Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 347

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1A
Chunk 347
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 increase our sales, general
and administrative expenses.

31

Public
company compliance may make it more difficult to attract and retain officers and directors.

The
Sarbanes-Oxley Act and rules implemented by the SEC have required changes in corporate governance practices of public companies. As a
public company, these rules and regulations increase our compliance costs and make certain activities more time-consuming and costly.
As a public company, these rules and regulations may make it more difficult and expensive for us to maintain our director and officer
liability insurance and we may be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain
the same or similar coverage. As a result, it may be more difficult for us to attract and retain qualified persons to serve on our Board
of Directors or as executive officers, and to maintain insurance at reasonable rates, or at all.

If
we fail to establish and maintain an effective system of internal controls, we may not be able to report our financial results accurately
or prevent fraud. Any inability to report and file our financial results accurately and timely could harm our reputation and adversely
impact the trading price of our common stock.

Effective
internal controls are necessary for us to provide reliable financial reports and prevent fraud. There exist material weaknesses in our
internal controls as of December 31, 2024. If we cannot provide reliable financial reports or prevent fraud, we may not be able to manage
our business as effectively as we would if an effective control environment existed, and our business and reputation with investors may
be harmed. With each prospective acquisition we may make we will conduct whatever due diligence is necessary or prudent to assure us
that the acquisition target can comply with the internal control requirements of the Sarbanes- Oxley Act. Notwithstanding our diligence,
certain internal control deficiencies may not be detected at acquired entities. As a result, any internal control deficiencies may adversely
affect our financial condition, results of operations, and access to capital.

A
material weakness is a deficiency, or a combination of deficiencies, in internal financial controls such that there is a reasonable possibility
that a material misstatement of our annual or interim financial statements will not be prevented or detected and corrected on a timely
basis. Effective internal controls are necessary for us to provide reliable financial reports and prevent fraud. We continue to evaluate
steps to remediate our material weaknesses. These remediation measures may be time-consuming and costly and there is no assurance that
these initiatives will ultimately have the intended effects.

Any
failure