Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 207

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 207
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, or award by a cash payment upon exercise, or in the discretion of the Compensation Committee,
by authorizing our Company to withhold a portion of the stock otherwise issuable to the participant, by delivering already-owned shares
of our Common Stock or by a combination of these means.

Federal Tax Consequences.
The following is a summary of the principal United States federal income tax consequences to the recipient and our Company with respect
to participation in the 2022 Plan. This summary is not intended to be exhaustive and does not discuss the income tax laws of any city,
state, or foreign jurisdiction in which a participant may reside.

Incentive Stock Options.
There will be no federal income tax consequences to either the recipient upon the grant of an incentive stock option or us. Upon exercise
of the option, the excess of the stock’s fair market value over the exercise price, or the “spread,” will be added to
the alternative minimum tax base of the recipient unless a disqualifying disposition is made in the year of exercise. A disqualifying
disposition is the stock sale before the expiration of two years from the date of grant and one year from the date of exercise. If the
shares of Common Stock are disposed of in a disqualifying disposition, the recipient will realize taxable ordinary income in an amount
equal to the spread at the time of exercise, and will be entitled (subject to the requirement of reasonableness, the provisions of Section
162(m) of the Code and the satisfaction of a tax reporting obligation) to a federal income tax deduction equal to such amount. If the
recipient sells the shares of Common Stock after the specified periods, the gain or loss on the shares’ sale will be long-term capital
gain or loss and will not be entitled to a federal income tax deduction.

Non-statutory Stock Options
and Restricted Stock Awards. Non-statutory stock options and restricted stock awards granted under the 2022 Plan generally have the
following federal income tax consequences.

There
are no tax consequences to the participant or us because of the grant. Upon acquiring the stock, the recipient will recognize taxable
ordinary income equal to the excess, if any, of the stock’s fair market value on the acquisition date over the purchase price. However,
to the extent the stock is subject to “a substantial risk of forfeiture” (as defined in Section 83 of the Internal Revenue
Code of 1986 (the “Code”)), the taxable event will be delayed until the forfeiture provision lapses unless the recipient elect