Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 2143

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 2143
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 member of the Board. There is a written lease,
which includes minimum monthly rent of $4,593, with a term ending in June 2025. In addition, the Company rents various office spaces and
has acquired leases as part of it’s acquisition strategy.

Lease costs for the years ended December 31, 2024
and 2023 was $905,825 and $311,722, respectively, and included in general and administrative expenses in the consolidated statements of
operations.

Supplemental cash flow information related to leases is as follows:

    December 31, 

    2024  
    2023 
  
    Cash paid for amounts included in the measurement of lease liabilities 
    $665,416  
    $94,655 
  
    Right-of-use assets obtained in exchange for lease liabilities 
    $883,652  
    $267,914 

During the year ended December 31, 2024, the
Company acquired seven franchisees and affiliates, of which five had remaining lease terms beyond twelve months, resulting in an increase of
$417,228 in right-of-use assets and an increase in lease liabilities of $425,494. During the year ended December 31, 2023, the
Company acquired six franchisees, of which four had remaining lease terms beyond twelve months, resulting in an increase of $644,498
in right-of-use assets and an increase in lease liabilities of $661,165.

F-20

Supplemental balance sheet information related to leases is as follows:

    December 31,  
    December 31, 

    2024  
    2023 
  
    Assets: 

    Right-of-use assets 
    $997,715  
    $687,570 
  
    Liabilities: 

    Lease liability, current 
     473,733  
     340,566 
  
    Lease liability, noncurrent 
     545,759  
     363,029 

    $1,019,492  
    $703,595 

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%.

Future maturities on lease liabilities as of December 31, 2024, are
as follows:

    December 31,