Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 147

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 147
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 nine months ended September 30, 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 
  
    Nine Months ended September 30, 2025 Allowance for Credit Losses 
    $166,504  
    $476,125  
    $(492,293) 
    $150,336 
  
    Nine Months ended September 30, 2024 Allowance for Credit Losses 
    $83,456  
    $83,943  
    $(1,845) 
    $165,554 

Liquidity
– Going Concern and Management’s Plans

On September 30, 2025, the Company had a cash
balance of $3,992,896 and positive working capital of $1,243,565.

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, which $910,250, $496,191 and $148,724 were used to assume or extinguish other
debt for net proceeds of $3,408,585. See Note 5 – Borrowings for further discussion.

8

La
Rosa Holdings Corp. and Subsidiaries

Notes
to the Unaudited Condensed Consolidated Financial Statements

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