Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 274

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1
Chunk 274
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 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 certain contracts. Contract liabilities decrease
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: