Laser Photonics Corp Commitments Disclosure
NOTE 5 – COMMITMENTS AND CONTINGENCIES
In October 2021, a lease on 18,000 SF facility was signed with the landlord for three years, terminating on October 31, 2024. The monthly rent for this facility is currently $15,549.
In December 2022, we entered into an agreement with 2701 Maitland Building Associates to rent 8,000 sf of additional office space nearby the main facility, for our growing sales and marketing program. The monthly rent for this space is currently $14,805.
As of January 1, 2020, we adopted ASU 2016-02 employing the cumulative-effect adjustment transition method, resulting in the recognition on our balance sheet of $597,143 as a right-of-use asset for operating leases, $434,153 as a current operating lease liability, and $ 162,990 as a lease liability less the current portion.
On July 1, 2024, we entered into a lease agreement for 48,481 square feet of office space at a base monthly rent of $ 50,354.42 with an annual increase of 3%, that has a term of 10.5 years. The location of the facility is 250 Technology Park. Lake Mary, FL
Our facility is currently equipped with three of our latest advanced laser cleaning demonstration models.
Upon acquisition of Control Micro Systems in on October 31, 2024 we were in a month to month lease located at 4420 Metric Dr. Winter Park Florida. The latest lease expired on June 21, 2024, prior to the acquisition of the business. The facility is 52,200 square ft total at a cost of $27,700 per month. Discussions are underway with the existing landlord for a new lease, and we expect to finalize that in the first half of 2025.
The following table provides the maturities of lease liabilities at December 31, 2024:
| Operating Lease | Remaining Term in Years | |||||||
| 2025 | 1,116,277 | |||||||
| 2026 | 641,052 | |||||||
| 2027 | 660,284 | |||||||
| 2028 | 680,092 | |||||||
| 2029 | 700,495 | |||||||
| 2030 | 721,510 | |||||||
| 2031 | 743,155 | |||||||
| 2032 | 765,450 | |||||||
| 2033 | 788,413 | |||||||
| 2034 | 812,065 | |||||||
| 2035 | 418,214 | |||||||
| Total lease payments | 8,047,006 | |||||||
| Less : Imputed interest | (3,030,599 | ) | ||||||
| Present Value of Lease Liabiltiy | 5,016,408 | 10.5 | ||||||
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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.