Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 184

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1
Chunk 184
---
3
& 2024 was a year of investments sales and marketing activity, and we invested nearly $4M in development and scaling of sales and
marketing operation. We have a marketing and sales budget equal to 10% of our gross sales, and a new product promotional budget of $0.7M
for 2025.

Product
Warranty and Support

We
offer for sale with our equipment a two-year limited warranty against defects in materials and workmanship under normal use and service
conditions following delivery of our equipment to our customers.

We
also warrant the owners of our custom laser systems that are designed and manufactured in accordance with agreed-upon specifications.
In resolving claims under both the defects and performance warranties, we have the option of either repairing or replacing the covered
laser cleaning equipment. Our warranties are automatically transferred from the original purchaser of our laser cleaning equipment and
optical components to subsequent purchasers upon delivery of our finished laser systems.

In
general, our products carry a warranty against defects, depending on the product type and customer negotiations. The costs associated
with these warranty obligations are not expected to be significant and no such costs have been recorded in our financial statements.

Competition

The
laser cleaning market is highly fragmented, with most competitors being small, privately held, or operating within limited geographic
regions, specific industries, or niche applications. While our competitive landscape is diverse, it remains intensely competitive, shaped
by rapid technological advancements, increasing customer demands, and downward pressure on average selling prices as newer, integrated
technologies replace outdated systems.

Our
most notable competitors include P-Laser and Clean-Lasersysteme GmbH (represented in the U.S. by Adapt Laser Systems), along with smaller
players such as Laserax and 4JET. Some of these competitors are attempting to close the gap by increasing the output power of their fiber
lasers to compete with our high-powered, industrial-grade solutions.

However,
most competitors do not meet CDRH safety requirements for Class 4 laser systems, making them unlikely to be considered by many companies
that prioritize workplace safety and regulatory compliance. At Laser Photonics, customer safety is our top priority. Our systems are
designed and manufactured to fully comply with OSHA, FDA, and CDRH regulations, ensuring that companies receive not only cutting-edge
performance but also the highest level of operational safety and reliability.

10

We
also compete with end-users that produce laser technology, as well as with manufacturers of non-laser methods and