Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 1222

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 7A
Chunk 1222
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 that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits
provide a reasonable basis for our opinion.

Critical
Audit Matters

The
critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated
or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial
statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters
does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit
matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Revenue
Recognition – Refer to Note 2 to the financial statements

Description
of the Critical Audit Matter

The
Company has material revenue with a revenue recognition policy in which determining when the performance obligation has been settled
and obtaining appropriate and sufficient audit evidence took significant audit effort.

How
the Critical Audit Matter was Addressed in the Audit

    ●
    Reviewed
    the Company’s assessment of its revenue recognition policy, independently assessing the Company’s conclusion that it
    is consistent with the principles of ASC 606: Revenue from Contracts with Customers. Traced significant considerations through to
    the Company’s disclosure of its related accounting policy.

    ●
    Testing
    of a sample of revenue transactions, including sending confirmations, encompassing transactions near year end, to determine the product
    has been shipped and recorded in the appropriate period.

Allowance
for Uncollectible Accounts – Refer to Note 2 to the financial statements

Description
of the Critical Audit Matter

The
Company has material accounts receivable for which assessing the potential collectability of accounts may include subjective and potentially
complex considerations from management, as well as requiring high degrees of auditor judgment to assess the appropriateness of the audit
evidence to support the Company’s assessment.

How
the Critical Audit Matter was Addressed in the Audit

    ●
    Tested
    subsequent collections for a selection of accounts receivable balances, including both material and immaterial account balances at
    year end.

    ●
    Confirmed
    a selection