Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 1092

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 1092
---
 case is now closed.

The Company believes that the above claims are
without merit, and it will vigorously defend against such claims. Moreover, these claims, in the aggregate, would not have a material
adverse effect on the Company’s financial condition, business, or results of operations, should the Company’s defense not
be successful in whole or in part. Except as stated herein, there is no other action, suit, proceeding, inquiry or investigation before
or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of our executive officers,
threatened against or affecting our Company or our officers or directors in their capacities as such.

F-37

Note 14 — Related Party Transactions

The Company leases its corporate office from an entity controlled by
the Company’s CEO. The rent expense for the years ending December 31, 2024 and 2023 were $142,602 and $134,505, respectively. There
is no written agreement, and the rent is determined on a month-to-month basis. There are no future minimum rental payments, and the lease
may be cancelled at any time by either party.

On July 1, 2023, the Company began leasing office
space for its subsidiary, La Rosa Realty, from an entity owned by Joseph La Rosa, the Company’s CEO, and Michael La Rosa, the Company’s
member of the Board. There is a written lease, which includes minimum monthly rent of $4,593, with a term ending in June 2025.

On May 4, 2023, the mother of the Company’s
CEO purchased 200 shares of the Company’s series A preferred stock for $200,000. Upon the Company’s IPO, the shares were converted
into 57,142 shares of the Company’s Common Stock.

Due from related party

La Rosa Realty, LLC has provided interest-free,
due on demand advances to La Rosa Insurance LLC, a company controlled by the Company’s CEO. The outstanding balance was $41,558
as of December 31, 2022. As a newly publicly traded company, the Company must comply with the Sarbanes-Oxley Act of 2002 and specifically
Section 402, which amended the Securities Exchange Act of 1934 to prohibit companies from making most personal loans to their directors
and executive officers. During the fourth quarter of 2023, upon the Company completing its IPO, the Compensation Committee reviewed the
advance,