Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 1524

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 1524
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 respectively.

The Company applies the FASB’s provisions
for uncertain tax positions. The Company utilizes the two-step process to determine the amount of recognized tax benefit. For tax positions
meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that
has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company recognizes interest
and penalties associated with uncertain tax positions as a component of income tax expense.

As of December 31, 2024, management does not believe
the Company has any material uncertain tax positions that would require it to measure and reflect the potential lack of sustainability
of a position on audit in its financial statements. The Company will continue to evaluate its uncertain tax positions in future periods
to determine if measurement and recognition in its financial statements is necessary. The Company does not believe there will be any material
changes in its unrecognized tax positions over the next year. 

Note 12 — Segments

ASC 280, “Segment Reporting” establishes
standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure
as well as information about services categories, business segments and major customers in financial statements. In accordance with the
“Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief
Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire
Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected
segment information quarterly and annually regarding significant and material aspects regarding revenue, related cost of revenue and general
and administrative expense. All material operating sub-units qualify for aggregation under “Segment Reporting” due to their
similar customer base and similarities in economic characteristics and nature of services.

F-34

The Company has determined that the assets of the
reporting segments, which consist primarily of cash, accounts receivable and intangible assets, do not provide operationally significant
information due to the service nature of the business segments.

The Company’s business is organized into six
material reportable segments which aggregate 100% of revenue:

    1)
    Real Estate Brokerage Services (Residential)

    2)
    Franchising Services

    3)
    Coaching Services

    4)
    Property Management

    5)
    Real Estate Brokerage Services (Commercial)

    6)
    Title Settlement and Insurance

The