La Rosa Reports Third Quarter 2023 Financial Results and Provides Business Update
20 Novembre 2023 - 11:05PM
La Rosa Holdings Corp. (NASDAQ: LRHC) (“La Rosa” or the
“Company”), a holding company for five agent-centric,
technology-integrated, cloud-based, multi-service real estate
segments, today provided a business update and announced its
financial results for the third quarter ended September 30, 2023.
Q3 2023 Highlights and Subsequent
Events
- Total revenue increased 11% year-over-year to $6.8 million for
Q3 2023
- Entered into strategic referral
partnership with Janover, an AI-enabled B2B fintech marketplace
connecting commercial property borrowers and lenders
- Launched a proprietary artificial
intelligence (“AI”) technology system 'JAEME' to support real
estate agents
- Acquired two of its real estate
brokerage franchisees with combined revenues in excess of $20.7
million in 2022
- Completed an IPO on October 12,
2023, raising gross proceeds of $5.0 million and commenced trading
on the Nasdaq Stock Market
Joe La Rosa, CEO of the Company, commented, “We
believe that the last couple of months have been transformative for
the Company. We achieved a major milestone by completing an IPO
onto the Nasdaq Stock Market and raising gross proceeds of $5
million. I am also pleased to report that revenues increased 11% to
$6.8 million for the third quarter of 2023 over the same period
last year. We recently acquired a controlling interest in two of
our franchisees, both located in Florida. Not only do the
acquisitions expand our footprint in Florida, but we expect that
they will also increase our top line revenue by over 75%.
“We believe that we have consistently been at
the forefront of innovation in the real estate industry. We have a
unique brokerage model which is agent centric with 100%
commissions. This agent-centric commission model enables our sales
agents to obtain higher net commissions than they would otherwise
receive from many of our competitors in our local markets.
Moreover, we provide our brokers with training and support,
including our proprietary AI technology system, JAEME, that drives
marketing, efficiency, and sales. We believe the support that we
provide to our agents at a minimal cost to them is one of the best
offered in the industry.
“We continue to explore ways to grow our revenue
streams for both our brokers and the Company. Towards that end, we
recently signed a referral partnership agreement with Janover. We
expect that their expansive network of banks and first-in-class AI
enabled fintech platform will help drive referrals to our brokers.
We believe that we have built a highly scalable business model with
several recurring revenue streams, and we now have a strong balance
sheet after completing the IPO. Our goal is to deliver long-term
shareholder value by driving exponential growth that will allow us
to capitalize on the changing agency model trends occurring in the
industry,” concluded Mr. La Rosa.
About La Rosa Holdings
Corp.
La Rosa is a holding company for five
agent-centric, technology-integrated, cloud-based, multi-service
real estate segments. In addition to providing person-to-person
residential and commercial real estate brokerage services to the
public, the Company cross-sells ancillary technology-based products
and services primarily to its sales agents and the sales agents
associated with their franchisees. La Rosa’s business is organized
based on the services they provide internally to their agents and
to the public, which are residential and commercial real estate
brokerage, franchising, real estate brokerage education and
coaching, and property management. La Rosa has 10 La Rosa Realty
corporate real estate brokerage offices located in Florida, 26 La
Rosa Realty franchised real estate brokerage offices in six states
in the United States and Puerto Rico. The Company’s real estate
brokerage offices, both corporate and franchised, are staffed with
more than 2,470 licensed real estate brokers and sales
associates.
For more information, please visit:
https://www.larosaholdings.com.
Stay connected with La Rosa, sign up for news
alerts here: larosaholdings.com/email-alerts.
Forward-Looking Statements
This press release contains forward-looking
statements regarding the Company’s current expectations that are
subject to various risks and uncertainties. Such statements include
statements regarding the Company’s ability to grow its business and
other statements that are not historical facts, including
statements which may be accompanied by the words “intends,” “may,”
“will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,”
“estimates,” “aims,” “believes,” “hopes,” “potential” or similar
words. These statements are not guarantees of future
performance and are subject to certain risks, uncertainties and
assumptions that are difficult to predict. Actual results could
differ materially from those described in these forward-looking
statements due to certain factors, including without limitation,
the Company's ability to achieve profitable operations, customer
acceptance of new services, the demand for the Company’s services
and the Company’s customers' economic condition, the impact of
competitive services and pricing, general economic conditions and
other risk factors detailed in the Company's filings with the
United States Securities and Exchange Commission (the "SEC”). You
are urged to carefully review and consider any cautionary
statements and other disclosures, including the statements made
under the headings “Risk Factors” and elsewhere in documents that
we file from time to time with the SEC. Forward-looking statements
contained in this press release are made only as of the date of the
this press release, and La Rosa does not undertake any
responsibility to update any forward-looking statements in this
release, except as may be required by applicable law. References
and links to websites have been provided as a convenience and the
information contained on such websites is not incorporated by
reference into this press release.
For more information, contact:
info@larosaholdings.com
Investor Relations
Contact:Crescendo Communications, LLCDavid Waldman/Natalya
RudmanTel: (212) 671-1020 Email: LRHC@crescendo-ir.com
La Rosa Holdings Corp. and SubsidiariesCondensed
Consolidated Balance Sheets |
|
|
|
September 30, 2023 |
|
|
December 31, 2022 |
|
|
|
(unaudited) |
|
|
(audited) |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash |
|
$ |
350,276 |
|
|
$ |
118,558 |
|
Restricted cash |
|
|
1,547,175 |
|
|
|
1,411,364 |
|
Accounts receivable, net |
|
|
274,210 |
|
|
|
424,549 |
|
Other current assets |
|
|
— |
|
|
|
45,000 |
|
Due from related party |
|
|
45,413 |
|
|
|
41,558 |
|
Total current assets |
|
|
2,217,074 |
|
|
|
2,041,029 |
|
|
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
|
|
Deferred offering costs |
|
|
3,529,192 |
|
|
|
1,760,447 |
|
Other non-current assets |
|
|
21,270 |
|
|
|
79,314 |
|
Total non-current assets |
|
|
3,550,462 |
|
|
|
1,839,761 |
|
Total assets |
|
$ |
5,767,536 |
|
|
$ |
3,880,790 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
(Deficit) |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Line of credit |
|
$ |
101,991 |
|
|
$ |
86,163 |
|
Accounts payable |
|
|
1,217,318 |
|
|
|
1,523,936 |
|
Accrued expenses |
|
|
608,232 |
|
|
|
522,279 |
|
Due to related party, current |
|
|
149,245 |
|
|
|
652,233 |
|
Derivative liability |
|
|
323,750 |
|
|
|
1,022,879 |
|
Convertible notes payable, net |
|
|
95,000 |
|
|
|
585,779 |
|
Advances on future receipts |
|
|
334,722 |
|
|
|
— |
|
Notes payable, current |
|
|
253,200 |
|
|
|
250,788 |
|
Total current liabilities |
|
|
3,083,458 |
|
|
|
4,644,057 |
|
|
|
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
Notes payable, net of current |
|
|
354,540 |
|
|
|
360,912 |
|
Due to related party, net of current |
|
|
— |
|
|
|
338,757 |
|
Security deposits payable |
|
|
1,607,024 |
|
|
|
1,415,059 |
|
Total non-current liabilities |
|
|
1,961,564 |
|
|
|
2,114,728 |
|
Total liabilities |
|
|
5,045,022 |
|
|
|
6,758,785 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity
(deficit): |
|
|
|
|
|
|
|
|
Preferred stock - $0.0001 par value; 50,000,000 shares authorized;
2,000 Series X shares issued and outstanding at September 30, 2023
and December 31, 2022 respectively; 3,436 Series A shares issued
and outstanding at September 30, 2023 and none issued or
outstanding at December 31, 2022 |
|
|
— |
|
|
|
— |
|
Common stock - $0.0001 par value; 250,000,000 shares authorized;
6,284,168 and 6,000,000 issued and outstanding at September 30,
2023 and December 31, 2022, respectively |
|
|
628 |
|
|
|
600 |
|
Additional paid-in capital |
|
|
6,747,489 |
|
|
|
1,410,724 |
|
Accumulated deficit |
|
|
(6,025,603 |
) |
|
|
(4,289,319 |
) |
Total stockholders’ equity (deficit) |
|
|
722,514 |
|
|
|
(2,877,995 |
) |
Total liabilities and stockholders' equity (deficit) |
|
$ |
5,767,536 |
|
|
$ |
3,880,790 |
|
La Rosa Holdings Corp. and
SubsidiariesCondensed Consolidated Statements of
Operations(unaudited) |
|
|
|
|
|
Three Months EndedSeptember
30, |
|
|
Nine Months EndedSeptember
30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue |
|
$ |
6,792,250 |
|
|
$ |
6,131,892 |
|
|
$ |
20,320,606 |
|
|
$ |
20,206,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
6,216,751 |
|
|
|
5,582,663 |
|
|
|
18,450,162 |
|
|
|
17,998,181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
575,499 |
|
|
|
549,229 |
|
|
|
1,870,444 |
|
|
|
2,208,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
|
943,675 |
|
|
|
1,133,987 |
|
|
|
2,751,713 |
|
|
|
3,195,947 |
|
Sales and marketing |
|
|
49,277 |
|
|
|
52,057 |
|
|
|
242,548 |
|
|
|
296,429 |
|
Total operating expenses |
|
|
992,952 |
|
|
|
1,186,044 |
|
|
|
2,994,261 |
|
|
|
3,492,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(417,453 |
) |
|
|
(636,815 |
) |
|
|
(1,123,817 |
) |
|
|
(1,283,884 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(6,966 |
) |
|
|
(50,351 |
) |
|
|
(147,505 |
) |
|
|
(84,020 |
) |
Amortization of financing fees |
|
|
(207,887 |
) |
|
|
(4,053 |
) |
|
|
(882,781 |
) |
|
|
(100,123 |
) |
Change in fair value of derivative liability |
|
|
10,201 |
|
|
|
(1,147 |
) |
|
|
138,985 |
|
|
|
(24,363 |
) |
Forgiveness of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
149,312 |
|
Other income, net |
|
|
278,266 |
|
|
|
— |
|
|
|
278,834 |
|
|
|
27,786 |
|
Total other income
(expense) |
|
|
73,614 |
|
|
|
(55,551 |
) |
|
|
(612,467 |
) |
|
|
(31,408 |
) |
Loss before provision for
income taxes |
|
|
(343,839 |
) |
|
|
(692,366 |
) |
|
|
(1,736,284 |
) |
|
|
(1,315,292 |
) |
Provision for income
taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss |
|
$ |
(343,839 |
) |
|
$ |
(692,366 |
) |
|
$ |
(1,736,284 |
) |
|
$ |
(1,315,292 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.06 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing loss
per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
6,180,633 |
|
|
|
6,000,000 |
|
|
|
6,063,056 |
|
|
|
6,000,000 |
|
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