Laser Photonics Corp Commitments Disclosure
NOTE 9. COMMITMENTS AND CONTINGENCIES
Operating Leases
The Company leases its office facilities under noncancelable operating lease agreements. On July 1, 2024, the Company entered into a lease agreement for 48,481 square feet of office space in Lake Mary, Florida. The operating lease has a base monthly rent of $50,354 with an annual increase of 3% and a lease term of 10.5 years.
The Company’s operating lease liability balance was $5,016,408 as of December 31, 2024. During the year ended December 31, 2025, the Company made payments of $649,997 against its operating lease liability, resulting in a lease liability of $4,366,420 as of December 31, 2025, of which the current portion was $214,044 and the long-term portion was $4,152,375.
| Years Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Lease Cost | ||||||||
| Operating lease cost (of which $1,036,138 is included in general and administration and $336,858 is included in cost of sales in the Company’s statement of operations for the year ended December 31, 2025, and $297,898 is included in general and administration and $285,234 is included in cost of sales in the Company’s statement of operations for the year ended December 31, 2024) | $ | 1,372,996 | $ | 583,132 | ||||
| Other Information | ||||||||
| Weighted average remaining lease term – operating leases (in years) | 9.5 | 10.5 | ||||||
| Average discount rate – operating leases | 10.0 | % | 10.0 | % | ||||
Maturities of the Company’s operating lease liabilities are as follows as of December 31, 2025:
As of December 31, 2025 | ||||
| 2026 | $ | 641,052 | ||
| 2027 | 660,284 | |||
| 2028 | 680,092 | |||
| 2029 | 700,495 | |||
| 2030 | 721,510 | |||
| Thereafter | 3,527,297 | |||
| Total | 6,930,730 | |||
| Less: Imputed interest | (2,564,310 | ) | ||
| Total operating lease liability | $ | 4,366,420 | ||
Legal Proceedings
The Company is, from time to time, involved in various legal proceedings incidental to the conduct of our business. Historically, the outcome of such legal proceedings has not been material to our business, results of operations, or liquidity. There were no material pending or threatened legal proceedings as of December 31, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 20, 2026 | Showing above |
| 2024 | Jun 24, 2025 | |
| 2023 | Apr 19, 2024 | |
| 2022 | Apr 17, 2023 | |
| 2021 | Apr 1, 2022 | |
| 2020 | Mar 26, 2021 | |
About Commitments Disclosures
Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.
Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.