| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES & USE OF ESTIMATES | NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
& USE OF ESTIMATES Our
significant accounting policies are provided in “Note 2 – Summary of Significant Accounting Policies” in our Financial
Statements 2023 Form 10-K. There have been no material changes to our significant accounting policies from those disclosed in our 2023
Form 10-K for the fiscal year ended December 31, 2023 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
preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent liabilities at dates of the financial statements and the reported
amounts of revenue and expenses during the periods. Actual results could differ from these estimates. In the opinion of management, our
financial statements reflect all adjustments considered necessary by management to fairly state the results of operations, financial
position and cash flows of the Company for the periods presented. Revenue
Recognition Under
Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the
consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements
that an entity determines are within the scope of Topic 606, the entity 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. 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 upon shipment or pickup by the customer. 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 obligation to deliver beyond the collection warehouse, and
it is the customers’ contractual responsibility to ensure their goods reach their destination. 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. Cash
and Cash Equivalents Cash
and cash equivalents consist of highly liquid investments with an original maturity of three months or less at the date of purchase.
Cash and cash equivalents are carried at a cost, which approximates fair value. The company has 5,039,472
in flexible CD account with Bank of America.
The terms on this CD if flexible, having a term of 9
months that automatically renews, Full balance and interest can be withdrawn prior to maturity. A penalty of 7 days interest will be
imposed for early withdrawals within the first 6 days of the account term. Accounts
Receivable Trade
accounts receivable are recorded net of allowance for expected uncollectible accounts. The Company extends credit to its customers in
the normal course of business and performs on-going credit evaluations of its customers. All accounts, or portions thereof, that are
deemed uncollectible are written off to bad debt expense, as incurred. In addition, most sales orders are not accepted without a substantial
deposit. As of March 31, 2024, the balance of collectible accounts was 443,309 .
Allowance and amount recognized as bad debt ask of March 31, 2024 is 183,380 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 March 31, 2024, and December 31, 2023, our accounts payable were recorded at 306,302 223,040 Deferred
Revenue Deferred
Revenue is primarily comprised of products that have been made available to key distributors that has not been sold. As of March 31,
2024 the Company had 772,686 701,234 As
of March 31, 2024, there were no loan balances owed by the Company. Inventory Inventories
are stated at a lower of cost or net realizable value using the first-in first-out (FIFO) method. The Company has four principal categories
of inventory: Sales
demonstration inventory Equipment
parts inventory Work
in process inventory - Finished
goods inventory At
March 31, 2024 and December 31, 2023, respectively, our inventory consisted of the following: SCHEDULE
OF INVENTORY
As of March 31, 2024 As of December 31, 2023
Inventory Unaudited (Audited)
Equipment Parts
Inventory $ 947,647 $ 862,941
Finished Goods Inventory 882,353 1,033,104
Sales Demo Inventory 210,030 162,958
Work in process Inventory 151,186 243,029
Inventory Reserve -24,216 -24,216
Total Inventory $ 2,167,000 $ 2,277,816 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 uses 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
Machinery and equipment 5 7
Intangible Assets 7 15 SCHEDULE OF FIXED ASSETS
Fixed Assets 2024 2023
Fixed Assets As of As of
Accumulated Depreciation $ (830,883 ) $ (729,956 )
Machinery & Equipment 799,652 796,783
Office Furniture & Computer Equipment 81,225 77,487
Vehicles 90,959 90,959
R&D Equipment 42,068 37,973
Leasehold improvements 182,827 31,775
Demonstration equipment 647,790 647,790
Property, Plant and Equipment, Gross $ 647,790 $ 647,790
Total Fixed Assets $ 1,013,638 $ 952,811 Intangible
Assets Intangible
assets consist primarily of capitalized equipment design documentation, software costs for equipment manufactured for sale, research,
and development, as well as certain patent, trademark and license costs. Capitalized software and equipment design documentation development
costs are recorded in accordance with Accounting Standard Codification (“ASC”) 985 “Software” with costs amortized
using the straight-line method over a ten-year period. Patent, trademark and license costs are amortized using the straight-line method
over their estimated useful lives of 15 The
Company’s intangible assets are deemed to have indefinite lives and, accordingly, are not amortized, but are evaluated for impairment
at least annually, but more often whenever changes in facts and circumstances occur which may indicate that the carrying value may not
be recoverable. The
Company employs various core technologies across many different product families and applications in an effort to maximize the impact
of our research and development costs and increase economies of scale and to leverage its technology-specific expertise across multiple
product platforms. The technologies inherent in its laser equipment products include application documentation, proprietary and custom
software developed for operation of its equipment, specific knowledge of supply chain and, mostly important, equipment design documentation,
consisting of 3D engineering drawings, bills of materials, wiring diagrams, parts AutoCad drawings, software architecture documentation,
etc. Intangible assets were received from a related party, ICT Investments, and therefore transferred and booked by Laser Photonics Corp.
at their historical cost. SCHEDULE
OF INTANGIBLE ASSETS
Intangible Assets 2024 2023
Intangible Assets As of March 31, 2024 (Unaudited) As of December 31, 2023 (Audited)
Accumulated
Amortization $ (809,617 ) $ (725,228 )
Customer Relationships 211,000 211,000
Equipment Design Documentation 2,675,000 2,675,000
Operational Software &
Website 339,539 339,539
Trademarks 216,800 216,800
License & Patents 1,562,875 1,562,876
Intangible Assets, Gross $ 1,562,875 $ 1,562,876
Total Intangible Assets $ 4,195,597 $ 4,279,987 Long-Lived
Assets Long-lived
assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable.
Impairment is measured by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected
to result from use of the assets and their ultimate disposition. In instances where impairment is determined to exist, the Company will
write down the asset to its fair value based on the present value of estimated future cash flows. Net
Earnings/Loss per Share Basic
Earnings/Loss Earnings/Loss Earnings/Loss Earnings/Loss Earnings/Loss |
