Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 451

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1B
Chunk 451
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 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 flow. 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. Adjusted EBITDA is defined as comprehensive income (loss) as reported in our consolidated statements of income excluding
the impact of (i) interest expense; (ii) income tax provision; (iii) depreciation and amortization; (iv) stock-based compensation expense;
(v) accretion of debt discounts; (vi) other income – forgiveness of Paycheck Protection Program loan; (vii) other financing costs;
(viii) loss on extinguishment of debt; (ix) warrant inducement expense; (x) amortization of right-of-use assets; and (xi) change in fair
value of derivative liabilities. Our Adjusted EBITDA measure eliminates potential differences in performance caused by variations in
capital structures (affecting finance costs), tax positions, the cost and age of tangible assets (affecting relative depreciation expense)
and the extent to which intangible assets are identifiable (affecting relative amortization expense). We also exclude certain one-time
costs associated with our IPO and non-cash costs.

(3)
We believe EBITDA and Adjusted EBITDA are helpful for investors to better understand our underlying business operations. The following
table adjusts Net Income (Loss) to EBITDA and Adjusted EBITDA years ended December 31, 2024, and 2023.

Reconciliation
of Adjusted EBITDA

    Year Ended December 31, 

    2024  
    2023 
  
    Statement of operations data: 

    Net Sales 
    $3,415,196  
    $3,939,474 
  
    Cost of Sales 
     1,934,150  
     1,041,697 
  
    Gross Profit 
     1,481,046  
     2,897,777 
  
    Operating Expenses