Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 460

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1B
Chunk 460
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-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 Years Ended December 31, 2024, and 2023:

    Year Ended December 31, 

    2024  
    2023 
  
    Statement of operations data: 

    Net Sales 
    $3,415,196  
    $3,939,473 
  
    Cost of Sales 
     1,934,150  
     1,041,697 
  
    Gross Profit 
     1,481,046  
     2,897,776 
  
    Operating Expenses 
     7,944,389  
     6,246,011 
  
    Income (Loss) from Operations 
     (6,463,343) 
     (3,348,235)
  
    Interest Expense 
        
     -