Company: LASE
Filing Date: 2025-12-23
Form Type: 10-Q
Source: 0001493152-25-028857
Chunk: 16

Company: Laser Photonics Corp
Filing Date: 2025-12-23
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 contractual responsibility to ensure their goods reach their destination.

In
CMS for projects that are considered custom in nature and determined the obligation will be six months to a year or more, the company
will recognize revenue as a percentage of completion basis. The percentage of completion method recognizes income as work on a project
progresses. The recognition of revenues and profits is generally related to costs incurred in providing the services required under the
project.

    9

Refunds
and returns, which are minimal, are recorded as a reduction of revenue. Payments received from customers before satisfying the above
criteria are recorded as unearned income on the combined balance sheets.

Payments
received as deposits for specific purchase orders or future laser equipment sales to customers are recognized as customer deposits and
included in liabilities on the balance sheet. Customer deposits are recognized as revenue when control over the ordered equipment is
transferred to the customer.

All
revenues are reported net of any sales discounts or taxes.

Other
Revenue Recognition Matters related to Distributors.

Distributors
generally have no right to return unsold equipment. However, in limited circumstances, if the Company determines that distributor stock
is morally aging beyond the Company’s new model releases, it may accept returns and provide the distributor with credit against
their trading account at the Company’s discretion under its warranty policy. This revenue is recognized on a consignment basis
and transfer of control is when an item is sold to end customer at which time the Company recognizes revenue.

Cash
and Cash Equivalents

Cash
and cash equivalents consist of highly liquid investments with an original maturity of three months or less at the date of purchase.
Cash and cash equivalents are carried at a cost, which approximates fair value.

Accounts
Receivable

Trade
accounts receivable is recorded net of allowance for expected uncollectible accounts. The Company extends credit to its customers in
the normal course of business and performs on-going credit evaluations of its customers. All accounts, or portions thereof, that are
deemed uncollectible are written off to bad debt expense, as incurred. In addition, most sales orders are not accepted without a substantial
deposit. As of September 30, 2025, the balance of collectible accounts was $$385,425 and the amount recognized as bad debt as of September
30, 2025, was ($31,301).

Current
Liabilities

Accounts
Payable

Accounts
payable consist of short-term liability to our vendors and sub-contractors, who extend