Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 671

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 2
Chunk 671
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ution. There were 1,050,000
warrants for shares of common stock at the end of 2024 and
180,000
warrants for shares available to potentially issued at the
end of 2023.

    F-11

On
December 31, 2024, the Company recorded a $0.22 basic/diluted loss per share, as compared to a $0.37 basic/diluted loss per share on
December 31, 2023.

Relationship
with distributors:

All
orders received on a revolving basis in accordance with Laser Photonics Corporation standard Terms and Conditions of Sale. Orders are not able to be cancelled.
Orders typically consist of multiple units. Payment terms are typically Net 120 days from transferring the ownership of equipment to
Distributor. Revenue recognized on a “piece by piece” equipment bases after appropriate transfer equipment ownership to Distributor.
Payments are made by Distributor to The Company when Distributor collects funds from their regional customers, or then they have funds
availability to reduce the outstanding balance. Detailed
aging is accounted in MRP system – DBA Manufacturing keeping records of all equipment units ever manufactured with coordinating
serial numbers. Higher level account related data with payment history is recorded in the Company’s Quick Books Accounting software.

Distributor
Discounts

Distributors
and representatives earn various rebates and discounts based on purchase volume commitments and the achievement of certain performance
KPIs. The company estimates the number of discounts based on historical volumes, geographical market, end customer buying potential,
and the ordered equipment amount. The company also utilizes various programs to offer volume cash discounts, first customer discounts,
or reimburse distributors for certain expenses, mainly associated with warranty, transportation costs, and inventory interest costs incurred
by the distributor for limited periods of time, generally up to eighteen months.

Revenue
Recognition Policy

Under
Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the
consideration which the entity expects to receive in exchange for those goods or services. To determine  revenue recognition for
arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify
the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv)
allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as