Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 105

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 105
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 whole or in part. Except as stated herein, there is no other action, suit, proceeding,
inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to
the knowledge of our executive officers, threatened against or affecting our Company or our officers or directors in their capacities
as such.

59

ITEM
1A. RISK FACTORS. 

Certain shares previously issued and sold
under our Third Amended and Restated La Rosa Holdings Corp. 2022 Agent Incentive Plan may have been sold in violation of federal
and state securities laws and may be subject to rescission rights and other penalties, requiring us to repurchase shares sold thereunder. 

During the period from December 31, 2024 to September
30, 2025, the Company mistakenly issued an aggregate of 3,068 shares (as adjusted for the reverse stock split effected on July 7, 2025)
of restricted common stock to its contractors pursuant to Third Amended and Restated La Rosa Holdings Corp. 2022 Agent Incentive Plan
(a part of the La Rosa Holdings Corp. 2022 Equity Incentive Plan, as amended), as free trading shares (the “Sales”). At the
time of issuance of such securities, the Company mistakenly relied on the Registration Statement on Form S-8 (File No. 333-275118) filed
by the Company with the SEC and declared effective upon such filing on October 20, 2023, while the shares issued in such Sales were not
registered pursuant to such registration statement.

Because the registration statement did not cover
the Sales, the Sales could be determined to be unregistered sales of securities and, in accordance with Section 5 of the Securities Act,
direct purchasers in the Sales may have rescission rights pursuant to which they may be entitled to recover the amount paid for such shares,
plus statutory interest, upon returning the shares to us within one year from the transaction date. In addition, we could be subject to
enforcement actions or penalties and fines by federal and/or state regulatory authorities. We cannot predict the likelihood of any claims
or actions being brought against us or the amount of any penalties or fines in connection with the Sales.

Except as disclosed above in this Section “Item
1A. Risk Factors,” there have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K
for the year ended December 31,