Company: LRHC
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001213900-25-048370
Chunk: 140

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 8
Chunk 140
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, the remaining balance of the senior secured promissory notes with an accredited investor. See
Note 5 – Borrowings for further discussion to the accompanying condensed consolidated financial statements for further disclosure.

In addition to the debt pay downs during the quarter, 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.

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.

32

Summary of Cash Flows

    For the year ended
 March 31, 

    2025  
    2024 
  
    Net Cash Used in Operating Activities 
    $(3,493,029) 
    $(538,305)
  
    Net