Company: LASE
Filing Date: 2025-12-23
Form Type: 10-Q
Source: 0001493152-25-028857
Chunk: 60

Company: Laser Photonics Corp
Filing Date: 2025-12-23
Form: 10-Q
Item: Part I, Item 3
Chunk 60
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, 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) 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 and non-cash costs.
    Our definition of Adjusted EBITDA may differ from similarly titled measures used