Company: LRHC
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001213900-25-078012
Chunk: 73

Company: La Rosa Holdings Corp.
Filing Date: 2025-08-18
Form: 10-Q
Item: Item 1
Chunk 73
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 estate industry
are not yet entirely clear.

There could also be further changes in real estate
industry practices. All of this has prompted discussion of changes to rules established by local or state real estate boards or multiple
listing services. All of this may require changes to many brokers’ business models, including changes in agent and broker compensation.
For example, we will likely have to develop mechanisms and a plan that enable buyers and sellers to negotiate commissions. The Company
will continue to monitor ongoing and similar antitrust litigation against our competitors. However, the litigation and its ramifications
could cause unforeseen turmoil in our industry, the impacts of which could have a negative effect on us as an industry participant.

Cybersecurity

Our business faces cybersecurity risks that could
have a material adverse effect on our business operations, financial condition, and reputation. Key factors contributing to cybersecurity
risks include, but are not limited to:

●Constantly
                                            Evolving Threat Landscape: The landscape of cybersecurity threats is constantly evolving,
                                            with new attack vectors, malware, and vulnerabilities emerging regularly. We may not be able
                                            to anticipate or mitigate all potential threats effectively.

●Data
                                            Vulnerability: We collect, store, and process sensitive customer and corporate data,
                                            making us a target for cybercriminals seeking to steal or exploit this information. A data
                                            breach could lead to financial and legal liabilities, including regulatory fines and customer
                                            trust erosion.

●Third-Party
                                            Risks: Our reliance on third-party service providers exposes us to risks associated with
                                            their cybersecurity practices. A breach or security failure in a third-party system could
                                            impact our operations and data.

●Phishing
                                            and Social Engineering: Employees and individuals connected to our organization may be
                                            susceptible to phishing attacks or social engineering tactics that compromise security. Human
                                            error or manipulation can lead to breaches.

●Regulatory
                                            Compliance: We are subject to various data protection and privacy regulations, and non-compliance
                                            could result in legal and financial penalties. Adhering to these regulations requires ongoing
                                            efforts and resources.

●Business
                                            Interruption: A cyberattack or system breach may disrupt our operations, affecting our
                                            ability to serve customers, fulfill orders, and maintain revenue, resulting in financial
                                            losses.

●Reputation
                                            Damage: A publicized cybersecurity incident can significantly damage our brand and reputation,
                                            leading to customer churn and reduced market confidence.

The recently adopted SEC cybersecurity disclosure
rules for public companies require disclosure