Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 368

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1A
Chunk 368
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 repurchase commitment is on an individual piece of equipment basis
with a term from the date it is financed by the lending institution through the payment date by the distributor, generally not exceeding
36 months.

The
company has excluded sales and other taxes assessed by a governmental authority in connection with revenue-producing activities from
the determination of the transaction price for all contracts. The company has not adjusted net sales for the effects of significant repurchase
financing activity (e.g., customer default with a financial institution, repurchasing, or warranty replacement) because the period between
the transfer of the equipment title and the customer’s payment may exceed 24 months of the equipment warranty period and occur
within the maturity of the equipment financial agreement between the customer or distributor and the financial institution.

Inventory.
Inventory is stated at the lower level of cost (first-in, first-out method) or market value. Inventory includes parts and components that
may be specialized in nature and subject to rapid obsolescence. We maintain a reserve for excess or obsolete inventory items. Inventories
are written off and charged to cost of goods sold when identified as excess or obsolete. If future sales differ from these forecasts,
the valuation of excess and obsolete inventory may change, and additional inventory provisions may be required. Because of our vertical
integration, a significant or sudden decrease in sales could result in a significant change in the estimates of excess or obsolete inventory
valuation. As ofn December 31, 2024, we have recorded $776,638 for obsolescence.

Warranty.
We maintain an accrual for warranty claims for units sold that are subject to warranty.

44

Income
Taxes and Deferred Taxes. Our annual tax rate is based on our income, statutory tax rates and tax planning opportunities available
to us in the various jurisdictions in which we operate. The net operating loss reported in 2023 will be carried forward to subsequent
periods. No deferred tax asset has been recorded.

Goodwill
and Long-lived assets impairments. We review our intangible assets and property, plant and equipment for impairment when events or
changes in circumstances indicate the carrying value may not be recoverable. Goodwill is required to be tested for impairment at
least annually. We perform our annual goodwill impairment review as of the first day of our fourth quarter, or more frequently if events
or circumstances indicate it is more likely than not that the fair value of an intangible is less than the carrying amount.

Results
of Operations

Summary
of Statements of Operations for the