Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 330

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1A
Chunk 330
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 timely meet their contractual obligations or have regulatory compliance or other
problems, our ability to fulfill our obligations as a prime contractor or higher tier subcontractor may be jeopardized. Significant losses
could arise in future periods and subcontractor performance deficiencies could result in our termination for default. A termination for
default could eliminate a revenue source, expose us to liability and have an adverse effect on our ability to compete for future contracts
and task orders, especially if the customer is an agency of the U.S. Government.

21

Our
international business exposes us to geo-political and economic factors, regulatory requirements and other risks associated with doing
business in foreign countries.

We
intend to engage in additional foreign operations which pose complex management, foreign currency, legal, tax and economic risks, which
we may not adequately address. These risks differ from and potentially may be greater than those associated with our domestic business.

Our
international business is sensitive to changes in the priorities and budgets of international customers and geo-political uncertainties,
which may be driven by changes in threat environments and potentially volatile worldwide economic conditions, various regional and local
economic and political factors, risks and uncertainties, as well as U.S. foreign policy. Our international sales are subject to U.S.
laws, regulations and policies, including the International Traffic in Arms Regulations (ITAR) and the Foreign Corrupt Practices Act
(see below) and other export laws and regulations. Due to the nature of our products, we must first obtain licenses and authorizations
from various U.S. Government agencies before we are permitted to sell our products outside of the U.S. We can give no assurance that
we will continue to be successful in obtaining the necessary licenses or authorizations or that certain sales will not be prevented or
delayed. Any significant impairment of our ability to sell products outside of the U.S. could negatively impact our results of operations
and financial condition.

Our
international sales are also subject to local government laws, regulations and procurement policies and practices which may differ from
U.S. Government regulations, including regulations relating to import-export control, investments, exchange controls and repatriation
of earnings, as well as to varying currency, geo- political and economic risks. Our international contracts may include industrial cooperation
agreements requiring specific in-country purchases, manufacturing agreements or financial support obligations, known as offset obligations,
and provide for penalties if we fail to meet such requirements. Our international contracts may also be subject to termination at the
customer’s convenience or for default based on performance and