Company: LRHC
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001213900-25-078012
Chunk: 190

Company: La Rosa Holdings Corp.
Filing Date: 2025-08-18
Form: 10-Q
Item: Item 3
Chunk 190
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ITEM 3. QUANTITATIVE AND
QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

As a smaller reporting company as defined by
Rule 12b-2 of the Exchange Act and in Item 10(f)(1) of Regulation S-K, we are electing scaled disclosure reporting obligations and therefore
are not required to provide the information requested by this item.

ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures,
as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Disclosure controls and procedures are 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 June 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