Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 1500

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 1500
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 at a conversion price of $2.50 per share unless the Company failed to make
an amortization payment when due, in which case the conversion price would be the lower of $2.50 or 85% of the lowest volume weighted
average price (VWAP) of the shares prior to five days of the conversion. The proceeds of the note were used for business development and general
working capital purposes. In connection with this financing, the Company also issued to its placement agent, Alexander Capital L.P. (“Alexander
Capital”), a 5-year warrant to purchase 21,053 shares of the Company’s common stock at an exercise price of $1.50 per share.
During the year ended December 31, 2024, the investor converted $69,534 of accrued interest and
$746,440 of principal to 881,130 shares of common stock.

On April 1, 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 $1,316,000 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 50,000 shares of the Company’s common stock as a commitment fee, a warrant to
purchase 150,000 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 152,300 shares of the Company’s common stock with an exercise price of $2.25.
The second warrant would only become exercisable if the note was not fully paid on or before the maturity date, at which point the warrant
was exercisable until the five-year anniversary of the vesting date. The second warrant would be cancelled and extinguished if the note
is fully paid on or before the note maturity date. The investor also had a security interest in certain property of the Company and its subsidiaries to secure the prompt payment, performance,
and discharge in full of all of the Company’s obligations under the note. The principal amount and interest under the note were
convertible into shares of the Company’s common stock at a conversion price of $2.50 per share unless the Company fails to make
an amortization payment when due, in which case the conversion price would be the lower of $2.