Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 182

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 182
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 50% of the voting power.

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 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 the Nasdaq Capital Market (“Shareholder Approval”). The Company agreed to convene a meeting of stockholders
to obtain Shareholder Approval within 120 days after the date of the Exchange Agreement. The Company obtained the Shareholder Approval
effective as of August 11, 2025.

In
connection with the issuance of the Series B Preferred Stock, the Company incurred direct and incremental expenses of $43,000 comprised
of legal fees, which reduced the carrying value of the Preferred Stock.

Convertible
preferred stock consisted of the following as of September 30, 2025:

     September 30, 2025      Shares 
Authorized   Shares 
Issued and 
Outstanding   Carrying 
Value   Original 
Issue Price   Conversion 
Price   Common 
Shares 
Upon 
Conversion              6,000    6,000   $8,261,000   $0.0001   $9.60    794,361  

28

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

Convertible
preferred stock is classified within permanent equity and recorded on the accompanying consolidated balance sheet at its issuance date
fair value. The holders of the Preferred Stock have the following rights and preferences:

Voting

Holders
of shares of Series