other material
confidence high
sentiment negative
materiality 0.80
La Rosa Holdings Corp. (LRHC): auditor change — La Rosa to restate FY2024 & interim results; revenue overstated $10.8M due to agent/principal error
La Rosa Holdings Corp.
- Audit committee concluded company acted as agent, not principal, for property management fees; revenue to be restated net.
- Cumulative revenue and cost reduction of $10.8M for FY2024; gross margin percentage rises from 8.57% to 10.14%.
- Affected periods: FY2024 annual and quarters from Q1 2024 through Q3 2025; restatement has no impact on net income or cash flows.
- Board discussed findings with independent auditor CBIZ CPAs P.C.