Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 124

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 124
---
 value due to their short-term maturities.

The Company determined that during the years ended
December 31, 2024 and 2023 certain instruments qualified as derivative liabilities and are recorded at fair value on the date of issuance
and re-measured at fair value each reporting period with the change reported in earnings. The fair value of these instruments was computed
using the Black Scholes model, incorporating transaction details such as the assumed price of the Company’s Common Stock at an initial
public offering, contractual terms, maturity and risk-free rates, as well as assumptions about future financings, volatility, and holder
behavior.

A summary of the Company’s liabilities
measured at fair value on a recurring basis is as follows:

    As of December 31, 2024  
    As of December 31, 2023 

    Level 1  
    Level 2  
    Level 3  
    Total  
    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Liabilities 

    Derivative liabilities 
    $-  
    $-  
    $1,607,544  
    $1,607,544  
    $-  
    $-  
    $-  
    $- 

The following table provides a summary of changes
in fair value associated with the Level 3 liabilities for the years ended December 31, 2024 and 2023:

    2024  
    2023 
  
    Beginning Balance – January 1, 
    $-  
    $1,022,879 
  
    Issuance of derivative liability 
     269,038  
     7,500 
  
    Cash paid to settle derivative liability 
     -  
     (7,500)
  
    Issuance of common stock related to the derivative liability 
     -  
     (450,000)
  
    Extinguishment of derivative liability 
     -  
     (433,894)
  
    Change in fair market value 
     1,338,506  
     (138,985)
  
    Balance – December 31, 
    $1,607,544  
    $- 

F-16

Note 3 — Business Combinations

During 2024, the Company acquired majority ownership of the following
franchisees and affiliates