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La Rosa Holdings Corp. (NASDAQ:LRHC), a Nevada-based real estate management firm currently trading at $0.13 with a market capitalization of approximately $5 million, disclosed today that it has received a notice from the Nasdaq Stock Market indicating non-compliance with the continued listing requirements due to its negative stockholders’ equity. InvestingPro data reveals concerning financial health indicators, with the company’s overall financial health score rated as "WEAK." The company, which operates under the name 05 Real Estate & Construction, reported a deficit of $(83,377,044) in stockholders’ equity as of March 31, 2025, falling short of the Nasdaq Capital Market’s minimum requirement of $2,500,000.
The initial notification of non-compliance, dated May 21, 2025, was related to the company’s delay in filing its quarterly report for the fiscal quarter ended March 31, 2025. However, the company subsequently filed the required Form 10-Q on May 29, 2025, which led to the closure of that particular matter.
Despite the resolution of the filing issue, the company’s financial position has led to the current notice regarding its stockholders’ equity. La Rosa Holdings has been given 45 calendar days, until July 14, 2025, to submit a plan to regain compliance. If Nasdaq accepts the plan, the company may be granted an extension of up to 180 calendar days from May 30, 2025, to demonstrate compliance.
The company’s common stock continues to trade on the Nasdaq Capital Market under the symbol "LRHC," though it has experienced a dramatic 87% decline over the past year. La Rosa Holdings has expressed its intention to take all reasonable measures to regain compliance and maintain its listing on Nasdaq. For deeper insights into the company’s financial health and valuation metrics, investors can access additional analysis through InvestingPro, which offers 12 more exclusive tips about LRHC’s performance and outlook. The company is currently evaluating options to address the stockholders’ equity deficiency.
This report contains forward-looking statements, including the company’s intentions to regain compliance with Nasdaq listing rules. Such statements are based on management’s current expectations and are subject to risks and uncertainties, particularly given the company’s negative EBITDA of -$9.52 million and annual revenue of $73.87 million. Despite current challenges, InvestingPro’s Fair Value analysis suggests the stock may be undervalued at current levels. The company has emphasized that there can be no assurance that it will be able to regain or maintain compliance with the listing requirements or that its plans will be accepted by Nasdaq.
The information disclosed is based on a press release statement from La Rosa Holdings Corp. and reflects the company’s current situation regarding its Nasdaq listing status.
In other recent news, La Rosa Holdings Corp. has received a delinquency notice from Nasdaq due to the late filing of its quarterly report for the period ending March 31, 2025. The notice requires La Rosa to submit a compliance plan by July 21, 2025, which, if accepted, could extend the deadline to November 17, 2025. Meanwhile, the company announced a change in its independent registered accounting firm, appointing CBIZ (NYSE:CBZ) CPAs after Marcum LLP resigned. Despite the change, Marcum’s reports on La Rosa’s financial statements for the past two years did not contain any adverse opinions but noted material weaknesses in internal controls.
Additionally, La Rosa Holdings has launched LR Agent Advance LLC, a new subsidiary that allows its real estate agents to receive advances on pending commissions. This initiative aims to enhance agents’ financial flexibility and contribute to the company’s revenue, aligning with La Rosa’s financial targets of reaching $100 million in revenue and achieving cash flow positivity by the end of 2025. CEO Joe La Rosa expressed optimism about the program, which is part of the company’s strategy to support its network of over 2,500 agents. These developments are part of La Rosa’s ongoing efforts to expand and strengthen its business operations.
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