Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 1915

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 1915
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 not have a material impact on the Company’s
consolidated financial statements.

In August 2020, the FASB issued ASU 2020-06 that,
among other updates, simplifies the guidance in ASC 815-40, Derivatives and Hedging: Contracts in Entity’s Own Equity, by
removing certain criteria that must be satisfied in order to classify a contract as equity. The ASU is effective for smaller reporting
companies for fiscal years beginning after December 15, 2023 and early adoption is permitted, but no earlier than fiscal years beginning
after December 15, 2020. The Company adopted the standard beginning in fiscal year 2023. The adoption did not have a material impact on
the Company’s consolidated financial statements.

In March 2022, the FASB issued ASU 2022-02, Financial
Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, addressing areas identified by the FASB
as part of its post-implementation review of its previously issued credit losses standard (ASU 2016-13) that introduced the current expected
credit losses (CECL) model. ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings by creditors that have
adopted the CECL model and enhances disclosure requirements for certain loan refinancings and restructurings made with borrowers experiencing
financial difficulty. This update requires an entity to disclose current-period gross write-offs for financing receivables and net investment
in leases by year of origination in the vintage disclosures. As the Company has already adopted ASU 2016-13, the new guidance was adopted
on January 1, 2023. The adoption of ASU 2022-02 did not have a material impact on the Company’s consolidated financial statements.

In June 2022, the FASB issued ASU 2022-03, Fair
Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which clarifies
that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security
and, therefore, is not considered in measuring fair value. This update also clarifies that an entity cannot, as a separate unit of account,
recognize and measure a contractual sale restriction and requires certain disclosures for equity securities subject to contractual sale
restrictions. ASU