Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 239

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1
Chunk 239
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 recorded in Company’s Quick Books Accounting software.

42

Distributor
Discounts. Distributors and representatives earn various rebates and discounts based on purchase volume commitments and the achievement
of certain performance KPIs. The company estimates the amount of discounts based on historical volumes, geographical market, end customer
buying potential, and the ordered equipment amount. The company also utilizes various programs to offer volume cash discounts, first
customer discounts, or reimburse distributors for certain expenses, mainly associated with warranty, transportation costs, and inventory
interest costs incurred by the distributor for limited periods of time, generally up to eighteen months.

Repurchase
policy. LPC Operational Management regular conducts evaluation of unsold equipment in Distributors possession and determines what particular
units cannot be sold anymore because of the moral aging. However, after the manufacturing upgrade it can be added back to the finished
goods inventory and sold as a current model. Repurchase records can be viewed in the Repurchase History Records folder.

Critical
Accounting Policies and Estimates

The
preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”)
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses

Our
financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles
applied on a consistent basis. The preparation of financial statements in conformity with U.S. generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
periods.

We
regularly evaluate the accounting policies and estimates that we use to prepare our financial statements. In general, management’s
estimates are based on historical experience, and on various other assumptions that are believed to be reasonable under the facts and
circumstances. Actual results could differ from those estimates made by management. These estimates are based on management’s historical
industry experience and not the company’s historical experience.

Revenue
Recognition

Under
Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the
consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements
that an entity determines are within the scope of Topic 606, the entity