Company: LRHC
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001213900-25-078012
Chunk: 152

Company: La Rosa Holdings Corp.
Filing Date: 2025-08-18
Form: 10-Q
Item: Item 2
Chunk 152
---
 proceeds of $3,408,585. Remaining funds from the offering
was used by the Company to pay-off certain indebtedness of the Company, pay certain outstanding fees and expenses (including expenses
of the offering, and fees payable to the placement agent and advisors), acquisitions and general corporate purposes. Of the proceeds
from the offering, $354,450 was paid to satisfy, in full, the remaining balance of the standard merchant cash advance agreements with
Cedar Advance, LLC, $340,421 was paid to satisfy, in full, the remaining balance of the standard merchant cash advance agreement with
Arin Funding, LLC and $910,250 was paid to satisfy, in full, 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
six months ended June 30, 2025, 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