Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 1267

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 1267
---
 common stock related to the derivative liability 
     -  
     (450,000)
  
    Extinguishment of derivative liability 
     -  
     (433,894)
  
    Change in fair market value 
     1,338,506  
     (138,985)
  
    Balance – December 31, 
    $1,607,544  
    $- 

F-16

Note 3 — Business Combinations

During 2024, the Company acquired majority ownership of the following
franchisees and affiliates of the Company: La Rosa Realty Winter Garden LLC, Las Rosa Realty Georgia LLC, La Rosa Realty California, La
Rosa Realty Lakeland LLC, La Rosa Realty Success LLC, BF Prime LLC, and La Rosa Realty Beaches LLC & La Rosa Realty Baxpi. All six
franchises engage mostly in the residential real estate brokerage services to the public primarily through sales agents and also provide
coaching and support services to agents on a fee basis. In addition, the company has acquired Nona Title Agency LLC (rebranded FPG Title).

The acquisitions were accounted for using the
acquisition method of accounting, which requires that the assets acquired, and liabilities assumed be recognized at their estimated fair
values as of the acquisition date.

On October 12, 2023, the Company completed its
IPO. Following the IPO, the Company acquired majority ownership of the following franchisees of the Company: Nona Legacy Powered By La
Rosa Realty, Inc. (formerly, La Rosa Realty Lake Nona Inc.) (“Lake Nona”), Horeb Kissimmee Realty, LLC (“Kissimmee”),
La Rosa Realty Premier, LLC (“Premier”), and La Rosa Realty Orlando, LLC (“Orlando”), and 100% ownership of the
following franchisees of the Company: La Rosa CW Properties, LLC (“CW Properties”) and La Rosa Realty North Florida LLC (“North
Florida”). All six franchises engage mostly in the residential real estate brokerage services to the public primarily through sales
agents and also provide coaching and support services to agents on a fee basis.

The acquisitions were accounted for using the
acquisition method of accounting, which requires that the assets acquired, and liabilities assumed be recognized at their estimated fair
values as of the acquisition date.

The following table summarizes the purchase consideration
and the purchase price allocation to the estimated fair values of the identifiable assets acquired and liabilities assumed for the eight