Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 617

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1B
Chunk 617
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 the short-term lease exception. Leases with an initial term of twelve-months or
less that do not include an option to purchase the underlying asset are not recorded on the consolidated balance sheets and are expensed
on a straight-line basis over the lease term.

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 December 31, 2023 was $139,200
and $134,505, respectively. 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. In addition, the Company rents various office spaces and
has acquired leases as part of it’s acquisition strategy.

Lease costs for the years ended December 31, 2024
and 2023 was $905,825 and $311,722, respectively, and included in general and administrative expenses in the consolidated statements of
operations.

Supplemental cash flow information related to leases is as follows:

    December 31, 

    2024  
    2023 
  
    Cash paid for amounts included in the measurement of lease liabilities 
    $665,416  
    $94,655 
  
    Right-of-use assets obtained in exchange for lease liabilities 
    $883,652  
    $267,914 

During the year ended December 31, 2024, the
Company acquired seven franchisees and affiliates, of which five had remaining lease terms beyond twelve months, resulting in an increase of
$417,228 in right-of-use assets and an increase in lease liabilities of $425,494. During the year ended December 31, 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 
    $