Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 133

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 133
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The combined fair values for all reporting
units were then reconciled to the aggregate market value of our shares of, common stock on the date of testing. Based on our most
recent impairment test, eight of our reporting units’ fair values were below their respective carrying values. An impairment
charge of $787,438 was recognized for the year ended December 31, 2025.

As a result of this quantitative testing, we evaluated
other long-term assets for impairment utilizing the un-discounted cash flows and determined that all of the impairment was attributable
to goodwill which is recorded as Impairment of Goodwill on our Consolidated Statements of Operation.

Additionally, following performance of the annual
impairment test, we did not identify any events or conditions that make it more likely than not that an additional impairment may have
occurred. Accordingly, no further impairment charges were recognized during the fiscal year ended December 31, 2024.

The gross carrying amount of goodwill as of December
31, 2024 and December 31, 2023 was $8,012,331 and $5,702,612, respectively.

Changes in the carrying amount of goodwill are
as follows:

    2024  
    2023 
  
    Balance, January 1 
    $5,702,612  
    $- 
  
    Additions 
     3,097,157  
     5,702,612 
  
    Impairment 
     (787,438) 
     - 
  
    Goodwill as of 12/31/2024 
    $8,012,331  
    $5,702,612 

The components of purchased intangible assets
were as follows:

      Weighted                          Average                          Remaining     December 31, 2024        Amortization     Gross                    Period
(in years)     Carrying Amount     Accumulated
Amortization     Net
Amount    Franchise agreement   9       5,249,482       467,138       4,782,344    Agent relationships   8       916,282       93,431       822,851    Real estate listings   0.3       564,756       472,543       92,213    Non-compete agreements