Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 296

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 2
Chunk 296
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ations; all association-owned MLSs; and all brokerages with an NAR member as principal whose residential transaction volume in
2022 was $2 billion or below and is subject to court approval. Due to this litigation, there will be rule changes for the NAR. In the
settlement, effective mid-July 2024, NAR has agreed to put in place a new rule prohibiting offers of compensation on the MLS, as well
as adopt new rules requiring written agreements between buyers and buyers’ agents. However, the direct and indirect effects, if
any, of the judgment upon the real estate industry are not yet entirely clear.

There
could also be further changes in real estate industry practices. All of this has prompted discussion of changes to rules established
by local or state real estate boards or multiple listing services. All of this may require changes to many brokers’ business models,
including changes in agent and broker compensation. For example, we will likely have to develop mechanisms and a plan that enable buyers
and sellers to negotiate commissions. The Company will continue to monitor ongoing and similar antitrust litigation against our competitors.
However, the litigation and its ramifications could cause unforeseen turmoil in our industry, the impacts of which could have a negative
effect on us as an industry participant.

Cybersecurity

Our
business faces cybersecurity risks that could have a material adverse effect on our business operations, financial condition, and reputation.
Key factors contributing to cybersecurity risks include, but are not limited to:

●Constantly
Evolving Threat Landscape: The landscape of cybersecurity threats is constantly evolving, with new attack vectors, malware, and vulnerabilities
emerging regularly. We may not be able to anticipate or mitigate all potential threats effectively.

●Data
Vulnerability: We collect, store, and process sensitive customer and corporate data, making us a target for cybercriminals seeking
to steal or exploit this information. A data breach could lead to financial and legal liabilities, including regulatory fines and customer
trust erosion.

●Third-Party
Risks: Our reliance on third-party service providers exposes us to risks associated with their cybersecurity practices. A breach
or security failure in a third-party system could impact our operations and data.

●Phishing
and Social Engineering: Employees and individuals connected to our organization may be susceptible to phishing attacks or social
engineering tactics that compromise security. Human error or manipulation can lead to breaches.

●Regulatory
Compliance: We are subject to various data protection and privacy regulations, and non-compliance could