Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 266

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1
Chunk 266
---
, 2024, and December 31, 2023, the Company’s
ledger had $973,605 and $816,364, respectively as a balance for collectible accounts. Allowance and amount recognized as bad debt
for 2024 is $285,486, for 2023 is $216,083.

For
the reporting periods of the year ending December 31, 2023, and for the year ending December 31, 2024, there were no customers whose Account Receivables
were greater than 10% of the total amount of A/R.

Advertising
Expenses

Marketing,
advertising and promotion expenditures are expensed in the annual period in which the expenditure is incurred.

Research
& Development Expenses

Research
& Development expenditures are expensed in the annual period in which the expenditure is incurred.

    F-7

Stock
Based Compensation

The
Company accounts for stock-based payments in accordance with the provision of ASC 718, which requires that all share-based payments issued
to acquire goods or services, including grants of employee stock options, be recognized in the statement of operations based on their
fair values, net of estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary,
in subsequent periods if actual forfeitures differ from those estimates. Compensation expense related to share-based awards is recognized
over the requisite service period, which is generally the vesting period.

The
Company accounts for stock-based compensation awards issued to non-employees for services, as prescribed by ASC 718-10, at either the
fair value of the services rendered or the instruments issued in exchange for such services, whichever is more readily determinable.
The Company issues compensatory shares for services including, but not limited to, executive, management, accounting, operations, corporate
communication, financial and administrative consulting services.

Lease
Accounting

The
Company leases office space and the production facility under operating lease agreements. The lease term begins on the date of initial
possession of the leased property for purposes of recognizing lease expense on a straight-line basis over the term of the lease. Lease
renewal periods are considered on a lease-by-lease basis and are generally not included in the initial lease term.

Inventory

Inventories
are stated at a lower cost or net realizable value using the first-in first-out (FIFO) method. The Company has four principal categories
of inventory:

Sales
demonstration inventory-S