Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 851

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1C
Chunk 851
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 reflect the strike price of the warrant issued to Alexander Capital and the number of shares covered by each of the warrants
increased to 166,667. The difference in the fair value between each warrant immediately before and after the trigger was, in aggregate,
$230,667, which is considered a deemed dividend.

In addition, on August 7, 2024, the Company, entered into a securities
purchase agreement with an institutional accredited investor, Brown Stone Capital Ltd., pursuant to which the Company agreed to issue
up to 3,051,336 shares of the Company’s common stock, and/or pre-funded warrants to purchase shares of common stock, at $0.59 per
share. The discount related to the shares purchased by Brown Stone resulted in a deemed dividend of $434,163. Pursuant to this agreement,
on August 12, 2024, the Company issued 761,689 shares of common stock. In accordance with the full ratchet antidilutive terms tied to
Emmis Capital II, LLC and Joseph La Rosa’s warrants, the warrants were adjusted to reflect the strike price of the common stock
issued to Brown Stone Capital Ltd., and the number of shares covered by each of the warrants increased to 847,458, in the aggregate. The
difference in the fair value between each warrant immediately before and after the trigger was, in aggregate, $485,876, which is considered
a deemed dividend. These two transactions increased the basic net loss per share for common stockholders for the year ended December 31,
2024.

At December 31, 2024, warrants outstanding that have vested and are
expected to vest are as follows:

             Weighted                  Average              Weighted   Remaining             Average   Contractual   Aggregate      Number of   Exercise   Life   Intrinsic      Shares   Price   (in years)   Value   Vested   4,041,321   $0.64    3.8   $1,846,047   Expected to vest   —    —    —    —   Total   4,041,321   $0.56    4.2   $1,846,047  

Additional information with respect to warrant activity:

    Weighted 

    Average 

    Number