Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 1254

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 1254
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and do not include any adjustments that might result from the outcome of any uncertainties related to the Company’s going concern
assessment. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent
realizable or settlement values. The consolidated financial statements include the financial statements of the Company, all entities that
are wholly-owned by the Company, and all entities in which the Company has a controlling financial interest. All intercompany transactions
and balances have been eliminated. Business combinations consummated during a reporting period are reflected in the Company’s results
effective from the date of 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