Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 61

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 61
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 La Rosa Insurance LLC, a company owned by our Chief Executive Officer, which may be deemed to be personal
loans made by us to Mr. La Rosa that are not permissible under Section 13(k) of the Exchange Act. Issuers that are found to have violated
Section 13(k) of the Exchange Act may be subject to civil sanctions, including injunctive remedies and monetary penalties, as well as
criminal sanctions. During the fourth quarter of 2023, upon us completing our IPO, the Compensation Committee reviewed the advance
and determined that the existing related party receivable would be charged as part of the Company’s chief executive officer’s
annual bonus as specified in his employment agreement. No outstanding balance existed as of December 31, 2023. Notwithstanding, the
imposition of any sanctions on us could have a material adverse effect on our business, financial position, results of operations or cash
flows.

32

We are an “emerging
growth company” and a “smaller reporting company” within the meaning of the Securities Act, and if we take advantage
of certain exemptions from disclosure requirements available to emerging growth companies or smaller reporting companies, this could make
our securities less attractive to investors and may make it more difficult to compare our performance with other public companies.

We are an “emerging
growth company” within the meaning of the Securities Act, as modified by the JOBS Act, and we may take advantage of certain
exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including,
but not limited to, not being required to comply with the auditor internal controls attestation requirements of Section 404
of the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley Act”), reduced disclosure obligations regarding executive compensation
in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive
compensation and stockholder approval of any golden parachute payments not previously approved. As a result, our stockholders may not
have access to certain information they may deem important. We could be an emerging growth company for up to five years, although circumstances
could cause us to lose that status earlier, including if the market value of our shares held by non-affiliates exceeds $700 million as
of the end of the prior fiscal year’s second quarter, in which case we would no longer be an emerging growth company as of