Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 327

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1A
Chunk 327
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 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, multiple
award contracts and small business set-aside contracts, could have adverse effects on government contractors, including us. Any of these
changes could impair our ability to obtain new contracts or renew our existing contracts when those contracts are recompeted. Any new
contracting requirements or procurement methods could be costly or administratively difficult for us to implement and could adversely
affect our future revenues, profitability and prospects.

We
may incur cost overruns because of fixed priced government contracts which would have a negative impact on our operations.

As
we pursue additional U.S. Government contracts in addition to the one U.S. Government contract we now have for the U.S. Army, we expect
to have to perform under fixed price contracts such as multi-award, multi-year IDIQ task order based contracts, which generally provide
for fixed price schedules for products and services, have no pre-set delivery schedules, have very low minimum purchase requirements,
are typically competed among multiple awardees and could force us to carry the burden of any cost overruns. Due to their nature, fixed-priced
contracts