Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 328

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1A
Chunk 328
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 inherently have more risk than cost reimbursable contracts. If we are unable to control costs or if our initial cost estimates
are incorrect, we can lose money on these contracts. In addition, some of these fixed price contracts will likely have provisions relating
to cost controls and audit rights, and if we fail to meet the terms specified in those contracts, we may not realize their full benefits.
Lower earnings caused by cost overruns and cost controls would have a negative impact on our results of operations should we receive
awards of such contracts. The U.S. Government has the right to enter into contracts with other suppliers, which may be competitive with
our IDIQ contracts. We anticipate that it may also perform fixed priced contracts under which we agree to provide specific quantities
of products and services over time for a fixed price. Since the price competition to win both IDIQ and fixed price contracts is intense
and the costs of future contract performance cannot be predicted with certainty, there can be no assurance as to the profits, if any,
that we will realize over the term of such contracts.

Misconduct
of employees, subcontractors, agents and business partners could cause us to lose existing contracts or customers and adversely affect
our ability to obtain new contracts and customers and could have a significant adverse impact on our business and reputation.

Misconduct
could include fraud or other improper activities such as falsifying time or other records and violations of laws, including the Anti-Kickback
Act. Other examples could include the failure to comply with our policies and procedures or with federal, state or local government procurement
regulations, regulations regarding the use and safeguarding of classified or other protected information, legislation regarding the pricing
of labor and other costs in government contracts, laws and regulations relating to environmental, health or safety matters, bribery of
foreign government officials, import-export control, lobbying or similar activities, and any other applicable laws or regulations. Any
data loss or information security lapses resulting in the compromise of personal information or the improper use or disclosure of sensitive
or classified information could result in claims, remediation costs, regulatory sanctions against us, loss of current and future contracts
and serious harm to our reputation. Although we have implemented policies, procedures and controls to prevent and detect these activities,
these precautions may not prevent all misconduct, and as a result, we could face unknown risks or losses. Our failure to comply with
applicable laws or regulations or misconduct by any of our employees, subcontractors, agents or business partners could damage our reputation