Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 32

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 32
---
000) 
     - 
  
    Change in fair market value - extinguished warrants 
     9,200,000  
     83,100 
  
    Balance – June 30, 
    $-  
    $317,400 
  
    Issuance of derivative liability 
     -  
     39,738 
  
    Change in fair market value - extinguished warrants 
     -  
     (307,098)
  
    Balance – September 30, 
    $-  
    $50,040 

Convertible
Note

    Balance – January 1, 2025 
    $- 
  
    Issuance of Convertible Note(1) 
     33,000,000 
  
    Change in fair value of Convertible Note 
     (17,705,000)
  
    Balance – March 31, 2025 
     15,295,000 
  
    Change in fair value of Convertible Note 
     (2,818,000)
  
    Convertible Note Extinguished(2) 
     12,477,000 
  
    Issuance of Convertible Note(2) 
     8,364,000 
  
    Change in fair value of Convertible Note 
     (1,067,000)
  
    Balance – June 30, 2025 
     7,297,000 
  
    Change in fair value of Convertible Note 
     661,504 
  
    Balance – September 30, 2025 
    $7,958,504 

18

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

The
fair value of the derivative liability related to the three eliminated Warrants, was computed using the Black-Scholes model both when
issued and on the balance sheet date. To determine the fair value, the Company incorporated transaction details such as the price of
the Company’s common stock, contractual terms, maturity, and risk-free rates, as well as assumptions about future financings, volatility,
probability of contingencies, and holder behavior. The fair value of the derivative liability on the issuance date and the balance sheet
date and the assumptions used in the Black-Scholes model are set forth in the table below.

    December 31, 

    2024 
  
    Weighted average fair value