Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 238

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1
Chunk 238
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 expenses. Selling, general and administrative expenses consist primarily of salaries and other personnel-related
costs, professional fees, insurance costs, travel expenses and other selling expenses. We expect selling expenses to increase in the
near term to support the planned growth of our business as we expand our sales and marketing efforts.

Research
and development expenses. Research and development expenses consist primarily of salaries and personnel-related costs, the cost of products,
materials, and outside services used in our process and product research and development activities. We acquire equipment for general
use in further process developments and record the depreciation of this equipment as research and development expense. We maintain several programs and activities to improve our technology and processes to enhance performance and reduce the costs of our cleaning
laser modules.

Goodwill
and long-lived assets impairments. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying value may not be recoverable. Impairment is measured by comparing the carrying value of the long-lived assets to the
estimated undiscounted future cash flow expected to result from use of the assets and their ultimate disposition. In instances where
impairment is determined to exist, the Company will write down the asset to its fair value based on the present value of estimated future
cash flows.

Major
customers. While we would expect to depend on current customers for a large percentage of our annual net sales, the
composition of this group can change from year to year. Net sales derived from our current customers as a percentage of our annual net
sales was 17.42% in 2024. New customers accounted for 82.58% of our net sales in 2024. We seek to add new customers and to expand our
relationships with existing customers.

Relationship
with distributors. All orders received on revolving bases in accordance with LPC standard Terms and Conditions of Sale. Orders are not
cancelable. Orders typically consist of multiple units. Payment terms are typically Net 30 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. The company allocates payments in accordance with LPC Accounting practices.
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