Company: LRHC
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001213900-25-078012
Chunk: 88

Company: La Rosa Holdings Corp.
Filing Date: 2025-08-18
Form: 10-Q
Item: Item 1
Chunk 88
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, 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
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 intend to take measures to cure the weaknesses, including, but not limited to, increasing the capacity
of our qualified financial personnel to ensure that accounting policies and procedures are consistent across the organization and that
we have adequate controls over our Exchange Act reporting disclosures. As such, we