Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 3720

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 3720
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639) 
     (1,043,064)

    Right of use assets 
     (252,920) 
     (174,299)
  
    Lease liability 
     258,441  
     178,362 
  
    Goodwill 
     51,036  
     — 
  
    Allowance for credit losses 
     33,356  
     5,374 
  
    Charitable contributions 
     14,126  
     7,528 
  
    Deferred tax assets, before valuation allowance 
     4,582,120  
     1,577,303 
  
    Valuation allowances 
     (4,582,120) 
     (1,577,303)
  
    Deferred tax assets, net of valuation allowance 
    $0  
    $0 

A reconciliation of the beginning and ending amount of deferred
income tax valuation allowance were as follows:

    December 31, 

    2024  
    2023 
  
    Beginning balance of deferred income tax valuation allowance 
    $(1,577,303) 
    $(688,442)
  
    Increase in valuation allowance 
     (3,119,392) 
     (1,931,925)
  
    Decrease in valuation allowance – purchase accounting 
     114,575  
     1,043,064 
  
    Ending balance of deferred income tax valuation allowance 
    $(4,582,120) 
     (1,577,303)

As of December 31, 2024, the Company has federal
net operating loss carryforwards of approximately $12.0 million and state net operating loss carryforwards of approximately $12.9 million
which can be carried forward indefinitely. As of December 31, 2023, the Company had federal net operating loss carryforwards of approximately
$5.1 million and state net operating loss carryforwards of approximately $5.3 million. Deferred tax assets for net operating loss carryforwards
are fully offset by a valuation allowance.

We have taken current and potential future expirations
into consideration when evaluating the need for valuation allowances against these deferred tax assets. A valuation allowance for deferred
tax assets is provided when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Realization
is dependent upon the generation of future taxable income or the reversal of