| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE
2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use
of Estimates The
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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. Our significant estimates and assumptions include depreciation and the fair value of our stock, stock-based
compensation, debt discount and the valuation allowance relating to the Company’s deferred tax assets. Assets 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 cost, which approximates fair value. Company has $ 6,000,000 The terms on this CD if flexible, there is no fixed maturity day on CD, and funds can be withdrawn at any time without penalty. As
of December 31, 2023, and December 31, 2022, the Company had $ 6,201,137 12,181,799 5,951,137 250,000 11,931,799 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. As of December 31, 2023, and December 31, 2022, the Company’s
ledger had $ 816,364 421,362 18,397 216,083 For
the reporting periods of year ending December 31 2022 and for year ending December 31 2023 there were no customers whose Account Receivables
were greater than 10% of the total amount of AR. 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. 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 Equipment
parts inventory Work
in process inventory - Finished
goods inventory On
December 31, 2023, and December 31, 2022, respectively, the Company’s inventory consisted of the following: SCHEDULE
OF INVENTORY
Inventory Dec 31, 23 Dec 31, 22
Equipment Parts Inventory $ 862,941 $ 759,930
Finished Goods Inventory 992,744 254,656
Sales Demo Inventory 162,958 0
Work in process Inventory 243,029 31,434
Inventory Reserve $ (24,216 ) $
Total Inventory $ 2,237,456 $ 1,046,020 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, 2023, the Company recorded $ 24,216 101,698 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
Machinery and equipment 5 7
Intangible Assets 15 SCHEDULE OF FIXED ASSETS
Fixed Assets 2023 2022
31-Dec
Fixed Assets 2023 2022
Accumulated Depreciation $ (729,956 ) $ (483,800 )
Machinery & Equipment 796,783 797,695
Office Furniture & Computer Equipment 77,487 80,909
Vehicles 90,959 9,989
R&D Equipment 37,973 37,973
Leasehold improvements 31,775 -
Demonstration equipment $ 647,790 $ 647,790
Property, Plant and Equipment, Gross $ 647,790 $ 647,790
Total Fixed Assets $ 952,811 $ 1,090,556 As
of December 31, 2023, the Company recorded $ 952,811 1,090,556 267,381 204,733 15 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. As
of December 31, 2023, and December 31, 2022, the Company had $ 4,279,986 2,939,041 233,099 255,999 SCHEDULE
OF INTANGIBLE ASSETS
Intangible Assets 2023 2022
December 31st
Intangible Assets 2023 2022
Accumulated Amortization $ (725,228 ) $ (469,229 )
Customer Relationships 211,000 211,000
Equipment Design Documentation 2,675,000 2,675,000
Operational Software & Website 339,539 305,470
Trademarks 216,800 216,800
License & Patents $ 1,562,875 $ -
Intangible Assets, Gross $ 1,562,875 $ -
Total Intangible Assets $ 4,279,986 $ 2,939,041 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 writes
down the asset to its fair value based on the present value of estimated future cash flows. Sales
Tax Liability Sales
tax liability is created when the Company sells equipment and services to another entity located in the State of Florida. Currently the
sales tax rate in the Company’s County of business is 6.5 106 0 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 December 31, 2023, and December 31, 2022, our accounts payable were recorded at $ 223,040 190,387 Deferred
Revenue Deferred
Revenue is primarily comprised of products that have been made available to key distributors that has not been sold. As of December 31,
2023 the Company had $ 213,114 zero As
of December 31, 2023, there were no 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 writes
down the asset to its fair value based on the present value of estimated future cash flows. Earnings/(Loss)
per Share Basic
earnings/(loss) per share is calculated by dividing the earnings/(loss) attributable to stockholders by the weighted-average number of
shares outstanding for the period. Diluted earnings/(loss) per share reflects the potential dilution that could occur if securities or
other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that
shared in the earnings/(loss) of the Company. Diluted earnings/(loss) per share is computed by dividing the earnings/(loss) available
to stockholders by the weighted average number of shares outstanding for the period and dilutive potential shares outstanding unless
such dilutive potential shares would result in anti-dilution. There were 180,000 25,000 On
December 31, 2023, the Company recorded a $ 0.37 0.37 Relationship
with distributors All
orders received on a revolving basis in accordance with LPC standard Terms and Conditions of Sale. Orders are not cancelable. Orders
typically consist of multiple units. Payment terms ate typically Net 120 days from transferring the ownership of equipment to Distributor.
Revenue recognized on a “piece by piece” equipment bases after appropriate transfer equipment ownership to Distributor. Payments
are made by Distributor to The Company when Distributor collects funds from their regional customers, or then they have funds availability
to reduce the outstanding balance. The company allocates payments in accordance with LPC Accounting practices. Detailed aging is accounted
in MRP system – DBA Manufacturing keeping records of all equipment units ever manufactured with coordinating serial numbers. Higher
level account related data with payment history is recorded in the Company’s Quick Books Accounting software. Distributor
Discounts Distributors
and representatives earn various rebates and discounts based on purchase volume commitments and the achievement of certain performance
KPIs. The company estimates the number of discounts based on historical volumes, geographical market, end customer buying potential,
and the ordered equipment amount. The company also utilizes various programs to offer volume cash discounts, first customer discounts,
or reimburse distributors for certain expenses, mainly associated with warranty, transportation costs, and inventory interest costs incurred
by the distributor for limited periods of time, generally up to eighteen months. Revenue
Recognition Policy 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 on a free on-board origin (FOB Origin) basis. This means that revenue
is recognized when our products have been manufactured, crated, and placed in the 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
the year ending December 31 2022 there two customers 2 customers totaling 12 no 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. 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 balance sheet. All
revenues are reported in net of any sales discounts or taxes. For
the year ending December 31 2022 there was one customer – Perimmo, whos revenue was more than 10% ($ 388,045 no Other
Distributor related Revenue Recognition Matters 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 item is sold to end customer at which time the company recognizes revenue. Fair
Value of Financial Instruments The
Company applies the accounting guidance under Financial Accounting Standards Board (“FASB”) ASC 820-10, “Fair Value
Measurements”, as well as certain related FASB staff positions. This guidance defines fair value as the price that would be received
from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers
the principal or most advantageous market in which it would transact business and considers assumptions that marketplace participants
would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. The
guidance also establishes a fair value hierarchy for measurements of fair value as follows:
☐ Level 1 - quoted market prices in active markets for identical
assets or liabilities.
☐ Level 2 - inputs other than Level 1 that are observable, either
directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or
similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable
market data for substantially the full term of the assets or liabilities.
☐ Level 3 - unobservable inputs that are supported by little or
no market activity and that are significant to the fair value of the assets or liabilities. The
carrying amount of the Company’s financial instruments approximates their fair value as of December 31, 2022 and 2023, due to the
short-term nature of these instruments. Income
Taxes Under
ASC 740, “Income Taxes,” deferred tax assets and liabilities are recognized for the future tax consequences attributable
to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax
bases. Provisions
for income taxes are based on taxes payable or refundable for the current year and deferred income taxes. Deferred income taxes are provided
on differences between the tax bases of assets and liabilities and their reported amounts in the financial statements and on tax carry
forwards. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable
to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates
are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. A valuation allowance is provided
against deferred income tax assets when it is not more likely than not that the deferred income tax assets will be realized. Deferred
tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. Valuation allowances are established when it is more likely than not that some or
all of the deferred tax assets will not be realized. As of December 31, 2023 there were no deferred taxes due to the uncertainty of the
realization of net operating loss or carry forward prior to expiration. The
provision for income taxes is calculated at a US corporate tax rate of approximately 21 21 SCHEDULE OF INCOME TAXES
2023 2022
$ $
Expected income tax (expense) recovery from net (income) loss 790,846 439,754
Tax effect of expenses not deductible for income tax:
Annual effect of book/tax differences 3,765,932 2,094,064
Change in the valuation allowance (4,586,841 ) (2,533,818 ) Recently
Issued Accounting Pronouncements From
time to time, new accounting pronouncements are issued by FASB or other standard setting bodies that are adopted by the Company as of
the specified effective date. ASU
2016-13 Current Expected Credit Loss (ASC326) In
December 2021, the FASB issued an update to ASU No. 2016-13 the Current Expected Credit Losses (CECL) standard (ASC 326), which is designed
to provide greater transparency and understanding of credit risk by incorporating estimated, forward-looking data when measuring lifetime
Estimated Credit Losses (ECL) and requires enhanced financial statement disclosures. This guidance was adopted on January 1, 2023, As
s a result Allowance and amount recorded for the year 2022 and 2023 is $ 18,397 216,083 The
Company evaluates all Accounting Standard Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”)
for consideration of their applicability. ASUs not included in our disclosures were assessed and determined to be either not applicable
or are not expected to have a material impact on our financial statements. |
