Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 2312

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7A
Chunk 2312
---
 for an additional 180 calendar day
period, or until October 6, 2025, to regain compliance. If the Company does not regain compliance with the Bid Price Rule by October
6, 2025, or if the Company fails to continue to meet all applicable continued listing requirements for Nasdaq in the future, Nasdaq could
delist our securities. 

On February 4, 2025, the Company and an institutional
investor (the “Investor”) entered into a Securities Purchase Agreement (the “SPA”), pursuant to which the Company
issued to the Investor: (i) a Senior Secured Convertible Note in the original principal amount of $5,500,000 which matures on February
4, 2027 (the “Initial Note”); and (ii) sixteen (16) warrants (“Incremental Warrants”), each to purchase additional
Notes in an original principal amount up to $2,500,000 at an exercise price of $2,256,250, in substantially the same form as the Initial
Note and together with the Initial Note, the “Notes”). The purchase price paid by the Investor under the SPA for the Initial
Note and Incremental Warrants was $4,963,750.

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
the remaining note and to fund ongoing operations.

F-8

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