La Rosa Holdings Corp. Files Q3 2024 10-Q

TL;DR

La Rosa Holdings Corp. (LRH) filed its Q3 2024 10-Q. All systems go.

AI Summary

La Rosa Holdings Corp. filed its quarterly report for the period ending September 30, 2024. The company, incorporated in Nevada, operates in real estate agents and 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 third quarter of 2024.

Risk Assessment

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

Key Players & Entities

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

FAQ

Key Financial Figures

• $0.0001 — 0,891 shares of common stock, par value $0.0001 per share, outstanding. TABLE OF CONTE

Filing Documents

• ea0221198-10q_larosa.htm (10-Q) — 1220KB
• ea022119801ex10-174_larosa.htm (EX-10.174) — 113KB
• ea022119801ex10-175_larosa.htm (EX-10.175) — 41KB
• ea022119801ex31-1_larosa.htm (EX-31.1) — 12KB
• ea022119801ex31-2_larosa.htm (EX-31.2) — 12KB
• ea022119801ex32-1_larosa.htm (EX-32.1) — 5KB
• ea022119801ex32-2_larosa.htm (EX-32.2) — 4KB
• 0001213900-24-100202.txt ( ) — 7550KB
• lrhc-20240930.xsd (EX-101.SCH) — 74KB
• lrhc-20240930_cal.xml (EX-101.CAL) — 59KB
• lrhc-20240930_def.xml (EX-101.DEF) — 349KB
• lrhc-20240930_lab.xml (EX-101.LAB) — 666KB
• lrhc-20240930_pre.xml (EX-101.PRE) — 365KB
• ea0221198-10q_larosa_htm.xml (XML) — 900KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 1 ITEM 1. FINANCIAL 1 CONDENSED CONSOLIDATED BALANCE SHEETS AT SEPTEMBER 30, 2024 (UNAUDITED) AND DECEMBER 31, 2023 1 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2024 AND 2023 (UNAUDITED) 2 CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2024 AND 2023 (UNAUDITED) 3 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 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 23 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 35 ITEM 4. CONTROLS AND PROCEDURES 35

OTHER INFORMATION

PART II. OTHER INFORMATION 36 ITEM 1. LEGAL PROCEEDINGS 36 ITEM 1A. RISK FACTORS 37 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES 38 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 38 ITEM 4. MINE SAFETY DISCLOSURES 38 ITEM 5. OTHER INFORMATION 38 ITEM 6. EXHIBITS 39

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONDENSED CONSOLIDATED

ITEM 1. CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS La Rosa Holdings Corp. and Subsidiaries Condensed Consolidated Balance Sheets September 30, 2024 December 31, 2023 (unaudited) (audited) Assets Current assets: Cash $ 1,811,608 $ 959,604 Restricted cash 2,148,148 1,484,223 Accounts receivable, net of allowance for credit losses of $ 165,554 and $ 83,456 , respectively 817,391 826,424 Other current assets 1,188 — Total current assets 4,778,335 3,270,251 Noncurrent assets: Property and equipment, net 17,739 14,893 Right-of-use asset, net 1,088,759 687,570 Intangible assets, net 5,673,222 4,632,449 Goodwill 8,102,089 5,702,612 Other long-term assets 26,853 21,270 Total noncurrent assets 14,908,662 11,058,794 Total assets $ 19,686,997 $ 14,329,045 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 2,093,563 $ 1,147,073 Accrued expenses 729,043 227,574 Contract liabilities 72,365 — Line of credit 75,697 — Derivative liability 50,040 — Advances on future receipts 262,263 77,042 Accrued acquisition cash consideration 341,404 300,000 Notes payable, current 2,095,692 4,400 Lease liability, current 526,609 340,566 Total current liabilities 6,246,676 2,096,655 Noncurrent liabilities: Note payable, net of current 643,734 615,127 Security deposits payable 1,821,582 1,484,223 Lease liability, noncurrent 581,622 363,029 Other liabilities 2,950 2,950 Total non-current liabilities 3,049,888 2,465,329 Total liabilities 9,296,564 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 September 30, 2024 and December 31, 2023, respectively — — Common stock - $ 0.0001 par value; 250,000,000 shares authorized; 18,560,199 and 13,406,480 issued and outstanding at September 30, 2024 and December 31, 2023, respectively 1,856 1,3

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 nine-month periods ended September 30, 2024 are not necessarily indicative of

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. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. The ASU is effective for annual reporting periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted the standard beginning in fiscal year 2024. The adoption did not have a material impact on the Company's consolidated financial 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

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 seven 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 BF Prime Nona Title Total Acquired ownership 100 % 51 % 51 % 51 % 51 % 100 % 100 % Acquisition date 2/21/2024 3/7/2024 3/15/2024 4/18/2024 5/25/2024 8/19/2024 8/21/2024 Common stock issued 268,858 276,178 1,387 514,939 56,375 39,739 461,154 1,618,630 Cash consideration $ — $ — $ — $ 50,000 $ 10,000 $ 5,890 $ 174,580 $ 240,470 Equity consideration 352,204 516,453 123,113 823,903 68,778 44,111 484,212 $ 2,412,774 Total purchase price $ 352,204 $ 516,453 $ 123,113 $ 873,903 $ 78,778 $ 50,001 $ 658,792 $ 2,653,244 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 $ 50,001 $ 658,792 $ 4,183,050 Purchase price allocation $ 352,204 $ 1,012,653 $ 241,398 $ 1,713,535 $ 154,467 $ 50,001 $ 658,792 $ 4,183,050 Less fair value of net assets acquired: Cash 17,623 79,553 1,436 32,935 171 4,542 129,157 $ 265,417 Working capital (less cash) ( 17,148 ) ( 54,991 ) ( 45,027 ) ( 59,325 ) ( 21,323 ) ( 3,817 ) ( 128,306 ) $ ( 329,937 ) Intangible assets 171,767 446,657 111,202 815,411 104,798 9,632 102,619 $ 1,762,086 Long-term assets — 91,118 106,542 129,521 22,697 14,545 — $ 364,423 Long-term liabilities — ( 98,641 ) ( 69,449 ) ( 94,591 ) ( 8,236 ) ( 7,500 ) — ( 278,417 ) Net assets acquired 172,242 463,696 104,704 823,951 98,107 17,402 103,470 1,783,572 Goodwill $ 179,962 $ 548,957 $ 136,694

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