Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 798

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1C
Chunk 798
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 intangible assets are reviewed for recoverability on a quarterly basis.
The facts and circumstances considered include the recoverability of the cost of other intangible assets from future undiscounted cash
flows to be derived from the use of the asset or asset group. It is not possible for us to predict the likelihood of any possible future
impairments or, if such an impairment were to occur, the magnitude of any impairment. Intangible assets are subject to amortization over
the expected period of economic benefit to us. We evaluate whether events or circumstances have occurred that warrant a revision to the
remaining useful lives of intangible assets. In cases where a revision is deemed appropriate, the remaining carrying amounts of the intangible
assets are amortized over the revised remaining useful life.

Business Combinations

The allocation of the purchase
price for acquisitions requires use of accounting estimates and judgments to allocate the purchase price to the identifiable tangible
and intangible assets acquired, including franchise agreements, agent relationships, existing real estate listings, and non-compete agreements
and liabilities assumed based on their respective fair values. The estimates we make include expected cash flows, expected cost savings,
and the appropriate weighted average cost of capital. We complete these assessments as soon as practical after the acquisition closing
dates. Any excess of the purchase price over the estimated fair values of the identifiable net assets acquired is recorded as goodwill.

Stock-Based Compensation

We use the fair value method
of accounting for our stock options and restricted stock units (“RSUs”) granted to employees, contractors and consultants
to measure the cost of services received in exchange for the stock-based awards. The fair value of stock option awards with only service
conditions is estimated on the grant date using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires
inputs such as the risk-free interest rate, expected term and expected volatility. These inputs are subjective and generally require significant
judgment. The fair value of RSUs is measured on the grant date based on the prior day closing fair market value of our Common Stock. The
resulting cost is recognized over the period during which an employee is required to provide service in exchange for the awards, usually
the vesting period. Stock-based compensation expense is recognized on a straight-line basis, net of actual forfeitures in the period.

As we accumulate additional
employee stock-based awards data over time and as we incorporate market data related to our Common Stock, we may calculate significantly
different volatilities and expected lives, which could