Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 381

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 381
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 effective date of the SEC’s corresponding disclosure rule changes. The Company adopted the standard beginning
in fiscal year 2024. The adoption did not have a material impact on the Company’s consolidated financial statements.

In June 2016, the FASB issued Accounting Standards
Update (“ASU”) 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial
Instruments, that changes the impairment model for most financial assets and certain other instruments. For receivables, loans and
other instruments, entities will be required to use a new forward-looking “expected loss” model that generally will result
in the earlier recognition of allowance for losses. In addition, an entity will have to disclose significantly more information about
allowances and credit quality indicators. The new standard was effective for the Company for fiscal years beginning after December 15,
2022. The Company adopted the standard beginning in fiscal year 2023. The adoption did not have a material impact on the Company’s
consolidated financial statements.

In August 2020, the FASB issued ASU 2020-06 that,
among other updates, simplifies the guidance in ASC 815-40, Derivatives and Hedging: Contracts in Entity’s Own Equity, by
removing certain criteria that must be satisfied in order to classify a contract as equity. The ASU is effective for smaller reporting
companies for fiscal years beginning after December 15, 2023 and early adoption is permitted, but no earlier than fiscal years beginning
after December 15, 2020. The Company adopted the standard beginning in fiscal year 2023. The adoption did not have a material impact on
the Company’s consolidated financial statements.

In March 2022, the FASB issued ASU 2022-02, Financial
Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, addressing areas identified by the FASB
as part of its post-implementation review of its previously issued credit losses standard (ASU 2016-13) that introduced the current expected
credit losses (CECL) model. ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings by creditors that have
adopted the CECL model and enhances disclosure requirements for certain loan refinancings and restructurings made with borrowers experiencing
financial difficulty. This update requires an entity to disclose current-period gross write