Company: LRHC
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001213900-25-078012
Chunk: 141

Company: La Rosa Holdings Corp.
Filing Date: 2025-08-18
Form: 10-Q
Item: Item 2
Chunk 141
---
) in our efforts to comply with our privacy and data security obligations. Moreover, despite our efforts, our personnel or third
parties on whom we rely on may fail to comply with such obligations, which could negatively impact our business operations.

36

Any failure or perceived failure by us or third
parties upon whom we rely to comply with obligations, relating to privacy and data security may result in significant consequences including
but not limited to governmental investigations and enforcement actions (e.g., investigations, fines, penalties, audits, inspections,
and similar), litigation, additional reporting requirements and/or oversight, bans on processing personal data, and orders to destroy
or not use personal information.

Any of these events could have a material adverse
effect on our reputation, business, or financial condition, including but not limited to loss of customers; interruptions or stoppages
in our business operations; inability to process personal information; limited ability to develop or commercialize our products; expenditure
of time and resources to defend any claim or inquiry; adverse publicity; or substantial changes to our business model or operations.

Critical Accounting Estimates

A critical accounting estimate is one that is
both important to the portrayal of a company’s financial condition and results of operations and requires management’s most
difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently
uncertain. During the six-months ended June 30, 2025, the Company entered into a securities purchase agreement providing for the issuance
of a convertible note and incremental warrants which required a fair value evaluation under ASC 825. This evaluation constituted an additional
critical accounting estimate to the Company. See Note 4 Fair Value Measurements and Other Liabilities and Note 5 Borrowings
to the accompanying condensed consolidated financial statements for more information. There have been no other material changes to the
Company’s critical accounting estimates as compared to the estimates described in the Annual Report on Form 10-K as of December
31, 2024 which we believe are the most critical to our business and understanding of our results of operations and affect the more significant
judgments and estimates that we use in preparation of our condensed consolidated financial statements. Other than the fair value evaluation
mentioned above, there have been no other material changes to the Company’s critical accounting estimates since the Annual Report
on Form 10-K as of December 31, 2024.

Results of Operations

Revenue

Three Months Ending June 30

    Three Months Ended June 30,