Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 2555

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 2555
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 these periods, as the Company recorded a valuation allowance on
all deferred tax assets.

As of December 31, 2024, unrecognized compensation
expense related to stock option awards totaled $92,892. As of December 31, 2023, there was no unrecognized compensation expense related
to stock option awards.

Restricted Stock Units (RSUs)

During July 2022, the Company made agreements
with 89 real estate agents and employees, who provide services to the Company, that they would be issued RSUs under the 2022 Plan covering
$1,959,860 of value, when the Company’s Common Stock began trading on the Nasdaq stock exchange. The Company’s stock started
trading on October 10, 2023, and the RSUs vested immediately upon issuance, which covered 391,972 common shares. To cover employees’
payroll withholding tax liability, the Company netted 35,466 shares of Common Stock from the employee awards for a total issuance of
356,506 shares.

A restricted stock unit covering 4,000 shares
of Common Stock issued to the Company’s Chief Technology Officer (CTO) vested on February 1, 2023. In addition, the CTO will receive
a future grant of 4,000 restricted stock units on February 1, 2024, which will be issued under the 2022 Plan. The Company records
stock-based compensation expense for the new grant ratably over the one-year vesting period. The Company also valued the new award
using the assumed IPO price of $5.00 a share. For the year ended December 31, 2023, the Company recorded $38,247 of share-based compensation
expense for the CTO’s RSUs, and as of December 31, 2023, unrecognized compensation expense related to the award was $1,753, which
will be recognized in 2024. The Company did not realize any tax benefits associated with share-based compensation for the year ended
December 31, 2023, as the Company recorded a valuation allowance on all deferred tax assets.

On February 1, 2024, a Restricted Stock Unit (“RSU”)
covering 4,000 shares granted to the Company’s Chief Technology Officer (“CTO”) vested. The Company withheld 1,187 shares
to cover payroll tax withholding and issued 2,813 shares to the executive. The Company also granted a new RSU to the