Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 311

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 2
Chunk 311
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 qualified financial personnel to ensure that accounting policies and procedures are consistent
across the organization and that we have adequate controls over our Exchange Act reporting disclosures. As such, we consider these material
weaknesses to not be remediated as of September 30, 2025.

There
were no changes in our internal control over financial reporting, as defined in Rules 13a-15(t) and 15d-15(f) under the Exchange
Act, during the fiscal quarter ended September 30, 2025, that have materially affected, or are reasonably likely to materially affect,
our internal control over financial reporting.

58

PART
II. OTHER INFORMATION

ITEM
1. 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.

As previously disclosed, 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. On April 11, 2023, Company filed a motion to dismiss. Original mediation was scheduled for August 25, 2025
with a second mediation set for December 1, 2025. There have been no other changes as the attorneys work on discovery and
negotiations with the plaintiff’s counsel. The Company denies the merits of the claims and intends on vigorously defending the
litigation.

As previously disclosed, on January 3, 2024, Ms. Sarah Palmer filed a putative
national class action complaint against La Rosa Realty, LLC in the United States District Court, Middle District of