Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 200

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1
Chunk 200
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 of a false or fraudulent claim to the U.S. Government
for payment or approval; the Civil False Claims Act, which provides for substantial civil penalties for violations, including for submission
of a false or fraudulent claim to the U.S. Government for payment or approval; and the U.S. Government Cost Accounting Standards, which
impose accounting requirements that govern our right to reimbursement under certain cost- based U.S. Government contracts. These regulations
impose a broad range of requirements, many of which are unique to government contracting, including various procurement, import and export,
security, contract pricing and cost, contract termination and adjustment, and audit requirements. A contractor’s failure to comply
with these regulations and requirements could result in reductions to the value of contracts, contract modifications or termination,
and the assessment of penalties and fines and lead to suspension or debarment, for cause, from government contracting or subcontracting
for a period. In addition, government contractors are also subject to routine audits and investigations by U.S. Government agencies such
as the Defense Contract Audit Agency (DCAA) and Defense Contract Management Agency (DCMA). These agencies review a contractor’s
performance under its contracts, cost structure and compliance with applicable laws, regulations and standards. The DCAA also reviews
the adequacy of and a contractor’s compliance with its internal control systems and policies, including the contractor’s
purchasing, property, estimating, compensation and management information systems. During the term of any suspension or debarment by
any U.S. Government agency, contractors can be prohibited from competing for or being awarded contracts by U.S. Government agencies.
The termination of any of our significant Government contracts or the imposition of fines, damages, suspensions or debarment would adversely
affect our business and financial condition.

20

The
U.S. Government may adopt new contract rules and regulations or revise its procurement practices in a manner adverse to us at any time.

Our
industry has experienced, and we expect it will continue to experience, significant changes to business practices because of an increased
focus on affordability, efficiencies, and recovery of costs, among other items. U.S. Government agencies may face restrictions or pressure
regarding the type and number of services that they may obtain from private contractors. Legislation, regulations and initiatives dealing
with procurement reform, mitigation of potential conflicts of interest and environmental responsibility or sustainability, as well as
any resulting shifts in the buying practices of U.S. Government agencies, such as increased usage of fixed price contracts,