Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 1588

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 1588
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 Company’s
CEO’s annual bonus as specified in his employment agreement.

80

Due to related party (due on demand advances)

Prior to 2023, the Company’s CEO provided
interest free, due on demand, advances to the Company for general operations. The outstanding balance of these obligations was $75,591
as of December 31, 2022.

Prior to 2023, a relative of the Company’s
CEO provided an interest free, due on demand, advance to the Company. The outstanding balance was $48,000 as of December 31, 2022.

Prior to 2023, an entity owned by the Company’s
CEO provided an interest free, due on demand, advance to the Company. The outstanding balance was $40,654 as of December 31, 2022.

The Company repaid the outstanding balances on
all of the above listed advances totaling $149,245 at the closing of the Company’s IPO on October 12, 2023.

Due to related party (term loans)

In March 2023, the Company exchanged, in a private
placement under Sections 3(a)(9) and 4(a)(2) of the Securities Act, the six unsecured subordinated promissory notes, the ELP Note, and
the Convertible OID Promissory Note representing an aggregate amount of principal and accrued interest of $1,324,631, for 1,321 shares
of the Company’s series A preferred stock. Upon the Company’s IPO, the shares were converted into 377,428 shares of the Company’s
Common Stock. See Note 8 – Stockholders’ Equity for additional information.

Certain companies owned by
Mr. La Rosa have from time-to-time loaned money to one or more of the Company’s subsidiaries, affiliates or franchisees with balances
that, in the aggregate, were less than $120,000 or 1% of the Company’s average of total assets at December 31, 2024 and 2023.

Independence of the Board of Directors

Our Board of Directors has
determined that a majority of the members of our Board of Directors, including Lourdes Felix, Siamack Alavi, and Ned Siegel, are “independent”
as that term is defined under applicable SEC rules and regulations.

In addition, each of the members
of each of the Audit Committee, the Compensation Committee and the Nominating and Corporate Governance Committee are independent, as determined
in