Company: LASE
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001641172-25-024367
Chunk: 7

Company: Laser Photonics Corp
Filing Date: 2025-08-15
Form: 10-Q
Item: Part I, Item 1
Chunk 7
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 liabilities to the extent that a customer pays on project
progress before the company fulfills its performance obligations under a contract or contract assets to the extent that the company has
earned by satisfying performance obligations but has not yet billed the customer. Contract assets represent a right to receive payment
in the future once certain conditions are met per the terms of the contract. The balance of contract asset and liabilities as of 6/30//25
were $657,103 and $1,577,417, respectively, and as of 12/31/24 were $759,658 and $1,042,090, respectively.

ASC-280
Segment Reporting 

Financial
Accounting Standard Board (“FASB”) ASC Topic 280, “Segment Reporting,” requires annual and interim reporting
for an enterprise’s operating segments and related disclosures about its products, services, geographic areas and major customers.
An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and
expenses, and about which separate financial information is regularly evaluated by the chief operating decision maker in deciding how
to allocate resources.

Laser
Photonics operates as one segment located in Orlando, FL. Our company develops industrial laser cleaning, cutting, welding, marking,
and wire stripping across multiple industries and customer bases. The chief operating decision maker (CODM) being the Chief Executive
Officer. The CODM uses net income from operations to evaluate and make key operating decisions

Our
significant accounting policies are provided in “Note 2 – Summary of Significant Accounting Policies” in our Financial
Statements 2024 Form 10-K. There have been no material changes to our significant accounting policies from those disclosed in our 2024
Form 10-K for the fiscal year ended December 31, 2024.

Use
of Estimates

The
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
liabilities at dates of the financial statements and the reported amounts of revenue and expenses during the periods. Actual results
could differ from these estimates. Our significant estimates and assumptions include depreciation and the fair value of our stock, stock-based
compensation, debt discount and the valuation allowance relating to the Company’s deferred tax assets.

Assets

Cash
and Cash Equivalents

Cash
and cash equivalents consist of highly liquid investments with an original maturity of three months or less at the