Company: LRHC
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001213900-25-048370
Chunk: 88

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 8
Chunk 88
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La Rosa Holdings Corp. and Subsidiaries

Notes to the Unaudited Condensed Consolidated
Financial Statements

Note 1 — Basis of Presentation and Summary of Significant
Accounting Policies

Basis of Presentation and Consolidation

The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with the instructions to Form 10-Q and Regulation S-X and do not include all the information and disclosures
required by accounting principles generally accepted in the United States of America (“GAAP”). The Company has made estimates
and judgements affecting the amounts reported in the Company’s condensed consolidated financial statements and the accompanying
notes. The actual results experienced by the Company may differ materially from the Company’s estimates. The condensed consolidated
financial information is unaudited and reflects all normal adjustments that are, in the opinion of management, necessary to provide a
fair statement of results for the interim periods presented, which contemplate continuation of the Company as a going concern and realization
of assets and satisfaction of liabilities in the normal course of business and do not include any adjustments that might result from the
outcome of any uncertainties related to the Company’s going concern assessment. The carrying amounts of assets and liabilities presented
in the unaudited condensed consolidated financial statements do not necessarily purport to represent realizable or settlement values.

The unaudited condensed consolidated financial
statements include the financial statements of the Company, all entities that are wholly-owned by the Company, and all entities in which
the Company has a controlling financial interest. All intercompany transactions and balances have been eliminated. Business combinations
consummated during the reporting period are reflected in the Company’s results effective from the date of acquisition through the
end of the reporting period.

Results of the three-month period ended March
31, 2025 are not necessarily indicative of the results to be expected for the full year ending December 31, 2025. These condensed consolidated
financial statements should be read in conjunction with the consolidated financial statements for the Company as of and for the year ended
December 31, 2024, included in the Company’s Annual Report on Form 10-K. The condensed consolidated balance sheet as of December
31, 2024 was derived from the Company’s audited financial statements referred to above.

Accounts Receivable and Allowance for Credit
Losses

The Company’s trade accounts receivable consist of balances due
from agents, tenants, franchisees, and commissions for closings and are presented on the consolidated balance sheets net of the allowance
for