Company: LRHC
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001213900-25-078012
Chunk: 140

Company: La Rosa Holdings Corp.
Filing Date: 2025-08-18
Form: 10-Q
Item: Item 2
Chunk 140
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 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 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 recently adopted 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 new 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