Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 201

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1
Chunk 201
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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 inherently have more risk than cost reimbursable contracts. If we are unable to control costs or if our initial cost estimates
are incorrect, we can lose money on these contracts. In addition, some of these fixed price contracts will likely have provisions relating
to cost controls and audit rights, and if we fail to meet the terms specified in those contracts, we may not realize their full benefits.
Lower earnings caused by cost overruns and cost controls would have a negative impact on our results of operations should we receive
awards of such contracts. The U.S. Government has the right to enter into contracts with other suppliers, which may be competitive with
our IDIQ contracts. We anticipate that it may also perform fixed priced contracts under which we agree to provide specific quantities
of products and services over time for a fixed price. Since the price competition to win both IDIQ and fixed price contracts is intense
and the costs of future contract performance cannot be predicted with certainty, there can be no assurance as to the profits, if any,
that we will realize over the term of such contracts.

Misconduct
of employees, subcontractors, agents and business partners could cause us to lose existing contracts or customers and adversely affect
our ability to obtain new contracts and customers and could have a significant adverse impact on our business and reputation.

Misconduct
could include fraud or other improper activities such as falsifying time or other records and violations of laws, including the Anti