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
Accounting
Adjustments
         
   As Reported   Removal of
LR Kissimmee
Membership Interest (a)
   Notes   Pro Forma 
Assets                
Current assets:                
Cash  $3,992,896   $(586,542)     $3,406,354 
Restricted cash   2,396,268    46,199        2,442,467 
Accounts receivable, net of allowance for credit losses   799,385    (61,257)  (d)    738,128 
Other current assets   34,669            34,669 
Total current assets   7,223,218    (601,600)       6,621,618 
                    
Noncurrent assets:                   
Restricted cash, net of current   46,199    (46,199)       - 
Property and equipment, net   6,879    (2,322)       4,557 
Right-of-use asset, net   1,104,403    (5,369)       1,099,034 
Intangible assets, net   5,256,913    (1,274,674)       3,982,239 
Goodwill   8,012,331    (2,217,170)       5,795,161 
Other long-term assets   40,250            40,250 
Total noncurrent assets   14,466,975    (3,545,734)       10,921,241 
Total assets  $21,690,193   $(4,147,334)      $17,542,859 
Liabilities and Stockholders’ Equity                   
Current liabilities:                   
Accounts payable  $2,006,747   $(396,736)  (c)   $1,610,011 
Accrued expenses   780,665    (1,158)       779,507 
Contract liabilities   72,485    (20,212)       52,273 
Security deposits and escrow payable   2,396,268    46,199        2,442,467 
Accrued acquisition cash consideration   60,000            60,000 
Notes payable, current   148,757            148,757 
Lease liability, current   514,731    (3,922)       510,809 
Total current liabilities   5,979,653    (375,829)       5,603,824 
                    
Noncurrent liabilities:                   
Note payable, net of current   9,321,562    (150,000)  (d)    9,171,562 
Security deposits and escrow payable, net of current   46,199    (46,199)       - 
Lease liability, noncurrent   625,637    (7,640)       617,997 
Other liabilities   2,950            2,950 
Total non-current liabilities   9,996,348    (203,839)       9,792,509 
Total liabilities   15,976,001    (579,668)       15,396,333 
                    
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, 2025 and December 31, 2024, respectively                
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 
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                
                    
Additional paid-in capital   50,942,905           50,942,905 
Accumulated deficit   (49,385,392)   (1,642,163)       (51,027,555)
Total stockholders’ equity – La Rosa Holdings Corp. shareholders   1,557,514    (1,642,163)       (84,649)
Noncontrolling interest in subsidiaries   4,156,678    (1,925,503)       2,231,175 
Total stockholders’ equity   5,714,192    (3,567,666)       2,146,526 
Total liabilities and stockholders’ equity  $21,690,193   $(4,147,334)      $17,542,859 

 

2

 

 

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        
   As Reported
Nine Months
Ended
September 30,
2025
   Removal of
LR Kissimmee
Membership
Interest (a)
   Notes   Pro Forma
Nine Months
Ended
September 30,
2025
 
Revenue  $52,076,658   $(9,199,092)  (b)   $42,877,566 
                    
Cost of revenue   46,978,581    (8,367,157)       38,611,424 
                    
Gross profit   5,098,077    (831,935)       4,266,142 
                    
Operating expenses:                   
Sales and marketing   1,326,859    (45,060)       1,281,799 
General and administrative   11,146,500    (773,721)  (b)    10,372,779 
Stock-based compensation — general and administrative   4,744,012    3        4,744,015 
Total operating expenses   17,217,371    (818,778)       16,398,593 
                    
Loss from operations   (12,119,294)   (13,157)       (12,132,451)
Other income (expense):                   
Interest expense, net   (361,381)   4,747   (c)    (356,634)
Gain (loss) on extinguishment of debt   3,961,075            3,961,075 
Amortization of debt discount   (63,160)           (63,160)
Change in fair value of derivative liability   899,874            899,874 
(Loss) gain on issuance of senior secured convertible note and warrants   (128,836,250)           (128,836,250)
Change on fair value of convertible note and warrants   31,168,496            31,168,496 
Gain on settlement of incremental warrants   82,299,000            82,299,000 
Other income, net   271,281            271,281 
Loss before provision for income taxes   (22,780,359)   (8,410)       (22,788,769)
Benefit from income taxes                
Net loss   (22,780,359)   (8,410)       (22,788,769)
Less: Net income (loss) attributable to noncontrolling interests in subsidiaries   49,714    (63,357)       (13,643)
Net loss after noncontrolling interest in subsidiaries   (22,830,073)   54,947        (22,775,126)
Less: Deemed dividend   275,264            275,264 
Net loss attributable to common stockholders  $(23,105,337)  $54,947       $(23,050,390)
                    
Loss per share of common stock attributable to common stockholders                   
Basic and diluted  $(3,264.12)           $(3,256.35)
                    
Weighted average shares used in computing net loss per share of common stock attributable to common stockholders                   
Basic and diluted   7,079             7,079 

 

3

 

 

La Rosa Holdings Corp. and Subsidiaries

Unaudited Pro Forma Consolidated Statements of Operations

For the Year Ended December 31, 2024

 

       Transaction
Accounting
Adjustments
         
   As Reported
Year Ended
December 31,
2024
   Removal of
LR Kissimmee
Membership
Interest (a)
   Notes   Pro Forma
Year Ended
December 31,
2024
 
Revenue  $58,682,139   $(11,532,108)  (b)   $47,150,031 
                    
Cost of revenue   52,728,860    (10,726,283)       42,002,577 
                    
Gross profit   5,953,279    (805,825)       5,147,454 
                    
Operating expenses:                   
Sales and marketing   1,007,077    (64,513)       942,564 
General and administrative   10,625,551    (908,230)  (b)    9,717,321 
Stock-based compensation — general and administrative   4,730,355            4,730,355 
Impairment of goodwill   787,438            787,438 
Total operating expenses   17,150,421    (972,743)       16,177,678 
                    
Loss from operations   (11,197,142)   166,918        (11,030,224)
Other income (expense)                   
Interest expense, net   (403,397)   5,320   (c)    (398,077)
Loss on extinguishment of debt   (777,558)           (777,558)
Amortization of debt discount   (649,138)           (649,138)
Change in fair value of derivative liability   (1,338,506)           (1,338,506)
Other income, net   15,745            15,745 
Loss before provision for income taxes   (14,349,996)   172,238        (14,177,758)
Benefit from income taxes                
Net loss   (14,349,996)   172,238        (14,177,758)
Less: Net income (loss) attributable to noncontrolling interests in subsidiaries   97,567    (43,535)       54,032 
Net loss after noncontrolling interest in subsidiaries   (14,447,563)   215,773        (14,231,790)
Less: Deemed dividend   1,476,044    -        1,476,044 
Net loss attributable to common stockholders  $(15,923,607)  $215,773       $(15,707,834)
                    
Loss per share of common stock attributable to common stockholders                   
Basic and diluted  $(6,299.41)           $(6,214.05)
                    
Weighted average shares used in computing net loss per share of common stock attributable to common stockholders                   
Basic and diluted   2,528             2,528 

 

4

 

 

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:

 

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

 

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

 

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

 

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

 

5