Company: LRHC
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001213900-25-048370
Chunk: 89

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 8
Chunk 89
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 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 $312,247 and $166,504 as of March 31, 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 three
months ended March 31, 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 
  
    Three Months ended March 31, 2025 Allowance for Credit Losses 
    $166,504  
    $145,743  
    $-  
    $312,247 
  
    Three Months ended March 31, 2024 Allowance for Credit Losses 
    $83,456  
    $17,136  
    $(1,149) 
    $99,443 

Liquidity – Going Concern and Management’s
Plans

On March 31, 2025, the Company had a cash balance of $4.9 million and
negative working capital of $94.0 million.

On February 4, 2025 (the “Closing Date”),
the Company entered into a Securities Purchase Agreement (the “SPA”), with an institutional investor (the “Investor”)
in which the Company obtained gross proceeds of $4,963,750. The Company used $2.7 million of the proceeds to pay-off certain indebtedness,
pay certain outstanding fees and expenses (including expenses of the offering, and fees payable to the placement agent and advisors),
and general corporate purposes. See Note 5 – Borrowings for further discussion.

6

La Rosa Holdings Corp. and Subsidiaries

Notes to the Unaudited Condensed Consolidated
Financial Statements