Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 383

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 383
---
 ASU is effective for all entities for annual reporting periods beginning after December 15, 2025, and
interim reporting periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the
potential impact of this guidance on its disclosures.

In December 2023, the FASB issued ASU 2023-09,
Income Taxes (Topic 740): Improvements to Income Tax Disclosures amending existing income tax disclosure guidance, primarily requiring
more detailed disclosure for income taxes paid and the effective tax rate reconciliation. The ASU is effective for annual reporting periods
beginning after December 15, 2024, with early adoption permitted and can be applied on either a prospective or retroactive basis. We are
currently evaluating the impact ASU 2023-09 will have on our consolidated financial statements.

Note 2 — Fair Value Measurements

Fair value is the price that would be received
for an asset or the amount paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The Company follows ASC 820, Fair Value Measurement, for financial assets and liabilities measured at fair value on a recurring
basis. The Company uses the fair value hierarchy to categorize the financial instruments measured at fair value based on the available
inputs to the valuation and the degree to which they are observable or not observable in the market.

The three levels of the fair value hierarchy are
as follows:

    ●
    Level
    1 – Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted
    assets or liabilities;

    ●
    Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; and

    ●
    Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

A financial instrument’s level within the
fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company has evaluated
the estimated fair value of financial instruments using available market information and valuations as provided by third-party sources.
The use of different market assumptions or estimation methodologies could have a significant effect on the estimated fair value amounts.

The carrying amounts of financial instruments,
including cash, accounts receivable, accounts payable, and accrued expenses reflected in the consolidated financial statements approximate
fair