Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 187

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1
Chunk 187
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 how and when costs can be charged, and otherwise govern our right to reimbursement under certain U.S. Government contracts;

    ●
    require
    specific security controls to protect U.S. Government controlled unclassified information and restrict the use and dissemination
    of information classified for national security purposes and the export of certain products, services and technical data; and compliance
    with cyber security regulations by our supply chain; and

    ●
    require
    the review and approval of contractor business systems, defined in the regulations as: (i) Accounting System; (ii) Estimating System;
    (iii) Earned Value Management System, for managing cost and schedule performance on certain complex programs; (iv) Purchasing System;
    (v) Material Management and Accounting System, for planning, controlling and accounting for the acquisition, use, issuing and disposition
    of material; and (vi) Property Management System.

The
U.S. Government may terminate any of our government contracts and subcontracts either at its convenience or for default based on our
performance. If a contract is terminated for convenience, we generally are protected by provisions covering reimbursement for costs incurred
on the contract and profit on those costs. If a contract is terminated for default, we generally are entitled to payments for our work
that has been accepted by the U.S. Government or other governments; however, the U.S. Government could make claims to reduce the contract
value or recover its procurement costs and could assess other special penalties. For more information regarding the U.S. Government’s
right to terminate our contracts and government contracting laws and regulations, see “Risk Factors”.

12

Radiation
Control for Health and Safety Act

We
are subject to the laser radiation safety regulations of the Radiation Control for Health and Safety Act administered by the National
Center for Devices and Radiological Health, a branch of the United States Food and Drug Administration. Among other things, those regulations
require laser manufacturers to file new product and annual reports, to maintain quality control and sales records, to perform product
testing, to distribute appropriate operating manuals, to incorporate design and operating features in lasers sold to end-users and to
certify and label each laser sold to end-users as one of four classes (based on the level of radiation from the laser that is accessible
to users). Various warning labels must be affixed, and certain protective devices installed depending on the class of product. The National
Center for Devices and Radiological Health is empowered to seek fines and other remedies for violations