Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 1748

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 5
Chunk 1748
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57,142 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.

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 31, 2022.

Prior to 2023, a relative of the Company’s
CEO provided an interest free, due on demand, advance to the Company. The outstanding balance was $48,000 as of December 31, 2022.

Prior to 2023, an entity owned by the Company’s
CEO provided an interest free, due on demand, advance to the Company. The outstanding balance was $40,654 as of December 31, 2022.

The Company repaid the outstanding balances on
all of the above listed advances totaling $149,245 at the closing of the Company’s IPO on October 12, 2023.

Due
to related party (term loans)

In March 2023, the Company exchanged, in a private
placement under Sections 3(a)(9) and 4(a)(2) of the Securities Act, the six unsecured subordinated promissory notes, the ELP Note, and
the Convertible OID Promissory Note representing an aggregate amount of principal and accrued interest of $1,324,631, for 1,321 shares
of the Company’s series A preferred stock. Upon the Company’s IPO, the shares were converted into 377,428 shares of the Company’s
Common Stock. See Note 8 – Stockholders’ Equity for additional