Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 324

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1A
Chunk 324
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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.S. Government’s annual budget and appropriation process, which is influenced by a wide
range of factors, including geopolitical developments, macroeconomic conditions, and the strategic priorities of the administration and
Congress. While overall defense spending has risen in recent years to address emerging global threats and modernization needs, future
budget levels will continue to reflect a complex balance of domestic and international priorities, as well as the broader fiscal health
of the U.S. economy.

19

The
Budget Control Act (BCA) of 2011, along with subsequent budget agreements, imposed discretionary spending caps on both defense and non-defense
programs from FY2012 through FY2021, ushering in a decade of relative fiscal austerity. These caps operated under a “principle
of parity,” requiring proportional cuts across both categories. With the expiration of the BCA, federal budgeting has entered a
new phase, where non-defense discretionary (NDD) spending has more flexibility to grow without necessarily triggering equal increases
in defense funding.

Under
the current administration, there is heightened emphasis on domestic investment, including