Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 151

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 151
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ends the effective date of Update 2024-03 to clarify
that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and
interim periods within annual reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact that
the adoption of this new standard will have on its consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09,
Income Taxes (Topic 740)-Improvements to Income Tax Disclosures. This update aims to enhance the transparency and usefulness of
income tax disclosures for investors. The ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation
and income taxes paid. Public business entities (PBEs) will be required to disclose a detailed effective tax rate reconciliation, while
private companies may choose to present a qualitative disclosure instead of a quantitative reconciliation. The ASU introduces requirements
for all entities to disclose income taxes paid to individual jurisdictions exceeding a specified threshold and updates disclosures about
unrecognized tax benefits (UTB) and undistributed earnings by federal, state, and foreign jurisdictions. The guidance will be applied
on a prospective basis with the option to apply the standard retrospectively. For public business entities, the amendments in this Update
are effective for annual periods beginning after December 15, 2024. The Company plans to adopt this standard prospectively.

Note
2 — Business Combinations

The Company completed a number of acquisitions
during the nine months ended September 30, 2024 and plans to acquire additional businesses in the future. The results of businesses acquired
in a business combination are included in the Company’s condensed consolidated financial statements from the date of acquisition.
The Company allocates the purchase price, which is the sum of the consideration provided and may consist of cash, equity, or a combination
of the two, to the identifiable assets and liabilities of the acquired business at their acquisition date fair values. The excess of the
purchase price over the amount allocated to the identifiable assets and liabilities, if any, is recorded as goodwill. Determining the
fair value of assets acquired and liabilities assumed requires management to use significant judgment and estimates, including the selection
of valuation methodologies, estimates of future revenue and cash flows, discount rates, and selection of comparable companies. 

10

La
Rosa Holdings Corp. and Subsidiaries

Notes
to the Unaudited Condensed Consolidated Financial Statements

To