Company: LASE
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001641172-25-024367
Chunk: 10

Company: Laser Photonics Corp
Filing Date: 2025-08-15
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 for transportation expenses, insurance, and
any transport-related damage to the equipment in transit. We do not have any obligation to deliver beyond the collection warehouse, and
it is the customers’ contractual responsibility to ensure their goods reach their destination.

In
CMS for projects that are considered custom in nature and 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.

    8

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 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.

All
revenues are reported net of any sales discounts or taxes.

Other
Revenue Recognition Matters related to Distributors.

Distributors
generally have no right to return unsold equipment. However, in limited circumstances, if the Company determines that distributor stock
is morally aging beyond the Company’s new model releases, it may accept returns and provide the distributor with credit against
their trading account at the Company’s discretion under its warranty policy. This revenue is recognized on a consignment basis
and transfer of control is when an item is sold to end customer at which time the company recognizes revenue.

Current
Liabilities

Accounts
Payable

Accounts
payable consist of short-term liability to our vendors and sub-contractors, who extend credit terms to the Company or deliver goods or
services with delayed payment terms. As of June 30, 2025, and December 31, 2024, our accounts payable were recorded at $718,053 and
$531,268, respectively.

Deferred
Revenue

As
of June 30, 2025, the Company had $319,872 in Deferred Revenue, and as of December 31, 2024, the Company’s deferred revenue liabilities
were recorded at $55,383.

Loans
and Notes Payable

On
April 3, 2025, on April 16, 2025 and on June 20, the “Company received from