Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 995

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 6
Chunk 995
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 transaction
price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

43

Revenue
is then recognized for the amount of the transaction price allocated to each respective performance obligation when (or as) the performance
obligation is satisfied. For our products, revenue is generally recognized on a free on board origin (FOB Origin) basis. This means that
revenue is recognized when our products have been manufactured, crated, and placed in the collection warehouse for customer pick-up in
accordance with the Customer Quote and Company Terms and Conditions of Sale. At this stage, the title on the manufactured equipment is
transferred 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 obligations 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.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 situation may also arise if the business climate
suddenly changes in the distributor’s country of operation, and the company determines that older and aged equipment can no longer
be sold in a specific geographical area, requiring equipment stock to be upgraded to modern