# EDGAR Filing Document

**Accession Number:** 0001879403
**File Stem:** 0001213900-26-065324
**Filing Date:** 2026-6
**Character Count:** 21572
**Document Hash:** 48cc7f14ccb03ba26832dbf2b77b85f2
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-26-065324.hdr.sgml**: 20260604

**ACCESSION NUMBER**: 0001213900-26-065324

**CONFORMED SUBMISSION TYPE**: 425

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20260604

**DATE AS OF CHANGE**: 20260604

**SUBJECT COMPANY**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** La Rosa Holdings Corp.
- **CENTRAL INDEX KEY:** 0001879403
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE AGENTS & MANAGERS (FOR OTHERS) [6531]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 871641189
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 425
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41588
- **FILM NUMBER:** 261065478

**BUSINESS ADDRESS:**
- **STREET 1:** 1420 CELEBRATION BLVD
- **STREET 2:** STE 200
- **CITY:** CELEBRATION
- **STATE:** FL
- **ZIP:** 34747
- **BUSINESS PHONE:** 407-592-4667

**MAIL ADDRESS:**
- **STREET 1:** 1420 CELEBRATION BLVD
- **STREET 2:** STE 200
- **CITY:** CELEBRATION
- **STATE:** FL
- **ZIP:** 34747
**FILED BY**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** La Rosa Holdings Corp.
- **CENTRAL INDEX KEY:** 0001879403
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE AGENTS & MANAGERS (FOR OTHERS) [6531]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 871641189
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 425

**BUSINESS ADDRESS:**
- **STREET 1:** 1420 CELEBRATION BLVD
- **STREET 2:** STE 200
- **CITY:** CELEBRATION
- **STATE:** FL
- **ZIP:** 34747
- **BUSINESS PHONE:** 407-592-4667

**MAIL ADDRESS:**
- **STREET 1:** 1420 CELEBRATION BLVD
- **STREET 2:** STE 200
- **CITY:** CELEBRATION
- **STATE:** FL
- **ZIP:** 34747

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K/A**

**(Amendment No. 2)**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(d) OF**

**THE SECURITIES EXCHANGE ACT OF 1934**

**Date of Report (Date of earliest event reported): <u>February 4, 2026</u>**

---

| |
|:---|
| **La Rosa Holdings Corp.** |
| (Exact name of registrant as specified in its charter) |

---

---

| | | |
|:---|:---|:---|
| **Nevada** | **001-41588** | **87-1641189** |
| (State or other jurisdiction<br> of incorporation) | (Commission File Number) | (I.R.S. Employer <br> Identification No.) |

---

---

| | |
|:---|:---|
| **1420 Celebration Blvd., 2nd Floor <br> Celebration, Florida** | **34747** |
| (Address of principal executive offices) | (Zip Code) |

---

Registrant's telephone number, including area code:

**(321) 250-1799**

**<u>N/A</u>**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☒ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, $0.0001 par value | LRHC | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Explanatory Note**

On February 10, 2026, La Rosa Holdings Corp. (the "Company") filed a Current Report on Form 8-K (the "Original Report") to report, among other things, the closing of the disposition of all of its membership interests in Horeb Kissimmee Realty LLC. On April 27, 2026, the Company filed Amendment No. 1 on Form 8-K/A (Amendment No. 1") to amend and restate Item 9.01(b) of the Original Report in order to remove a statement of reliance on the provisions of Item 9.01(a)(3), which was included in the Original Report by error, and to present pro forma financial information required by Item 9.01(b) of Form 8-K, which was erroneously omitted from the Original Report. This Amendment No. 2 on Form 8-K/A ("Amendment No. 2") is being filed solely to amend Item 9.01(b) of the Amendment No. 1 and amend and replace the Exhibit 99.1 filed with Amendment No. 1 (the "Exhibit"). The Exhibit is being replaced with a corrected version filed as Exhibit 99.1 to this Amendment No. 2 to present the pro forma information in manner required by Rule 11-02(b) of Regulation S-X. No significant changes have been made to the pro forma amounts. Except for the filing of such Exhibit and amending Item 9.01(b) of the Amendment No. 1, this Amendment No. 2 does not otherwise modify or update the Original Report and Amendment No. 1. The information previously reported in or filed with the Original Report and Amendment No. 1 is hereby incorporated by reference into this Amendment No. 2.

**Item 9.01. Financial Statements and Exhibits.**

(b) Pro Forma Financial Information.

The following unaudited pro forma financial information of the Company attached hereto as Exhibit 99.1 and incorporated herein by reference into this Item 9.01(b).

● Unaudited Pro Forma condensed consolidated balance sheet as of September 30, 2025;

● Unaudited Pro Forma consolidated statement of operations for the year ended December 31, 2024; and

● Unaudited Pro Forma condensed statement of operations for the nine months ended September 30, 2025.

(d) Exhibits.

The following exhibits are filed herewith:

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | [Unaudited pro forma condensed combined financial information of the Company](ea029236301ex99-1.htm) |
| 104 | Cover Page Interactive Data File (embedded with the Inline XBRL document). |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| Date: June 4, 2026 | **LA ROSA HOLDINGS CORP.** | **LA ROSA HOLDINGS CORP.** |
|  | By: | */s/ Joseph La Rosa* |
|  | Name: | Joseph La Rosa |
|  | Title: | Chief Executive Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

**La Rosa Holdings Corp. and Subsidiaries**

**Notes to the Unaudited Pro Forma Consolidated Financial Information**

On February 4, 2026, La Rosa Holdings Corp. (the "Company") completed the sale of its Membership Interest in Horeb Kissimmee Realty LLC, a Florida limited liability company ("LR Kissimmee"), as defined and further described in Note 1 - Description of the Disposition. The unaudited pro forma consolidated financial information is intended to illustrate the pro forma effects of the disposition of LR Kissimmee and other transaction accounting adjustments and was prepared in accordance with Article 11 of Regulation S-X, Pro Forma Financial Information.

The unaudited pro forma consolidated financial information has been derived from the Company's historical audited and unaudited consolidated financial statements and reflects certain assumptions and transaction accounting adjustments that management believes are reasonable under the circumstances and based on the information available, as further described in Note 3 - Adjustments to the Unaudited Pro Forma Consolidated Financial Information.

The unaudited pro forma consolidated statements of operations for the nine months ended September 30, 2025 and the year ended December 31, 2024, reflect the disposition of LR Kissimmee as if it had closed on January 1, 2024 (refer to Note 2 – Basis of Presentation, for further discussion).

The unaudited pro forma consolidated financial information should be read in conjunction with:

● The accompanying notes to the unaudited pro forma consolidated financial information;

● The Company's historical audited consolidated financial statements and accompanying notes for the year ended December 31, 2024, which were prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"), included in the Company's annual report on Form 10-K; and

● The Company's historical unaudited condensed consolidated financial statements and accompanying notes for the nine months ended September 30, 2025, which were prepared in accordance with U.S. GAAP, included in the Company's quarterly report on Form 10-Q

● The unaudited pro forma consolidated financial information is provided for illustrative and informational purposes only and is not intended to represent or be indicative of what the Company's results of operations would have been had the Company operated historically as an independent organization separate from LR Kissimmee, or if the disposition had occurred on the date indicated. Additionally, the unaudited pro forma consolidated financial information should not be considered representative of the Company's future consolidated results of operations.

**La Rosa Holdings Corp. and Subsidiaries**

**Unaudited Pro Forma Condensed Consolidated Balance Sheet**

**As of September 30, 2025**

---

| | | | |
|:---|:---|:---|:---|
|  | | **Transaction<br> Accounting<br> Adjustments** | |
|  |<br>**As Reported** | **Removal of<br> LR Kissimmee<br> Membership Interest (a)** |<br>**Pro Forma** |
| **Assets** | | | |
| Current assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $3992896 | $(586542) | $3406354 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 2396268 | 46199 | 2442467 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance for credit losses | 799385 | (61257) (d) | 738128 |
| &nbsp;&nbsp;&nbsp;Other current assets | 34669 |  | 34669 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 7223218 | (601600) | 6621618 |
| Noncurrent assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;Restricted cash, net of current | 46199 | (46199) |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 6879 | (2322) | 4557 |
| &nbsp;&nbsp;&nbsp;Right-of-use asset, net | 1104403 | (5369) | 1099034 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 5256913 | (1274674) | 3982239 |
| &nbsp;&nbsp;&nbsp;Goodwill | 8012331 | (2217170) | 5795161 |
| &nbsp;&nbsp;&nbsp;Other long-term assets | 40250 |  | 40250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noncurrent assets | 14466975 | (3545734) | 10921241 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $21690193 | $(4147334) | $17542859 |
| **Liabilities and Stockholders' Equity** |  |  |  |
| Current liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $2006747 | $(396736) (c) | $1610011 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 780665 | (1158) | 779507 |
| &nbsp;&nbsp;&nbsp;Contract liabilities | 72485 | (20212) | 52273 |
| &nbsp;&nbsp;&nbsp;Security deposits and escrow payable | 2396268 | 46199 | 2442467 |
| &nbsp;&nbsp;&nbsp;Accrued acquisition cash consideration | 60000 |  | 60000 |
| &nbsp;&nbsp;&nbsp;Notes payable, current | 148757 |  | 148757 |
| &nbsp;&nbsp;&nbsp;Lease liability, current | 514731 | (3922) | 510809 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 5979653 | (375829) | 5603824 |
| Noncurrent liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Note payable, net of current | 9321562 | (150000) (d) | 9171562 |
| &nbsp;&nbsp;&nbsp;Security deposits and escrow payable, net of current | 46199 | (46199) |  |
| &nbsp;&nbsp;&nbsp;Lease liability, noncurrent | 625637 | (7640) | 617997 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 2950 |  | 2950 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-current liabilities | 9996348 | (203839) | 9792509 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 15976001 | (579668) | 15396333 |
| Commitments and contingencies (Note 6) |  |  |  |
| Stockholders' equity: |  |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock - $0.0001 par value; 50,000,000 shares authorized; 2,000 Series X shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively |  |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock - $0.0001 par value; 50,000,000 shares authorized; 6,000 and 0 Series B shares issued and outstanding at September 30, 2025 and December 31, 2024 | 1 |  | 1 |
| &nbsp;&nbsp;&nbsp;Common stock - $0.0001 par value; 2,050,000,000 shares authorized; 12,247 and 2,731 issued and outstanding at June 30, 2025 and December 31, 2025, respectively |  |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 50942905 |  | 50942905 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (49385392) | (1642163) | (51027555) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity – La Rosa Holdings Corp. shareholders | 1557514 | (1642163) | (84649) |
| &nbsp;&nbsp;&nbsp;Noncontrolling interest in subsidiaries | 4156678 | (1925503) | 2231175 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 5714192 | (3567666) | 2146526 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $21690193 | $(4147334) | $17542859 |

---

**La Rosa Holdings Corp. and Subsidiaries**

**Unaudited Pro Forma Condensed Consolidated Statements of Operations**

**For the Year Nine Months September 30, 2025**

---

| | | | |
|:---|:---|:---|:---|
|  | | **Transaction Accounting Adjustments** | |
|  |<br>**As Reported<br> Nine Months<br> Ended<br> September 30, <br> 2025** | **Removal of<br> LR Kissimmee<br> Membership<br> Interest (a)** |<br>**Pro Forma<br> Nine Months<br> Ended<br> September 30, <br> 2025** |
| Revenue | $52076658 | $(9199092) (b) | $42877566 |
| Cost of revenue | 46978581 | (8367157) | 38611424 |
| Gross profit | 5098077 | (831935) | 4266142 |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 1326859 | (45060) | 1281799 |
| &nbsp;&nbsp;&nbsp;General and administrative | 11146500 | (773721) (b) | 10372779 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation — general and administrative | 4744012 | 3 | 4744015 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 17217371 | (818778) | 16398593 |
| Loss from operations | (12119294) | (13157) | (12132451) |
| Other income (expense): |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (361381) | 4747 (c) | (356634) |
| &nbsp;&nbsp;&nbsp;Gain (loss) on extinguishment of debt | 3961075 |  | 3961075 |
| &nbsp;&nbsp;&nbsp;Amortization of debt discount | (63160) |  | (63160) |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative liability | 899874 |  | 899874 |
| &nbsp;&nbsp;&nbsp;(Loss) gain on issuance of senior secured convertible note and warrants | (128836250) |  | (128836250) |
| &nbsp;&nbsp;&nbsp;Change on fair value of convertible note and warrants | 31168496 |  | 31168496 |
| &nbsp;&nbsp;&nbsp;Gain on settlement of incremental warrants | 82299000 |  | 82299000 |
| &nbsp;&nbsp;&nbsp;Other income, net | 271281 |  | 271281 |
| Loss before provision for income taxes | (22780359) | (8410) | (22788769) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Benefit from income taxes |  |  |  |
| Net loss | (22780359) | (8410) | (22788769) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Net income (loss) attributable to noncontrolling interests in subsidiaries | 49714 | (63357) | (13643) |
| Net loss after noncontrolling interest in subsidiaries | (22830073) | 54947 | (22775126) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Deemed dividend | 275264 |  | 275264 |
| Net loss attributable to common stockholders | $(23105337) | $54947 | $(23050390) |
| Loss per share of common stock attributable to common stockholders |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted | $(3264.12) |  | $(3256.35) |
| Weighted average shares used in computing net loss per share of common stock attributable to common stockholders |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted | 7079 |  | 7079 |

---

**La Rosa Holdings Corp. and Subsidiaries**

**Unaudited Pro Forma Consolidated Statements of Operations**

**For the Year Ended December 31, 2024**

---

| | | | |
|:---|:---|:---|:---|
|  | | **Transaction<br> Accounting<br> Adjustments** | |
|  |<br>**As Reported<br> Year Ended<br> December 31,<br> 2024** | **Removal of<br> LR Kissimmee<br> Membership<br> Interest (a)** |<br>**Pro Forma<br> Year Ended<br> December 31, <br> 2024** |
| Revenue | $58682139 | $(11532108) (b) | $47150031 |
| Cost of revenue | 52728860 | (10726283) | 42002577 |
| Gross profit | 5953279 | (805825) | 5147454 |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 1007077 | (64513) | 942564 |
| &nbsp;&nbsp;&nbsp;General and administrative | 10625551 | (908230) (b) | 9717321 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation — general and administrative | 4730355 |  | 4730355 |
| &nbsp;&nbsp;&nbsp;Impairment of goodwill | 787438 |  | 787438 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 17150421 | (972743) | 16177678 |
| Loss from operations | (11197142) | 166918 | (11030224) |
| Other income (expense) |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (403397) | 5320 (c) | (398077) |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | (777558) |  | (777558) |
| &nbsp;&nbsp;&nbsp;Amortization of debt discount | (649138) |  | (649138) |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative liability | (1338506) |  | (1338506) |
| &nbsp;&nbsp;&nbsp;Other income, net | 15745 |  | 15745 |
| Loss before provision for income taxes | (14349996) | 172238 | (14177758) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Benefit from income taxes |  |  |  |
| Net loss | (14349996) | 172238 | (14177758) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Net income (loss) attributable to noncontrolling interests in subsidiaries | 97567 | (43535) | 54032 |
| Net loss after noncontrolling interest in subsidiaries | (14447563) | 215773 | (14231790) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Deemed dividend | 1476044 | - | 1476044 |
| Net loss attributable to common stockholders | $(15923607) | $215773 | $(15707834) |
| Loss per share of common stock attributable to common stockholders |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted | $(6299.41) |  | $(6214.05) |
| Weighted average shares used in computing net loss per share of common stock attributable to common stockholders |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted | 2528 |  | 2528 |

---

**Note 1 — Description of the Disposition**

On February 4, 2026 (the "Effective Date"), La Rosa Holdings Corp. (the "Company") entered into, and closed the transaction (the "Transaction") provided for under a Membership Interest Purchase Agreement (the "Sale Agreement") by and among the Company, the buying member (the "Buyer") and Horeb Kissimmee Realty LLC, a Florida limited liability company ("LR Kissimmee"), pursuant to which the Company sold the Company's pre-Transaction 51% membership interest (the "Interest") in LR Kissimmee to Buyer, LR Kissimmee's pre-Transaction 49% owner.

**Note 2 – Basis of Presentation**

The historical audited and unaudited consolidated financial statements have been adjusted in the unaudited pro forma consolidated financial information to reflect certain transaction accounting adjustments related to the disposition of LR Kissimmee as described above in Note 1 - Description of the Disposition.

The unaudited pro forma consolidated financial information and accompanying notes have been prepared for informational purposes only, in accordance with Article 11 of Regulation S-X. The unaudited pro forma consolidated statements of operations for the years ended September 30, 2025, and December 31, 2024, reflect the disposition of LR Kissimmee as if it had closed on January 1, 2025 (refer to Note 1 – Basis of Presentation, for further discussion).

An unaudited condensed consolidated balance sheet is provided in the pro forma consolidated financial information as of September 30, 2025.

**Note 3 – Adjustments to the Unaudited Pro Forma Consolidated Financial Information**

The unaudited pro forma consolidated financial information has been prepared based upon certain pro forma adjustments to the historical consolidated financial statements of the Company. Certain assumptions regarding the operations of the Company have been made in connection with the preparation of the unaudited pro forma consolidated financial information. These adjustments and assumptions are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Reflects
 adjustments to remove LR Kissimmee membership interest.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Reflects
 all revenue, general and administrative expenses of LR Kissimmee, except for certain contractual
 franchise agreements that will remain.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Reflects
 certain debts from the Small Business Administration to be acquired by the buyer and reduce
 overall interest expenses.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Reflects
 adjustments removing accounts receivable and accounts payable as these are transferred with
 the membership interest.