Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 177

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 177
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of all vested warrants (1,202,244 warrants) held by the investor as of March 31, 2025.

Warrants
issued to two investors who loaned money to the Company, Emmis Capital II, LLC and the Company’s CEO, Joseph La Rosa, on November
14, 2022 and December 2, 2022, respectively, included full ratchet antidilutive protections. The original warrants each covered 50,000
shares at a strike price of $5.00. By the end of 2024, due to various debt and equity transactions the new strike price on these warrants
became $0.37, resulting in the number of shares covered by each warrant to increase to 667,913, and a 2024 deemed dividend of $1,476,044.
In the first half of 2025, the warrants were revalued due to equity transactions triggering the ratchet antidilutive protections bringing
the strike price of these warrants down to $0.14 resulting in the number of shares covered by each warrant to increase to 1,851,852,
and a 2025 deemed dividend of $89,031.

At
September 30, 2025, warrants outstanding that have vested and are expected to vest are as follows:

             Weighted                  Average              Weighted   Remaining          Number   Average   Contractual   Aggregate      of   Exercise   Life   Intrinsic      Shares   Price(1)   (in years)   Value(1)           Vested   1,389   $796.75    2.22    —   Expected to vest   —    —    —    —   Total   1,389   $796.75    2.22    —  

25

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

Additional
information with respect to warrant activity:

    Weighted 

    Average 

    Number of  
    Exercise 

    Shares  
    Price 
  
    Balance — December 31, 2024 
     3,931,657  
    $0.66 
  
    Granted/Increase to