Laser Photonics Corporation Price & Performance (LASE)

Thank you, operator. With me today are Wayne Topolla, Laser Photonics' CEO and Carlos Sardinas, the company's VP of Finance. Any forward looking statements made during this conference call, whether general or specific in nature, are subject to risks and uncertainties that may cause the actual results to differ materially from those that the company anticipates. These risks and uncertainties include, but are not limited to, the specific risks and uncertainties discussed in the reports the company periodically files with the SEC. Laser Photonics assumes no obligation to either update any forward looking statements that is made or may make or to update the factors that may cause actual results to differ materially from those they forecast. I will now turn the call over to Wayne, Laser Photonics' Chief Executive Officer.

Good morning, everyone, and thank you for joining us today to review Laser Photonics' 3rd quarter results. Before I get into the Q3, I'm excited to share details about our recent acquisition of Controlled Microsystems, CMS, which was finalized shortly after the close of the quarter. We use a portion of the $3,000,000 in funds we raised in August to make this acquisition, which represents a transformative opportunity for LPC by expanding our footprint into the healthcare and pharmaceutical industries, particularly in controlled release drug delivery and counter proofing pills, while also providing incremental synergies in the industry markets. TMS specializes in custom precision laser systems. Their key products for life sciences are laser drilling systems that create microscopic apertures in tablets for controlled release drug delivery and systems that mark pills to prevent counterfeiting. They also make customs laser solutions for industrial and other markets, which we believe present some interesting opportunities that were previously not exploited. These capabilities aligned well with LPC's vision of innovating solutions that impact critical industries. The pharmaceutical market, especially in the drug delivery technologies is expected to grow at nearly 11% annually through 2,030. This acquisition diversifies LPC into a high growth recession resistant sector, giving us a buffer against economic cyclicality and providing stability to our cleantech revenue stream as we work to expand penetration rates for this technology.

CMS already serves several of the world's largest pharmaceutical companies, providing a platform for us to deepen relationships with major industry players and expand our client base in the sector. Due to underinvestment from this previous order, we believe CMS products were not fully monetized in both the pharma and custom laser side. With LPC's robust sales and marketing infrastructure, we see significant potential to unlock value. CMS also brings over $2,000,000 in unbilled contracted revenue, which we can convert to immediate cash flow this and next quarter. Additionally, we retained most of CMS engineering and support staff adding their expertise to our existing teams. Our immediate focus will be on integrating the CMS team and products into the LPC's operations while driving forward with our ongoing initiatives. We remain committed to innovating in our core industrial laser markets, particularly in surface treatment, antidrone systems and expanding our reach globally. In summary, the CMS acquisition aligns with LPC's growth strategy, diversifying our portfolio and setting the foundation for scalability and sustained revenue growth in new verticals. Now I'll review our results. This quarter, we navigated a challenging period with a decrease in sales and increased cost driven by our strategic investments in expanding human resource, sales and administrative functions.

These decisions, while impacting our short term performance, are integral to supporting our future growth and setting the stage for long term success. Laser Photonics Corp. Is steadfast in its mission to establish itself as a leader in laser technology solutions for industrial applications, even considering recent temporary financial setbacks. Our commitment to investing in groundbreaking technologies aligns with our vision of expansion, positioning us to leverage emergency opportunities and enhance operational efficiency moving forward. The recent acquisition of CMS along with its intellectual property and patents related to software and optical mechanical capabilities positions Laser Products Corp. To advance the development of Class 1 products and AI robotic cells. These developments will pave the way for future innovation stemming from this foundational research. In the spirit of innovation, we have made significant strides in the research and development of our advanced products, including the Blitzer Laser wafer dicing system and our polter shaped 3 d metal additive manufacturing technology. With higher precision and efficiency, these systems will be essential in meeting growing demand in both the defense and industrial markets. We look forward to bringing more information on these technologies in future investor updates. Additionally, our focus during the quarter has been in advancing 2 pivotal product concepts, the Laser Shield Anti Drone System, LSA D, and the NextGen FinTech Robotic Cell.

The LSAAD represents our proactive approach to addressing security challenges, while the Tintec Robotic Cell reflects our commitment to innovation in automated manufacturing solutions. Together, these initiatives not only highlight our dedication to advancing these technology, but also reinforce our strategy of continuous development as we work towards commercialization. By nurturing these technologies through rigorous research and development, Las Photonics Corp. Is well positioned to capitalize on future laser solutions in a rapidly evolving market. Although sales were down for the quarter, we closed several key deals that are strategically significant for LPCD's growth and marketing position. We secured a sale of our CleanTech industrial rough knee laser to 3,050 or CTIOR-three thousand and fifty to Accurint, a global leader in non destructive testing or MDT services. This sale marks the beginning of a promising relationship with Acuarine, which is exploring LPC's laser technology to enhance their asset protection service across industries, including chemical, power generation and aerospace. The partnership positions LPC as a preferred provider for Accuade's ongoing purchasing program, allowing us to expand our footprint in the NDT market. We also achieved a sale to the U. S. Navy at Pearl Harbor, further establishing LPC's footprint in the defense sector.

The sale underscores the reliability and performance of our laser system in demanding environments. The Navy's decision to use our FinTech laser technology aligns with their need for safe, efficient and environmental compliant maintenance solutions for their fleet, if need increasingly echoed across other military branches. We expect our existing partnership with Brock now bringing our laser powered robotic and handheld systems to the Asia Pacific region. By joining forces with Brock Australia, LPC's advanced laser technology will now serve industries such as mining, construction and defense across Australia, New Zealand and neighboring markets. This partnership uniquely addresses operational challenges in hazardous environments by pairing LPC's laser system with Brock's remote controlled robotic solutions, enhancing both safety and productivity for operators in the field. We also had a significant sale in the renewable energy technology market where our cleantech product will be used to enhance the manufacturing process for hyper pure polysilicon solar cells. Each of these sales highlight how LPC has cultivated relationships that position us for sustained growth at strategic verticals, including defense, non instructive testing and heavy industrial applications. These customers and partnerships provide a foundation for future sales, upsell opportunities and expansion into markets. Thank you to our shareholders and employees for their unwavering support and dedication.

We look forward to delivering on our strategic initiatives and building on our recent achievements to drive long term value. I will now turn it over to Carlos to review our financials.

Thank you, Wayne. Revenue was down 22% from last year at $800,000 although it is up sequentially by 21% from the Q2. Encouragingly, our mix continues to be dominated by CleanTech, leading to a 11.40 basis point improvement in gross margin to 85.8%. Operating expenses increased by 25% due to our investment in resources to manage our anticipated growth, including the addition of HR, sales and administrative personnel. The combination of these items led to higher operating losses of 1,400,000 dollars and a net loss of $1,600,000 Loss per share expanded to $0.13 from previous $0.11 per share, while our share count increased to 13,300,000 from 8,300,000 due to the acquisition licenses from Phonon and our August capital raise, which netted a total of $2,600,000 As we look forward, we are excited to combine CMS and LPC. CMS brings with it over $2,000,000 in existing orders, which we expect to ship over the next few months. And they continue to add new orders to their backlog for 2025 as well. We are also optimistic that momentum for CleanTech will pick up over the next few quarters as we continue to grow our pipeline and convert a portion of it to orders.

With that, operator, we can close out the call.

Thank you. This concludes today's teleconference. We thank you for your participation. You may disconnect your lines at this time.