Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 315

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 315
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, including the diversion
of management attention, failure to identify certain liabilities and issues during the due diligence process, the inability to retain
personnel and clients of the acquired business and litigation. Any negative outcomes from acquisitions or attempted acquisitions could
result in a material adverse effect on our financial condition, results of operations and prospects.

If we were deemed to
be an investment company under the Investment Company Act of 1940, as amended (the “1940 Act”) as a result of our ownership
of our subsidiaries, applicable restrictions could make it impractical for us to continue our business as contemplated and could have
an adverse effect on our business.

Under Sections 3(a)(1)(A)
and (C) of the 1940 Act, a company generally will be deemed to be an “investment company” for purposes of the 1940 Act if:
(i) it is, or holds itself out as being, engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting
or trading in securities or (ii) it engages, or proposes to engage, in the business of investing, reinvesting, owning, holding or trading
in securities and it owns or proposes to acquire investment securities having a value exceeding 40% of the value of its total assets (exclusive
of U.S. government securities and cash items) on an unconsolidated basis. We do not believe that we are an “investment company,”
as such term is defined in either of those sections of the 1940 Act and intend to conduct our operations so that we will not be deemed
an investment company. However, if we were to be deemed an investment company, restrictions imposed by the 1940 Act, including limitations
on our capital structure and our ability to transact with affiliates, could make it impractical for us to continue our business as contemplated
and could have a material adverse effect on our business and prospects.

29

Risks Associated with
Our Capital Stock

We are currently listed
on The Nasdaq Capital Market. Our failure to maintain our compliance with Nasdaq’s continued listing standards or other requirements
could result in our Common Stock being delisted from Nasdaq, which could adversely affect our liquidity and the trading volume and market
price of our Common Stock and decrease or eliminate your investment.

Our Common Stock is currently
listed on the Nasdaq Capital Market on Nasdaq under the symbol “LRHC.” Nasdaq requires listed issuers to comply with certain
standards in order to