Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 169

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 169
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coasteam Realty LLC, Greg Boland, Silvia Beltran Martinez
LLC, Silvia Beltran, and Nona Legacy Powered by La Rosa Realty, Inc., our subsidiary. The plaintiff alleged negligent misrepresentation
in a real estate transaction. The case was settled by the parties on February 4, 2024, for immaterial amount without admission of any
liability on the part of Nona Legacy Powered by La Rosa Realty, Inc. This case is now closed.

The Company believes that the above claims are
without merit, and it will vigorously defend against such claims. Moreover, these claims, in the aggregate, would not have a material
adverse effect on the Company’s financial condition, business, or results of operations, should the Company’s defense not
be successful in whole or in part. Except as stated herein, there is no other action, suit, proceeding, inquiry or investigation before
or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of our executive officers,
threatened against or affecting our Company or our officers or directors in their capacities as such.

F-37

Note 14 — Related Party Transactions

The Company leases its corporate office from an entity controlled by
the Company’s CEO. The rent expense for the years ending December 31, 2024 and 2023 were $142,602 and $134,505, respectively. There
is no written agreement, and the rent is determined on a month-to-month basis. There are no future minimum rental payments, and the lease
may be cancelled at any time by either party.

On July 1, 2023, the Company began leasing office
space for its subsidiary, La Rosa Realty, from an entity owned by Joseph La Rosa, the Company’s CEO, and Michael La Rosa, the Company’s
member of the Board. There is a written lease, which includes minimum monthly rent of $4,593, with a term ending in June 2025.

On May 4, 2023, the mother of the Company’s
CEO purchased 200 shares of the Company’s series A preferred stock for $200,000. Upon the Company’s IPO, the shares were converted
into 57,142 shares of the Company’s Common Stock.

Due from related party

La Rosa Realty, LLC has provided interest-free,
due on demand advances to La Rosa Insurance LLC, a company controlled by the Company’s CEO. The outstanding balance was $