La Rosa Holdings Corp. Files Q2 2024 10-Q

TL;DR

La Rosa Holdings Corp. filed its Q2 2024 10-Q. Financials and operations update.

AI Summary

La Rosa Holdings Corp. filed its 10-Q for the quarterly period ended June 30, 2024. The company, incorporated in Nevada, operates in real estate agents & managers. Its principal executive offices are located in Celebration, Florida.

Why It Matters

This filing provides investors with an update on La Rosa Holdings Corp.'s financial performance and operational status for the second quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial and operational information.

Key Players & Entities

• La Rosa Holdings Corp. (company) — Registrant
• June 30, 2024 (date) — Quarterly period end date
• Nevada (location) — State of incorporation
• Celebration, Florida (location) — Principal executive offices location
• 001-41588 (other) — Commission File Number

FAQ

Key Financial Figures

• $0.0001 — 6,006 shares of common stock, par value $0.0001 per share, outstanding. TABLE OF CONTE

Filing Documents

• ea0210935-10q_larosa.htm (10-Q) — 1107KB
• ea021093501ex31-1_larosa.htm (EX-31.1) — 12KB
• ea021093501ex31-2_larosa.htm (EX-31.2) — 11KB
• ea021093501ex32-1_larosa.htm (EX-32.1) — 5KB
• ea021093501ex32-2_larosa.htm (EX-32.2) — 4KB
• 0001213900-24-069618.txt ( ) — 6692KB
• lrhc-20240630.xsd (EX-101.SCH) — 67KB
• lrhc-20240630_cal.xml (EX-101.CAL) — 64KB
• lrhc-20240630_def.xml (EX-101.DEF) — 333KB
• lrhc-20240630_lab.xml (EX-101.LAB) — 600KB
• lrhc-20240630_pre.xml (EX-101.PRE) — 335KB
• ea0210935-10q_larosa_htm.xml (XML) — 774KB

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 1 CONDENSED CONSOLIDATED BALANCE SHEETS AT JUNE 30, 2024 (UNAUDITED) AND DECEMBER 31, 2023 1 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2024 AND 2023 (UNAUDITED) 2 CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2024 AND 2023 (UNAUDITED) 3 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2024 AND 2023 (UNAUDITED) 5 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 6 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 22 ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 34 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 34 PART II. OTHER INFORMATION 35 ITEM 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 35 ITEM 1A.

RISK FACTORS

RISK FACTORS 35 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES 36 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 36 ITEM 4. MINE SAFETY DISCLOSURES 36 ITEM 5. OTHER INFORMATION 36 ITEM 6. EXHIBITS 37

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS La Rosa Holdings Corp. and Subsidiaries Condensed Consolidated Balance Sheets June 30, 2024 December 31, 2023 (unaudited) (audited) Assets Current assets: Cash $ 1,551,135 $ 959,604 Restricted cash 1,767,107 1,484,223 Accounts receivable, net of allowance for credit losses of $ 126,595 and $ 83,456 , respectively 898,085 826,424 Total current assets 4,216,327 3,270,251 Noncurrent assets: Property and equipment, net 12,180 14,893 Right-of-use asset, net 1,107,751 687,570 Intangible assets, net 5,844,654 4,632,449 Goodwill 7,514,169 5,702,612 Other long-term assets 32,285 21,270 Total noncurrent assets 14,511,039 11,058,794 Total assets $ 18,727,366 $ 14,329,045 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 1,842,326 $ 1,147,073 Accrued expenses 366,907 227,574 Contract liabilities 120,766 — Derivative liability 317,400 — Advances on future receipts 447,801 77,042 Accrued acquisition cash consideration 225,000 300,000 Notes payable, current 1,798,166 4,400 Lease liability, current 459,122 340,566 Total current liabilities 5,577,488 2,096,655 Noncurrent liabilities: Note payable, net of current 645,294 615,127 Security deposits payable 1,767,107 1,484,223 Lease liability, noncurrent 670,032 363,029 Other liabilities 2,950 2,950 Total non-current liabilities 3,085,383 2,465,329 Total liabilities 8,662,871 4,561,984 Commitments and contingencies (Note 6) Stockholders' equity: Preferred stock - $ 0.0001 par value; 50,000,000 shares authorized; 2,000 Series X shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively — — Common stock - $ 0.0001 par value; 250,000,000 shares authorized; 15,134,647 and 13,406,480 issued and outstanding at June 30, 2024 and December 31, 2023, respectively 1,513 1,341 Additional paid-in capital 23,715

Financial Statements

Financial Statements Note 1 — Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Regulation S-X and do not include all the information and disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). The Company has made estimates and judgements affecting the amounts reported in the Company's condensed consolidated financial The condensed consolidated financial information is unaudited and reflects all normal adjustments that are, in the opinion of management, necessary to provide a fair statement of results for the interim periods presented, which contemplate continuation of the Company as a going concern and realization of assets and satisfaction of liabilities in the normal course of business and do not include any adjustments that might result from the outcome of any uncertainties related to the Company's going concern assessment. The carrying amounts of assets and liabilities presented in the unaudited condensed financial statements do not necessarily purport to represent realizable or settlement values. The unaudited condensed consolidated financial the Company has a controlling financial interest. All intercompany transactions and balances have been eliminated. Business combinations consummated during the reporting period are reflected in the Company's results effective from the date of acquisition through the end of the reporting period. Results of the three- and six-month periods ended June 30, 2024 are not necessarily indicative of the r

Financial Statements

Financial Statements Recently Adopted Accounting Standards In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. This update also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction and requires certain disclosures for equity securities subject to contractual sale restrictions. ASU 2022-03 is effective for the Company in the fiscal year beginning after December 15, 2023. The Company adopted the standard beginning in fiscal year 2024. The adoption did not have a material impact on the Company's consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative, which incorporates certain SEC disclosure requirements into the FASB Accounting Standards Codification ("Codification") . The amendments are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics, allow users to more easily compare entities subject to the SEC's existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC's regulations. ASU 2023-06 will become effective for each amendment on the effective date of the SEC's corresponding disclosure rule changes. The Company is currently evaluating the impact that the adoption of this new standard will have on its consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reporta

Financial Statements

Financial Statements The following table summarizes the purchase consideration and the purchase price allocation to the estimated fair values of the identifiable assets acquired and liabilities assumed for the five acquisitions. The values assigned to certain acquired assets and liabilities are preliminary as the Company is continuing to evaluate the fair value of the assets and liabilities and may be adjusted as further information becomes available during the allocation period of up to 12 months from the acquisition date. Winter Garden Georgia California Lakeland Success Total Acquired ownership 100 % 51 % 51 % 51 % 51 % Acquisition date 2/21/2024 3/7/2024 3/15/2024 4/18/2024 5/24/2024 Common stock issued 268,858 276,178 1,387 514,939 56,375 1,117,737 Cash consideration $ — $ — $ — $ 50,000 $ 10,000 $ 60,000 Equity consideration 352,204 516,453 123,113 823,903 68,778 1,884,451 Total purchase price 352,204 516,453 123,113 873,903 78,778 1,944,451 Noncontrolling interest — 496,200 118,285 839,632 75,689 1,529,806 Acquisition date fair value $ 352,204 $ 1,012,653 $ 241,398 $ 1,713,535 $ 154,467 $ 3,474,257 Purchase price allocation $ 352,204 $ 1,012,653 $ 241,398 $ 1,713,535 $ 154,467 $ 3,474,257 Less fair value of net assets acquired: Cash 17,623 79,553 1,436 32,935 171 131,718 Working capital (less cash) ( 17,148 ) ( 54,991 ) ( 45,027 ) ( 59,325 ) ( 21,323 ) ( 197,814 ) Intangible assets 171,767 446,657 111,202 815,411 104,798 1,649,835 Long-term assets — 91,118 106,542 129,521 22,697 349,878 Long-term liabilities — ( 98,641 ) ( 69,449 ) ( 94,591 ) ( 8,236 ) ( 270,917 ) Net assets acquired 172,242 463,696 104,704 823,951 98,107 1,662,700 Goodwill $ 179,962 $ 548,957 $ 136,694 $ 889,584 $ 56,360 $ 1,811,557 Goodwill generated from the acquisition is primarily attributable to expected synergies from future growth and strategic advantages provided through expansion and is not expected to be deductible for income tax purposes. The classes of in

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