Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 310

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 2
Chunk 310
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 controls and other procedures designed to ensure that the information required to be disclosed by us in the reports
that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the
SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure
that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated
to our management, including our principal executive officer and our principal financial officer, as appropriate, to allow timely decisions
regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls
and procedures, no matter how well designed and operated, can provide only reasonable and not absolute assurance of achieving the desired
control objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls
and procedures.

As
of September 30, 2025, we conducted an evaluation, under the supervision and with the participation of our Chief Executive Officer and
Interim Chief Financial Officer, of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e)
of the Exchange Act). Based upon this evaluation, our Chief Executive Officer and Interim Chief Financial Officer concluded that our
disclosure controls and procedures are ineffective, as we are a newly publicly traded company with limited resources in our finance department,
and we are in the process of establishing our procedures around our disclosure controls.

Changes
in Internal Control over Financial Reporting

As
reported in our Annual Report on Form 10-K for 2024 fiscal year, material weaknesses were identified due to lack of segregation of duties,
control environment and size and nature of cybersecurity staffing. We have therefore concluded that our internal controls over financial
reporting are not effective at the reasonable assurance level. A material weakness is a deficiency, or combination of deficiencies, in
our internal controls over financial reporting such that there is a reasonable possibility that a material misstatement of our consolidated
financial statements would not be prevented or detected on a timely basis.

Our
size has prevented us from being able to employ sufficient resources to enable us to have an adequate level of supervision and segregation
of duties. Therefore, it is difficult to effectively segregate accounting duties which comprises a material weakness in internal controls.
To the extent reasonably possible given our limited resources, we intend to take measures to cure the weaknesses, including, but not
limited to, increasing the capacity of our