Company: LRHC
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001213900-25-048370
Chunk: 109

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 8
Chunk 109
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 case with prejudice. The action settled at mediation and was recently
dismissed without prejudice pending completion of the settlement terms.

On March 5, 2025, Joshua Epstein (“Plaintiff”)
filed an action in Osceola County, Florida Circuit Court alleging claims for Breach of Contract, Promissory Estoppel, Conversion, Unjust
Enrichment, Breach of Good Faith and Fair Dealings, Fraud in the Inducement, and to recover alleged unpaid compensation from the Defendant,
La Rosa Holdings Corp., (“Defendant”). The Defendant strongly opposed and denied these claims. The action is similar to the
Gracy matter and Defendant will be filing a dispositive motion seeking judgment against the Plaintiff.

The Company believes that the above claims are
without merit, and it will vigorously defend against such claims. Moreover, these claims, in the aggregate, would not have a material
adverse effect on the Company’s financial condition, business, or results of operations, should the Company’s defense not
be successful in whole or in part. Except as stated herein, there is no other action, suit, proceeding, inquiry or investigation before
or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of our executive officers,
threatened against or affecting our Company or our officers or directors in their capacities as such. 

Note 7 — Equity Warrants

Warrants are issued to consultants as compensation
or as part of certain capital raises which entitle the holder to purchase shares of the Company’s common stock at a fixed price.
As of March 31, 2025, the Company’s stock price was $0.18.

During the quarter ended March 31, 2025, the Company settled all vested
and outstanding warrants previously held by the accredited investor holding the three senior secured notes payable from 2024. Two of the
three warrants were exercised on a cashless basis for a total of 877,872 shares of common stock which represented 1,392,198 warrants.
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 (1,202,244 warrants) held by the investor as of March 31, 2025.

Warrants issued to two investors who loaned money
to the Company, Emmis Capital II, LLC and the Company’s CEO, Joseph La Rosa, on November