Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 314

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 314
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igant at some point in the future. These settlements
can result in changes in the way real estate brokers are compensated for their services. Most notably, home sellers will no longer be
required to pay buyer agent commissions which will result in lower buyer agent compensation. We cannot predict the full breadth of the
outcome of these lawsuits but believe that they will result in a significant adverse effect on our financial condition and results of
operations for the foreseeable future.

Security breaches, interruptions,
delays and failures in our systems and operations could materially harm our business.

The performance and reliability
of our systems and operations and third-party applications are critical to our reputation and ability to attract franchisees and agents
to join us. Our systems and operations, as well as the third-party applications that we license are vulnerable to security breaches, interruption
or malfunction due to certain events beyond our control, including natural disasters, such as earthquakes, fire and flood, power loss,
telecommunication failures, break-ins, sabotage, computer viruses, intentional acts of vandalism and similar events. In addition, we rely
on third-party vendors to provide website platforms and additional systems and related support. If we cannot continue to retain these
services on acceptable terms, our access to these systems and services could be interrupted. Any security breach, interruption, delay
or failure in our systems and operations could substantially harm our franchisees and agents by interfering with their daily business
routines, reducing their transaction volume, impairing the quality of the services we provide, increasing our costs, prompting litigation
and other claims, and damaging our reputation, any of which could substantially harm our results of operations, financial condition and
prospects.

If we attempt to, or
acquire other complementary businesses, we will face certain risks inherent with such activities.

We may seek to acquire, and
acquire, certain complementary businesses, including one or more of our affiliates. Any future growth through acquisitions will depend
in part on the availability of suitable acquisition targets at favorable prices and with advantageous terms and conditions, which may
not be available to us. In addition, we may take on debt to finance these acquisitions which will create new financial risks, or use our
Common Stock as currency, which could dilute our then current stockholders. Acquisitions subject us to several significant risks, any
of which may prevent us from realizing the anticipated benefits or synergies of the acquisition. The integration of companies is a complex
and time-consuming process that could significantly disrupt our businesses and the business of the acquired company