Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 326

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 326
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 the only way to realize a return on their investment. Investors
seeking cash dividends should not purchase our Common Stock.

General Risks

If we fail to protect
the privacy of employees, independent contractors, or consumers or personal information that they share with us, our reputation and business
could be significantly harmed.

Consumers, agents, independent
contractors, and employees have shared personal information with us during the normal course of our business processing residential real
estate transactions. This includes, but is not limited to, social security numbers, annual income amounts and sources, names, addresses,
telephone and cell phone numbers, and email addresses.

The application, disclosure
and safeguarding of this information is regulated by federal and state privacy laws. To comply with privacy laws, we invested resources
and adopted a privacy policy outlining policies and procedures for the use of safeguarding personal information. This policy includes
informing consumers, independent contractors and employees that we will not share their personal information with third parties without
their consent unless required by law.

Privacy policies and compliance
with federal and state privacy laws present risk, and we could incur legal liability for failing to maintain compliance. We might not
become aware of all privacy laws, changes to privacy laws, or third-party privacy regulations governing the real estate business or be
unable to comply with all of these regulations, given the rate of regulatory changes, ambiguities in regulations, contradictions in regulations
between jurisdictions, and the difficulties in achieving both Company-wide and region-specific knowledge and compliance.

Our policy and safeguards
could be deemed insufficient if third parties with whom we have shared personal information fail to protect the privacy of that information.
Our legal liability could include significant defense costs, settlement costs, damages, and penalties, plus, damage our reputation with
consumers, which could significantly damage our ability to attract and maintain customers. Any or all of these consequences would result
in meaningful unfavorable impact on our brand, business model, revenue, expenses, income, and margins.

Cybersecurity incidents
could disrupt our business operations, result in the loss of critical and confidential information, adversely impact our reputation and
harm our business.

Cybersecurity threats and
incidents directed at us could range from uncoordinated individual attempts to gain unauthorized access to information technology systems
to sophisticated and targeted measures aimed at disrupting our business or gathering personal data of our customers. In the ordinary course
of our business, we collect and store sensitive data, including proprietary business information and personal information about our customers.
Our business, and