Company: LRHC
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001213900-25-078012
Chunk: 39

Company: La Rosa Holdings Corp.
Filing Date: 2025-08-18
Form: 10-Q
Item: Item 1
Chunk 39
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 or affecting our Company or our officers or directors in their capacities as such. 

Note 7 — Equity Shares and Warrants

Warrants are issued to consultants as compensation
or as part of certain capital raises which entitle the holder to purchase shares of the Company’s common stock at a fixed price.
As of June 30, 2025, the Company’s stock price was $10.44.

During the six months ended June 30, 2025, the
Company settled all vested and outstanding warrants previously held by the accredited investor holding the three senior secured notes
payable from 2024. Two of the three warrants were exercised on a cashless basis for a total of 10,974 shares of common stock which represented
1,392,198 warrants. The remaining warrant was repurchased by the Company for $379,083 in cash on January 24, 2025, resulting in the elimination
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 June 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