Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 485

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1B
Chunk 485
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 inventory is comprised of items that are complete and ready for commercial application without further cost other than
delivery and setup. Finished goods inventory includes demo and other equipment, lasers, software, machines, parts or assemblies.

On
December 31, 2024, and December 31, 2023, respectively, the Company’s inventory consisted of the following:

SCHEDULE OF INVENTORY

    Year Ended December 31, 

    2024 (Audited)  
    2023 (Audited) 
  
    Inventory 

    Equipment Parts Inventory 
    $1,820347  
    $862,941 
  
    Finished Goods Inventory 
     999,100  
     992,744 
  
    Sales Demo Inventory 
     -  
     162,958 
  
    Work in process Inventory 
     295,950  
     243,029 
  
    Inventory Reserve 
     (776,638) 
     (24,216)
  
    Total Inventory 
    $2,338,759  
    $2,237,456 

Inventory
is stated at the lower 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. Company maintains a reserve for excess or obsolete inventory items. Inventories are written
off and charged to the 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.

On
December 31, 2024, the Company recorded $776,638 in inventory obsolescence reserve in comparison to a markdown of $24,216 in the prior
year. $507,931 of demonstration inventory was reclassified to fixed assets during the year ending December 31. 2024.

Fixed
Assets- Plant Machinery and Equipment

Property
and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance,
and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated
depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective
period.

Machinery
and