Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 43

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 43
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 2, 2025. The Company denies the
merits of the claims and intends on vigorously defending the litigation.

24

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

On June 5, 2025, an employee, who served as our
Senior Human Resources and Payroll Specialist from July 10, 2024 to August 19, 2024, filed a civil lawsuit against the Company in the
Circuit Court of Osceola County, Florida. The employee is seeking a jury trial claiming $50,000 in damages and that the Company terminated
her employment in violation of SS 448.102(3). On July 9, 2025, the Company responded to the complaint with its Answer and Affirmative
Defenses, effectively denying all of the plaintiff’s claims. The case remains pending.

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 Shares and Warrants

July
2025 Warrant Exchange Agreements

During
July 2025, the Company entered into two warrant exchange agreements (the “Exchange Agreements”) with two holders of previously
issued equity-classified warrants to purchase shares of the Company’s Common Stock (one Exchange Agreement was entered into with
the Company’s Chief Executive Officer. The terms of the Exchange Agreement provided each holder with 75,000 newly issued shares
of the Company’s Common Stock, in exchange for the settlement and cancellation of their outstanding warrants. As of the dates of
the Exchange Agreements, the outstanding warrants provided the holders with the right to purchase an aggregate of 3,703,704 shares of
the Company’s Common Stock at a per share exercise price of $0.135.

Upon
the respective settlement dates in July 2025, the Company measured the fair value of the newly issued shares of