Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 19

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 19
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 to disclose a detailed effective tax rate reconciliation, while
private companies may choose to present a qualitative disclosure instead of a quantitative reconciliation. The ASU introduces requirements
for all entities to disclose income taxes paid to individual jurisdictions exceeding a specified threshold and updates disclosures about
unrecognized tax benefits (UTB) and undistributed earnings by federal, state, and foreign jurisdictions. The guidance will be applied
on a prospective basis with the option to apply the standard retrospectively. For public business entities, the amendments in this Update
are effective for annual periods beginning after December 15, 2024. The Company plans to adopt this standard prospectively.

Note
2 — Business Combinations

The Company completed a number of acquisitions
during the nine months ended September 30, 2024 and plans to acquire additional businesses in the future. The results of businesses acquired
in a business combination are included in the Company’s condensed consolidated financial statements from the date of acquisition.
The Company allocates the purchase price, which is the sum of the consideration provided and may consist of cash, equity, or a combination
of the two, to the identifiable assets and liabilities of the acquired business at their acquisition date fair values. The excess of the
purchase price over the amount allocated to the identifiable assets and liabilities, if any, is recorded as goodwill. Determining the
fair value of assets acquired and liabilities assumed requires management to use significant judgment and estimates, including the selection
of valuation methodologies, estimates of future revenue and cash flows, discount rates, and selection of comparable companies. 

10

La
Rosa Holdings Corp. and Subsidiaries

Notes
to the Unaudited Condensed Consolidated Financial Statements

To
date, the assets acquired and liabilities assumed in the Company’s business combinations have primarily consisted of goodwill and
finite-lived intangible assets, consisting primarily of franchise agreements, agent relationships, real estate listings, non-compete
agreements, and right-of-use assets. The estimated fair values and useful lives of identifiable intangible assets are based on many factors,
including estimates and assumptions of future operating performance and cash flows of the acquired business, the nature of the business
acquired, and the specific characteristics of the identified intangible assets. The estimates and assumptions used to determine the fair
values and useful lives of identified intangible assets could change due to numerous factors, including market conditions, technological
developments, economic conditions and competition. In connection with the determination of fair values, the Company engages independent
appraisal firms