Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 568

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1B
Chunk 568
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     108%
  
    Amortization and depreciation 
     1,018,934  
     74,330  
     944,604  
     1271%
  
    Total SG&A Expenses 
    $11,632,628  
    $4,833,057  
    $6,799,571  
     12%

NM: Not Meaningful

Selling, general and administrative
costs increased $6.8 million, or 12%, in the year ended December 31, 2024 against the comparable prior year period. Sales and marketing
costs increased as the Company worked to expand and grow the business.

Payroll and benefits increased
$1.9 million or 78%, in the year ended December 31, 2024 against the comparable prior year period primarily due to changes in the executive
management team, bonus, payroll taxes and acquisitions from the 4th quarter of 2023 and during 2024. In addition, headcount
increases to facilitate growth and replace 3rd party costs.

Rent and occupancy increased as
the Company leases its corporate office and other offices from various entities. With $669 thousand of the total increase of $724 thousand
related to the acquisitions from the fourth quarter of 2023 and companies acquired in 2024.

Professional fees increased $1.334
million, or 513%, in the year ended December 31, 2024 against the comparable prior year period. Primarily this increase is related to
$666,390 of legal cost related to acquisitions, litigation and SEC reporting. Secondarily, an increase of $523,191
in fees related to the company and other professional accounting services related to audits and acquisitions.

Office and technology costs decreased
by $56 thousand due to the Company’s efforts to curtail expenses and improve productivity and efficiency. In particular, the Company
streamlined its software applications, which reduced technology costs after subscription periods ended.

Insurance, training and other
costs increased in 2024 primarily due to our new directors and officers (D&O) policies that provide liability coverage.

Public company cost increased
due to fees paid to the Board of Directors of $231 thousand, investor relation and related of $357 thousand.

Additionally, as part of total
operating cost the Company recognized impairment of goodwill for $787 thousand due to triggering conditions as described in Note 4 –
Goodwill and Intangible Assets, triggering events were noted on