Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 593

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1B
Chunk 593
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 Furthermore, during
the period required to achieve substantially higher revenue in order to become profitable, the Company will require additional funds that
might not be readily available or might not be on terms that are acceptable to the Company. Until such time that the Company fully implements
its growth strategy, it expects to continue to generate operating losses in the foreseeable future, mostly due to corporate overhead and
costs of being a public company. As such, the Company anticipates that its 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 the consolidated financial statements. The Company will be required to raise additional capital to service
the remaining note and to fund ongoing operations.

F-8

The Company has incurred recurring net losses,
and the Company’s operations have not provided net positive cash flows. In view of these matters, there is substantial doubt about
the Company’s ability to continue as a going concern. The Company plans on continuing to expand via acquisition, which will help
achieve future profitability, and the Company has plans to raise capital from outside investors, as it has done in the past, to fund operating
losses and to provide capital for further business acquisitions. There can be no assurance the Company can successfully raise the capital
needed.

Basis of Presentation and Consolidation

The Company prepares the consolidated financial
statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”), which contemplate
continuation of the Company as a going concern and realization of assets and satisfaction of liabilities in the normal course of business
and do not include any adjustments that might result from the outcome of any uncertainties related to the Company’s going concern
assessment. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent
realizable or settlement values. The consolidated financial statements include the financial statements of the Company, all entities that
are wholly-owned by the Company, and all entities in which the Company has a controlling financial interest. All intercompany transactions
and balances have been eliminated. Business combinations consummated during a reporting period are reflected in the Company’s results
effective from the date of acquisition through the end of the reporting period.

A noncontrolling interest in a consolidated subsidiary
represents the portion of the equity in a subsidiary not attributable, directly or indirectly, to the Company. Noncontrolling interests
are presented as a separate component of equity in the consolidated balance