Company: LRHC
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001213900-25-048370
Chunk: 27

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 1
Chunk 27
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on a straight-line basis over the lease 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 expense for the three months ended
March 31, 2025 and 2024 were $210,108 and $207,915, respectively, and are included in general and administrative expenses in the condensed
consolidated statements of operations.

Supplemental cash flow information related to leases is as follows:

    Three months ended
 March 31, 

    2025  
    2024 
  
    Cash paid for amounts included in the measurement of lease liabilities 
    $174,561  
    $89,936 
  
    Right-of-use assets obtained in exchange for lease liabilities 
    $392,208  
    $384,112 

Supplemental balance sheet information related to leases is as follows:

    March 31,  
    December 31, 

    2025  
    2024 
  
    Assets: 

    Right-of-use assets 
    $1,241,409  
    $997,715 
  
    Liabilities: 

    Lease liability, current 
     456,901  
     473,733 
  
    Lease liability, noncurrent 
     811,395  
     545,759 

    $1,268,296  
    $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 10.71%.

15

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

Future maturities on lease liabilities as of March 31, 2025, are as
follows:

    March 31, 

    2025 
  
    2025– remainder of year 
    $450,408 
  
    2026