Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 442

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 442
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 earlier of their death,
resignation or removal. Our executive officers are elected by, and serve at the discretion of, our Board, subject to the terms of any
employment or other agreements. 

Our Controlled Company Status

Because, as of April 15, 2025,
Mr. La Rosa beneficially owns 8,984,650 shares of our Common Stock and 2,000 shares of our Series X Preferred Stock which has 10,000
votes per share when voting together with the Common Stock, which will represent in the aggregate 28,984,650 votes, he can elect all of
our directors and decide all other matters. Accordingly, we are a “controlled company” under the Nasdaq rules. A controlled
company is not required to have a majority of independent directors or form an independent compensation or nominating and corporate governance
committee.

However, we have a majority
of independent directors on our Board and do not currently intend to utilize the exemptions provided by the Nasdaq rules. Nevertheless,
for as long as we remain a “controlled company,” we could take advantage of these exemptions at any time. In the event that
we cease to be a “controlled company,” we will be required to comply with these provisions within the transition periods
specified in the Nasdaq Rules.

Independence

We use the definition of “independence”
of The Nasdaq Stock Market LLC (“Nasdaq”) to make this determination. Nasdaq Listing Rule 5605(a)(2) provides that an “independent
director” is a person other than an officer or employee of our Company or any other individual having a relationship which, in the
opinion of the Board, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. The
Nasdaq rules provide that a director cannot be considered independent if:

●the
director is, or at any time during the past three years was, an employee of our Company;

●the
director or a family member of the director accepted any compensation from our Company in excess of $120,000 during any period of 12
consecutive months within the three years preceding the independence determination (subject to certain exclusions, including, among other
things, compensation for Board or Board committee service);

●a
family member of the director is, or at any time during the past three years was, an executive officer of our Company;

●the
director or a family member of the director is a partner