Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 601

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1B
Chunk 601
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 temporary differences are expected to be recovered or settled.
A valuation allowance is provided if it is determined that it is more likely than not that the deferred tax asset will not be realized.
The Company records interest (and penalties where applicable), net of any applicable related income tax benefit, on potential income tax
contingencies as a component of the income tax provision.

The Company evaluates and accounts for uncertain
tax positions using a two-step approach. Recognition (step one) occurs when the Company concludes that a tax position, based solely on
its technical merits, is more-likely-than-not to be sustainable upon examination. Measurement (step two) determines the amount of benefit
that is greater than 50% likely to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant
information. Derecognition of a tax position that was previously recognized would occur when the Company subsequently determines that
a tax position no longer meets the more likely-than-not threshold of being sustained.

The Company recognizes accrued interest and penalties
related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest
and penalties as of December 31, 2024 and 2023. The Company is currently not aware of any issues under review that could result in significant
payments, accruals or material deviation from its position.

The United States is the Company’s only
tax jurisdiction.

Stock Based Compensation

The Company issues stock-based awards to employees,
directors, and non-employees that are generally in the form of stock options, restricted shares, or restricted stock units (“RSUs”).
Compensation cost for equity awards is measured at their grant-date fair value, and in the case of restricted shares and RSUs, fair value
is determined based on the price of the Company’s underlying Common Stock. The grant date fair value of stock options is estimated
using the Black-Scholes option pricing model. The Black-Scholes model requires the use of a number of assumptions including volatility
of the stock price, the average risk-free interest rate, and the weighted average expected life of the stock options.

The expense for awards is recognized over the
requisite service period (generally the vesting period of the award). The Company has elected to treat awards with only service conditions
and with graded vesting as one award. Consequently, the total compensation expense is recognized straight-line over the entire vesting
period, so long as the compensation cost recognized at any date at least equals the portion of the