Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 297

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 2
Chunk 297
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 result in legal and financial
penalties. Adhering to these regulations requires ongoing efforts and resources.

●Business
Interruption: A cyberattack or system breach may disrupt our operations, affecting our ability to serve customers, fulfill orders,
and maintain revenue, resulting in financial losses.

●Reputation
Damage: A publicized cybersecurity incident can significantly damage our brand and reputation, leading to customer churn and reduced
market confidence.

The
SEC cybersecurity disclosure rules for public companies require disclosure regarding cybersecurity risk management (including the
corporate board’s role in overseeing cybersecurity risks, management’s role and expertise in assessing and managing
cybersecurity risks, and processes for assessing, identifying and managing cybersecurity risks) in annual reports. These
cybersecurity disclosure rules also require the disclosure of material cybersecurity incidents in a Form 8-K, generally within four
days of determining an incident is material. We have included respective disclosures in our Annual Report on Form 10-K for fiscal
year ended December 31, 2024 filed with the Commission on April 15, 2025.

We
may at times fail (or be perceived to have failed) 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.

48

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