Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 112

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 112
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 acquisition through the end of the reporting period.

A noncontrolling interest in a consolidated subsidiary
represents the portion of the equity in a subsidiary not attributable, directly or indirectly, to the Company. Noncontrolling interests
are presented as a separate component of equity in the consolidated balance sheets and the presentation of net income is modified to present
earnings attributed to controlling and noncontrolling interests.

On April 17, 2023, the Company effected a 2-for-1
forward stock split of the Company’s Common Stock issued and outstanding (including adjustments for fractional shares). As a result,
all share information in the accompanying consolidated financial statements has been adjusted as if the reverse stock split and the forward
stock split happened on the earliest date presented.

Use of Estimates

The preparation of financial statements in conformity
with GAAP requires management to make certain judgments, estimates, and assumptions that affect the reported amounts of assets, liabilities,
revenues, and expenses and related disclosures in the accompanying notes. The Company’s significant estimates relate to revenue
recognition, business combinations, asset impairments, stock-based compensation, and income taxes.

These estimates are based on management’s
best estimates and judgment. Actual results may differ from these estimates. Estimates, judgments, and assumptions are continuously evaluated
and are based on management’s experience and other factors, including expectations of future events that are believed to be reasonable
under the circumstances. Uncertainty about these assumptions, judgments, and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected in future periods.

F-9

Cash and Restricted Cash

Cash includes cash in banks, cash on hand, and
sweep deposits.

Restricted cash consists of cash held by the Company
for certain security deposits and rent collected by the Company as part of its property management business, which will be due to owners
or tenants in the future. The Company recognizes a corresponding deposit liability until the funds are released. The Company reduces a
deposit liability when the associated restricted cash is transferred from escrow.

Accounts Receivable and Allowance for Credit
Losses

The Company’s trade accounts receivable
consist of balances due from agents, tenants, franchisees, and commissions for closings and are presented on the consolidated balance
sheet net of the allowance for credit losses. The allowance is determined by a number of factors, including age of the receivable, current
economic conditions, historical losses, and management’s assessment of the financial condition of the debtor. Receiv