Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 325

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1A
Chunk 325
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 infrastructure, advanced manufacturing, and
clean energy, which may shift federal funding priorities away from certain defense initiatives. In parallel, ongoing debates over the
national debt, deficit reduction, and federal spending limits—including discussions surrounding the debt ceiling—create continued
uncertainty in the budgeting process.

As
a result, while we remain optimistic about opportunities in defense-related MRO and modernization programs, we acknowledge that budgetary
constraints and shifting fiscal priorities could result in the reduction, delay, or cancellation of funding for some contracts—particularly
those with unobligated balances. Such developments could adversely affect our operations, financial performance, and growth outlook.

Significant
reduction in defense spending could have long-term consequences for our size and structure. In addition, reduction in government priorities
and requirements could impact the funding, or the timing of funding, of our programs, which could negatively impact our results of operations
and financial condition. In addition, we are involved in U.S. Government programs, which are classified by the U.S. Government and our
ability to discuss these programs, including any risks and disputes and claims associated with and our performance under such programs,
could be limited due to applicable security restrictions.

Our
financial performance is dependent on our ability to perform on our current and future expected U.S. Government contracts, which are
subject to termination for convenience, which could harm our financial performance.

We
believe that our financial performance will be dependent on our performance under our existing U.S. Government contracts and contracts
we may enter into with the U.S. Government in the future. Government customers have the right to cancel any contract for its convenience.
An unanticipated termination of, or reduced purchases under, one of our major contracts whether due to lack of funding, for convenience
or otherwise, or the occurrence of delays, cost overruns and product failures could adversely impact our results of operations and financial
condition. If one of our U.S. Government contracts were terminated for convenience, we would generally be entitled to payments for our
allowable costs and would receive some allowance for profit on the work performed. If one of our contracts were terminated for default,
we would generally be entitled to payments for our work that has been accepted by the government. A termination arising out of our default
could expose us to liability and have a negative impact on our ability to obtain future contracts and orders. Furthermore, on contracts
for which we are a subcontractor and not the prime contractor, the U.S. Government could terminate the prime contract for