Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 2534

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 2534
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 the Company. Pursuant
to the Arin Cash Advance Agreement, Arin was expected to withdraw $15,474 a week directly from the Company’s bank account until
the Receivables Purchased Amount due to Arin under the Arin Cash Advance Agreement was paid in full. In the event of a default (as defined
in the Arin Cash Advance Agreement), Arin, among other remedies, could demand payment in full of all amounts remaining due under the Arin
Cash Advance Agreement. To guarantee the Company’s satisfaction of its obligations under the Arin Cash Advance Agreement, the Company
granted Arin a security interest in all its accounts, including, but not limited to, deposit accounts, accounts receivables, other receivables,
chattel paper, documents, equipment, general intangibles, instruments and inventory.

During the years ended December 31, 2024 and 2023,
non-cash interest expense of $391,836 and $256,080, respectively, was recorded from the amortization of the debt discount and the debt
issuance costs. As of December 31, 2024, the remaining gross balance of the Cash Advance was $833,766, with a remaining unamortized discount
of $215,085, for a net balance of $618,861, which was fully repaid in February 2025. As of December 31, 2023, the remaining gross balance of the Cash Advance was $84,463 and a net carrying value
of $77,042, which was fully repaid in January 2024.

Notes Payable-Senior Secured Promissory Notes

On February 20, 2024, the Company entered into
a securities purchase agreement with an accredited investor for the issuance of a senior secured promissory note with an aggregate principal
amount of $1,052,632 with a maturity date twelve months from the issue date. The note had an original issue discount of 5% and a coupon
rate of 13% per annum. In addition, the Company issued 67,000 shares of the Company’s common stock as a commitment fee, a warrant
to purchase 120,000 shares of the Company’s common stock with an exercise price of $3.00, exercisable until the five-year anniversary
of the closing date, and a second warrant to purchase 95,000 shares of the Company’s common stock with an exercise price of $2.25.