Company: LASE
Filing Date: 2025-07-03
Form Type: 10-Q
Source: 0001641172-25-017657
Chunk: 2

Company: Laser Photonics Corp
Filing Date: 2025-07-03
Form: 10-Q
Item: Part I, Item 2
Chunk 2
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 new customers.

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Table of Contents

Our
business depends substantially upon capital expenditures by end users, particularly by manufacturers using our products for materials
processing, which includes general manufacturing, automotive including electric vehicles (EV), other transportation, aerospace, heavy
industry, consumer, semiconductor, pharmaceutical, and electronics. Although applications within materials processing are broad, the
capital equipment market in general is cyclical and historically has experienced sudden and severe downturns. For the foreseeable future,
our operations will continue to depend upon capital expenditures by end users of materials processing equipment and will be subject to
the broader fluctuations of capital equipment spending.

Gross
margin. Our total gross margin in any period can be significantly affected by several factors, including net sales, production volumes,
competitive factors, product mix, and by other factors such as changes in foreign exchange rates relative to the U.S. Dollar. Many of
these factors are not under our control. The following are examples of factors affecting gross margin:

●
As our products mature, we can experience additional competition which tends to decrease average selling prices and affects gross margin.

●
Our gross margin can be significantly affected by product mix. Within each of our product categories, the gross margin is generally higher
for devices with greater average power. These higher power products often have better performance, more difficult specifications to attain
and fewer competing products in the marketplace.

Selling
and Marketing expenses. In the first quarter of 2025, we invested in Selling and Marketing costs to support continued growth in the
Company. As the secular shift to laser blasting technology matures, our sales growth becomes more susceptible to the cyclical trends typical
of capital equipment manufacturers. Accordingly, our future management of and investments in selling and marketing expenses will also
be influenced by these trends, although we may still invest in selling and marketing functions to support sales sustainability even in
economic down cycles.

Research
and development expenses. We plan to continue to invest in research and development to improve our existing laser blasting technology
and equipment and develop new products, systems and applications. We believe that these investments will sustain our position as a leader
in the laser industry and will support the development of new products that can address new markets and growth opportunities. The amount
of research and development expenses we incur may vary from period to period.

Results of Operations

The Company had revenue
of $2,291,231 in the three months ended March 31, 2025, as compared to revenue of $742,991 in March 31,