Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 1093

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 8
Chunk 1093
---
as the Company recognizes revenue from the satisfaction of the related performance obligation. Contract liabilities are generally classified
as current within the consolidated balance sheet.

Although
the Company believes it has established adequate procedures for estimating costs to complete on open contracts, it is at least reasonably
possible that additional significant costs could occur on contracts prior to completion. The Company periodically evaluates and revises
its estimates and makes adjustments when they are considered necessary.

The
Company recognizes revenue by applying the following 5 step model:

1.
Identifying the Contract(s) with a Customer. The Company enters into written contract with customers that create enforceable rights and
obligations. Contracts are assessed to ensure they meet criteria for being considered legally binding and capable of being accounted
for.

2.
Identify the Performance Obligations in the Contract. Performance obligations are identified as distinct promises to transfer goods or
services to a customer. The Company identifies their scope of work and creates a schedule of values (SOV) outlining each individual scope
of the project.

3.
Determine the Transaction Price. The transaction price is the amount of considerations the Company expects to be entitled to in exchange
for transferring promised services. The transaction price may include fixed amounts or cost-plus percentage method.

4.
Allocate the Transaction Priced to Performance Obligations. The transaction price is allocated to each performance obligation (SOV) based
on its stand-alone selling price. The stand-alone selling price is the price which the Company would sell its service separately to a
customer.

5.
Recognize Revenue when (or as) the Company Satisfies a Performance Obligation. The Company recognizes revenue over time based on the
progress towards completion of performance obligation. Revenue recognized during this reporting period is derived from the total contract
value as allocated to performance obligations satisfied during that period.

Contract
assets are $759,658 and zero as of December 31, 2024 and 2023, respectively.  Contract liabilities are $1,042,090 and zero as of
December 31, 2024 and 2023, respectively.  Revenue from contracts with customers are $721,185 and zero as of December 31, 2024 and
2023, respectively. 

Other
Distributor related Revenue Recognition Matters

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