Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 1913

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 1913
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 to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant
information. Derecognition of a tax position that was previously recognized would occur when the Company subsequently determines that
a tax position no longer meets the more likely-than-not threshold of being sustained.

The Company recognizes accrued interest and penalties
related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest
and penalties as of December 31, 2024 and 2023. The Company is currently not aware of any issues under review that could result in significant
payments, accruals or material deviation from its position.

The United States is the Company’s only
tax jurisdiction.

Stock Based Compensation

The Company issues stock-based awards to employees,
directors, and non-employees that are generally in the form of stock options, restricted shares, or restricted stock units (“RSUs”).
Compensation cost for equity awards is measured at their grant-date fair value, and in the case of restricted shares and RSUs, fair value
is determined based on the price of the Company’s underlying Common Stock. The grant date fair value of stock options is estimated
using the Black-Scholes option pricing model. The Black-Scholes model requires the use of a number of assumptions including volatility
of the stock price, the average risk-free interest rate, and the weighted average expected life of the stock options.

The expense for awards is recognized over the
requisite service period (generally the vesting period of the award). The Company has elected to treat awards with only service conditions
and with graded vesting as one award. Consequently, the total compensation expense is recognized straight-line over the entire vesting
period, so long as the compensation cost recognized at any date at least equals the portion of the grant date fair value of the award
that is vested at that date. The Company recognizes forfeitures as they occur.

See Note 9 — Equity Incentive Plan for additional
information.

Recently Adopted Accounting Standards

In November 2023, the Financial Accounting Standards
Board, or FASB, issued Accounting Standards Update, or ASU, No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment
Disclosures, which requires public entities, including those with a single reportable segment, to: (i) provide disclosures of significant
segment expenses and other segment items if they are regularly provided to the chief operating decision maker, or the COD