Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 549

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1C
Chunk 549
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 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 recorded in Company’s Quick Books Accounting software.

42

Distributor
Discounts. Distributors and representatives earn various rebates and discounts based on purchase volume commitments and the achievement
of certain performance KPIs. The company estimates the amount of discounts based on historical volumes, geographical market, end customer
buying potential, and the ordered equipment amount. The company also utilizes various programs to offer volume cash discounts, first
customer discounts, or reimburse distributors for certain expenses, mainly associated with warranty, transportation costs, and inventory
interest costs incurred by the distributor for limited periods of time, generally up to eighteen months.

Repurchase
policy. LPC Operational Management regular conducts evaluation of unsold equipment in Distributors possession and determines what particular
units cannot be sold anymore because of the moral aging. However, after the manufacturing upgrade it can be added back to the finished
goods inventory and sold as a current model. Repurchase records can be viewed in the Repurchase History Records folder.

Critical
Accounting Policies and Estimates

The
preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”)
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses

Our
financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles
applied on a consistent basis. The preparation of financial statements in conformity with U.S. generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
periods.

We
regularly evaluate the accounting policies and estimates that we use to prepare our financial statements. In general, management’s
estimates are based on historical experience, and on various other assumptions that are believed to be reasonable under the facts