La Rosa Holdings Corp. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company’s total assets increased to $19.7 million, up from $14.3 million at the end of 2023, driven by a rise in both current and noncurrent assets. Total liabilities also rose sharply to $9.3 million from $4.6 million, while stockholders’ equity increased to $10.4 million from $9.8 million. The number of common shares outstanding grew from 13.4 million to 18.6 million.

For the three months ended September 30, 2024, La Rosa Holdings reported revenue of $19.6 million, a substantial increase from $6.8 million in the same period of 2023. For the nine-month period, revenue reached $51.7 million, compared to $20.3 million in the prior year. The gross profit for the quarter was $1.6 million, up from $575,499, while the nine-month gross profit rose to $4.4 million from $1.9 million. However, the company reported a net loss of $2.4 million for the quarter, compared to a loss of $343,839 in the same quarter of 2023, and a nine-month net loss of $9.3 million, up from $1.7 million in the previous year.

The increase in revenue was largely attributed to acquisitions, with the company completing seven acquisitions in the first nine months of 2024, contributing approximately $12.2 million to quarterly revenue. However, operating expenses surged to $3.4 million for the quarter, up from $993,000, primarily due to costs associated with these acquisitions.

The company’s focus on expansion through acquisitions is evident, as it acquired majority ownership in several real estate entities and a title services company. Despite the growth in revenue, La Rosa Holdings faces challenges, including a significant increase in accumulated deficit, which rose to $(21.5 million) from $(12.1 million) at the end of 2023.

In terms of cash flow, La Rosa Holdings reported a net cash increase of $1.5 million for the nine months ended September 30, 2024, compared to $367,529 in the same period of 2023. The company anticipates needing additional capital to meet operating expenses and service debts, raising concerns about its ability to continue as a going concern.

The company also faced regulatory challenges, receiving notifications from Nasdaq regarding compliance with listing requirements, although it successfully regained compliance earlier in 2024. The overall financial performance reflects a strategic shift towards growth through acquisitions, despite ongoing operational losses and market challenges.

About La Rosa Holdings Corp.

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