Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 14

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 14
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Reverse Stock Split”). The Reverse Stock Split reduced the number of shares of common stock of the
Company outstanding from 58,323,795 shares to 729,113 shares, when considering the rounding up to the nearest whole share adjustments.
The number of authorized shares of common stock of the Company under its Articles of Incorporation remained unchanged at 2,050,000,000
shares and the par value of the common stock remained $0.0001 per share.

As
a result of the Reverse Stock Split, all historical share and per share amounts disclosed in the unaudited condensed consolidated financial
statements have been converted to the post-split share amounts.

Accounts
Receivable and Allowance for Credit Losses

The
Company’s trade accounts receivable consist of balances due from agents, tenants, franchisees, and commissions for closings and
are presented on the consolidated balance sheets net of the allowance for credit losses. Management determines the allowance for expected
credit losses based upon historical experiences as well as current conditions that affect the collectability of the reported amount and
regularly evaluates individual customer receivables and considering financial condition, credit history, current economic conditions
and other relevant factors, in setting specific reserves for certain accounts. Receivables are written off once they are deemed uncollectible,
which may arise when the debtor is deemed unable to pay the amounts owed to the Company. The allowance for credit losses was $150,336
and $166,504 as of September 30, 2025 and December 31, 2024, respectively. Estimates of uncollectible accounts receivable are recorded
to general and administrative expense.

The activity for the allowance for credit losses
during the nine months ended September 30, 2025 and 2024 is set forth in the table below:

    Balance at  
       
    Deductions  
    Balance at 

    Beginning of  
    Charged to  
    from the  
    End of 

    Period  
    Expenses  
    Allowance  
    Period 
  
    Nine Months ended September 30, 2025 Allowance for Credit Losses 
    $166,504  
    $476,125  
    $(492,293) 
    $150,336 
  
    Nine Months ended September 30, 2024 Allowance for Credit Losses 
    $83,456  
    $83,943  
    $(1,845)