Laser Photonics faces Nasdaq noncompliance notice

Published 23/04/2025, 12:06
Laser Photonics faces Nasdaq noncompliance notice

ORLANDO - Laser Photonics Corporation (NASDAQ:LASE), an industrial laser systems manufacturer with a market capitalization of approximately $40 million, has been notified by Nasdaq that it is currently noncompliant with the exchange’s listing rules due to a delay in filing its annual report. According to InvestingPro data, the company maintains strong gross profit margins of 55% and holds more cash than debt on its balance sheet. The company received a notice on April 16, 2025, indicating that it had not filed its Form 10-K for the fiscal year ending December 31, 2024, and therefore does not meet the Listing Rule 5250(c)(1).

The delay in the filing is primarily attributed to the company’s recent acquisition of certain assets from Control Micro Systems (CMS) for about $1 million during the bankruptcy proceedings of CMS’s former parent company. This transaction took place in November 2024, roughly six weeks before the end of Laser Photonics’ fiscal year. The company is working closely with its independent auditor to resolve outstanding issues, particularly focusing on the audit of CMS’s historical revenue recognition practices prior to the acquisition and the valuation of the CMS assets as of December 31, 2024.

Since the acquisition, Laser Photonics has collected approximately $1.7 million of CMS receivables and CMS has secured nearly $3 million in new orders. The company’s current ratio of 5.38 indicates strong short-term liquidity, with liquid assets well exceeding short-term obligations. Laser Photonics is required to submit a plan to regain compliance with Nasdaq’s rules within 60 days. Analysts tracked by InvestingPro project revenue growth of 3.82% for fiscal year 2024, with the next earnings report scheduled for May 7, 2025. If the plan is accepted, Nasdaq may grant an extension of up to 180 calendar days from the filing’s due date, or until October 13, 2025, for the company to regain compliance.

Laser Photonics is known for developing CleanTech Laser Systems used in various applications such as laser cleaning. The company aims to disrupt traditional surface cleaning markets and is utilized by major manufacturers across several industries, including aviation and automotive. While the stock has experienced significant volatility, showing a 14% gain over the past week but a 52% decline over six months, InvestingPro analysis reveals 12 additional key insights about the company’s financial health and market position, available exclusively to subscribers.

The information in this article is based on a press release statement from Laser Photonics Corporation. The company has cautioned that the press release contains forward-looking statements that involve risks and uncertainties, and actual results may differ materially from those projected.

In other recent news, Laser Photonics Corporation has announced a significant order for its subsidiary, Control Micro Systems, from a global manufacturing services provider. This order includes a custom-engineered Laser Plastics Marking System designed for precision and high throughput, highlighting the company’s commitment to enhancing customer operations. Additionally, Laser Photonics has received an order for two MiniGIANT laser marking systems from Glaze Tool and Engineering, marking a strategic move into the robotics and automation sector. The company is also expanding its research and development in large format gantry laser technology, targeting the appliance sector, a market valued at over $200 billion. Laser Photonics’ subsidiary, CMS Laser, is enhancing its focus on ultraviolet laser systems, aimed at microelectronics and medical device manufacturing, which underscores the company’s dedication to innovation. The acquisition of CMS has expanded Laser Photonics’ portfolio, providing more stable revenue streams and less exposure to market volatility. Furthermore, the company is shifting towards vertical integration and targeted acquisitions to bolster growth amid market uncertainties. These recent developments reflect Laser Photonics’ strategic planning and focus on American manufacturing excellence.

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