Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 240

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1
Chunk 240
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 performs the following five steps: (i) identify the contract(s)
with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the
transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance
obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration
it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined
to be within the scope of Topic 606, we assess the goods or services promised within each contract and determine those that are performance
obligations and assess whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction
price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

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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