Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 15

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 15
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 $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 sufficient to meet projected operating
expenses through at least the next twelve months from the issuance of these condensed consolidated financial statements. The Company
will be required to raise additional capital to service its debt 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 acquisitions, which will help achieve future profitability. Additionally, 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.

Fair
Value Option of