Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 16

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 16
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 Accounting

The
Company has elected the fair value option under Accounting Standards Codification 825-10, Financial Instruments (“ASC 825”),
to measure its Senior Secured Convertible Note and Incremental Warrants (until the Incremental Warrants conversion to Series B Preferred
Stock, See Note 5 – Borrowings for further discussion) issued during the first quarter. The fair value option may
be elected on an instrument-by-instrument basis and is irrevocable unless a new election date occurs. When the fair value option is
elected for an instrument, unrealized gains and losses for such instrument are reported in earnings at each subsequent reporting date.
Upfront costs and fees related to items for which the fair value option is elected shall be recognized in earnings as incurred
and not deferred.

Recently
Adopted Accounting Standards

In
November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU, No. 2023-07, Segment Reporting (Topic 280):
Improvements to Reportable Segment Disclosures, which requires public entities, including those with a single reportable segment, to:
(i) provide disclosures of significant segment expenses and other segment items if they are regularly provided to the chief operating
decision maker, or the CODM, and included in each reported measure of segment profit or loss; (ii) provide all annual disclosures about
a reportable segment’s profit or loss and assets currently required by Accounting Standards Codification 280, Segment Reporting,
in interim periods; and (iii) disclose the CODM’s title and position, as well as an explanation of how the CODM uses the reported
measures and other disclosures. ASU No. 2023-07 does not change how a public entity identifies its operating segments, aggregates those
operating segments or applies the quantitative thresholds to determine its reportable segments. The Company adopted ASU No. 2023-07 effective
December 31, 2024.

Recently
Issued Accounting Standards Not Yet Adopted 

In
September 2025, the FASB issued ASU 2025-7, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606).
The amendments in this Update exclude from derivative accounting non-exchange-traded contracts with underlyings that are based on
operations or activities specific to one of the parties to the contract. However, this scope exception does not apply to (