Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 347

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 347
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 $231 thousand, investor relation and related of $357 thousand.

Additionally, as part of total
operating cost the Company recognized impairment of goodwill for $787 thousand due to triggering conditions as described in Note 4 –
Goodwill and Intangible Assets, triggering events were noted on October 1, 2024 with the most significant event share price performance.
We further evaluated triggering events through December 31, 2024 and determined no further impairment was necessary.

Stock-based compensation

We incurred stock-based compensation
of $4.7 million in 2024 based upon restricted stock units granted to agents and employees, ($1.0 million), consultants who provided various
services to the company ($1.4 million), and an option grant to our CEO pursuant to the terms of his employment agreement ($2.3 million).
During 2023, we incurred stock-based compensation of $5.1 million in 2023 based upon restricted stock units granted to agents and employees,
most of which was part of the IPO ($1.998 million), consultants who provided various services to the company ($1.286 million), option
awards to non-management directors ($421 thousand), and an option grant to our CEO pursuant to the terms of his employment agreement ($1.395
million).

47

Other Income (Expense), Net

Other expense, net for
the year ended December 31, 2024 was $3.15 million compared to other expense, net of $0.7 million for the comparable prior year. The
2024 expense was mostly due to a $1.47 million change in the fair value of derivative liabilities, $0.7 million loss on extinguishment
of debt and $0.4 million for the amortization of discount on debt instruments. The 2023 expense was due to costs related to the
amortization of financing fees on convertible debt instruments with embedded equity elements issued in the fourth quarter of fiscal
year 2022 along with interest expense associated with the existing debt issuances in 2022, partially offset by a decrease in the
revaluation of the derivative liabilities and the IRS employee retention credit received for prior tax years, net of legal costs to
obtain the credit.

Liquidity and Capital Resources

On December 31, 2024 and 2023
we had cash of $1.4 million and $0.96 million, respectively, on hand.

In February 2024, we entered
into securities purchase agreement with an accredited investor for