Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 1020

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 6
Chunk 1020
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 F-7

Stock
Based Compensation

The
Company accounts for stock-based payments in accordance with the provision of ASC 718, which requires that all share-based payments issued
to acquire goods or services, including grants of employee stock options, be recognized in the statement of operations based on their
fair values, net of estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary,
in subsequent periods if actual forfeitures differ from those estimates. Compensation expense related to share-based awards is recognized
over the requisite service period, which is generally the vesting period.

The
Company accounts for stock-based compensation awards issued to non-employees for services, as prescribed by ASC 718-10, at either the
fair value of the services rendered or the instruments issued in exchange for such services, whichever is more readily determinable.
The Company issues compensatory shares for services including, but not limited to, executive, management, accounting, operations, corporate
communication, financial and administrative consulting services.

Lease
Accounting

The
Company leases office space and the production facility under operating lease agreements. The lease term begins on the date of initial
possession of the leased property for purposes of recognizing lease expense on a straight-line basis over the term of the lease. Lease
renewal periods are considered on a lease-by-lease basis and are generally not included in the initial lease term.

Inventory

Inventories
are stated at a lower cost or net realizable value using the first-in first-out (FIFO) method. The Company has four principal categories
of inventory:

Sales
demonstration inventory-Sales demonstration inventory represents completed product used to support the Company’s sales force
for demonstrations and held for sale. Sales demonstration inventory is held in the Company’s demo facilities or by its sales representatives
for up to three years, at which time it would be refurbished and transferred to finished goods as used equipment, stated at the lower
of cost or net realizable value. The Company expects these refurbished units to remain in finished goods inventory and sold within 12
months at prices that produce reduced gross margins.

Equipment
parts inventory- This inventory represents components and raw materials that are currently in the process of being converted to a
certifiable lot of saleable products through the manufacturing and/or equipment assembly process. Inventories include parts and components
that may be specialized in nature and subject to rapid obsolescence. The Company periodically reviews the quantities and carrying values
of invent