Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 1752

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 5
Chunk 1752
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As of December 31, 2024, 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.

Management’s Annual Report on Internal
Controls over Financial Reporting

Management is responsible for establishing and
maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our
internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management utilized the criteria established in
the Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission
(COSO) to conduct an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2024. Based on
that evaluation, our Chief Executive Officer and Interim Chief Financial Officer has identified a material weakness 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