Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 232

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 232
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 5 – Borrowings for further discussion to the accompanying condensed
consolidated financial statements for further disclosure.

In addition to the debt pay downs during the
nine months ended September 30, 2025, the Company eliminated all warrants tied to the investor senior secured promissory notes outstanding
as of December 31,2024. Two of the three warrants were exercised on a cashless basis, with the third warrant being bought back by the
Company in the amount of $379,083, fully eliminating these unfavorable ratchet warrants.

The
Company is subject to the risks and challenges associated with companies at a similar stage of development. These include dependence
on key individuals, successful development and marketing of its offerings, and competition with larger companies with greater financial,
technical, and marketing resources. 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 its promissory notes, to repay the principal balance of each of the notes, and
to fund ongoing operations.

56

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.

Summary
of Cash Flows

    Nine Months Ended
 September 30, 

    2025  
    2024 
  
    Net Cash Used in Operating Activities 
    $(6,232,547) 
    $(1,341,369)
  
    Net Cash Provided by Investing Activities