Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 1232

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 1232
---
, or at all. Until such time that we fully implement our growth strategy, we expect to continue to generate operating
losses in the foreseeable future, mostly due to corporate overhead and costs of being a public company. As such, we anticipate that our
existing working capital, including cash on hand and cash generated from operations, will not be sufficient to meet projected operating
expenses for the foreseeable future through at least twelve months from the issuance of this Annual Report on Form 10-K. We will be required
to raise additional capital to service debt issued in the first half of 2025 and
to fund ongoing operations.

During 2023, we issued 1,523
shares of series A preferred stock to 77 investors in a private placement pursuant to Regulation D under the Securities Act, raising $1,523,000.
We also exchanged convertible debt with an outstanding balance of $598,836, including accrued interest of $87,836, for 591 shares of series
A preferred stock. In March 2023, we exchanged a portion of our related party debt with an outstanding gross balance of $1,324,631, excluding
debt discount of $469,785, and including accrued interest of $28,101, for 1,321 shares of series A preferred stock. See Note 8, “Stockholders’
Equity” of the Notes to the consolidated financial statements in Part II, Item 8 of this Form 10-K for additional information on
the series A preferred stock.

48

When we completed our IPO
in the fourth quarter of 2023, we raised net proceeds of $4,360,000 after deducting underwriter discounts, commissions, and expenses.
We used the proceeds to satisfy existing term debt and accrued interest in the aggregate amount of approximately $375,000, the existing
balance of our line of credit of approximately $140,000, related party debt of approximately $150,000, and existing accounts payable of
$1,000,000. In October 2023, we acquired controlling interests in two of our franchisees, Nona Legacy Powered By La Rosa Realty, Inc.
(formerly, La Rosa Realty Lake Nona Inc.) and Horeb Kissimmee Realty, LLC for a total consideration of $2,963,147, including $550,000
in cash from the proceeds of the IPO, with the remainder in Common Stock. See Note 3, “Business Combinations” of the Notes
to the