Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 203

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1
Chunk 203
---
 their
work with us, or if the U.S. Government terminates or reduces these other contractors’ programs, does not award them new contracts
or refuses to pay under a contract our financial and business condition may be adversely affected. Companies that do not have access
to U.S. Government contracts may perform services as our subcontractor and that exposure could enhance such companies’ prospect
of securing a future position as a prime U.S. Government contractor which could increase competition for future contracts and impair
our ability to perform on contracts.

We
may have disputes with our subcontractors arising from, among other things, the quality and timeliness of work performed by the subcontractor,
customer concerns about the subcontractor, our failure to extend existing task orders or issue new task orders under a subcontract, our
hiring of a subcontractor’s personnel or the subcontractor’s failure to comply with applicable law. Current uncertain economic
conditions heighten the risk of financial stress of our subcontractors, which could adversely impact their ability to meet their contractual
requirements to us. If any of our subcontractors fail to timely meet their contractual obligations or have regulatory compliance or other
problems, our ability to fulfill our obligations as a prime contractor or higher tier subcontractor may be jeopardized. Significant losses
could arise in future periods and subcontractor performance deficiencies could result in our termination for default. A termination for
default could eliminate a revenue source, expose us to liability and have an adverse effect on our ability to compete for future contracts
and task orders, especially if the customer is an agency of the U.S. Government.

21

Our
international business exposes us to geo-political and economic factors, regulatory requirements and other risks associated with doing
business in foreign countries.

We
intend to engage in additional foreign operations which pose complex management, foreign currency, legal, tax and economic risks, which
we may not adequately address. These risks differ from and potentially may be greater than those associated with our domestic business.

Our
international business is sensitive to changes in the priorities and budgets of international customers and geo-political uncertainties,
which may be driven by changes in threat environments and potentially volatile worldwide economic conditions, various regional and local
economic and political factors, risks and uncertainties, as well as U.S. foreign policy. Our international sales are subject to U.S.
laws, regulations and policies, including the International Traffic in Arms Regulations (ITAR) and the Foreign Corrupt Practices Act
(see below) and other export laws and regulations. Due to the nature