Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 138

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 138
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 proceeds equal to $301,250 were
to be paid by the Company to Cedar pursuant to the May 20, 2024 cash advance agreement discussed above. This payment was accounted for
as an extinguishment of this May 20, 2024 cash advance agreement debt and the Company recorded a loss of $54,829 representing the remaining
unamortized deferred financing costs and discount. Pursuant to the Cedar Cash Advance Agreement, Cedar was expected to withdraw $15,400
a week directly from the Company’s bank account until the Receivables Purchased Amount due to Cedar under the Cedar Cash Advance
Agreement is paid in full. In the event of a default (as defined in the Cedar Cash Advance Agreement), Cedar, among other remedies, could
demand payment in full of all amounts remaining due under the Cedar Cash Advance Agreement. To guarantee the Company’s satisfaction
of its obligations under the Cedar Cash Advance Agreement, the Company granted Cedar a security interest in all its accounts, including
deposit accounts and accounts receivable and proceeds.

On October 7, 2024, the Company, entered into
a Standard Merchant Cash Advance Agreement (the “Arin Cash Advance Agreement”) with Arin Funding LLC (“Arin”)
pursuant to which the Company sold to Arin $588,000 of its future receivables for the sale of its goods and services (the “Receivables
Purchased Amount”), for a purchase price of $420,000 less fees and expenses paid, or for net funds of $400,000 to 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