Company: LASE
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001641172-25-024367
Chunk: 12

Company: Laser Photonics Corp
Filing Date: 2025-08-15
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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6, 2025, and ending November 25, 2025, subject
to payment of a $75,000
administrative agent fee paid to Agile Capital. The Loan is
secured by a blanket lien on the Company’s assets. The Loan may be prepaid subject to payment of prepayment fee equal to the aggregate
and actual amount of interest (at the contract rate of interest) that would be paid through the maturity date.

The
balance of Agile Capital Funding, LLC loans as of June 30, 2025, was $1,169,327 and a Debt Discount of $53,972.

On
January 14, 2025, Laser Photonics Corporation (the “Company” or “Laser Photonics”) entered into a business loan
agreement with IPFS Corporation to finance an insurance policy contracted through the agent Brown & Brown Insurance. Under the terms
of the agreement, the Company made a down payment of $33,192. The initial principal amount of the loan was $99,926, which was subsequently
increased to $165,908 in March 2025 to include coverage for CMS under the same policy. As of June 30, 2025, the remaining balance of
the loan with IPFS Corporation was $95,522.

Inventory

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

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 the cost
of sales as incurred.

    9

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