Company: LRHC
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001213900-25-048370
Chunk: 11

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 1
Chunk 11
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. When the fair value option is elected for an instrument, unrealized gains and losses for such instrument are reported
in earnings at each subsequent reporting date. Upfront costs and fees related to items for which the fair value option is elected
shall be recognized in earnings as incurred and not deferred. The Company also elected to measure the incremental warrants included in
the transaction under ASC 825.

Recently Adopted Accounting Standards

In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU, No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities,
including those with a single reportable segment, to: (i) provide disclosures of significant segment expenses and other segment items
if they are regularly provided to the chief operating decision maker, or the CODM, and included in each reported measure of segment profit
or loss; (ii) provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by Accounting
Standards Codification 280, Segment Reporting, in interim periods; and (iii) disclose the CODM’s title and position, as well as
an explanation of how the CODM uses the reported measures and other disclosures. ASU No. 2023-07 does not change how a public entity identifies
its operating segments, aggregates those operating segments or applies the quantitative thresholds to determine its reportable segments.
The Company adopted ASU No. 2023-07 effective December 31, 2024.

Recently Issued Accounting Standards Not Yet
Adopted 

 In
May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting
Acquirer in the Acquisition of a Variable Interest Entity. The amendments in this Update require an entity involved in an acquisition
transaction effected primarily by exchanging equity interests when the legal acquiree is a VIE that meets the definition of a business
to consider the factors in paragraphs 805-10-55-12 through 55-15 to determine which entity is the accounting acquirer. The amendments
in this Update are effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods
within those annual reporting periods. The Company is currently evaluating the impact that the adoption of this new standard will have
on its consolidated financial statements. A Variable