v3.26.1
Equity Incentive Plan
12 Months Ended
Dec. 31, 2025
Equity Incentive Plan [Abstract]  
Equity Incentive Plan

Note 12 — Equity Incentive Plan

 

On January 10, 2022, the Company adopted the La Rosa Holdings Corp. 2022 Equity Incentive Plan (the “2022 Plan”) pursuant to which a maximum of 625 shares of Common Stock of the Company were authorized to be issued pursuant to the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units (RSUs), performance units and performance shares. Persons eligible to receive awards under the 2022 Plan include employees, consultants, and directors of the Company. The plan is administered by the Compensation Committee of the Board of Directors. On October 20, 2023, the Company filed a Form S-8 to register the securities in the 2022 Plan. As of December 31, 2025, there are 819 shares available for issuance after reserving an additional 568 shares under the plan through the end of 2025.

 

Stock Option Awards

 

Stock options are awards issued to employees and directors that entitle the holder to purchase Common Stock of the Company at a fixed price.

 

The Company recorded stock-based compensation related to options of $200,076 and $3,267,088 for the years ended December 31, 2025 and 2024, respectively. The Company did not realize any tax benefits associated with share-based compensation for the years ended December 31, 2025 and 2024, as the Company recorded a valuation allowance on all deferred tax assets.

 

At December 31, 2025, 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   503   $12,264.19    8.22   $             - 
Expected to vest   41    4,429.74    8.97    - 
Total   544   $11,673.68    8.28   $- 

Additional information with respect to stock option activity:

 

       Weighted 
   Number   Average 
   of   Exercise 
   Shares   Price 
     
Balance — December 31, 2024   490   $12,462.71 
Granted   54    5,539.30 
Balance — December 31, 2025   544   $11,673.68 

 

The weighted average fair value and the assumptions used in calculating the stock options granted during fiscal year 2025 and 2024 were based on estimates at the date of grant as follows:

 

   December 31,   December 31, 
   2025   2024 
Weighted average fair value  $

4,154.33

   $

831.45

 
Dividend yield          
Expected volatility factor   68.5%   68.5%
Risk-free interest rate   4.5%   4.1%
Expected life (in years)   9.0    9.6 

 

For the years ended December 31, 2025 and 2024, the Company recorded stock-based compensation for employees awards of $3,148,801 and $3,292,291, respectively. The Company did not realize any tax benefits associated with share-based compensation for these periods, as the Company recorded a valuation allowance on all deferred tax assets.

 

As of December 31, 2025 and 2024, unrecognized compensation expense related to stock option awards totaled $75,126 and $92,892, respectively.

 

Restricted Stock Units (RSUs)

 

A restricted stock unit covering 1 share of Common Stock issued to the Company’s Chief Technology Officer (CTO) vested on February 1, 2024. In addition, the CTO received a grant of 1 restricted stock unit on February 1, 2025, which was issued under the 2022 Plan.

 

For the years ending December 31, 2025 and 2024, the Company recorded $51,345 and $23,144, respectively, of share-based compensation expense related to the RSUs. For the years ending December 31, 2025 and 2024, unrecognized compensation expense related to the awards was $229,952.16 and $86,722, respectively.

 

The Company did not realize any tax benefits associated with share-based compensation for the years ending December 31, 2025 and 2024, as the Company recorded a valuation allowance on all deferred tax assets.