Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 37

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 37
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 no amortization expense for Arin during the three or nine months ended September
30, 2024.  

20

La
Rosa Holdings Corp. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements

Notes
Payable-Senior Secured Promissory Notes

During
the first quarter of 2025, the Company repaid in full all outstanding senior secured promissory notes issued in 2024 to an accredited
investor. On February 5, 2025, in connection with the execution of the SPA, the Company paid the remaining principal and accrued interest
on the third and final outstanding note, thereby fully extinguishing the Company’s debt obligations to the investor under the 2024
note issuances.

In
addition, the accredited investor elected to convert an aggregate principal and interest amount of $483,751 of the notes into 17,265
shares of the Company’s common stock in accordance with the terms of the applicable note agreements. The Company also settled all
vested and outstanding warrants previously held by the investor. Two of the three warrants were exercised for a total of 10,974 shares
of common stock. The remaining warrant was repurchased by the Company for $379,083 in cash on January 24, 2025, resulting in the elimination
of all vested warrants held by the investor.

On
January 8, 2025, the Company and the accredited investor entered into that certain Waiver, waiving the Event of Default (as defined)
under these senior secured promissory notes. The waiver included, among other provisions, waiving the rights to all default penalties,
default interest, the acceleration of any amounts and waiving the restriction for the Company to enter into a variable rate transaction,
of which the consummation could be considered an event of default, provided the proceeds from such financing are used to repay, in full,
the notes described above.

On
January 22, 2025, the Company and the Holder signed an amendment No. 1 to the Waiver. Pursuant to the Amendment, the Company shall pay
100% of any cash proceeds raised by the Company from the sale of securities pursuant to its Registration Statement on Form S-3 to the
Holder first towards the repayment of the Redemption Price until it is paid in full, and after that towards the repayment of the Notes.
The Amendment also provides that, if the Redemption Agreement becomes null and void pursuant to the terms