Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 50

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 50
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Pursuant to the terms of the Exchange Agreement,
conversion of the Series B Preferred Stock into shares of common stock of the Company in excess of 19.99% of the Company’s outstanding
shares of common stock is conditional upon obtaining the approval of the Company’s shareholders in accordance with the rules and
regulations of the Nasdaq Capital Market (“Shareholder Approval”). The Company agreed to convene a meeting of stockholders
to obtain Shareholder Approval within 120 days after the date of the Exchange Agreement. The Company obtained the Shareholder Approval
effective as of August 11, 2025.

In
connection with the issuance of the Series B Preferred Stock, the Company incurred direct and incremental expenses of $43,000 comprised
of legal fees, which reduced the carrying value of the Preferred Stock.

Convertible
preferred stock consisted of the following as of September 30, 2025:

     September 30, 2025      Shares 
Authorized   Shares 
Issued and 
Outstanding   Carrying 
Value   Original 
Issue Price   Conversion 
Price   Common 
Shares 
Upon 
Conversion              6,000    6,000   $8,261,000   $0.0001   $9.60    794,361  

28

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

Convertible
preferred stock is classified within permanent equity and recorded on the accompanying consolidated balance sheet at its issuance date
fair value. The holders of the Preferred Stock have the following rights and preferences:

Voting

Holders
of shares of Series B Preferred Stock have no right to vote on any matter at any time, either as a separate series or class or together
with any other series or class of share of capital stock of the Company, and are not entitled to call a meeting of such holders for any
purpose, nor are they entitled to participate in any meeting of the holders of common stock of the Company, except as provided in the
Section 16 of the Certificate of Designation or as otherwise required by the Nevada Revised Statutes.

Conversion
Rights

Subject to the Maximum Percentage, holders of
outstanding shares of Series B Preferred Stock are entitled to convert any portion of the outstanding and unpaid Conversion Amount (as
hereinafter defined) thereof into shares of common stock at the Conversion Rate (as hereinafter defined). For such purpose: (