Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 84

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 84
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 result in any corporate governance changes for the
Company. On July 7, 2025, the Company regained a “controlled company” status as a result of a Reverse Stock Split that provided
Mr. Joseph La Rosa with possession of more than 50% of the voting power of the Company.

Reverse
Stock Split

On
July 2, 2025, the Company effected a 1-for-80 reverse stock split of the common stock, issued and outstanding, effective as
of 12:01 a.m. (New York time) on July 7, 2025. On February 4, 2025, the Company’s stockholders holding a majority of the voting
power of the Company by a written consent approved the amendment to the Company’s Amended and Restated Articles of Incorporation,
as amended, to effect a reverse stock split of the Company’s common stock at a ratio in the range of 1-for-20 to 1-for-100,
with such ratio to be determined by the Company’s Board of Directors. Such resolution became effective on March 28, 2025, or twenty
(20) days after the Company filed with the SEC and mailed to its stockholders respective Information Statement on Schedule 14C on or
approximately March 7, 2025. Following such stockholders’ approval, the Board of Directors determined to effect the reverse
stock split at a ratio of 1-for-80 (“Reverse Stock Split”). As a result of the Reverse Stock Split, every eighty (80)
shares of issued and outstanding common stock were automatically combined into one (1) issued and outstanding share of common stock.
Unless noted otherwise, all share and the price per share information for all periods presented in this report have been retroactively
adjusted for the Reverse Stock Split.

Description
of Our Revenues

Our
financial results are primarily driven by the total number of sales agents in our Company, the number of sales agents closing residential
real estate transactions, the number of sales agents utilizing our coaching services, the number of agents who work with our franchisees,
and the number of properties under management. We increased our agent count by 17.7%, from 2,647 at September 30, 2024 to 3,116 at September
30, 2025.

The
majority of our revenue is derived from a stable set of fees paid by our brokers, franchisees, and consumers. We have multiple revenue
streams