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

FORM 10-Q

(Mark One)

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

For the quarterly period ended ~~February~~August 2831, 2009

~~|_|~~o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE ~~SECURITIES~~SECURITIESEXCHANGE ~~EXCHANGE~~ ACT OF 1934

For the transition period from ________________ to ______________________

Commission File Number 2-76262-NY

LASER MASTER INTERNATIONAL, INC. (Exact name of registrant as specified in its charter)


New York	11-2564587
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

1000 First Street, Harrison, NJ	07029
(Address of principal executive offices)	(Zip Code)

(973) 482-7200 (Registrant'’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer Accelerated filer Non-accelerated filer o Smaller reporting company o o ~~þ (Do not check if a smaller reporting company)~~x

~~Indicate~~(Do bynot check ~~mark~~if ~~whether the registrant is~~ a ~~shell~~ ~~company~~smaller ~~(as~~reporting ~~defined in Rule 12b-2 of the Exchange Act~~company)~~. Yes o No þ~~

Indicate by check mark Aswhether ofthe ~~April~~registrant ~~17,~~is ~~2009,~~a ~~10,840,380~~shell ~~shares~~company of(as ~~the~~defined ~~Registrant’s Common~~in ~~Stock,~~Rule ~~par~~12b-2 ~~value~~of $0the Exchange Act).~~001,~~ ~~were~~ Yes ~~outstanding.~~o No x

As of October 20, 2009, 10,840,380 shares of the Registrant’s Common Stock, par value $0.01, were outstanding.

Table of Contents

PART I. FINANCIAL INFORMATION
Item 1.	~~Financial Statements (Unaudited)~~	Financial Statements (Unaudited)
Item 2.	~~Management's Discussion and Analysis of Financial Condition and Results of Operations.~~	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	11
Item 3.	~~Quantitative and Qualitative Disclosures About Market Risk~~	Quantitative and Qualitative Disclosures About Market Risk	14
Item 4.	~~Controls And Procedures~~	Controls And Procedures	14
PART II. OTHER INFORMATION
Item 1.	~~Legal Proceedings~~	Legal Proceedings	15
Item 1A.	~~Risk Factors~~	Risk Factors	15
Item 2.	~~Unregistered Sales of Equity Securities and Use of Proceeds~~	Unregistered Sales of Equity Securities and Use of Proceeds	15
Item 3.	~~Defaults Upon Senior Securities~~	Defaults Upon Senior Securities	15
Item 4.	~~Submission of Matters to a Vote of Security Holders~~	Submission of Matters to a Vote of Security Holders	15
Item 5.	~~Other Information~~	Other Information	15
Item 6.	~~Exhibits~~	Exhibits	15
SIGNATURES			16
CERTIFICATES
Ex - 31.1:	Certification
Ex - 31.1: Certification
Ex - 32.1:	Certification
Ex - 32.1: Certification

PART I
ITEM 1. FINANCIAL STATEMENTS
LASER MASTER INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
	February 28, 2009		November 30, 2008
ASSETS:
Current Assets
Cash and cash equivalents	$	376,617	$	266,992
Accounts receivables, net of allowance for doubtful accounts of
$438,794 and $504,816, respectively	$	472,184	$	2,012,427
Inventories	$	1,925,256	$	1,461,151
Short-term investments, available for sale	$	12,728	$	21,544
Prepaid expenses and other current assets	$	629,297	$	1,057,768
Total Current Assets	$	3,416,082	$	4,819,882
Property and equipment – net of accumulated depreciation of
$614,235 and 561,535, respectively	$	9,156,226	$	9,206,472
Investments	$	1,980,570	$	1,980,570
Other Assets	$	24,739	$	24,880
TOTAL ASSETS	$	14,577,617	$	16,031,804
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable & Accrued Liabilities
Accounts payable	$	216,154	$	985,190
Accrued expenses	$	107,020	$	105,652
State income tax payable	$	62,823	$	62,823
Current maturities of long-term debt	$	171,193	$	168,635
Total Current Liabilities	$	557,190	$	1,322,300
Long-term debt - net of current portion	$	6,183,789	$	6,217,352
Deferred Income	$	147,319	$	130,254
TOTAL LIABILITIES	$	6,888,298	$	7,669,906
Stockholders' Equity
Common stock, $0.01 par value, 50,000,000 shares authorized;
10,840,380 shares issued and outstanding	$	108,404	$	108,404
Additional paid-in capital	$	5,162,638	$	5,162,638
Retained earnings	$	2,441,614	$	3,105,377
Accumulated other comprehensive income	$	(23,337)	$	(14,521)
Total Stockholders' Equity	$	7,689,319	$	8,361,898
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	14,577,617	$	16,031,804

PART I

Laser Master International, Inc.
CONSOLIDATED BALANCE SHEETS (Unaudited)


	August 31, 2009			November 30, 2008

ASSETS:
Current Assets
Cash and cash equivalents	$	179,434		$	266,992
Accounts receivables, net of allowance for doubtful accounts of $412,623 and $ 504,816 as of August 2009 and November 30, 2008, respectively	$	778,522		$	2,012,427
Inventories	$	2,170,598		$	1,461,151
Short-term investments, available for sale	$	25,657		$	21,544
Prepaid expenses and other current assets	$	1,008,112		$	1,057,768

Total Current Assets	$	4,162,323		$	4,819,882
Property and equipment - net	$	9,049,223		$	9,206,472
Investment	$	2,007,903		$	1,980,570
Other Assets	$	24,451		$	24,880

TOTAL ASSETS	$	15,243,900		$	16,031,804

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts Payable & Accrued Liabilities
Accounts payable	$	916,347		$	985,190
Accrued expenses	$	69,796		$	105,652
State income tax payable	$	62,823		$	62,823
Short-term debt – related party	$	526,304		$	—
Current maturities of long-term debt	$	176,425		$	168,635

Total Current Liabilities	$	1,751,695		$	1,322,300
Long-term debt - net of current portion	$	6,094,671		$	6,217,352
Deferred Income	$	227,342		$	130,254

TOTAL LIABILITIES	$	8,073,708		$	7,669,906
Stockholders’ Equity
Common stock, $0.01 par value, 50,000,000 shares authorized; 10,840,380 shares issued and outstanding	$	108,404		$	108,404
Additional paid-in capital	$	5,162,638		$	5,162,638
Retained earnings	$	1,909,558		$	3,105,377
Accumulated other comprehensive income	$	(10,408	)	$	(14,521	)

Total Stockholders’ Equity	$	7,170,192		$	8,361,898

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	15,243,900		$	16,031,804

The accompanying notes are an integral part of these unaudited consolidated financial statements

LASER MASTER INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
	For the Three Months ended
	February 28, 2009		February 29, 2008
Revenues, Net	$	1,900,004	$	3,860,439
Cost of Revenue	$	1,585,816	$	3,000,485
Gross Profit	$	314,188	$	859,954
Operating Expenses:
Selling Expenses	$	129,083	$	277,060
General and administrative
expenses	$	820,011	$	927,051
Depreciation and Amortization
Expenses	$	52,841	$	57,243
Total Operating Expenses	$	1,001,935	$	1,261,354
Loss From Operations	$	(687,747)	$	(401,400)
Other (Income) and Expenses
Interest Expense	$	97,560	$	98,889
Interest Income	$	(44)	$	(181)
Rental Income	$	(121,500)	$	(122,813)
Total Other (Income) and
Expenses	$	(23,984)	$	(24,104)
Net Loss	$	(663,763)	$	(377,296)
Other Comprehensive Income:
Unrealized loss on securities	$	(8,816)	$	(3,850)
Comprehensive Income	$	(672,579)	$	(381,146)
Earnings per common share:
Basic and diluted earnings per
share	$	(0.06)	$	(0.03)
Weighted average common
shares outstanding		10,840,380		10,840,380

Laser Master International, Inc.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)


	For the Three Months period ended						For the Nine Months period ended
	August 31 2009			August 31 2008			August 31 2009			August 31 2008

Revenues, Net	$	2,154,079		$	3,819,612		$	5,375,093		$	11,380,295
Rental Income	$	121,500		$	126,225		$	364,500		$	374,475

Total Revenue	$	2,275,579		$	3,945,837		$	5,739,593		$	11,754,770
Cost of Revenue	$	1,517,895		$	2,935,029		$	4,095,219		$	8,674,177

Gross Profit	$	757,684		$	1,010,808		$	1,644,374		$	3,080,593

Operating Expenses:
Selling Expenses	$	73,914		$	220,771		$	298,855		$	750,005
General and administrative expenses	$	618,303		$	797,777		$	2,088,959		$	2,609,456
Depreciation and Amortization Expenses	$	54,083		$	53,886		$	160,939		$	169,020
Total Operating Expenses	$	746,300		$	1,072,434		$	2,548,753		$	3,528,481

Income (Loss) From Operations	$	11,384		$	(61,626	)	$	(904,379	)	$	(447,888	)
Other (Income) and Expenses
Interest Expenses	$	96,761		$	98,171		$	291,484		$	295,575
Interest Income	$	—		$	(141	)	$	(44	)	$	(212	)

Total Other (Income) and Expense	$	96,761		$	98,030		$	291,440		$	295,363
Loss before Provision for Income taxes	$	(85,377	)	$	(159,655	)	$	(1,195,819	)	$	(743,251	)
Income Tax Expenses	$	—		$	—		$	—		$	-6

Net Loss	$	(85,377	)	$	(159,655	)	$	(1,195,819	)	$	(743,251	)

Other Comprehensive Loss:
Unrealized gain (loss) on securities	$	(1,128	)	$	(3,612	)	$	4,113		$	(7,511	)

Comprehensive Loss	$	(86,505	)	$	(163,267	)	$	(1,191,706	)	$	(750,762	)

Loss per common share:
Basic and diluted loss per share	$	(0.01	)	$	(0.02	)	$	(0.11	)	$	(0.07	)
Weighted average common shares outstanding		10,840,380			10,840,380			10,840,380			10,840,380

The accompanying notes are an integral part of these unaudited consolidated financial statements.

LASER MASTER INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS (unaudited)
	For the Three Months ended
	February 28, 2009		February 29, 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$	(663,763)	$	(377,296)
Adjustments to reconcile Net Loss to net Cash provided by
operating activities:
Depreciation and amortization	$	52, 700	$	57,243
Bad debt expense	$	32,826	$	69,852
Changes in operating assets and liabilities:
Accounts receivable	$	1,507,417	$	1,960,707
Inventories	$	(464,105)	$	(350,122)
Prepaid expenses and other current assets	$	428,471	$	(190,319)
Other assets	$	141	$	-
Accounts payable and accrued expenses	$	(767,668)	$	(1,208,567)
Deferred income	$	17,065	$	16,193
Net Cash Provided By (Used In) Operating Activities	$	143,084	$	(23,309)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in real estate joint ventures	$	-	$	(193,333)
Acquisition of property and equipment	$	(2,454)	$	(1,382)
Net Cash Used In Investing Activities	$	(2,454)	$	(194,715)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds on notes payable - related party	$	10,000	$	-
Payments on long-term debt	$	(41,005)	$	(45,286)
Net Cash Used In Financing Activities	$	(31,005)	$	(45,286)
Net Increase (Decrease) in Cash and Cash Equivalents	$	109,625	$	(263,310)
Cash and Cash Equivalents – beginning of period	$	266,992	$	601,962
Cash and Cash Equivalents - end of period	$	376,617	$	338,652
Supplemental Disclosure of Cash Flow Information:
Cash Paid For:
Interest	$	97,560	$	98,889
Taxes
Non-Cash Investing Activities:
Investment property note payable	$	-	$	139,230
Unrealized gain (loss) on investments, available for sale	$	(8,815)	$	3,850

Laser Master International, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)


	For the Nine Months ended
	August 31, 2009			August 31, 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$	(1,195,819	)	$	(743,253	)
Adjustments to reconcile Net Loss to net Cash provided by (used in) operating activities:
Depreciation and amortization	$	160,939		$	169,020
Bad Debt Expense	$	8,146		$	(23,066	)
Changes in operating assets and liabilities:
Accounts receivable	$	1,225,759		$	2,546,132
Inventories	$	(709,447	)	$	(403,928	)
Prepaid Expenses and Other Current Assets	$	49,656		$	(323,395	)
Accounts payable and accrued expenses	$	(104,699	)	$	(1,049,136	)
Other Assets	$	429		$	—
Deferred income	$	97,088		$	49,225

Net Cash Provided By (Used In) Operating Activities	$	(467,948	)	$	221,599
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in real estate joint ventures	$	(27,333	)	$	(325,933	)
Acquisition of property and equipment	$	(3,690	)	$	(7,506	)

Net Cash Used In Investing Activities	$	(31,023	)	$	(333,439	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable - related party	$	536,304		$	—
Payment of long-term debt	$	(124,891	)	$	(208,615	)

Net Cash Provided By (Used In) Financing Activities	$	411,413		$	(208,615	)

Net Decrease in Cash and Cash Equivalents	$	(87,558	)	$	(320,455	)
CASH AT BEGINNING OF PERIOD	$	266,992		$	601,962

Cash and Cash Equivalents - end of period	$	179,434		$	281,507

Supplemental Disclosure of Cash Flow Information:
Cash Paid For:
Interest	$	291,484		$	295,575
Taxes		—			—
Non-Cash Investing Activities:
Investment property note payable		—		$	139,230
Unrealized gain on investments, available for sale	$	4,113		$	7,511

The accompanying notes are an integral part of these unaudited consolidated financial statements.

LASER MASTER INTERNATIONAL, INC. ~~AND SUBSIDIARIES~~ NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

The consolidated financial statements include the accounts of Laser Master International Inc. and its wholly owned subsidiaries (collectively the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation.

The accompanying financial statements are unaudited for the interim periods, but include all adjustments (consisting only of normal recurring accruals) which management considers necessary to present fairly the financial position at ~~February~~August 2831, 2009 and the results of operations and cash flows for all periods presented. The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period. Actual results could vary from these estimates. These financial statements should be read in conjunction with the Company'’s Annual Report at November 30, 2008, and for the year then ended, as filed with the Securities and Exchange Commission on Form 10-K.

The results reflected in the interim periods are not necessarily indicative of the results of the entire fiscal year to end on November 30, 2009.

Name and brief description of the Company’s trade names and wholly owned subsidiaries are summarized as follows:

Trade Names:

Flexo-Crafts Prints Inc.
Harrison First Realty Corp.
Passport Papers Inc.
East River Arts Inc.

Wholly-owned Subsidiaries:

1540 57 LLC

This company owns 100 acres of land in Swan Lake, New York.

SCP 2006-C23-033 LLC

This company owns a building in Chicago, Illinois which is leased to a retailer.

Allowance for Doubtful Accounts – The Company reserves for bad debts and creates its allowance by identifying specific Accounts Receivable by customer based upon age and collectability. When an account is determined to be uncollectible, it is removed from the accounts receivable and the allowance is reduced.

Inventories – Inventories which consist of mostly finished goods are stated at the lower of cost or market, with cost being determined by the weighted average first-in, first-out method.

Property and Equipment – Deprecation of property and equipment is computed by the straight-line method at rates calculated to amortize cost over the estimated useful lives which approximate 39 years for buildings and building improvements and 5 to 10 years for machinery and equipment, computer equipment and furniture and fixtures. Maintenance and repairs are charged to operations as incurred, while the cost of betterments and improvements is6

LASER MASTER INTERNATIONAL, INC. 4NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Property and Equipment – Deprecation of property and equipment is ~~LASER~~computed ~~MASTER~~by ~~INTERNATIONAL~~the straight-line method at rates calculated to amortize cost over the estimated useful lives which approximate 39 years for buildings and building improvements and 5 to 10 years for machinery and equipment, ~~INC~~computer equipment and furniture and fixtures. ~~AND~~Maintenance ~~SUBSIDIARIES~~and repairs are charged to ~~NOTES~~operations TOas ~~CONSOLIDATED~~incurred, ~~FINANCIAL~~while ~~STATEMENTS~~the cost of betterments and improvements is capitalized. The cost and related accumulated depreciation of assets sold or otherwise disposed of are eliminated from the accounts and any resulting gain or loss is reflected in operations.

~~capitalized.~~Long-Lived ~~The~~Assets ~~cost~~– ~~and~~The ~~related~~Company ~~accumulated~~follows ~~depreciation~~Statement of ~~assets~~Financial ~~sold~~Accounting orStandards ~~otherwise~~(“SFAS”) No. ~~disposed~~144, “Accounting for the Impairment or Disposal of ~~are~~Long-Lived ~~eliminated~~Assets”. ~~from~~This statement requires that the ~~accounts~~Company review certain long-lived assets and identifiable ~~any~~intangibles ~~resulting~~for ~~gain~~impairment or ~~loss~~disposal iswhenever ~~reflected~~events or changes in ~~operations~~circumstances indicated the carrying amount may not be recoverable. In that regard, the Company addresses recoverability based upon estimated non-discounted cash flow forecasts. The Company has determined that an impairment loss does not need to be recognized for applicable assets through the nine months ended August 31, 2009 and August 31, 2008.

Long-Lived Assets – The Company follows Statement of Financial Accounting Standards (“SFAS”) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”. This statement requires that the Company review certain long-lived assets and identifiable intangibles for impairment or disposal whenever events or changes in circumstances indicated the carrying amount may not be recoverable. In that regard, the Company addresses recoverability based upon estimated non-discounted cash flow forecasts. The Company has determined that an impairment loss does not need to be recognized for applicable assets through February 28, 2009 and February 29, 2008.

Investments – Investments consist of real estate joint ventures. The Company accounts for the investments under the equity method.

Revenue Recognition – The Company recognizes revenues in accordance with Securities and Exchange Commission Staff Accounting Bulletin No. 104, “Revenue Recognition” (“SAB 104”). Under SAB 104, revenues from merchandise sales are recorded when all four of the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the Company’s price to the buyer is fixed or determinable; and collectability is reasonably assured. The Company reports its sales levels on a net revenue basis, with net revenues being computed by deducting from gross revenues the amount of actual sales returns and discounts.

~~New~~Recently Adopted Accounting Pronouncements – ~~The~~In ~~Company~~May ~~does~~2009, ~~not~~the ~~expect~~FASB issued SFAS No. 165, Subsequent Events. FAS 165 sets forth the ~~adoption~~period after the balance sheet date during which management of ~~recently~~a ~~issued~~reporting ~~accounting~~entity ~~pronouncements~~should toevaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, the circumstances under which any entity should recognize events or transactions occurring after the balance sheet date in its financial statements, and the disclosures that an entity should make about events or transactions that occurred after the balance sheet date. FAS 165 is effective for interim and annual periods ending after June 15, 2009 and applies prospectively. The adoption of this standard did not have a ~~significant~~material impact on the Company’s financial position, results of operations or cash flows. The Company evaluated all events and transactions after August 31, 2009 up through October 20, 2009, the date these financial ~~position~~statements were issued. During this period, the Company did not have any material recognizable or ~~cash~~nonrecognizable subsequent ~~flows~~events.

The Company does not expect the adoption of any other recently issued accounting pronouncements to have a significant impact on their results of operations, financial position or cash flows.

NOTE 2 – INVESTMENTS

As of ~~February~~August 2831, 2009, the Company is a one-third member of a limited liability company that is a 55% member of another limited liability company which is a real estate joint venture. As of ~~February~~August 2831, 2009 the Company contributed $~~590~~617,~~570~~903 to the joint venture which represented 33% of the total capital of the joint venture. For the periods ~~ending~~ended ~~February~~August 2831, 2009 and ~~February~~August 2931, 2008 there ~~was~~were no earnings or losses in the joint venture for the Company to recognize.

As of February 28, 2009, the Company is a one-third member of a limited liability company that is a 55% member of another limited liability company which is a real estate joint venture. As of February 28, 2009 the Company contributed $591,000 to the joint venture which represented 33% of the total capital of the joint venture. For the periods ending February 28, 2009 and February 29, 2008 there was no earnings or losses in the joint venture for the Company to recognize.7

AsLASER ofMASTER ~~February 28~~INTERNATIONAL, ~~2009, the Company is a 7~~INC.~~75%~~ NOTES ~~member of a limited liability company which is a real estate joint venture. As of February 28, 2009 the Company contributed $799,000 to the joint venture which represented~~TO ~~21%~~CONSOLIDATED ofFINANCIAL ~~the total capital of the joint venture. For the periods ending February 28, 2009 and February 29, 2008 there were no earnings or losses in the joint venture for the Company to recognize.~~STATEMENTS

As of August 31, 2009, the 5Company is a one-third member of a limited liability company that is a 55% member of another limited liability company which is a real estate joint venture. As of August 31, 2009 the Company contributed $591,000 to the joint venture which represented 33% of the total capital of the joint venture. For the periods ended August 31, 2009 and August 31, 2008 there were no earnings or losses in the joint venture for the Company to recognize.

As of August 31, 2009, the ~~LASER~~Company ~~MASTER~~is ~~INTERNATIONAL~~a 7.75% member of a limited liability company which is a real estate joint venture. As of August 31, ~~INC~~2009 the Company contributed $799,000 to the joint venture which represented 21% of the total capital of the joint venture. For ~~AND~~the ~~SUBSIDIARIES~~periods ended August 31, 2009 and August 31, 2008 there were no earnings ~~NOTES~~or TOlosses ~~CONSOLIDATED~~in ~~FINANCIAL~~the ~~STATEMENTS~~joint venture for the Company to recognize.

The properties covered by the above investments are currently being developed and are in the construction phase. All related costs have been capitalized by the respective joint ventures. Based on estimates provided by the real estate management and development companies as to the fair values of the above properties, the Company believes that as of August 31, 2009, no impairment exists for the above investments.

NOTE 3 – PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consist of the following as of:

		February 28, 2009			November 30, 2008
		August 31, 2009			November 30, 2008
Prepaid Insurance	$	~~28,494~~$	2,514	$	~~47,909~~$	47,909
Prepaid Inventory		~~146,591~~	105,837		~~444,983~~	444,983
Receivable due from Factor		~~48,357~~	88,293		~~546,675~~	546,675
Receivable due from Supplier		~~15,763~~	27,855		-	—
Prepaid manufacturing expense		~~227,705~~	171,649		-	—
Deposits to suppliers		~~135,099~~	599,336		-	—
Other		~~27,289~~	12,628		~~18,201~~	18,201
Total	$	~~629,297~~$	1,008,112	$	~~1,057,768~~$	1,057,768

NOTE 4 – PROPERTY AND EQUIPMENT

Property and equipment is summarized as follows as of:

	February 28, 2009			November 30, 2008
		August 31, 2009			November 30, 2008
Land	$	~~1,799,189~~$	1,799,787	$	~~1,796,735~~$	1,796,735
Building and improvements		~~7,747,346~~	7,747,555		~~7,747,346~~	7,747,346
Machinery and equipment		~~73,382~~	73,382		~~73,382~~	73,382
Computer equipment, furniture and fixtures		~~150,544~~	150,544		~~150,544~~	150,544
Total Fixed Asset		~~9,770,461~~	9,771,268		~~9,768,007~~	9,768,007
Less accumulated depreciation		~~(614,235)~~	(722,045	)	~~(561,535)~~	(561,535	)
	$	~~9,156,226~~$	9,049,223	$	~~9,206,472~~$	9,206,472

~~For the periods ended February 28, 2009 and February 29, 2008 depreciation expense totaled $52,700 and $57,099, respectively.~~ 8

LASER MASTER INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the nine months ended August 31, 2009 and August 31, 2008 depreciation expense totaled $160,939 and $169,020 respectively.

NOTE 5 – OTHER ASSETS

Other assets isare primarily comprised of the cash value of company owned life insurance on key employees. As of ~~February~~August 2831, 2009 and November 30, 2008 the cash value was $24,~~739~~451 and 24, 880, respectively.

NOTE 6 – ACCRUED EXPENSES

		February 28, 2009			November 30, 2008
		August 31, 2009			November 30, 2008
Audit, Accounting, Legal, Professional Fee	$	~~30,000~~$	10,125	$	~~45,000~~$	45,000
Environmental		~~59,494~~	59,494		~~59,494~~	59,494
Other Accrued expenses		~~17,526~~	177		~~1,158~~	1,158
Total	$	~~107,020~~$	69,796	$	~~105,652~~$	105,652

6NOTE 7 – SHORT-TERM DEBT – RELATED PARTY

~~LASER~~During, ~~MASTER~~2009, ~~INTERNATIONAL~~the Company borrowed $526,304 ~~INC~~from a related party. ~~AND~~The ~~SUBSIDIARIES~~loan has no terms of repayment, is unsecured ~~NOTES~~ and TObears ~~CONSOLIDATED~~no ~~FINANCIAL~~interest. ~~STATEMENTS~~

NOTE 78 – LONG-TERM DEBT

Long-term debt is comprised of the following as of:

	February 28, 2009			November 30, 2008
		August 31, 2009			November 30, 2008
Mortgage with a bank due December 10, 2028, secured by a
Mortgage with a bank due December 10, 2028, secured by a building. Fixed monthly payments of $45,570. Interest @ 6.036% per annum.		$	6,231,066		$	6,385,987
building. Fixed monthly payments of $45,570. Interest @
Notes payable due to a related party for 52.5% ownership of investment property. Note matures on February 19, 2013. Interest @ 6% per annum		$	40,030
6.036% per annum.	$	6,314,952		$	6,385,987
Less current maturities		$	(176,425	)	$	(168,635	)
Notes payable due to a related party for 52.5% ownership of
Total long-term debt		$	6,094,671		$	6,217,352
investment property. Note matures on February 19, 2013.
Interest @ 6% per annum	$	40,030
Less current maturities	$	(171,193)		$	(168,635)
Total long-term debt	$	6,183,789		$	6,217,352

~~NOTE 8 –RENTAL INCOME~~9

~~The~~LASER ~~Company~~MASTER ~~owns an investment property in Chicago~~INTERNATIONAL, ~~Illinois~~INC. ~~The investment property is being leased to a retailer for fixed monthly rental payments of $45,571 per month over 265 months. The lease term is 302 months~~ ~~expiring~~NOTES ~~January~~TO 1,CONSOLIDATED ~~2032.~~FINANCIAL The Company is recording the rental income under the straight-line method. As a result, as of February 28, 2009 and November 30, 2008 the Company has deferred income of $147,319 and $130,254, respectively. For the periods ended February 28, 2009 and February 29, 2009 the Company recognized rental income of $121,500 and $122,813, respectively. STATEMENTS

7NOTE 9 –RENTAL INCOME

~~ITEM~~The 2Company owns an investment property in Chicago, Illinois. ~~MANAGEMENT'S~~The ~~DISCUSSION~~investment ~~AND~~property ~~ANALYSIS~~is being OFleased ~~FINANCIAL~~to ~~CONDITION~~a ~~AND~~retailer ~~RESULTS~~for OFfixed ~~OPERATIONS~~monthly rental payments of $45,571 per month over 265 months. The lease term is 302 months expiring January 1, 2032, however, no rental payments are required from the lessee for the final three years of the lease term. The Company is recording the rental income under the straight-line method. As a result, as of August 31, 2009 and November 30, 2008 the Company has deferred income of $227,342 and $130,254, respectively. For the nine month periods ended August 31, 2009 and August 31, 2008 the Company recognized rental income of $364,500 and $374,475, respectively. As of August 31, 2009 the cost of the property was $7,715,526 and the accumulated depreciation was $552,717 for a net book value of $7,162,809.

The statements contained in this report that are not historical are forward-looking statements, including statements regarding our expectations, intentions, beliefs or strategies regarding the future. Forward-looking statements include our statements regarding liquidity, anticipated cash needs, and availability and anticipated expense levels. All forward-looking statements included in this report are based on information available to us on this date, and we assume no obligation to update any such forward-looking statement. It is important to note that our actual results could differ materially from those in such forward-looking statements. The following discussion and analysis should be read in conjunction with the financial statements and accompanying notes appearing elsewhere in this report. 10

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS ~~Overview~~OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The statements ~~Historically~~contained ~~our~~in ~~principal~~this ~~business~~report ~~has~~that ~~been~~are ~~printing~~not ~~for~~historical ~~the~~are ~~textile~~forward-looking statements, ~~and~~including ~~gift~~statements ~~wrap~~regarding ~~paper~~our ~~industry~~expectations, ~~using~~intentions, beliefs aor ~~computerized~~strategies ~~laser~~regarding ~~printing~~the ~~system~~future. WeForward-looking ~~have~~statements ~~experienced~~include our ~~significant~~statements ~~price~~regarding ~~competition~~liquidity, ~~from~~anticipated ~~low-cost~~cash ~~printing operations~~needs, inand ~~other~~availability and ~~countries,~~anticipated ~~particularly~~expense ~~China~~levels. InAll ~~response~~forward-looking tostatements ~~this~~included ~~competitive~~in ~~pressure~~this report weare ~~diversified~~based ~~our~~on ~~customer~~information ~~base~~available to ~~national~~us ~~retail~~on ~~chain~~this ~~stores~~date, and ~~broadened~~we ~~our~~assume ~~product~~no obligation ~~line~~to ~~into~~update ~~different~~any ~~types~~such offorward-looking ~~packaging~~statement. ~~and~~It ~~gift~~is ~~wrap~~important ~~products. We~~to ~~currently~~note ~~purchase~~that our ~~products~~actual ~~from~~results ~~the~~could ~~domestic~~differ ~~USA~~materially ~~markets,~~from ~~China~~those ~~and~~in ~~other~~such forward-looking ~~countries~~statements. WeThe ~~have~~following indiscussion ~~house design, creative~~ and ~~prepress~~analysis ~~departments~~should ~~and also use outside sources for these services. Generally, we have had no trouble finding domestic~~be orread ~~overseas~~in ~~suppliers.~~conjunction Wewith ~~are experiencing price increases due to~~ the ~~exchange~~financial ~~rate~~statements ~~of the US dollar versus foreign currencies~~ and ~~the~~accompanying ~~general~~notes appearing ~~cost~~elsewhere ~~increase~~in ofthis ~~raw materials, energy and labor~~report.

~~Three months ended February 28, 2009 compared to three months ended February 28, 2008.~~ Overview

Historically ~~Revenues~~our ~~were~~principal ~~$1,900,004~~business ~~for~~has ~~the~~been ~~three~~printing ~~months ended February 28, 2009 compared to $3,860,439~~ for the ~~three~~textile ~~months~~and ~~ended~~gift ~~February~~wrap ~~28,~~paper industry ~~2008.~~using ~~Revenue~~a ~~decreased~~computerized ~~approximately~~laser 50printing system.~~78%~~ ~~for~~We ~~the~~have ~~quarter ended February 28,~~experienced ~~2009~~significant ~~due~~price tocompetition afrom ~~general~~low-cost ~~slowdown~~printing operations in ~~retail~~other countries, ~~sales~~particularly ~~and our customers having inventory overstock~~China. ~~Our~~In ~~gross~~response ~~margin~~to ~~for~~this ~~the~~competitive ~~three~~pressure ~~months~~we diversified ~~ended~~our ~~February~~customer ~~28.~~base ~~2009 was 17% compared~~ to ~~22%~~national ~~for~~retail ~~the~~chain ~~three months ended February 29~~stores, ~~2008.~~and ~~The gross margin for the~~broadened ~~period~~our ~~ending~~product ~~February~~line ~~29,~~into ~~2008~~different ~~decreased~~types ~~due~~of topackaging ~~selling~~and ~~old~~gift ~~inventory~~wrap ~~at lower margins~~products. .We currently ~~Selling~~purchase ~~expenses~~our ~~for~~products from the ~~three~~domestic ~~months~~USA ~~ended February 28~~markets, ~~2009~~China ~~remained~~and ~~the~~other countries. ~~same~~We ashave ain ~~percentage~~house ~~of revenue from $129~~design,~~083~~ ~~(7%~~creative ofand ~~revenue)~~prepress ~~for~~departments ~~the~~and ~~three~~also ~~months~~use ~~ended~~outside ~~February~~sources ~~29,~~for ~~2008~~these toservices. ~~$277~~Generally,~~060~~ ~~(7%~~we ofhave ~~revenue)~~had ~~for~~no ~~the~~trouble finding ~~three~~domestic ~~months~~or ~~ended~~overseas ~~February 28, 2009~~suppliers. ~~General~~We ~~and~~are ~~administrative~~experiencing ~~expenses~~price ~~for~~increases due to the ~~three~~exchange ~~months~~rate ~~ended~~of ~~February~~the ~~28,~~US ~~2009~~dollar ~~decreased~~versus toforeign ~~$820,011~~currencies ~~(43%~~and ofthe ~~revenue) from~~general ~~$927,051~~cost ~~(24%~~increase of ~~revenue)~~raw asmaterials, ~~for~~energy ~~the~~and ~~three months ended February 29, 2008~~labor.

~~Interest~~Three ~~expense was approximately the same for the three~~ months ended ~~February~~August 2831, 2009 ascompared to ~~for the~~ three months ended ~~February~~August 2931, 2008.

Revenues were ~~Liquidity~~$2,275,579 for the three months ended August 31, 2009 compared to $3,945,837 for the three months ended August 31, 2008. Revenue decreased approximately 42.33% for the quarter ended August 31, 2009 due to a general slowdown in retail sales and ~~Capital~~our ~~Resources~~customers having inventory overstock. Our gross margin for the three months ended August 31, 2009 was 33.30% compared to 25.62% for the three months ended August 31, 2008. Selling expenses for the three months ended August 31, 2009 decreased as a percentage of revenue from $220,771 (5.59% of revenue) for the three months ended August 31, 2008 to $73,914 (3.25% of revenue) for the three months ended August 31, 2009. General and administrative expenses for the three months ended August 31, 2009 decreased to $618,303 (27.17% of revenue) from $797,777 (20.22% of revenue) as for the three months ended August 31, 2008.

Interest ~~For~~expense was $96,761 and $98,171 for the three months ended ~~February~~August 2831, 2009 and for the ~~Company~~three ~~had~~months ~~cash~~ended ~~flow~~August ~~from~~31, ~~operations of $143~~2008,~~084~~ respectively.

~~Liquidity is sustained principally through funds provided from operations and the factoring facility.~~11

~~Inventories~~Nine ~~are~~months upended asAugust ~~a percentage of our current assets as of the close of the quarter (approximately 56.14% as of February 28~~31, 2009 ~~versus~~compared ~~approximately~~to ~~30.32%~~nine ~~as of November 30, 2008), and accounts receivable are down as~~months aended ~~percentage~~August ~~of current assets as of that date (approximately 13.77% as of February 28~~31, ~~2009 versus approximately 41.75% as of November 30,~~ 2008~~), due to our seasonal sales which increase our accounts receivable in the fourth quarter~~.

Revenue decreased ~~Cash~~approximately ~~plus~~51.17% ~~accounts~~for ~~receivable~~the ~~exceeded~~quarter ended August 31, 2009 ($5,739,593) for the nine months ended August 31, 2009 compared to $11,754,7700 for the nine months ended August 31, 2008 due to a general slowdown in retail sales and our customers ~~current~~having ~~liabilities~~inventory overstock. WeOur ~~believe~~gross wemargin ~~will~~increased beto ~~able~~28.65% for the nine months ended August 31, 2009 compared to ~~meet~~the ~~our~~nine ~~cash~~months ~~requirements~~ended August 31, 2008 of only 26.21%. Selling expenses decreased to $298,855 (5.20% of revenue) for the ~~next~~nine 12months ended August 31, 2009 from $750,005 (6.38% of revenue) for the nine months ~~without~~ended ~~additional~~August ~~financing~~31, ~~based~~2008. onGeneral ~~current~~and ~~projected~~administrative expenses ~~sales~~for the nine months ended August 31, 2009 decreased to $2,088,959 (36.40% of revenue) from $2,609,456 (22.20% of revenue) for the nine months ended August 31, 2008.

Interest ~~The~~expense ~~Company~~was ~~has~~$291,484 ~~arranged~~and ~~for a factoring facility of up to~~ $5295,~~000,000.~~575 ~~The Company agreed to offer~~ for ~~sale to~~ the ~~factor~~nine ~~certain~~months ofended ~~its~~August ~~accounts.~~31, ~~The~~2009 ~~factor~~and for ~~has~~ the ~~absolute~~nine ~~right~~months inended ~~its~~August ~~sole~~31, ~~discretion~~2008, ~~to reject any or all offered accounts~~respectively. ~~The factor~~

8Liquidity and Capital Resources.

~~may~~For ~~advance up to 85% of~~ the ~~face~~Nine months ~~value~~ended ofAugust ~~the~~31, ~~invoices.~~2009 ~~The remaining 15% of balance is received when~~ the ~~customer~~Company ~~pays~~had ~~the~~cash ~~invoice~~flow toused ~~the~~in ~~factor~~operations of $(467,948).

~~Each~~Liquidity ~~account~~ is ~~purchased~~sustained byprincipally ~~the~~through ~~factor~~funds ~~without~~provided ~~recourse against the Company. All losses incurred by the factor~~ from operations, the ~~financial~~factoring ~~inability~~facility ~~of the applicable account debtor to pay such account over~~ and ~~above~~loans ~~any~~from ~~and~~related ~~all residual payments and reserve amounts offset shall be borne solely by the factor~~party.

Inventories Asare up as a percentage of ~~November~~our ~~30,~~current ~~2008~~assets ~~and~~as ~~February~~of 28the close of the quarter (approximately 52.15% as of August 31, 2009 versus approximately 30.32% as of November 30, ~~the~~2008), ~~factor~~and ~~charges~~accounts ~~the~~receivable ~~Company~~are 1%down as a percentage of ~~the~~current assets ~~invoice~~as ~~amount~~of ifthat ~~the~~date ~~customer~~(approximately ~~repays~~18.70% ~~the~~as ~~invoice~~of ~~within~~August 6031, ~~days~~2009 ~~and~~versus 1approximately 41.2575% ~~for~~as upof November 30, 2008), due to 90our ~~days~~seasonal sales which increased our accounts receivable in the fourth quarter of 2008.

~~The~~Cash ~~factor has a security interest in all of our~~ plus accounts receivable, and inventory, ~~deposit~~exceeded ~~accounts,~~our ~~and~~current ~~general intangibles~~liabilities. We ~~find~~believe we ~~that~~will ~~this~~be ~~arrangement~~able isto ameet ~~convenient~~our ~~and~~cash ~~cost~~requirements ~~efficient~~for ~~way~~the tonext ~~turn~~12 ~~our~~months ~~accounts~~without ~~receivable~~additional ~~into~~financing ~~cash~~based on ancurrent asprojected ~~needed basis~~sales.

The Company ~~Critical~~has ~~Accounting~~arranged ~~Policies~~for ~~and~~a ~~Estimates~~factoring facility of up to $5,000,000. The Company agreed to offer for sale to the factor certain of its accounts. The factor has the absolute right in its sole discretion to reject any or all offered accounts. The factor may advance up to 85% of the face value of the invoices. The remaining 15% of balance is received when the customer pays the invoice to the factor.

Each account ~~Use~~is ofpurchased ~~Estimates. In~~by ~~preparing~~the ~~our~~factor ~~financial~~without ~~statements,~~recourse weagainst ~~must~~the ~~make~~Company. aAll ~~number~~losses incurred ofby ~~estimates~~the ~~and~~factor ~~judgments~~from ~~that affect~~ the ~~reported~~financial ~~amounts~~inability of ~~assets,~~the ~~liabilities,~~applicable ~~revenue, and~~account ~~expenses,~~debtor ~~and~~to ~~related~~pay ~~disclosure~~such ofaccount ~~contingent~~over ~~assets~~ and ~~liabilities.~~above Onany ~~an ongoing basis, we evaluate our estimates. We base our estimates on historical experience~~ and onall ~~various~~residual ~~other~~payments ~~assumptions that are believed to be reasonable under the~~and ~~circumstances.~~reserve ~~Actual~~amounts ~~results~~offset ~~could~~shall ~~differ from these estimates under different assumptions or conditions, and these differences may~~ be ~~material.~~borne Wesolely ~~believe~~by the ~~following critical accounting policies affect our more significant judgments and estimates used in preparing our financial statements~~factor.

~~Allowance~~As ~~for~~of ~~Doubtful~~November 30, ~~Accounts~~2008 ~~–We reserve for bad debts~~ and ~~create~~August ~~our~~31, ~~allowance by identifying specific accounts receivable by customer based upon age and collectibility. When we determined that an account is uncollectible~~2009, ~~we remove it from~~ the ~~accounts~~factor ~~receivable~~charges ~~and reduce~~ the ~~related~~Company ~~allowance.~~1% ~~Our estimates~~ of ~~collectibility are based on a number of subjective factors including our appraisal of~~ the ~~particular~~invoice ~~customer's~~amount ~~history~~if ~~with~~the ~~us into any identifiable factors that may particularly affect that~~ customer's ~~segment~~repays of the ~~market.~~invoice Ifwithin ~~our~~60 ~~estimates~~days ~~as to collectibility are incorrect the amount of our reserve may be too small, resulting in greater future charges to income if~~ and ~~when the uncollectibility of that account becomes clear~~1.25% ~~If we were to apply another method of determining our allowance~~ for ~~doubtful~~up ~~accounts, such as applying historical percentages~~ to ~~the aggregate dollar amount of~~90 ~~accounts outstanding, the result in any particular period could be very different~~days.

~~Inventories~~The –factor ~~Inventories~~has a ~~which~~security ~~consist~~interest ofin ~~mostly~~all ~~finished goods are stated at the lower~~ of ~~cost~~our oraccounts ~~market~~receivable, ~~with~~inventory, ~~cost~~deposit accounts, ~~being~~and ~~determined~~general ~~by the weighted average first-in, first-out method~~intangibles. ~~The~~We ~~effect~~find ofthat this ~~policy~~arrangement is toa convenient ~~reduce~~and ~~the~~ cost ofefficient ~~goods~~way ~~sold when cost of inventory are rising as compared~~ to ~~the~~turn ~~cost~~our ofaccounts ~~goods~~receivable ~~sold~~into ~~that~~cash ~~would apply if we were to determine cost~~ on an aas ~~last~~needed ~~in first-out~~ basis. ~~Conversely, our policy would result in a reduction in the cost of goods sold during periods of falling inventory prices.~~

Property and Equipment –We compute depreciation of property and equipment by the straight-line method at rates calculated to amortize cost over the estimated useful lives which approximate 39 years for buildings and building improvements and 5 to 10 years for machinery and equipment, computer equipment and furniture and fixtures. We charge maintenance and repairs to operations as incurred, while we capitalize the cost of betterments and improvements. The cost and related accumulated depreciation of assets sold or otherwise disposed of are eliminated from the accounts and any resulting gain or loss is reflected in operations. If we were to apply shorter useful lives in estimating the applicable depreciation, depreciation expense would be higher. In addition, we must apply judgment in determining whether particular work should properly be regarded as maintenance and repairers, and not a long-term increase in the value of the underlying asset. To the extent that we classify work on an asset as a cost of that asset rather than an expense to be deducted currently, our stated earnings for the applicable period would be increased. 12

~~Long-Lived~~Critical ~~Assets –We follow Statement of Financial~~ Accounting ~~Standards~~Policies ~~(“SFAS”) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”. This statement requires us to review certain long-lived assets~~ and ~~identifiable intangibles for impairment or disposal whenever events or changes in circumstances indicated the carrying~~ Estimates

Use of Estimates. In 9preparing our financial statements, we must make a number of estimates and judgments that affect the reported amounts of assets, liabilities, revenue, and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from these estimates under different assumptions or conditions, and these differences may be material. We believe the following critical accounting policies affect our more significant judgments and estimates used in preparing our financial statements.

Allowance for Doubtful Accounts ~~amount~~– ~~may~~We ~~not~~reserve befor ~~recoverable.~~bad Wedebts ~~address~~and ~~recoverability~~create our allowance by identifying specific accounts receivable by customer based upon ~~estimated~~age ~~non-discounted~~and ~~cash~~collectibility. ~~flow~~When ~~forecasts.~~we determined ~~Technological~~that ~~changes~~an ~~and~~account ~~other~~is ~~changes~~uncollectible, inwe remove it from the ~~marketplace~~accounts receivable ~~may~~and ~~result~~reduce inthe related allowance. Our estimates of collectibility are based on a number of subjective factors including our appraisal of the particular ~~asset'~~customer’s ~~becoming~~history ~~recoverable~~with inus ainto ~~shorter~~any ~~period~~identifiable offactors ~~time~~that ~~than~~may particularly weaffect ~~have~~that ~~estimated~~customer’s segment of the market. If ~~that~~our ~~were~~estimates as to ~~occur,~~collectibility are incorrect the amount of our ~~earnings~~reserve ~~would~~may be ~~reduced~~too atsmall, ~~such~~resulting ~~time~~in asgreater wefuture ~~determined~~charges ~~that~~to ~~our~~income ~~initial~~if ~~estimate~~and ~~was~~when ~~too~~the ~~long.~~uncollectibility of Wethat ~~have~~account ~~determined~~becomes ~~that~~clear. If we dowere ~~not~~to ~~need~~apply toanother ~~recognize~~method anof ~~impairment~~determining our ~~loss~~allowance for ~~applicable~~doubtful ~~assets~~accounts, ~~through~~such ~~February~~as 28applying historical percentages to the aggregate dollar amount of accounts outstanding, ~~2009~~the ~~and~~result ~~2008~~in any particular period could be very different.

~~Revenue~~Inventories ~~Recognition~~ –We Inventories ~~recognize~~which ~~revenues~~consist inof ~~accordance~~mostly ~~with~~finished ~~Securities~~goods ~~and~~are ~~Exchange~~stated ~~Commission~~at ~~Staff~~the ~~Accounting~~lower ~~Bulletin~~of cost ~~No.~~or ~~104~~market, ~~“Revenue~~with ~~Recognition”~~cost ~~(“SAB 104”).~~being ~~Under~~determined ~~SAB~~by ~~104,~~the weweighted ~~record~~average ~~revenues~~first-in, first-out ~~from~~method. ~~merchandise~~The ~~sales~~effect ~~when all four~~ of ~~the~~this ~~following~~policy ~~criteria~~is ~~are~~to ~~met:~~reduce ~~persuasive~~the ~~evidence~~cost of angoods ~~arrangement~~sold when ~~exists;~~cost ~~delivery~~of ~~has~~inventory ~~occurred~~are orrising ~~services~~as ~~have~~compared ~~been rendered; the Company’s price~~ to the ~~buyer~~ iscost ~~fixed~~of orgoods ~~determinable;~~sold ~~and~~that would ~~collectibility~~apply isif ~~reasonably~~we ~~assured.~~were Weto ~~report~~determine ~~our~~cost ~~sales levels~~ on a ~~net~~last ~~revenue~~in ~~basis,~~first-out ~~with net revenues being computed by deducting from gross revenues the amount of actual sales returns and discounts~~basis. ~~The~~ ~~determination~~Conversely, ofour ~~whether~~policy ~~collectibility~~would isresult ~~reasonably assured is~~ in ~~substantial~~a ~~part~~reduction ~~subjective. If we are too optimistic~~ in ~~estimating collectibility, revenues would be overstated for~~ the ~~period~~cost ~~prior~~of togoods ~~our~~sold during ~~becoming~~periods ~~aware~~of ~~that~~falling aninventory ~~account has become uncollectible~~prices.

~~ITEM~~Property 3and Equipment – We compute depreciation of property and equipment by the straight-line method at rates calculated to amortize cost over the estimated useful lives which approximate 39 years for buildings and building improvements and 5 to 10 years for machinery and equipment, computer equipment and furniture and fixtures. ~~QUANTITATIVE~~We charge ~~AND~~maintenance ~~QUALITATIVE~~and ~~DISCLOSURES~~repairs ~~ABOUT~~to ~~MARKET~~operations ~~RISK~~as incurred, while we capitalize the cost of betterments and improvements. The cost and related accumulated depreciation of assets sold or otherwise disposed of are eliminated from the accounts and any resulting gain or loss is reflected in operations. If we were to apply shorter useful lives in estimating the applicable depreciation, depreciation expense would be higher. In addition, we must apply judgment in determining whether particular work should properly be regarded as maintenance and repairers, and not a long-term increase in the value of the underlying asset. To the extent that we classify work on an asset as a cost of that asset rather than an expense to be deducted currently, our stated earnings for the applicable period would be increased.

Long-Lived Assets – ~~Smaller~~We ~~reporting~~follow ~~companies~~Statement ~~are~~of ~~not~~Financial ~~required~~Accounting Standards (“SFAS”) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”. This statement requires us to ~~provide~~review certain long-lived assets and identifiable intangibles for impairment or disposal whenever events or changes in circumstances indicated the ~~information~~carrying ~~required~~amount bymay ~~this~~not ~~Item~~be recoverable. We address recoverability based upon estimated non-discounted cash flow forecasts. Technological changes and other changes in the marketplace may result in a particular asset’s becoming recoverable in a shorter period of time than we have estimated. If that were to occur, our earnings would be reduced at such time as we determined that our initial estimate was too long. We have determined that we do not need to recognize an impairment loss for applicable assets through August 31, 2009 and 2008.

~~ITEM 4. CONTROLS AND PROCEDURES (a) Evaluation of disclosure controls and procedures.~~13

Revenue Recognition ~~Under~~– ~~the~~We ~~supervision~~recognize ~~and~~revenues in accordance with ~~the~~Securities ~~participation~~and ofExchange ~~our~~Commission Staff ~~management,~~Accounting ~~including~~Bulletin ~~our~~No. ~~Chairman~~104, ~~Chief~~“Revenue ~~Executive~~Recognition” ~~Officer~~(“SAB ~~and~~104”). ~~Chief~~Under ~~Financial Officer~~SAB 104, we ~~have~~record ~~evaluated~~revenues ~~the~~from ~~effectiveness~~merchandise sales when all four of the ~~design~~following criteria ~~and~~are ~~operation~~met: persuasive evidence of ~~our~~an arrangement exists; delivery has ~~disclosure~~occurred ~~controls~~or ~~and~~services ~~procedures~~have asbeen ofrendered; the ~~end~~Company’s ofprice to the ~~period~~buyer ~~covered~~is fixed byor ~~this~~determinable; ~~quarterly~~and collectibility is reasonably assured. We report, ~~and~~our sales ~~based~~levels on ~~their~~a ~~evaluation~~net revenue basis, ~~our~~with ~~Executive~~net ~~Chairman,~~revenues ~~Chief~~being ~~Executive~~computed ~~Officer~~by deducting from gross revenues the amount of actual sales returns and ~~Chief~~discounts. The ~~Financial~~determination ~~Officer~~of ~~have~~whether ~~concluded~~collectibility ~~that~~is ~~these~~reasonably ~~disclosure~~assured ~~controls~~is in ~~and~~substantial ~~procedures~~part subjective. If we are ~~effective.~~too optimistic in estimating collectibility, revenues would be overstated for the period prior to our becoming aware that an account has become uncollectible.

~~Disclosure~~ITEM controls and procedures are the controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized, and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms3. ~~Disclosure~~QUANTITATIVE ~~controls~~AND ~~and procedures include, without limitation, controls and procedures designed to ensure that~~QUALITATIVE ~~information~~DISCLOSURES ~~required~~ABOUT toMARKET be disclosed by us in the reports that we file under the Exchange Act is accumulated and communicated to our management, including our Executive Chairman, Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. RISK

Smaller ~~(b)~~reporting ~~Changes~~companies inare ~~internal~~not ~~controls~~required to provide the information required by this Item.

~~There~~ITEM ~~were~~4. noCONTROLS ~~significant~~AND ~~changes~~PROCEDURES ~~in our internal controls or in other factors that could significantly affect our internal control over financial reporting.~~

(a) Evaluation 10of disclosure controls and procedures.

Under the ~~PART~~supervision IIand with the participation of our management, including our Chairman, Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this quarterly report, and based on their evaluation, our Executive Chairman, Chief Executive Officer and Chief Financial Officer have concluded that these disclosure controls and procedures are effective.

~~ITEM~~Disclosure controls 1and procedures are the controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized, and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. ~~LEGAL~~Disclosure ~~PROCEEDINGS~~controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file under the Exchange Act is accumulated and communicated to our management, including our Executive Chairman, Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

(b) Changes in ~~None.~~internal controls.

~~ITEM~~There ~~1A.~~were ~~RISK~~no significant ~~FACTORS~~changes in our internal controls or in other factors that could significantly affect our internal control over financial reporting.

~~Smaller reporting companies are not required to provided the information required by this Item.~~14

~~ITEM~~PART ~~2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS~~II

~~None~~ITEM 1. LEGAL PROCEEDINGS

~~ITEM 3~~None. ~~DEFAULTS UPON SENIOR SECURITIES~~

~~None~~ITEM 1A. RISK FACTORS

~~ITEM~~Smaller reporting 4.companies ~~SUBMISSION~~are OFnot ~~MATTERS~~required TOto Aprovided ~~VOTE~~the OFinformation ~~SECURITY~~required ~~HOLDERS~~by this Item.

~~None~~ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

~~ITEM 5. OTHER INFORMATION~~ None.

ITEM 63. ~~EXHIBITS~~DEFAULTS UPON SENIOR SECURITIES

~~The exhibits required by this Item are set forth in the Exhibit Index attached hereto~~None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF 11SECURITY HOLDERS

~~SIGNATURES~~None.

~~Pursuant~~ITEM ~~to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized~~5. OTHER INFORMATION

	LASER MASTER INTERNATIONAL, INC.
Date: April 17, 2009	By:	/s/ Mendel Klein
		Name:	Mendel Klein
		Title:	Chief Executive Officer and
			Chief Financial Officer

None.

12ITEM 6. EXHIBITS

The exhibits ~~EXHIBIT~~required ~~INDEX~~by this Item are set forth in the Exhibit Index attached hereto.

Exhibit
No.		Description
31.1		Certification of Chief Executive Officer and Chief Financial Officer pursuant to Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as amended.
32.1		Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

13SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	LASER MASTER INTERNATIONAL, INC.

Date: October 20, 2009	By:	/s/ Mendel Klein

		Name:	Mendel Klein
		Title:	Chief Executive Officer and
			Chief Financial Officer

EXHIBIT INDEX


Exhibit No.		Description


31.1		Certification of Chief Executive Officer and Chief Financial Officer pursuant to Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as amended.

32.1		Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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