Company: LRHC
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001213900-25-078012
Chunk: 36

Company: La Rosa Holdings Corp.
Filing Date: 2025-08-18
Form: 10-Q
Item: Item 1
Chunk 36
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 term.

The Company leases its corporate office from
an entity controlled by the Company’s CEO. In addition, some of the entities acquired lease their offices from their former owners,
who now hold a minority interest in those entities.

During January 2025, the Company entered into
a new lease for office space in Orlando, FL. The Orlando lease requires monthly payments of $5,170. The Orlando lease is initially for
a five-year term, with no written option for renewal.

Lease costs for the three-month periods ended
June 30, 2025 and 2024 were $269,910 and $212,955, respectively, and lease costs for the six-month periods ended June 30, 2025 and 2024
were $480,018 and $420,870, respectively. Lease costs are included in general and administrative expenses in the condensed consolidated
statements of operations.

Supplemental cash flow information related to leases is as follows:

    Six Months Ended 

    June 30, 

    2025  
    2024 
  
    Cash paid for amounts included in the measurement of lease liabilities 
     356,355  
     249,176 
  
    Right-of-use assets obtained in exchange for lease liabilities 
     392,208  
     609,049 

Supplemental balance sheet information related to leases is as follows:

    June 30,  
    December 31, 

    2025  
    2024 
  
    Assets: 

    Right-of-use assets 
    $1,082,948  
    $997,715 

    Liabilities: 

    Lease liability, current 
    $407,905  
    $473,733 
  
    Lease liability, noncurrent 
     711,687  
     545,759 

    $1,119,592  
    $1,019,492 

The Company’s leases do not provide a readily
determinable implicit discount rate. The Company estimates its incremental borrowing rate as the discount rate based on the information
available at lease commencement. The weighted average discount rate is 10.77%.

17

La Rosa Holdings Corp. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements

Future maturities on lease liabilities as of June 30, 2025, are as
follows:

    June 30,