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

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 1
Chunk 29
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 to her cell phone from La Rosa Realty, LLC presenting her an
employment opportunity as a real estate agent. Ms. Palmer seeks an undisclosed amount of monetary damages from La Rosa Realty, LLC for
the alleged would-be injurious, isolated and opportunistic employment gestures to her through a purported nationwide class action. Ms.
Palmer claims that the defendant violated her privacy, annoyed and harassed her, constituted a nuisance, and occupied her telephone line.
On March 12, 2024, La Rosa Realty, LLC filed a motion to dismiss the 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