Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 1905

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 1905
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 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 sheets and the presentation of net income is modified to present
earnings attributed to controlling and noncontrolling interests.

On April 17, 2023, the Company effected a 2-for-1
forward stock split of the Company’s Common Stock issued and outstanding (including adjustments for fractional shares). As a result,
all share information in the accompanying consolidated financial statements has been adjusted as if the reverse stock split and the forward
stock split happened on the earliest date presented.

Use of Estimates

The preparation of financial statements in conformity
with GAAP requires management to make certain judgments, estimates, and assumptions that affect the reported amounts of assets, liabilities,
revenues, and expenses and related disclosures in the