Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 732

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 3
Chunk 732
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) 
     (581,419)
  
    Net Sales 
    $3,415,196  
    $3,939,473 

Gross
Product Sales were $3,969,798 for the year ended December 31, 2024 as compared to $4,520,892 for the comparable year ended December 31,
2023, representing a 12.19% decrease. Our sales typically are made on a purchase order basis rather than through long-term purchase commitments.
We entered into laser equipment sales agreements with customers for specific equipment based on purchase orders and our standard terms
and conditions of sale. Our largest sales were to is E.S FOX LTD for $273,518. for the year ended December 31, 2024. However,
sales discounts applied in 2024 in the amount of $554,602 in comparison to $581,419 in 2023 reflects the fact of stronger completion
on the market and a need for a price adjustment. The net revenue decreased accordingly by $524,278 or 13.30% in the year of 2024
in comparison to 2023.

45

Sales
Pipeline

Our
Sales Pipeline at the end of December 31, 2024, has reached $41.1M in industrial products and $19.9M in Military and Government sales
what can support the revenue for up to $10M a year.

Gross
Profit

For
the year ending December 31, 2024, we reported gross profit in the amount of $1,481,046 or 43.37% of net sales, as compared to $2,897,777
or 73.56% net sales, in the year ended December 31, 2023. Gross profit is affected by numerous factors, including our module average
selling prices, foreign exchange rates, the existence and effectiveness of subsidies and other economic incentives, competitive pressures,
market demand, market mix, our manufacturing costs, product development costs, the effective utilization of our production facilities,
and the ramp-up of production on new products. Our cost of sales includes the cost of raw materials and components for manufacturing
laser systems. We are vertically integrated and currently manufacture all critical components for our products as well as assemble finished
products. Our cost of sales also includes direct labor for manufacturing, and manufacturing overhead such as engineering, equipment maintenance,
quality and production control, and procurement costs. Cost of sales does not include depreciation of manufacturing plant and