Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 426

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1A
Chunk 426
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 will be calculated on the basis of percentage of corporate goals achieved. The performance goals established by
our compensation committee are based on our business strategy and the objective of building stockholder value. We expect that there will
be three steps to determine if and the extent to which an annual cash bonus is payable to a named executive officer. First, at the beginning
of the year, our compensation committee will determine the target annual cash incentive award for the named executive officer based on
a percentage of the officer’s annual base salary for that year. Second, the compensation committee will establish the specific
performance goals, including both corporate and individual objectives, that must be met for the officer to receive the award. Third,
shortly after the end of the year, the compensation committee will determine the extent to which these performance goals were met and
the amount of the award. Our compensation committee works with our chief executive officer to develop corporate and individual goals
that they believe can be reasonably achieved with hard work over the course of the year and will target total cash compensation, consisting
of base salaries and target annual cash bonuses.

Stock-Based
Awards

Our
equity award program is the primary vehicle for offering long-term incentives to our executives. While we do not have any equity ownership
guidelines for our executives, we believe that equity grants provide our executives with a strong link to our long-term performance,
create an ownership culture and help to align the interests of our executives and our stockholders. In addition, the vesting feature
of our equity awards contributes to executive retention by providing an incentive for our executives to remain in our employment during the
vesting period. Currently, our executives are eligible to participate in our 2019 Stock Incentive Plan, which we refer to as the 2019
Plan. Following the consummation of this offering, our employees and executives will be eligible to receive stock-based awards pursuant
to our 2019 Plan. Under our 2019 Plan, executives will be eligible to receive grants of stock options, restricted stock awards, restricted
stock unit awards, stock appreciation rights and other stock-based equity awards at the discretion of our Board of Directors.

59

Our
employee equity awards have typically been in the form of stock options. Because our executives profit from stock options only if our
stock price increases relative to the stock option’s exercise price, we believe stock options provide meaningful incentives for
our executives to achieve increases in the value of our stock over time. While we currently expect to continue to use