Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 1300

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 1300
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Stock options are awards issued to employees and
directors that entitle the holder to purchase Common Stock of the Company at a fixed price. Options issued prior to the Company’s
IPO on October 12, 2023 have a strike price equal to the IPO price of $5.00 per share.

On November 1, 2023, the Company issued stock
options to its non-management Board of Directors in lieu of paying the directors their cash board fees they had accrued since the initiation
of their term through September 30, 2023, which totaled $375,052. The options cover 412,125 shares of the Company’s Common Stock
at a strike price of $1.28, the closing price of the Company’s Common Stock on the previous business day from the grant date. The
options immediately vested upon grant and have a ten-year term. The Company extinguished the accrued liability recorded at September 30,
2023.

On December 7, 2023, the Company issued a non-qualified
stock option to the Company’s CEO in accordance with the CEO’s employment agreement. The option covers 900,000 shares of the
Company’s Common Stock at a strike price of $2.09, the closing price of the Company’s Common Stock on the previous business
day from the grant date. The option immediately vested upon grant and has a ten-year term.

The Company recorded stock-based compensation related
to options of $3,267,088 and $1,816,188 for the year ended December 31, 2024 and 2023, respectively. The Company did not realize any tax
benefits associated with share-based compensation for the years ended December 31, 2024 and 2023, as the Company recorded a valuation
allowance on all deferred tax assets.

At December 31, 2024, options outstanding that have vested and are
expected to vest are as follows:

             Weighted                  Average              Weighted   Remaining          Number   Average   Contractual   Aggregate      of   Exercise   Life   Intrinsic      Shares   Price   (in years)   Value   Vested   3,766,740   $1.58    9.2   $104,460   Expected to vest   140,000    1.10