<PAGE>


                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   FORM 10 - Q


(x)  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

                  For the quarterly period ended March 31, 1999
                                                 --------------

                                       OR

          ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                        For the transition period from to

                         Commission File Number 0-11365
                                                -------

                              LASER PHOTONICS, INC.
                              ---------------------
             (exact name of registrant as specified in its charter)

         Delaware                                                59-2058100
         --------                                                ----------
(State or other jurisdiction of                               (I.R.S. Employer
incorporation or organization)                               Identification No.)

    2431 Impala Drive, Carlsbad, CA                                92008
    -------------------------------                                -----
(Address of principal executive offices)                         (Zip Code)

        Registrant's telephone number, including area code (760) 602-3300
                                                           --------------

                                       N/A
                                       ---
     (Former name, former address and former fiscal year, if changed since
                                  last report)

              APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY
                   PROCEEDING DURING THE PRECEDING FIVE YEARS

    Indicate by check mark whether the registrant (1) has filed all documents
       and reports required to be filed by Section 12, 13, or 15(d) of the
        Securities Exchange Act of 1934 subsequent to the distribution of
                  securities under a plan confirmed by a court.

                                  Yes X No____

   As of March 31, 1999, 9,895,684 shares of Common Stock, par value $0.01 per
                            share, were outstanding.


                                       1
<PAGE>



                                      INDEX
                                      -----
                                                                            Page
                                                                          Number
                                                                          ------

PART I   FINANCIAL INFORMATION

   Item 1   Financial Statements:
            Condensed Consolidated Balance Sheets
            as of March 31, 1999 (unaudited) and December 31, 1998.............3

            Condensed Consolidated Statements of Operations for the
            Three Months ended March 31, 1999 and 1998 (unaudited).............4

            Condensed Consolidated Statements of Cash Flows for the
            Three Months ended March 31, 1999 and 1998 (unaudited).............5

            Notes to Condensed Consolidated Financial Statements...............6

   Item 2   Management's Discussion and Analysis
            of Financial Condition and Results of Operations...................8


PART II  OTHER INFORMATION

            Exhibits and Reports on Form 8-K..................................10


            Signatures........................................................11



                                       2
<PAGE>
<TABLE>


                          PART I FINANCIAL INFORMATION
                           Item 1 Financial Statements

Condensed Consolidated Balance Sheets
LASER PHOTONICS, INC. AND SUBSIDIARIES
<CAPTION>

ASSETS                                                                     MARCH 31, 1999        December 31, 1998 *
                                                                             (UNAUDITED)
<S>                                                                     <C>                      <C>
CURRENT ASSETS
     Cash and cash equivalents                                          $        1,416,297       $        174,468
     Accounts receivable, net                                                       68,977                 34,676
     Receivable from related party                                                  54,600                 54,600
     Inventory                                                                     491,717                458,343
     Prepaid expenses                                                               78,149                    -
                                                                        -------------------      -----------------
         TOTAL CURRENT ASSETS                                                    2,109,740                722,087

Property and Equipment, net                                                        134,774                127,190
Prepaid license fee, net                                                         3,333,333              3,458,333
Debt issuance costs                                                                138,833                    -
Other                                                                               79,924                 86,412
Goodwill, net                                                                      346,352                476,273
                                                                        -------------------      -----------------

TOTAL ASSETS                                                            $        6,142,956       $      4,870,295
                                                                        ===================      =================

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
     Notes Payable - Current portion                                    $          542,277       $        620,581
     Convertible notes payable                                                   2,380,000                    -
     Accounts payable                                                              315,827                404,666
     Accrued payroll and related expenses                                          335,809                393,339
     Other accrued liabilities                                                     769,665                666,852
     Payable to related party                                                      128,622                136,002
     Customer deposits                                                             102,628                    -
     Deferred revenue                                                              250,000                343,906
                                                                        -------------------      -----------------
         TOTAL CURRENT LIABILITIES                                               4,824,828              2,565,346

Notes Payable, less current portion                                                 54,012                 69,893
Liabilities in excess of assets held for sale                                      449,396                393,665
                                                                        -------------------      -----------------
         TOTAL LIABILITIES                                                       5,328,236              3,028,904

SHAREHOLDERS' EQUITY
     Common stock                                                                   98,957                 98,957
     Additional paid-in-capital                                                 18,924,429             17,439,904
     Accumulated deficit                                                       (18,208,666)           (15,697,470)
                                                                        -------------------      -----------------
         TOTAL SHAREHOLDERS' EQUITY                                                814,720              1,841,391
                                                                        -------------------      -----------------

                                                                        $        6,142,956       $      4,870,295
                                                                        ===================      =================
</TABLE>


*Condensed from audited financial statements.

     THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS.

                                       3
<PAGE>
<TABLE>



Condensed Consolidated Statements of Operations
LASER PHOTONICS, INC. AND SUBSIDIARIES


                                                                                           Three months ended
                                                                                   ----------------------------------
<CAPTION>
                                                                                      MARCH 31,         March 31,
                                                                                        1999               1998
                                                                                     (UNAUDITED)        (Unaudited)
<S>                                                                                <C>               <C>
REVENUES
    Sales                                                                          $      253,104    $     1,004,500
    Other                                                                                  93,906             95,000
                                                                                   ---------------   ----------------
         Total revenues                                                                   347,010          1,099,500
                                                                                   ---------------   ----------------

COSTS AND EXPENSES
    Cost of Sales                                                                         303,832            466,832
    Selling, General & Administrative                                                     560,587            603,618
    Research & Development                                                                175,282            296,713
    Depreciation and Amortization                                                         276,516            267,462
                                                                                   ---------------   ----------------
         Total costs and expenses                                                       1,316,217          1,634,625
                                                                                   ---------------   ----------------

LOSS FROM OPERATIONS                                                                     (969,207)          (535,125)

    Interest Expense                                                                    1,541,546             42,991
    Other expense (income), net                                                               443             (8,319)
                                                                                   ---------------   ----------------

NET LOSS                                                                           $   (2,511,196)   $      (569,797)
                                                                                   ===============   ================

BASIC & DILUTED LOSS PER SHARE                                                     $        (0.25)   $         (0.06)
                                                                                   ===============   ================


Weighted Average Shares                                                                 9,895,684          9,267,083
                                                                                   ===============   ================



</TABLE>


     THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS.


                                       4
<PAGE>

<TABLE>


Condensed Consolidated Statements of Cash Flows
LASER PHOTONICS, INC.
<CAPTION>

                                                                                          Three months ended
                                                                                -------------------------------------
                                                                                    MARCH 31,              March 31,
                                                                                      1999                    1998
                                                                                   (UNAUDITED)            (unaudited)
<S>                                                                             <C>                    <C>
CASH FLOWS FROM OPERATING ACTIVITIES
     Net Loss                                                                   $    (2,511,196)       $    (569,797)
     Adjustments to reconcile net loss to net cash used in
         operating activities:
         Depreciation and amortization                                                  272,138              267,462
         Stock issued to pay legal fees                                                    -                  20,000
         Interest related to beneficial conversion feature                            1,512,292                 -
     Changes in operating assets and liabilities:
         Current assets                                                                 (98,255)              85,482
         Current liabilities                                                           (146,796)            (107,838)
                                                                                ----------------       --------------
              NET CASH USED IN OPERATING ACTIVITIES                                    (971,817)            (304,691)
                                                                                ----------------       --------------

CASH FLOWS FROM INVESTING ACTIVITIES
     Capital expenditures                                                               (10,151)             (68,216)
                                                                                ----------------       --------------
              NET CASH USED IN INVESTING
   ACTIVITIES                                                                           (10,151)             (68,216)
                                                                                ----------------       --------------

CASH FLOWS FROM FINANCING ACTIVITIES
     Principal payments on debt                                                        (141,449)             (74,129)
     Payments on payable to related party                                                (7,380)                -
     Payments for debt and warrant issuance costs                                      (166,600)                -
     Proceeds from issuance of convertible notes payable and warrants                 2,380,000                 -
     Proceeds from other notes payable                                                  159,226                 -
     Proceeds from issuance of common stock                                                -                  35,751
                                                                                ----------------       --------------
                  NET CASH PROVIDED BY (USED IN)
                            FINANCING ACTIVITIES                                      2,223,797              (38,378)
                                                                                ----------------       --------------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
                                                                                      1,241,829             (411,285)

CASH AND CASH EQUIVALENTS, beginning of period                                          174,468            1,225,932
                                                                                ----------------       --------------

CASH AND CASH EQUIVALENTS, end of period                                        $     1,416,297        $     814,647
                                                                                ================       ==============



</TABLE>



     THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS.

                                       5
<PAGE>


              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                     LASER PHOTONICS, INC. AND SUBSIDIARIES
                                 March 31, 1999


1.  CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    -------------------------------------------

The condensed consolidated balance sheet as of March 31, 1999 and the related
condensed consolidated statements of operations and cash flows for the three
months ended March 31, 1999 and 1998, have been prepared by the Company without
audit. In the opinion of management, the condensed consolidated financial
statements contain all adjustments, consisting only of normal recurring
accruals, necessary to present fairly the financial position of Laser Photonics,
Inc. and subsidiaries as of March 31, 1999, and the results of their operations
and their cash flows for the three months ended March 31, 1999 and 1998 The
results of operations for the three months ended March 31, 1999 are not
necessarily indicative of the results to be expected for the entire fiscal year
ending December 31, 1999.

Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. It is suggested that these condensed
consolidated financial statements be read in conjunction with the consolidated
financial statements and notes thereto included in the Company's report on Form
10-K for the year ended December 31, 1998.

Certain reclassifications have been made to the prior year's condensed
consolidated financial statements to conform with the current presentation. Such
reclassifications had no effect on net loss.


2.  INVENTORY
    ---------

Inventory consists of the following:

                                              March 31,            December 31,
                                                1999                  1998

         Raw Materials                   $        242,573        $     209,199
         Work in Process                          249,144              249,144
                                         -----------------       --------------
         TOTAL INVENTORY                 $        491,717        $     458,343
                                         =================       ==============


3.  ASSETS HELD FOR SALE
    --------------------

The Company has entered into a letter of intent with a third party to sell
certain assets of its non-excimer laser business operations, subject to the
assumption of certain liabilities. The completion of the transaction is subject
to numerous items, including but not limited to, the execution of a final
written agreement. The assets and liabilities attributed to this transaction
have been classified in the condensed consolidated balance sheet as liabilities
in excess of assets held for sale. The amounts included in the financial
statements consists of the following:



                                       6
<PAGE>

<TABLE>

<CAPTION>

                                                          MARCH 31,            December 31,
                                                             1999                  1998
<S>                                                   <C>                     <C>
ASSETS
         Accounts receivable                          $        140,000        $     140,000
         Inventories                                           430,229              452,761
         Prepaid expenses and other assets                      53,152               73,789
         Property and equipment                                127,223              139,785
                                                      -----------------       --------------

         TOTAL ASSETS                                          750,604              806,335
                                                      -----------------       --------------

LIABILITIES
         Accounts payable                                      775,669              810,272
         Accrued payroll and related expenses                   64,009               43,776
         Accrued property taxes                                111,962              111,962
         Other accrued liabilities                             120,500              106,130
         Note payable                                          127,860              127,860
                                                      -----------------       --------------

         TOTAL LIABILITIES                            $      1,200,000        $   1,200,000
                                                      -----------------       --------------

         LIABILITIES IN EXCESS OF ASSETS
              HELD FOR SALE                           $        449,396        $     393,665
                                                      =================       ==============
</TABLE>


Revenues of the related operations were $252,000 and $405,000 for the three
months ended March 31, 1999 and 1998, respectively. Loss from the related
operations was $337,000 and $287,000, respectively.

4.  CONVERTIBLE NOTES PAYABLE
    -------------------------

As of March 31, 1999, the Company issued to various investors securities
consisting of: (i) $2,380,000 principal amount of 7% Series A Convertible
Subordinated Notes (the "Subordinated Notes"); and (ii) common stock purchase
warrants to purchase up to 595,000 shares of Common Stock (the "Unit Warrants").
Interest accrued through June 15, 1999 is payable on June 15, 1999. The
principal amount plus interest accrued from June 15, 1999 is due on December 15,
1999 or upon subsequent equity financing which raises net proceeds of at least
$2,380,000. The Subordinated Note holders may convert the Subordinated Notes and
accrued and unpaid interest thereon, if any, into shares of Common Stock at any
time prior to maturity into shares of Common Stock at a conversion price of
$2.00 per share. The Subordinated Notes provide that the conversion price is to
be adjusted in the event that the Company issues share of Common Stock for
consideration of less than $2.00 per share. In such event, the per share
conversion price will be adjusted to the issue price of such additionally issued
shares of Common Stock.

The Unit Warrants are exercisable into an initial 297,500 shares of Common Stock
at any time after purchase until March 31, 2004. The balance of the Unit
Warrants are exercisable into an additional 297,500 shares of Common Stock (the
"Contingent Shares") if the Unit holder has voluntarily converted at least a
portion of the principal amount of the Subordinated Note that make up a portion
of the Unit into shares of Common Stock. The amount of Contingent Shares that
may be acquired by a Unit Warrant holder will be proportionate to the ratio of
the amount of principal of the Subordinated Notes which are converted into
shares of Common Stock over the original principal amount of the Subordinated
Notes. The exercise price of the Unit Warrants is $2.00 per share of Common
Stock. The Unit Warrants provide that they may be adjusted in the event that the
Company issues shares of Common Stock for consideration of less than $2.00 per
share. In such event, the per share exercise price of the Unit Warrants will be
adjusted to the issue price of such additionally issued shares of Common Stock.

                                       7
<PAGE>


Gross proceeds from the securities were $2,380,000. Of these proceeds, $396,667
has been allocated to the warrants. The market price of the Company's common
stock on the commitment date was $2.75 per share, resulting in a beneficial
conversion of $0.75 per share. The aggregate amount of the beneficial conversion
was $1,115,625. The discount on the notes related to the beneficial conversion
and warrants was charged to interest expense on the date of issuance.




       Item 2. Management's Discussion and Analysis of Financial Condition
       -------------------------------------------------------------------
                            and Results of Operations
                            -------------------------

With the exception of historical facts stated herein, the matters discussed in
this report are "forward looking" statements that involve risks and
uncertainties that could cause actual results to differ materially from
projected results. Such "forwarding looking" statements include, but are not
necessarily limited to, statements regarding anticipated levels of future
revenues and earnings from operations of the Company. Factors that could cause
actual results to differ materially include, in addition to other factors
identified in this report, reliance on a major customer, ability to
commercialize and market its products, and other risks factors detailed in the
Company's Securities and Exchange Commission ("SEC") filings including the "Risk
Factors" section in the Company's Form 10-K for the year ended December 31,
1998. Readers of this report are cautioned not to put undue reliance on "forward
looking" statements which are, by their nature, uncertain as reliable indicators
of future performance. The Company disclaims any intent or obligation to
publicly update these "forward looking" statements, whether as a result of new
information, future events, or otherwise.

Results of Operations
---------------------

Revenues for the three months ended March 31, 1999 decreased by $752,490 to
$347,010 compared to $1,099,500 in the prior period. The decrease was due to a
decrease in sales of scientific and medical lasers from the Company's Florida
and Massachusetts operations and the non-recurring milestone payment in the
prior period in the amount of $695,000 pursuant to the Baxter Agreement.

Gross margins were 12.4% for the three months ended March 31, 1999 compared to
57.5% for the three months ended March 31, 1998. The decrease in gross margins
was due to reduced sales prices and unabsorbed overhead from reduced volumes in
1999.

Operating expenses decreased by $155,408 for the three months ended March 31,
1999 compared to the three months ended March 31, 1998 due to reductions in
operations pending the sale of east coast operations.

Interest expense increased by $1,498,555 for the three months ended March 31,
1999 compared to the three months ended March 31, 1998 The increase was the
result of the recognition of beneficial conversion feature on the notes payable
of $1,512,292.

Net loss increased to $2,511,196 for the three months ended March 31, 1999
compared to $569,797 for the three months ended March 31, 1998. The increase in
the net loss was due to the increases in operating expenses and decreases in
revenues partially offset by reduction in operating costs.



                                       8
<PAGE>



Liquidity and Capital Resources
-------------------------------

As of March 31, 1999, the Company had cash and cash equivalents of $1,416,297
which is an increase of $1,241,829 since December 31, 1998. The Company has
utilized cash generated from the sale of convertible notes payable to fund
marketing, research and development, and other operating activities, as well as
investments in operating assets to support anticipated sales of excimer lasers
to Baxter and to pay off certain liabilities.

Capital expenditures in the three months ended March 31, 1999 of $10,151 related
to purchases of equipment and leasehold improvements to support the excimer
laser operations.

Cash flows provided by financing activities for the three months ended March 31,
1999 of $2,223,797 was due to the issuance of convertible notes payable for
proceeds of $2,380,000 and proceeds from the issuance of other notes offset by
debt issuance costs and principal payments on debt.


YEAR 2000
---------

The Year 2000 Issue is the result of computer programs being written using two
digits rather than four to define the applicable year. Any of the Company's, or
its suppliers' and customers' computer programs that have date-sensitive
software may recognize a date using "00" as the year 1900 rather than the year
2000. This could result in system failures or miscalculations causing
disruptions of operations including, among other things, a temporary inability
to process transactions, send invoices, or engage in similar normal business
activities.

The Company has developed plans to address issues related to the impact on its
computer systems of the year 2000. Financial and operational systems have been
assessed and plans have been developed to address systems modification
requirements. The financial impact of making the required systems changes is not
expected to be material to the Company's consolidated financial position,
liquidity or results of operations.

Neither the Company nor its subsidiaries has initiated formal communications
with significant suppliers and large customers to determine the extent to which
those third parties' failure to remedy their own Year 2000 Issues would
materially effect the Company and its subsidiaries. The Company has not received
any indications from its suppliers and large customers that the Year 2000 Issue
may materially effect their ability to conduct business and the Company has no
current plans to formally undertake such an assessment.







                                       9
<PAGE>


                     LASER PHOTONICS, INC. AND SUBSIDIARIES
                                 March 31, 1999


                           PART II. OTHER INFORMATION

       Item 1        Legal Proceedings:  See December 31, 1998 10-K

       Item 2        Changes in Securities                                 None

       Item 3        Defaults Upon Senior Securities                       None

       Item 4        Submission of Matters to Vote of
                     Security Holders                                      None

       Item 5        Other Information                                     None

       Item 6        Exhibits and Reports on Form 8-K

                     a) Exhibits
                        27.1                             Financial Data Schedule
                     b) Reports on Form 8-K                                None







                                       10
<PAGE>





                     LASER PHOTONICS, INC. AND SUBSIDIARIES
                                 March 31, 1999




Signatures to Form 10-Q
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.

                              LASER PHOTONICS, INC.
                              ---------------------
                                  (Registrant)




Date:  May 21, 1999                            By: /S/Raymond A. Hartman
                                               ---------------------------------
                                               Raymond A. Hartman
                                               Chief Executive Officer



Date:  May 21, 1999                            By: /S/Chaim Markheim
                                               ---------------------------------
                                               Chaim Markheim
                                               Chief Financial Officer



                                       11