Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 276

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1
Chunk 276
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 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 prices in active markets for similar assets
    or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that
    are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

    ☐
    Level
    3 -
    unobservable
    inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The
carrying amount of the Company’s financial instruments approximates their fair value as of December 31, 2024 and 2023, due to the
short-term nature of these instruments.

    F-13

Income
Taxes.

Under
ASC 740, “Income Taxes,” deferred tax assets and liabilities are recognized for the future tax consequences attributable
to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax
bases.

Provisions
for income taxes are based on taxes payable or refundable for the current year and deferred income taxes. Deferred income taxes are provided
on differences between the tax bases of assets and liabilities and their reported amounts in the financial statements and on tax carry
forwards. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable
to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates
are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. A valuation allowance is provided
against deferred income tax assets when it is not more likely than not that the deferred income tax assets will be realized