Company: LRHC
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001213900-25-078012
Chunk: 41

Company: La Rosa Holdings Corp.
Filing Date: 2025-08-18
Form: 10-Q
Item: Item 1
Chunk 41
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 the peer company was publicly traded. The Company uses the historical volatility of peer
entities due to the lack of sufficient historical data of its stock price.

The risk-free interest rate assumption is based
upon observed interest rates on zero coupon U.S. Treasury bonds whose maturity period is appropriate for the term of the award at the
grant date.

The weighted average fair value of warrants granted
for the period ended June 30, 2025 and December 31, 2024 and the assumptions used in the Black-Scholes model are set forth in the table
below.

     June 30,   December 31,      2025   2024      (unaudited)   (audited)   Weighted average fair value  $0.06   $0.87   Dividend yield   —    —   Expected volatility factor   65.8%   72.7%  Risk-free interest rate   3.7%   4.3%  Expected life (in years)   2.4    5.5  

20

La Rosa Holdings Corp. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements

Note 8 — Stockholders’ Equity

Series B Preferred Stock

On June 18, 2025, with the prior approval by
the Company’s Board of Directors, the Company and the Investor entered into, and closed the transactions contemplated by, that
certain Amendment and Exchange Agreement (the “Exchange Agreement”) pursuant to which (among other things) the Investor surrendered
and exchanged all of its Incremental Warrants in exchange for (the “Exchange”) 6,000 shares of the Company’s Series
B Convertible Preferred Stock, par value $0.0001 per share (“Series B Preferred Stock”). On the same date, the Company filed
a Certificate of Designation of Rights and Preferences of the Series B Preferred Stock (the “Certificate of Designation”)
with the Secretary of State of Nevada.

Pursuant to the terms of the Exchange Agreement,
conversion of the Series B Preferred Stock into shares of common stock of the Company, par value $0.0001 per share (the “Common
Stock”) in excess of 19.99% of the Company’s outstanding shares of Common Stock is conditional upon obtaining the approval
of the Company’s shareholders in accordance with the rules and regulations of