Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 419

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 419
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ired or forfeited 
     —  
     — 
  
    Balance — December 31, 2023 
     1,392,125  
    $2.02 
  
    Granted 
     3,133,185  
     1.36 
  
    Expired or forfeited 
     (618,570) 
     1.78 
  
    Balance — December 31, 2024 
     3,906,740  
    $1.56 

F-31

The weighted average fair value and the assumptions
used in calculating the stock options granted during fiscal year 2024 and 2023 were based on estimates at the date of grant as follows:

     December 31,   December 31,      2024   2023   Weighted average fair value  $1.04   $1.36   Dividend yield   —    —   Expected volatility factor   68.5%   67.2%  Risk-free interest rate   4.1%   4.3%  Expected life (in years)   9.6    9.0  

For the years ended December 31, 2024 and 2023,
the Company recorded stock-based compensation for employees awards of $3.292 million and $3.814 million, respectively. The Company did not
realize any tax benefits associated with share-based compensation for these periods, as the Company recorded a valuation allowance on
all deferred tax assets.

As of December 31, 2024, unrecognized compensation
expense related to stock option awards totaled $92,892. As of December 31, 2023, there was no unrecognized compensation expense related
to stock option awards.

Restricted Stock Units (RSUs)

During July 2022, the Company made agreements
with 89 real estate agents and employees, who provide services to the Company, that they would be issued RSUs under the 2022 Plan covering
$1,959,860 of value, when the Company’s Common Stock began trading on the Nasdaq stock exchange. The Company’s stock started
trading on October 10, 2023, and the RSUs vested immediately upon issuance, which covered 391,972 common shares. To cover employees’
payroll withholding tax liability, the Company netted 35,466 shares