Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 1029

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 6
Chunk 1029
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 obligation (SOV) based
on its stand-alone selling price. The stand-alone selling price is the price which the Company would sell its service separately to a
customer.

5.
Recognize Revenue when (or as) the Company Satisfies a Performance Obligation. The Company recognizes revenue over time based on the
progress towards completion of performance obligation. Revenue recognized during this reporting period is derived from the total contract
value as allocated to performance obligations satisfied during that period.

Contract
assets are $759,658 and zero as of December 31, 2024 and 2023, respectively.  Contract liabilities are $1,042,090 and zero as of
December 31, 2024 and 2023, respectively.  Revenue from contracts with customers are $721,185 and zero as of December 31, 2024 and
2023, respectively. 

Other
Distributor related Revenue Recognition Matters

Distributors
generally have no right to return unsold equipment. However, in limited circumstances, if the company determines that distributor stock
is morally aging beyond the company’s new model releases, it may accept returns and provide the distributor with credit against
their trading account at the company’s discretion under its warranty policy. This revenue is recognized on a consignment basis
and transfer of control is when item is sold to end customer at which time the company recognizes revenue.

Fair
Value of Financial Instruments

The
Company applies the accounting guidance under Financial Accounting Standards Board (“FASB”) ASC 820-10, “Fair Value
Measurements”, as well as certain related FASB staff positions. This guidance defines fair value as the price that would be received
from selling an asset or paid to transfer liability in an orderly transaction between market participants at the measurement date. When
determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal
or most advantageous market in which it would transact business and considers assumptions that marketplace participants would use when
pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance.

The
guidance also establishes a fair value hierarchy for measurements of fair value as follows:

    ☐
    Level
    1 -
    quoted
    market prices in active markets for identical assets or liabilities.

    ☐
    Level
    2 -
    inputs
    other than Level 1 that are observable, either directly or indirectly, such as quoted