Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 329

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 1A
Chunk 329
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and subject us to fines and penalties, restitution or other damages, loss of security clearance, loss of current and future customer
contracts and suspension or debarment from contracting with federal, state or local government agencies, any of which would adversely
affect our business, reputation and our future results.

We
may fail to obtain and maintain necessary security clearances, which may adversely affect our ability to perform on certain anticipated
U.S. government contracts and depress our potential revenues.

Many
U.S. Government programs require contractors to have security clearances. Depending on the level of required clearance, security clearances
can be difficult and time-consuming to obtain. If we or our employees are unable to obtain or retain necessary security clearances, we
may not be able to win new business, and our existing clients could terminate their contracts with us or decide not to renew them. To
the extent we are not able to obtain and maintain facility security clearances or engage employees with the required security clearances
for a particular contract, we may not be able to bid on or win new contracts, or effectively rebid on expiring contracts, as well as
lose existing contracts, which may adversely affect our operating results and inhibit the execution of our growth strategy.

Our
future revenues and growth prospects could be adversely affected by our dependence on other contractors.

If
other contractors with whom we have contractual relationships either as a prime contractor or subcontractor eliminate or reduce their
work with us, or if the U.S. Government terminates or reduces these other contractors’ programs, does not award them new contracts
or refuses to pay under a contract our financial and business condition may be adversely affected. Companies that do not have access
to U.S. Government contracts may perform services as our subcontractor and that exposure could enhance such companies’ prospect
of securing a future position as a prime U.S. Government contractor which could increase competition for future contracts and impair
our ability to perform on contracts.

We
may have disputes with our subcontractors arising from, among other things, the quality and timeliness of work performed by the subcontractor,
customer concerns about the subcontractor, our failure to extend existing task orders or issue new task orders under a subcontract, our
hiring of a subcontractor’s personnel or the subcontractor’s failure to comply with applicable law. Current uncertain economic
conditions heighten the risk of financial stress of our subcontractors, which could adversely impact their ability to meet their contractual
requirements to us. If any of our subcontractors fail to