Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 1918

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 1918
---

    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 of the Company: La Rosa Realty Winter Garden LLC, Las Rosa Realty Georgia LLC, La Rosa Realty California, La
Rosa Realty Lakeland LLC, La Rosa Realty Success LLC, BF Prime LLC, and La Rosa Realty Beaches LLC & La Rosa Realty Baxpi. All six
franchises engage mostly in the residential real estate brokerage services to the public primarily through sales agents and also provide
coaching and support services to agents on a fee basis. In addition, the company has acquired Nona Title Agency LLC (rebranded FPG Title).

The acquisitions were accounted for using the
acquisition method of accounting, which requires that the assets acquired, and liabilities assumed be recognized at their estimated fair
values as of the acquisition date.

On October 12, 2023, the Company completed its
IPO. Following the IPO, the Company acquired majority ownership of the following franchisees of the Company: Nona Legacy Powered By La
Rosa Realty, Inc