Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 2121

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 2121
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 is or contains a lease at contract
inception. Right-of-use assets and lease liabilities, which are disclosed on the consolidated balance sheets, are recognized at the commencement
date of the lease based on the present value of the lease payments over the lease term using the Company’s incremental borrowing
rate on the lease commencement date. Lease expense is recognized on a straight-line basis over the term of the lease. Short-term leases,
defined as leases with an initial term of twelve months or less, are not recorded on the consolidated balance sheets.

Property and Equipment, Net

Property and equipment, net is stated at cost
less accumulated depreciation and accumulated impairment, if any. Cost of maintenance and repairs that do not improve or extend the lives
of the respective assets are expensed as incurred. Depreciation is calculated on a straight-line basis over the estimated useful lives
of the assets, as follows:

  Computer Equipment   3 years   Furniture and fixtures   7 years  

F-10

Long-lived Assets Including Acquired Intangible
Assets

Long-lived assets are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. The
carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the future undiscounted cash flows expected to result
from the use and eventual disposition of the asset. If the asset is not recoverable, its carrying amount would be adjusted down to its
fair value. There have not been any impairments of long-lived assets for the years ended December 31, 2024 and 2023.

Intangible assets are stated at cost less accumulated
amortization and accumulated impairment, if any. Amortization is calculated on a straight-line basis over the estimated useful lives of
the definite-lived intangible assets, as follows:

    Useful Life 
  
    Franchise agreement 
    10 to 11 years 
  
    Agent relationships 
    8 to 11 years 
  
    Real estate listings 
    1 year 
  
    Non-compete agreements 
    4 years 

Business Combinations

The Company completed a number of acquisitions
during 2024 and 2023 and will acquire additional businesses in the future. The results of businesses acquired in a business combination
are included in the Company’s consolidated financial statements from the date of acquisition. The Company allocates the purchase
price, which is the sum of the consideration provided and