Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 174

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 174
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038)
  
    Present value of lease obligations 
     1,140,368 
  
    Less: current portion 
     (514,731)
  
    Long-term portion of lease obligations 
    $625,637 

There
were no leases with residual value guarantees.

Legal
Proceedings

From
time to time the Company is involved in litigation, claims, and other proceedings arising in the ordinary course of business. Such litigation
and other proceedings may include, but are not limited to, actions relating to employment law and misclassification, intellectual property,
commercial or contractual claims, brokerage or real estate disputes, or other consumer protection statutes, ordinary-course brokerage
disputes like the failure to disclose property defects, commission disputes, and vicarious liability based upon conduct of individuals
or entities outside of the Company’s control, including agents and third-party contractor agents. Litigation and other disputes
are inherently unpredictable and subject to substantial uncertainties and unfavorable resolutions could occur.

On February 13, 2023, Mr. Mark Gracy, who served
as our Chief Operating Officer from November 18, 2021 to November 15, 2022, filed a civil lawsuit in the Circuit Court of Osceola County,
Florida, seeking a jury trial and claiming that the Company breached his employment agreement by reducing his salary and failing to pay
him his full severance payments and is looking for payment of his alleged severance of $249,000. On April 11, 2023, Company filed a motion
to dismiss. Original mediation was scheduled for August 25, 2025 with a second mediation set for December 1, 2025. There have been no
other changes as the attorneys work on discovery and negotiations with Plaintiff’s counsel. The Company denies the merits of the
claims and intends on vigorously defending the litigation.

On January 3, 2024, Ms. Sarah Palmer filed a putative
national class action complaint against La Rosa Realty, LLC in the United States District Court, Middle District of Florida, Orlando Division.
Ms. Palmer alleges that she received two (2) brief pre-recorded calls one week apart to her cell phone from La Rosa Realty, LLC presenting
her an employment opportunity as a real estate agent. Ms. Palmer seeks an undisclosed amount of monetary damages from La Rosa Realty,
LLC for the alleged would-be injurious, isolated and opportunistic employment gestures to her through a purported nationwide class action.
Ms. Palmer claims that the defendant violated her privacy,