Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 38

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 38
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 of the Redemption Agreement,
then all Proceeds previously paid by the Company to the Holder pursuant to the Redemption Agreement shall instead be applied towards
the repayment of the Notes.

The interest expense incurred for these senior
secured promissory notes was $0 and $23,798 for the three months and nine months ended September 30, 2025, respectively. The interest
expense incurred for the senior secured promissory notes was $90,281 and $181,203 for the three months and nine months ended September
30, 2024, respectively.

Notes
Payable-Promissory Note

On
September 27, 2024, the Company entered into a promissory note payable whereby the Company borrowed $200,000 bearing interest at 12.5%
per annum. The note was payable in three-monthly installments of $75,000. The proceeds of the note were used to pay down the senior secured
promissory note entered into in February 2024. The remaining balance on the note as of December 31, 2024 was $148,725. This note was
fully repaid in February 2025. The interest expense incurred for the promissory note was $1,276 during the first quarter of 2025.

Acquisition
Settlement Agreement

In
October 2024, the Company entered into an acquisition settlement agreement with the former owner of an acquired business. Under the terms
of the agreement, the Company agreed to pay $1.0 million in equal installments of $11,905 per month over seven years, beginning November
1, 2024.

21

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

Economic
Injury Disaster Loans

During 2024, the Company acquired franchises that
had outstanding Economic Injury Disaster Loans (the “EIDL Loans”) in the aggregate of $147,100. The Company acquired the EIDL
Loans which have terms similar to the Company’s existing EIDL loans. The EIDL Loans mature in 2050 and bear interest at a rate of
3.75% per annum. The interest expense incurred for the EIDL loans were $3,724 and $16,894 for the three months and nine months ended September
30, 2025 and $7,000 and $19,054 for September 30, 2024, respectively.

Future
maturities of