Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 244

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1
Chunk 244
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, and manufacturing overhead such as engineering, equipment maintenance,
quality and production control, and procurement costs. Cost of sales does not include depreciation of manufacturing plant and equipment
and facility-related expenses.

Overall,
we expect our cost of sales to continue to decrease over the next several years due to an increase in worldwide capacity in fiber laser
parts and components, and availability of optical generators, an increase in unit output per production line, and more efficient absorption
of fixed costs driven by economies of scale. This expected decrease in cost for laser technology would be partially offset during periods
in which we underutilize manufacturing capacity.

The Company contracted with a third party
to test impairment of their intangible assets. After the evaluation was completed, the company recognized an impairment of $932,669 based
on the third parties report.

Operating
Expenses

Operating
expenses for the year ended December 31, 2024, were $ 7,944,389 as compared to $ 6,246,011 for the year ended December 31, 2023, representing
an increase of $ 1,698,378. The following table summarizes the significant changes in operating expenses for the years ended December 31,
2024, and 2023

    Year Ended December 31, 

    2024  
    2023 
  
    Operating Expenses: 

    Sales & Marketing 
    $1,561,506  
    $1,996,363 
  
    General & Administrative 
     2,790,543  
     2,123,058 
  
    Depreciation & Amortization 
     972,135  
     523,380 
  
    Payroll Expenses 
     1,430,840  
     1,400,951 
  
    Impairment 
     932,669  

    Research and Development Cost 
     261,911  
     202,259 
  
    Total Operating Expenses 
    $7,944,389  
    $6,246,011 

We
expect recurring selling expenses to increase in the near term to support the planned growth of our business as we expand our sales and
marketing efforts. In the future, we expect selling, general, and administrative expenses to decline as a percentage of net sales, as
our net sales grow beyond the fixed costs of the business.

46

Net
Loss (Income)

Net
loss for the year ending December 31,