Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 1714

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 5
Chunk 1714
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, 2023, the
Company acquired six franchisees, of which four had remaining lease terms beyond twelve months, resulting in an increase of $644,498
in right-of-use assets and an increase in lease liabilities of $661,165.

F-20

Supplemental balance sheet information related to leases is as follows:

    December 31,  
    December 31, 

    2024  
    2023 
  
    Assets: 

    Right-of-use assets 
    $997,715  
    $687,570 
  
    Liabilities: 

    Lease liability, current 
     473,733  
     340,566 
  
    Lease liability, noncurrent 
     545,759  
     363,029 

    $1,019,492  
    $703,595 

The Company’s leases do not provide a readily
determinable implicit discount rate. The Company estimates its incremental borrowing rate as the discount rate based on the information
available at lease commencement. The weighted average discount rate is 10%.

Future maturities on lease liabilities as of December 31, 2024, are
as follows:

    December 31, 

    2024 
  
    2025 
    $551,173 
  
    2026 
     380,954 
  
    2027 
     193,972 
  
    2028 
     18,450 
  
    2029 
     — 
  
    Total minimum lease payments 
     1,144,549 
  
    Less: imputed interest 
     (125,058)
  
    Present value of lease obligations 
     1,019,492 
  
    Less: current portion 
     (473,733)
  
    Long-term portion of lease obligations 
    $545,759 

There were no leases with residual value guarantees.

Note 6 — Borrowings

Line of Credit 

The Company has a line of credit with Regions
Bank that allows for advances up to $150,000 with interest at the Prime Rate plus 4.75% with a floor of 4.75% and no maturity date. On
December 31, 2024, the outstanding balance on the line of credit was $149,000 at a prime rate of 7.75% plus 4.75%, or 12.50%. On December