Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 427

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 427
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 the Company fails to continue to meet all applicable continued listing requirements for Nasdaq
in the future, Nasdaq could delist our securities.

Furthermore, on April 7, 2025, the closing price
of our common stock was $0.17. Pursuant to Nasdaq Rule 5810(c)(3)(A)(iii), if the closing price of our common stock is $0.10 or less for
10 consecutive trading days, we will be issued a Staff Delisting Determination by Nasdaq. If we receive a Staff Delisting Determination
Letter resulting from our common stock trading at or below $0.10 for 10 consecutive trading days, we will have 7 calendar days to request
a hearing before a Nasdaq hearings panel to review the Staff Delisting Determination, which will determine the delisting of our common
stock by Nasdaq. A hearing would then take place within 45 days of the hearing request to determine whether or not our common stock would
be delisted. If, in the future, we receive a Staff Delisting Determination there can be no assurance that we would be successful in preventing
a determination by the Nasdaq hearing panel that our stock will be delisted. 

Legal Proceedings

From time to time the Company is involved in litigation,
claims, and other proceedings arising in the ordinary course of business. Such litigation and other proceedings may include, but are not
limited to, actions relating to employment law and misclassification, intellectual property, commercial or contractual claims, brokerage
or real estate disputes, or other consumer protection statutes, ordinary-course brokerage disputes like the failure to disclose property
defects, commission disputes, and vicarious liability based upon conduct of individuals or entities outside of the Company’s control,
including agents and third-party contractor agents. Litigation and other disputes are inherently unpredictable and subject to substantial
uncertainties and unfavorable resolutions could occur.

F-36

On February 13, 2023, Mr.
Mark Gracy, who served as our Chief Operating Officer from November 18, 2021 to November 15, 2022, filed a civil lawsuit in the Circuit
Court of Osceola County, Florida, seeking a jury trial and claiming that the Company breached his employment agreement by reducing his
salary and failing to pay him his full severance payments and is looking for payment of his alleged severance of $249,000.00. On April
11, 2023, the Company filed a motion to dismiss