Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 67

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 67
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 particularly our cloud-based platform, is reliant on the uninterrupted functioning of our information technology systems.
The secure processing, maintenance, and transmission of information are critical to our operations, especially the processing and closing
of real estate transactions. Although we employ measures designed to prevent, detect, address, and mitigate these threats (including access
controls, data encryption, vulnerability assessments, multi-factor authentication, and maintenance of backup and protective systems),
cybersecurity incidents, depending on their nature and scope, could potentially result in the misappropriation, destruction, corruption,
or unavailability of critical data and confidential or proprietary information (our own or that of third parties, including potentially
sensitive personal information of our customers) and the disruption of business operations. Any such compromises to our security could
cause harm to our reputation, which could cause customers to lose trust and confidence in us or could cause agents to stop working for
us. In addition, we may incur significant costs for remediation that may include liability for stolen assets or information, repair of
system damage, and compensation to customers and business partners. We may also be subject to legal claims, government investigation,
and additional state and federal statutory requirements.

35

The potential consequences
of a material cybersecurity incident include regulatory violations of applicable U.S. and international privacy and other laws, reputational
damage, loss of market value, litigation with third parties (which could result in our exposure to material civil or criminal liability),
diminution in the value of the services we provide to our customers, and increased cybersecurity protection and remediation costs (that
may include liability for stolen assets or information), which in turn could have a material adverse effect on our competitiveness and
results of operations. 

Claims for indemnification
by our directors and officers may reduce our available funds to satisfy successful stockholder claims against us and may reduce the amount
of money available to us.

As permitted by Section 78.7502
of Chapter 78 of the Nevada Revised Statutes (the “NRS”), our amended and restated articles of incorporation limit the liability
of our directors to the fullest extent permitted by law. In addition, as permitted by Section 78.7502 of the NRS, our amended and restated
articles of incorporation and amended and restated bylaws provide that we shall indemnify, to the fullest extent authorized by the NRS,
any person who is involved in any litigation or other proceeding because such person is or was a director or officer of ours or is or
was serving