Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 672

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 2
Chunk 672
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) 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.

Revenue
is then recognized for 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 basis (FOB Origin) basis. This means
that revenue is recognized when our products have been manufactured, crated, and placed in the company’s collection warehouse
for customer pick-up in accordance with the Customer Quote and Company Terms and Conditions of Sale. Our manufacturing process is
controlled by a Manufacturing Resource Planning (MRP) software - DBA Manufacturing, and fulfilled and closed Job order triggering
the product readiness to be transferred to the customer. At that stage we fulfill all our obligations, as per our Terms and
Conditions of sale, inform Customer by email or phone that his product order is ready for the scheduled pickup, and transfer the
title on the manufactured equipment 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 obligation 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.

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