Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 231

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 231
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.5 million compared to other expense, net, for the nine months ended September 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 $4.6 million gain on extinguishment of debt.

Liquidity
and Capital Resources

On September 30, 2025, the Company had a cash balance of $4.0 million
and working capital of $1.2 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 proceeds of
$3,408,585. Remaining funds from the offering was used by the Company to pay-off certain indebtedness of the Company, pay certain outstanding
fees and expenses (including expenses of the offering, and fees payable to the placement agent and advisors), acquisitions and general
corporate purposes. Of the proceeds from the offering, $354,450 was paid to satisfy, in full, the remaining balance of the standard merchant
cash advance agreements with Cedar Advance, LLC, $340,421 was paid to satisfy, in full, the remaining balance of the standard merchant
cash advance agreement with Arin Funding, LLC and $910,250 was paid to satisfy, in full, the remaining balance of the senior secured
promissory notes with an accredited investor. See Note