Company: LASE
Filing Date: 2025-12-23
Form Type: 10-Q
Source: 0001493152-25-028857
Chunk: 42

Company: Laser Photonics Corp
Filing Date: 2025-12-23
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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 identify underlying trends in our business that could otherwise
be masked by the effect of certain expenses that we exclude in the calculations of the non-GAAP financial measures.

18

Accordingly,
we believe that these non-GAAP financial measures reflect our ongoing business in a manner that allows for meaningful comparisons and
analysis of trends in the business and provides useful information to investors and others in understanding and evaluating our operating
results, enhancing the overall understanding of our past performance and future prospects.

These
non-GAAP financial measures do not replace the presentation of our GAAP financial results and should only be used as a supplement to,
not as a substitute for, our financial results presented in accordance with GAAP. There are limitations in the use of non-GAAP measures,
because they do not include all the expenses that must be included under GAAP and because they involve the exercise of judgment concerning
exclusions of items from the comparable non-GAAP financial measure. In addition, other companies may use other non-GAAP measures to evaluate
their performance, or may calculate non-GAAP measures differently, all of which could reduce the usefulness of our non-GAAP financial
measures as tools for comparison.

    (1)
    EBITDA is a non-GAAP financial
    measure used by management, lenders, and certain investors as a supplemental measure in the evaluation of some aspects of a corporation’s
    financial position and core operating performance. Investors sometimes use EBITDA, as it allows for some level of comparability of
    profitability trends between those businesses differing as to capital structure and capital intensity by removing the impacts of
    depreciation and amortization. EBITDA also does not include changes in major working capital items, such as receivables, inventory
    and payables, which can also indicate a significant need for, or source of, cash. Since decisions regarding capital investment and
    financing and changes in working capital components can have a significant impact on cash flow, EBITDA is not necessarily a good
    indicator of a business’s cash flows. We use EBITDA for evaluating the relative underlying performance of our core operations
    and for planning purposes. We calculate EBITDA by adjusting net income to exclude net interest expense, income tax expense or benefit,
    depreciation and amortization, thus the term “Earnings Before Interest, Taxes, Depreciation and Amortization” and the
    acronym “EBITDA.”

    (2)
    Adjusted EBITDA is defined
    as net income (loss)