Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 199

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1
Chunk 199
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 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 convenience
or otherwise, irrespective of our performance as a subcontractor.

Our
failure to comply with a variety of complex procurement rules and regulations could result in our being liable for penalties, including
termination of our current and anticipated U.S. Government contracts, disqualification from bidding on future U.S. Government contracts
and suspension or debarment from U.S. Government contracting that could adversely affect our financial condition.

We
must comply with laws and regulations relating to the formation, administration and performance of our one existing and anticipated future
U.S. Government contracts, which affect how we do business with our customers and may impose added costs on our business. U.S. Government
contracts generally are subject to the Federal Acquisition Regulation (FAR), which sets forth policies, procedures and requirements for
the acquisition of goods and services by the U.S. Government, department-specific regulations that implement or supplement DFAR, such
as the DOD’s Defense Federal Acquisition Regulation Supplement (DFARS) and other applicable laws and regulations. We are also subject
to the Truth in Negotiations Act, which requires certification and disclosure of cost and pricing data in connection with certain contract
negotiations; the Procurement Integrity Act, which regulates access to competitor bid and proposal information and government source
selection information, and our ability to provide compensation to certain former government officials; the Civil False Claims Act, which
provides for substantial civil penalties for violations, including for submission