Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 222

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 222
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 actions (e.g., investigations,
fines, penalties, audits, inspections, and similar), litigation, additional reporting requirements and/or oversight, bans on processing
personal data, and orders to destroy or not use personal information.

Any
of these events could have a material adverse effect on our reputation, business, or financial condition, including but not limited to
loss of customers; interruptions or stoppages in our business operations; inability to process personal information; limited ability
to develop or commercialize our products; expenditure of time and resources to defend any claim or inquiry; adverse publicity; or substantial
changes to our business model or operations.

Critical
Accounting Estimates

A critical accounting estimate is one that is
both important to the portrayal of a company’s financial condition and results of operations and requires management’s most
difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently
uncertain. During the nine months ended September 30, 2025, the Company entered into a securities purchase agreement providing for the
issuance of a convertible note and incremental warrants which required a fair value evaluation under ASC 825. This evaluation constituted
an additional critical accounting estimate to the Company. See Note 4 Fair Value Measurements and Other Liabilities and Note
5 Borrowings to the accompanying condensed consolidated financial statements for more information. There have been no other material
changes to the Company’s critical accounting estimates as compared to the estimates described in the Annual Report on Form 10-K
as of December 31, 2024 which we believe are the most critical to our business and understanding of our results of operations and affect
the more significant judgments and estimates that we use in preparation of our condensed consolidated financial statements. Other than
the fair value evaluation mentioned above, there have been no other material changes to the Company’s critical accounting estimates
since the Annual Report on Form 10-K as of December 31, 2024.

Results
of Operations

Revenue

Three
Months Ending September 30

    Three Months Ended
 September 30,  
    Change 

    2025  
    2024  
    $  
    % 
  
    Real Estate Brokerage Services (Residential) 
    $16,770,173  
    $16,484,016  
    $286,157  
     2%
  
    Franchising Services 
     27,947  
     65,713