Company: LRHC
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001213900-25-078012
Chunk: 151

Company: La Rosa Holdings Corp.
Filing Date: 2025-08-18
Form: 10-Q
Item: Item 2
Chunk 151
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 and consultants who
provided various services to the company ($0.7 million).

Other Income (Expense), Net

Other income (expense), net for the three-months
ended June 30, 2025, increased approximately $81 million compared to other income (expense), net, for the three-months ended June 30,
2024. The increase in expense in 2025 was primarily due to the gain on settlement of the Incremental Warrants for $82.3 million, gain
on extinguishment of debt for $4.1 million, offset by a loss of $5.3 million on the change in fair value of convertible note and warrants.

41

Other expense, net for the six-months ended June
30, 2025, increased approximately $9.6 million compared to other expense, net, for the six-months ended June 30, 2024. The increase in
expense in 2025 was primarily due to the loss on issuance of senior secured convertible note for $128.8 million, offset by gain on extinguishment
of incremental warrants $82.3 million, gain of $31.8 million on the change in fair value of convertible note and warrants and a $4 million
gain on extinguishment of debt.

Liquidity and Capital Resources

On June 30, 2025, the Company had a cash balance
of $7.1 million and working capital of $4.4 million.

On February 4, 2025, the Company and an institutional
investor entered into the SPA, pursuant to which the Company issued to the Investor: (i) a Senior Secured Convertible Note in the original
principal amount of $5,500,000 which matures on February 4, 2027 (the “Initial Note”); and (ii) sixteen (16) warrants (the
“Incremental Warrants”), each to purchase additional Notes in an original principal amount up to $2,500,000 at an exercise
price of $2,256,250, in substantially the same form as the Initial Note (“Incremental Notes” and together with the Initial
Note, the “Notes”). The purchase price paid by the Investor under the SPA for the Initial Note and Incremental Warrants was
$4,963,750.

The $4,963,750 in gross proceeds of which $910,250, $496,191 and $148,724
were used to assume or extinguish other debt for net