statements. This equipment, machines, parts, frames, lasers and assemblies are items not ready for use or resale. Costs are accumulated as work in process until sales ready items are compete when it is moved to finished goods inventory. Amounts in this account represent items at various stages of completion at the date of these financial statements.

Finished goods inventory - Finished goods inventory consists of purchased inventory that were fully manufactured, assembled or in salable condition. Finished goods inventory is comprised of items that are complete and ready for commercial application without further cost other that delivery and setup. Finished goods inventory includes demo and other equipment, lasers, software, machines, parts or assemblies.

At March 31, 2024 and December 31, 2023, respectively, our inventory consisted of the following:

SCHEDULE OF INVENTORY

Inventory	As of March 31, 2024		As of December 31, 2023
	Unaudited		(Audited)
Equipment Parts Inventory	$	947,647	$	862,941
Finished Goods Inventory		882,353		1,033,104
Sales Demo Inventory		210,030		162,958
Work in process Inventory		151,186		243,029
Inventory Reserve		-24,216		-24,216
Total Inventory	$	2,167,000	$	2,277,816

Fixed Assets - Plant Machinery and Equipment

Property and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period.

Machinery and Equipment

Depreciation is provided over the estimated useful lives of the related assets using the straight-line method for financial statement purposes. The Company uses other depreciation methods (generally accelerated) for tax purposes where appropriate. The estimated useful lives for significant property and equipment categories are as follows:

Category		Economic Useful Life
Office furniture and fixtures		3-5 years
Machinery and equipment		5-7 years
Intangible Assets		7-15 years

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SCHEDULE OF FIXED ASSETS

Fixed Assets	2024			2023
	31-Mar
Fixed Assets	2024			2023
Accumulated Depreciation	$	(830,883	)	$	(510,132	)
Machinery & Equipment	$	799,652		$	799,094
Office Furniture & Computer Equipment	$	81,225		$	130,311
Vehicles	$	90,959		$	9,989
R&D Equipment	$	42,068		$	37,973
Leasehold improvments	$	182,827		$	-
Demostration equipment	$	647,790		$	647,790
Property, Plant and Equipment, Gross	$	647,790		$	647,790
Total Fixed Assets	$	1,013,638		$	1,115,025

Intangible Assets

Intangible assets consist primarily of capitalized equipment design documentation, software costs for equipment manufactured for sale, research, and development, as well as certain patent, trademark and license costs. Capitalized software and equipment design documentation development costs are recorded in accordance with Accounting Standard Codification (“ASC”) 985 “Software” with costs amortized using the straight-line method over a ten-year period. Patent, trademark and license costs are amortized using the straight-line method over their estimated useful lives of 15 years. On an ongoing basis, management reviews the valuation of intangible assets to determine if there has been impairment by comparing the related assets’ carrying value to the undiscounted estimated future cash flows and/or operating income from related operations.

The Company’s intangible assets are deemed to have indefinite lives and, accordingly, are not amortized, but are evaluated for impairment at least annually, but more often whenever changes in facts and circumstances occur which may indicate that the carrying value may not be recoverable.

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The Company employs various core technologies across many different product families and applications in an effort to maximize the impact of our research and development costs and increase economies of scale and to leverage its technology-specific expertise across multiple product platforms. The technologies inherent in its laser equipment products include application documentation, proprietary and custom software developed for operation of its equipment, specific knowledge of supply chain and, mostly important, equipment design documentation, consisting of 3D engineering drawings, bills of materials, wiring diagrams, parts AutoCad drawings, software architecture documentation, etc. Intangible assets were received from a related party, ICT Investments, and therefore transferred and booked by Laser Photonics Corp. at their historical cost.

SCHEDULE OF INTANGIBLE ASSETS

Intangible Assets	2024			2023
	31-Mar
Intangible Assets	2024			2023
Accumulated Amortization	$	(809,617	)	$	(526,034	)
Customer Relationships	$	211,000		$	211,000
Equipment Design Documentation	$	2,675,000		$	2,675,000
Operational Software & Website	$	339,539		$	305,470
Trademarks	$	216,800		$	216,800
License & Patents	$	1,562,875		$	-
Intangible Assets, Gross	$	1,562,875		$	-
Total Intangible Assets	$	4,195,597		$	2,882,236

Long-Lived Assets

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Impairment is measured by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from use of the assets and their ultimate disposition. In instances where impairment is determined to exist, the Company will write down the asset to its fair value based on the present value of estimated future cash flows.

NOTE 3 – LEASES

Our leases consist of operating leases only related to our two facilities located in Orlando, Florida. The operating leases for our facilities are non-cancelable operating leases and are included in Operating lease right-of-use (“ROU”) asset, Lease liability, and Lease liability – less current portion in our balance sheets. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

SCHEDULE OF OPERATING LEASES EXPENSES

	2024		2023
	Three Months Ended March 31,
	2024		2023

Operating Lease Expense	$	79,847	$	90,609

Current Liabilities

Accounts Payable

Accounts payable consist of short-term liability to our vendors and sub-contractors, who extend credit terms to the Company or deliver goods or services with delayed payment terms. As of March 31, 2024, and December 31, 2023, our accounts payable were recorded at $306,301 and $223,040, respectively.

Deferred Revenue

Deferred Revenue is primarily comprised of products that have been made available to key distributors that has not been sold. As of March 31, 2024 the Company had $ 772,686, and December 31, 2023 the Company’s deferred revenue liabilities were recorded $701,234.

As of March 31, 2024, there were no loan balances owed by the Company.

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	2024			2023
	Three months ended on March 31,
	2024 (Unaudited)			2023 (Unaudited)
Cash flows data:
Net cash provided by (used in) operating activities	$	(866,257	)	$	(1,315,308	)
Net cash provided by (used in) investing activities	$	(161,754	)	$	(50,801	)
Net cash provided by (used in) financing activities	$	0		$	0
Net change in cash and cash equivalents	$	(1,028,011	)	$	(1,366,109	)

Net Earnings/Loss per Share

Basic Earnings/Loss per share is calculated by dividing the Earnings/Loss attributable to stockholders by the weighted-average number of shares outstanding for the period. Diluted Earnings/Loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that shared in the earnings (loss) of the Company. Diluted Earnings/Loss per share is computed by dividing the Earnings/Loss available to stockholders by the weighted average number of shares outstanding for the per

SEC Form 10-Q filed by Laser Photonics Corporation