Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 40

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 40
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encies

Leases

The
Company has operating leases for office space in several states. Lease terms are negotiated on an individual basis. Generally, the leases
have initial terms ranging from one to five years. Renewal options are typically not recognized as part of the right-of-use assets and
lease liabilities as it is not reasonably certain at the lease commencement date that the Company will exercise these options to extend
the leases. Leases with an initial term of twelve-months or less that do not include an option to purchase the underlying asset are not
recorded on the consolidated balance sheets and are expensed on a straight-line basis over the lease term.

The
Company leases its corporate office from an entity controlled by the Company’s CEO. In addition, some of the entities acquired
lease their offices from their former owners, who now hold a minority interest in those entities.

During
January 2025, the Company entered into a new lease for office space in Orlando, FL. The Orlando lease requires monthly payments of $5,170.
The Orlando lease is initially for a five-year term, with no written option for renewal.

During
July 2025, the Company renewed its lease of the corporate office space in Celebration, FL, which is owned by an entity controlled by
our CEO. The Celebration lease requires monthly payments of $12,000. The Celebration lease is initially for a one-year term, with
option for renewal.

During
August 2025, the Company entered into a new lease for office space in Puerto Rico. The Puerto Rico lease requires monthly payments of
$1,250. The Puerto Rico lease is initially for a five-year term, with no written option for renewal.

Lease costs for the three month periods ended
September 30, 2025 and 2024 were $248,575 and $222,126, respectively, and lease costs for the nine month periods ended September 30,
2025 and 2024 were $728,593 and $642,996, respectively. Lease costs are included in general and administrative expenses in the condensed
consolidated statements of operations.

Supplemental
cash flow information related to leases is as follows:

    Nine Months Ended 

    September 30, 

    2025  
    2024 
  
    Cash paid for amounts included in the measurement of lease liabilities 
     531,412  
     448,783 
  
    Right-of-use assets obtained in exchange for lease liabilities 
     555