Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 90

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 90
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to fund ongoing operations.

During 2023, we issued 1,523
shares of series A preferred stock to 77 investors in a private placement pursuant to Regulation D under the Securities Act, raising $1,523,000.
We also exchanged convertible debt with an outstanding balance of $598,836, including accrued interest of $87,836, for 591 shares of series
A preferred stock. In March 2023, we exchanged a portion of our related party debt with an outstanding gross balance of $1,324,631, excluding
debt discount of $469,785, and including accrued interest of $28,101, for 1,321 shares of series A preferred stock. See Note 8, “Stockholders’
Equity” of the Notes to the consolidated financial statements in Part II, Item 8 of this Form 10-K for additional information on
the series A preferred stock.

48

When we completed our IPO
in the fourth quarter of 2023, we raised net proceeds of $4,360,000 after deducting underwriter discounts, commissions, and expenses.
We used the proceeds to satisfy existing term debt and accrued interest in the aggregate amount of approximately $375,000, the existing
balance of our line of credit of approximately $140,000, related party debt of approximately $150,000, and existing accounts payable of
$1,000,000. In October 2023, we acquired controlling interests in two of our franchisees, Nona Legacy Powered By La Rosa Realty, Inc.
(formerly, La Rosa Realty Lake Nona Inc.) and Horeb Kissimmee Realty, LLC for a total consideration of $2,963,147, including $550,000
in cash from the proceeds of the IPO, with the remainder in Common Stock. See Note 3, “Business Combinations” of the Notes
to the consolidated financial statements in Part II, Item 8 of this Form 10-K for additional information regarding the acquisitions.

We have incurred recurring
net losses, and our operations have not provided net positive cash flows. In view of these matters, there is substantial doubt about our
ability to continue as a going concern. We plan on continuing to expand via acquisition, which will help achieve future profitability,
and we have plans to raise capital from outside investors, as we have done in the past, to fund operating losses and to provide capital
for further business acquisitions. We cannot provide any assurance that we can