Company: LRHC
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001213900-25-078012
Chunk: 30

Company: La Rosa Holdings Corp.
Filing Date: 2025-08-18
Form: 10-Q
Item: Item 1
Chunk 30
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incurred for the Initial Note was $219,388 and $322,055, for the three-months and six-months ended June 30, 2025, respectively. 

In connection with the closing of the Initial
Note, the Company entered into a Registration Rights Agreement dated February 4, 2025, obligating the Company to file and maintain the
effectiveness of one or more registration statements with the SEC covering the resale of the shares of common stock issuable upon conversion
of the Notes and related instruments. The Company was required to file an initial registration statement with the SEC within 30 calendar
days of the closing date and have it declared effective within 90 calendar days (or 120 days if subject to full SEC review). The Company
successfully filed the registration statement on time per the agreed terms for the Initial Note. The Company is also subject to certain
limitations on entering into conflicting registration rights agreements through the applicable date and must allocate available registration
capacity pro rata among holders.

The Notes may be prepaid by the Company, in whole
or in part, at its option with at least 30 calendar days’ notice to the holder, provided no Event of Default has occurred and is
continuing. Voluntary prepayments are subject to a redemption premium equal to 120% of the outstanding principal, accrued interest, and
any applicable charges being redeemed. The Company may not issue more than one redemption notice within any 20-trading-day period, and
such notices are irrevocable once issued.

Certain mandatory redemptions, including those
triggered by Events of Default, Bankruptcy Events, or Change of Control transactions, are contractually deemed voluntary prepayments
and are also subject to the 120% redemption premium. The redemption price in such scenarios is the greater of (i) 120% of the outstanding
amount or (ii) a formula based on the conversion rate and the highest closing price of the Company’s common stock during a specified
period.

Other redemptions, such as those triggered by
subsequent placements or asset sales, are payable at 100% of the applicable amount and are not subject to a premium.

On May 23, 2025, the Company and the Investor
holding the Initial Note and Incremental Warrants entered into a waiver agreement pursuant to which, effective as of May 20, 2025,
through May 30, 2025, the holder waived all rights to default-related penalties, default interest, and acceleration