Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 322

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1A
Chunk 322
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Insurance
and contractual protections may not always cover lost revenue, increased expenses, or liquidated damages payments, which could adversely
affect our financial results.

Although
we maintain insurance and intend to obtain warranties from suppliers, obligate subcontractors to meet certain performance levels and
attempt, where feasible, to pass risks we cannot control to our customers, the proceeds of such insurance, warranties, performance guarantees
or risk sharing arrangements may not be adequate to cover lost revenue, increased expenses or liquidated damages payments that may be
required in the future.

Internal
system or service failures could disrupt our business and impair our ability to effectively provide our services and products to our
customers, which could damage our reputation and adversely affect our revenues and profitability.

Any
system or service disruptions, including those caused by ongoing projects to improve our information technology systems and the delivery
of services, if not anticipated and appropriately mitigated, could have a material adverse effect on our business including, among other
things, an adverse effect on our ability to bill our customers for work performed on our contracts, collect the amounts that have been
billed and produce accurate financial statements in a timely manner. We are also subject to system failures, including network, software,
or hardware failures, whether caused by us, third-party service providers, cyber security threats, natural disasters, power shortages,
terrorist attacks or other events, which could cause loss of data and interruptions or delays in our business, cause us to incur remediation
costs, subject us to claims and damage our reputation. In addition, the failure or disruption of our communications or utilities could
cause us to interrupt or suspend our operations or otherwise adversely affect our business. Our property and business interruption insurance
may be inadequate to compensate us for all losses that may occur because of any system or operational failure or disruption and, as a
result, our future results could be adversely affected.

Our
financial performance could be adversely affected by decreases in spending on technology products and services by our public sector customers.

Our
sales to our public sector customers are impacted by government spending policies, budget priorities and revenue levels. An adverse change
in government spending policies (including budget cuts at the federal level), budget priorities or revenue levels could cause our public
sector customers to reduce their purchases or to terminate or not renew their contracts with us, which could adversely affect our business,
results of operations or cash flows.

18

Our
business could be adversely affected by the loss of certain vendor partner relationships and the availability of their products.

We