Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 197

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1
Chunk 197
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 are highly regulated and may expose us to increased compliance risk. Violations of one or more of these diverse
legal requirements in the conduct of our business could result in significant fines and other damages, criminal sanctions against us
or our officers, prohibitions on doing business and damage to our reputation. Violations of these regulations or contractual obligations
related to regulatory compliance in connection with the performance of customer contracts could also result in liability for significant
monetary damages, fines and/or criminal prosecution, unfavorable publicity and other reputational damage, restrictions on our ability
to compete for certain work and allegations by our customers that we have not performed our contractual obligations.

As
a manufacturer of laser cleaning equipment and laser processing systems our future success depends on our ability to effectively balance
manufacturing production with market demand and reducing our manufacturing cost per watt.

Our
ability to generate the profits we expect to achieve will depend, in part, on our ability to respond to market demand and add new manufacturing
capacity in a cost-effective manner. In addition, we must continue to increase the efficiency of our manufacturing process to compete
successfully and generate the returns to our stockholders, attract growth capital and a qualify for and maintain a listing on an exchange.
Our failure to do so could threaten our long-term viability.

We
expect to increase our business with the U.S. Government, and changes in government defense spending could have adverse consequences
on our financial position, results of operations and business.

In
2024, less than 18% of our U.S. revenues were derived from sales and services provided directly or indirectly to the U.S. Government.
However, we anticipate increasing that figure to 25% over the next 12 to 24 months as we expand our engagement with federal agencies.

Our
work with the U.S. Army, Navy, and Air Force has been primarily defense-related, and we expect future revenues to stem from contracts
awarded under a variety of U.S. Government programs, particularly within the Department of Defense (DoD) and other federal departments
and agencies.

Under
the current administration, there is a strong focus on modernizing defense capabilities while reducing redundant spending through organizational
consolidation, cost-cutting measures, and more efficient procurement processes. The DoD is increasingly prioritizing maintenance, repair,
and overhaul (MRO) over new equipment purchases—creating a growing opportunity for companies like ours that provide cost-effective,
high-performance solutions for extending the life of existing assets.

Funding
for our programs remains subject to the U