Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 428

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1A
Chunk 428
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 the substantial business experience of the members of
our Board of Directors, we believe that our severance and change in control benefits are generally in line with severance packages offered
to executives by companies at comparable stages of development in our industry and related industries.

60

Risk
Considerations in Our Compensation Program

Our
Board of Directors determines with the Company’s management the philosophy and standards on which our compensation plans are implemented
across our Company. It is our belief that our compensation programs do not, and in the future will not, encourage inappropriate actions
or risk taking by our executive officers. We do not believe that any risks arising from our employee compensation policies and practices
are reasonably likely to have a material adverse effect on our company. In addition, we do not believe that the mix and design of the
components of our executive compensation program will encourage management to assume excessive risks. We believe that our current business
process and planning cycle fosters the behaviors and controls that would mitigate the potential for adverse risk caused by the action
of our executives. We believe that the following aspects of our executive compensation program that we plan to implement will mitigate
the potential for adverse risk caused by the action of our executives:

    ●
    annual establishment of
    corporate and individual objectives for our performance-based cash bonus programs for our executive officers, which we expect to
    be consistent with our annual operating and strategic plans, designed to achieve the proper risk/reward balance and not require excessive
    risk taking to achieve;

    ●
    the mix between fixed and
    variable, annual and long-term and cash and equity compensation, which we expect to be designed to encourage strategies and actions
    that balance our short-term and long-term best interests; and

    ●
    equity incentive awards
    that vest over a period of time, which we believe will encourage executives to take a long-term view of our business.

Tax
and Accounting Considerations

Section
162(m) of the Internal Revenue Code of 1986, as amended, or the Code, generally disallows a tax deduction for compensation in excess
of $1,000,000 per person paid to a publicly traded company’s chief executive officer and three other most highly paid officers,
other than the chief financial officer.

We
account for equity compensation paid to our employees in accordance with Financial Accounting Standards Board, or FASB, Accounting Standard
Codification Topic 718, Compensation-Stock Compensation, or ASC 718, which requires us to measure and recognize compensation expense