Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 1256

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 1256
---
   3 years   Furniture and fixtures   7 years  

F-10

Long-lived Assets Including Acquired Intangible
Assets

Long-lived assets are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. The
carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the future undiscounted cash flows expected to result
from the use and eventual disposition of the asset. If the asset is not recoverable, its carrying amount would be adjusted down to its
fair value. There have not been any impairments of long-lived assets for the years ended December 31, 2024 and 2023.

Intangible assets are stated at cost less accumulated
amortization and accumulated impairment, if any. Amortization is calculated on a straight-line basis over the estimated useful lives of
the definite-lived intangible assets, as follows:

    Useful Life 
  
    Franchise agreement 
    10 to 11 years 
  
    Agent relationships 
    8 to 11 years 
  
    Real estate listings 
    1 year 
  
    Non-compete agreements 
    4 years 

Business Combinations

The Company completed a number of acquisitions
during 2024 and 2023 and will acquire additional businesses in the future. The results of businesses acquired in a business combination
are included in the Company’s consolidated financial statements from the date of acquisition. The Company allocates the purchase
price, which is the sum of the consideration provided and may consist of cash, equity, or a combination of the two, in a business combination
to the identifiable assets and liabilities of the acquired business at their acquisition date fair values. The excess of the purchase
price over the amount allocated to the identifiable assets and liabilities, if any, is recorded as goodwill. Determining the fair value
of assets acquired and liabilities assumed requires management to use significant judgment and estimates, including the selection of valuation
methodologies, estimates of future revenue and cash flows, discount rates, and selection of comparable companies.

To date, the assets acquired and liabilities assumed
in the Company’s business combinations have primarily consisted of goodwill and finite-lived intangible assets, consisting primarily
of franchise agreements, agent relationships, real estate listings, non-compete agreements, and right-of-use assets. The estimated fair
values and useful lives of identifiable intangible assets are based on many factors, including estimates