Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 227

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 227
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 an employment agreement with Ms. Deana La Rosa, a spouse of Mr. Joseph La Rosa. Pursuant to the employment agreement, the
Company pays to Mrs. La Rosa an annual base salary of $250,000. Following the end of each calendar year beginning with the 2024 calendar
year, Mrs. La Rosa shall be eligible to receive an annual performance bonus targeted of up to 50% of her base salary, based on periodic
assessments of her performance and upon approval of the Compensation Committee of the Board. The Company also issued to Mrs. La Rosa a
non-qualified stock option to purchase 300,000 shares of Common Sstock for $1.7332 per share (the closing price of the Company’s
Common Stock on January 31, 2024) pursuant to the Company’s equity incentive plan.

On August 21, 2024, the
Company consummated its acquisition of 100% of the membership interests of Nona Title Agency LLC, a Florida limited liability company
(“Nona Title”), and an affiliate of Mr. Joseph La Rosa. In that transaction, Mr. La Rosa sold 49% of the membership interests
of Nona Title to the Company for a cash payment in the amount of $161,403.80 and issuance of 153,718 unregistered shares of the Company’s
Common Stock.

Due from related party

La Rosa Realty, LLC has provided interest-free,
due on demand advances to La Rosa Insurance LLC, a company controlled by the Company’s CEO. The outstanding balance was $41,558
as of December 31, 2022. As a newly publicly traded company, the Company must comply with the Sarbanes-Oxley Act of 2002 and specifically
Section 402, which amended the Securities Exchange Act of 1934 to prohibit companies from making most personal loans to their directors
and executive officers. During the fourth quarter of 2023, upon the Company completing its IPO, the Compensation Committee reviewed the
advance, which had a balance of $45,413, and determined that the existing related party receivable would be charged as part of the Company’s
CEO’s annual bonus as specified in his employment agreement.

80

Due to related party (due on demand advances)

Prior to 2023, the Company’s CEO provided
interest free, due on demand, advances to the Company for general operations. The outstanding balance of these obligations was $75,591
as of December