Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 757

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 3
Chunk 757
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 Sales Demo Inventory 
     -  
     162,958 
  
    Work in process Inventory 
     295,950  
     243,029 
  
    Inventory Reserve 
     (776,638) 
     (24,216)
  
    Total Inventory 
    $2,338,759  
    $2,237,456 

Inventory
is stated at the lower of cost (first-in, first-out method) or market value. Inventory includes parts and components that may be specialized
in nature and subject to rapid obsolescence. Company maintains a reserve for excess or obsolete inventory items. Inventories are written
off and charged to the cost of goods sold when identified as excess or obsolete. If future sales differ from these forecasts, the valuation
of excess and obsolete inventory may change, and additional inventory provisions may be required. Because of our vertical integration,
a significant or sudden decrease in sales could result in a significant change in the estimates of excess or obsolete inventory valuation.

On
December 31, 2024, the Company recorded $776,638 in inventory obsolescence reserve in comparison to a markdown of $24,216 in the prior
year. $507,931 of demonstration inventory was reclassified to fixed assets during the year ending December 31. 2024.

Fixed
Assets- Plant Machinery and Equipment

Property
and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance,
and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated
depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective
period.

Machinery
and Equipment

Depreciation
is provided over the estimated useful lives of the related assets using the straight-line method for financial statement purposes. The
Company will use other depreciation methods (generally accelerated) for tax purposes where appropriate. The estimated useful lives for
significant property and equipment categories are as follows:

SCHEDULE OF ESTIMATED USEFUL LIVES FOR SIGNIFICANT PROPERTY AND EQUIPMENT

    Category 
    Economic Useful Life
  
    Office furniture and fixtures 
    3-5 years
  
    Machinery and equipment 
    5-7 years
  
    Leasehold Improvements 
    1-10 years
  
    Intangible Assets 
    6-15 years

    F-9

SCHEDULE OF FIXED ASSETS