Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 518

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1B
Chunk 518
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. 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 stock options as
the primary form of equity awards that we grant, we may in the future use alternative forms of equity awards, such as restricted stock
and restricted stock units. To date, we have generally used equity awards to compensate our executive officers in the form of initial
grants in connection with the commencement of employment. In the future, we also generally plan to grant equity awards on an annual basis
to our executive officers. We may also make additional discretionary grants, typically in connection with the promotion of an employee,
to reward an employee, for retention purposes or in other circumstances recommended by management.

We
normally grant stock awards that will vest 25% of the shares on the first anniversary of the grant date and with respect to the remaining
shares in approximately equal quarterly installments through the fourth anniversary of the grant date. Vesting cease upon