Company: LRHC
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001213900-25-078012
Chunk: 227

Company: La Rosa Holdings Corp.
Filing Date: 2025-08-18
Form: 10-Q
Item: Item 4
Chunk 227
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 of duties. Therefore, it is difficult
to effectively segregate accounting duties which comprises a material weakness in internal controls. To the extent reasonably possible
given our limited resources, we intend to take measures to cure the weaknesses, including, but not limited to, increasing the capacity
of our qualified financial personnel to ensure that accounting policies and procedures are consistent across the organization and that
we have adequate controls over our Exchange Act reporting disclosures. As such, we consider these material weaknesses to not be remediated
as of June 30, 2025.

There were no changes in our internal control
over financial reporting, as defined in Rules 13a-15(t) and 15d-15(f) under the Exchange Act, during the fiscal quarter ended
June 30, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

43

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time the Company is involved in
litigation, claims, and other proceedings arising in the ordinary course of business. Such litigation and other proceedings may include,
but are not limited to, actions relating to employment law and misclassification, intellectual property, commercial or contractual claims,
brokerage or real estate disputes, or other consumer protection statutes, ordinary-course brokerage disputes like the failure to disclose
property defects, commission disputes, and vicarious liability based upon conduct of individuals or entities outside of the Company’s
control, including agents and third-party contractor agents. Litigation and other disputes are inherently unpredictable and subject to
substantial uncertainties and unfavorable resolutions could occur.

As previously disclosed, on February 13, 2023,
Mr. Mark Gracy, who served as our Chief Operating Officer from November 18, 2021 to November 15, 2022, filed a civil lawsuit in the Circuit
Court of Osceola County, Florida, seeking a jury trial and claiming that the Company breached his employment agreement by reducing his
salary and failing to pay him his full severance payments and is looking for payment of his alleged severance of $249,000. Discovery
is proceeding, mediation is scheduled for August 25, 2025. The Company denies the merits of the claims and intends on vigorously defending
the litigation.

As previously disclosed, on March 5, 2025, Joshua
Epstein filed an action in Osceola County, Florida Circuit Court alleging claims for Breach of Contract, Promissory