Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 583

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1C
Chunk 583
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 the customer. At that stage we fulfill all our obligations, as per our Terms and
Conditions of sale, inform Customer by email or phone that his product order is ready for the scheduled pickup, and transfer the
title on the manufactured equipment to the customer, and the customer is responsible for transportation expenses, insurance, and any
transport-related damage to the equipment in transit. We do not hold any obligation to deliver beyond the collection warehouse, and
it is the customers’ contractual responsibility to ensure their goods reach their destination.

For projects that are considered custom in nature like most of what we see at Control Micro systems, and we’ve
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.

For
the year ending December 31, 2024, there was one customer whose revenue was more than 10% of the total revenue. and for the year ending
December 31, 2023, reporting period there were no customers whose revenue was more than 10% of the total revenue.

    F-12

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.

Contract
Assets and Contract Liabilities

Account
receivable are recognized in the period when the Company’s right to consideration is unconditional. Accounts receivable are recognized
net of an allowance for credit losses. A considerable amount of judgement is required in assessing the likelihood of realization of receivables.

The
timing of revenue may differ from timing of invoicing customers.

Contract
assets include unbilled amounts from long-term construction services when revenue recognized under the cost-to-cost measure of progress
exceeds the amounts invoiced to customers, as the amounts cannot be billed under the terms of the contracts. Such amounts are recoverable
from customers based upon various measures of performance, including achievement of certain milestones, completion of specified units
or completion of contract. Contracts assets are generally classified as current within the consolidated balance sheet.

Contract
liabilities from construction contracts occur when amounts invoiced to customers exceed revenues recognized under the cost-to-cost measures
of progress. Contract liabilities additionally include advance payments from customers on