After 3 reverse stock splits and a $13.5M loss, this real estate firm bet $8M on crypto it may not be allowed to withdraw

Real estate services company La Rosa Holdings put $8.14 million of digital assets on its March 31 balance sheet in a delayed first-quarter filing. How much could it actually use? The filing leaves that figure blank. Cash stood at $1.74 million, total liabilities at $28.34 million, and the stockholders’ deficit at $7.5 million.

Most of the balance was USDC and Frax USD in a restricted BitGo custodial account. Withdrawals, transfers, and other uses depend on compliance with La Rosa’s financing agreements. The company records the tokens at historical cost less impairment, recognizing gains above carrying value only when it sells or otherwise disposes of them.

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A senior secured convertible note with $11 million in principal, issued Jan. 8 for a $9.9 million purchase price, sets one layer of control. Substantially all assets bought with initial-closing proceeds sit under a first-priority security interest. Remaining assets carry a second-priority interest behind a separate February note’s first lien. La Rosa measured the note at $14.57 million at quarter-end. It bears 10% annual interest, payable monthly, and matures 24 months after issuance.

The investor also holds a separate token right. If exercised, it entitles the investor to 50% of tokens bought with note-closing net proceeds and 56.25% bought with certain other financing proceeds, with no further payment due from the investor. La Rosa carried a $5.35 million current liability for the agreement. That figure measures the contract’s fair value. The restricted assets appear on a separate balance-sheet line.

Missing from the filing are token quantities, the funding-source split, exercise status, delivery history, collateral releases, and a freely withdrawable balance. The liens and token rights can reach the same assets, so a simple subtraction risks mixing unlike measures or double-counting claims.

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Liquidity is tight. La Rosa reported $12.06 million of current liabilities, a $13.47 million quarterly net loss, and $1.76 million of cash used in operations. The loss included $10.50 million tied to issuing the secured note. Management warned that working capital, cash, and operating cash flow would fall short of projected operating expenses for at least 12 months from issuance of the financial statements. It flagged substantial doubt about the company’s ability to continue as a going concern.

La Rosa has used two figures for the restriction. A March 31 company release described about $3.9 million of an approximately $8.1 million reserve as restricted under the token right. The later 10-Q put the full $8.14 million balance in the restricted category as the broader financing controls applied.

Digital-asset holdings reached $10.3 million by May 31, primarily FRXUSD and USDC, after La Rosa deployed $6.7 million of initial-closing proceeds and $3.6 million from its equity line. The update left withdrawals unquantified.

After quarter-end, two Series D closings provided $500,000, followed by $250,000 of Series E gross proceeds. La Rosa also submitted a Nasdaq compliance plan tied to a deficiency based on negative $1.85 million stockholders’ equity at Dec. 31.

The 10-Q retroactively adjusted share and per-share figures for an April 1-for-10 reverse split, following earlier splits in July 2025 and January 2026. The next filing has a clear job. It needs to show token quantities, funding sources, exercises, deliveries, and collateral releases.

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