Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 34

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 34
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 regarding future operating performance, business trends and market and economic conditions. Such
analyses further require us to make certain assumptions about our sales, operating margins, growth rates and discount rates. There are
inherent uncertainties related to these factors and in applying these factors to the assessment of goodwill and trade name recoverability.
Goodwill reviews are prepared using estimates of the fair value of reporting units based on the estimated present value of future discounted
cash flows. We could be required to evaluate the recoverability of goodwill or trade names prior to the annual assessment if we experience
disruptions to the business, unexpected significant declines in operating results, a divestiture of a significant component of our business
or market capitalization declines. For the year ended December 31, 2024, we conducted such a review and recorded an impairment of $787,438.

We also continually evaluate
whether events or circumstances have occurred that indicate the remaining estimated useful lives of our definite-lived intangible assets,
such as franchise agreements, agent relationships, real estate listings, and non-compete agreements, and other long-lived assets may warrant
revision or whether the remaining balance of such assets may not be recoverable. We use an estimate of the related undiscounted cash flow
over the remaining life of the asset in measuring whether the asset is recoverable.

We may not realize
the expected benefits of our recent acquisitions because of integration difficulties and other challenges.

The success of our recent
acquisitions will depend, in part, on our ability to realize the anticipated revenue, cost-savings, tax, collaboration and other synergies
from integrating our two recent acquisitions with our existing business. The integration process may be complex, costly, and time-consuming.
The difficulties of integrating the operations could include, among others:

    ●
    failure to implement our business plan for the combined business;

    ●
    unanticipated issues in integrating logistics, information, communications, and other systems;

    ●
    unanticipated changes in applicable laws and regulations;

18

    ●
    negative impacts on our internal control over financial reporting accounting; and

    ●
    other unanticipated issues, expenses, or liabilities that could impact, among other things, our ability to realize any expected synergies on a timely basis, or at all.

We may not accomplish the
integration smoothly, successfully, or within the anticipated costs or time frame. The diversion of the attention of management from our
current operations to the integration effort and any difficulties encountered in combining operations could prevent us from realizing
the