Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 380

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 380
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). The Company has elected to treat awards with only service conditions
and with graded vesting as one award. Consequently, the total compensation expense is recognized straight-line over the entire vesting
period, so long as the compensation cost recognized at any date at least equals the portion of the grant date fair value of the award
that is vested at that date. The Company recognizes forfeitures as they occur.

See Note 9 — Equity Incentive Plan for additional
information.

Recently Adopted Accounting Standards

In November 2023, the Financial Accounting Standards
Board, or FASB, issued Accounting Standards Update, or ASU, No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment
Disclosures, which requires public entities, including those with a single reportable segment, to: (i) provide disclosures of significant
segment expenses and other segment items if they are regularly provided to the chief operating decision maker, or the CODM, and included
in each reported measure of segment profit or loss; (ii) provide all annual disclosures about a reportable segment’s profit or loss
and assets currently required by Accounting Standards Codification 280, Segment Reporting, in interim periods; and (iii) disclose the
CODM’s title and position, as well as an explanation of how the CODM uses the reported measures and other disclosures. ASU No. 2023-07
does not change how a public entity identifies its operating segments, aggregates those operating segments or applies the quantitative
thresholds to determine its reportable segments. We adopted ASU No. 2023-07 effective December 31, 2024. As a result we have included
additional information related to the required disclosures within Note 12 to our consolidated financial statements.

F-14

In October 2023, the FASB issued ASU 2023-06,
Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative, which
incorporates certain SEC disclosure requirements into the FASB Accounting Standards Codification (“Codification”). The
amendments are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics, allow users
to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to
the requirements, and align the requirements in the Codification with the SEC’s regulations. ASU 2023-06 will become effective for
each amendment on the