Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 859

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1C
Chunk 859
---
. The Series X Super Voting Preferred Stock is not convertible into Common Stock or any other securities of the
Company. The holders of the Series X Super Voting Preferred Stock are not entitled to any dividend rights or any liquidation preference
and have no subscription, redemption or conversion privileges.

Series A Preferred Stock

On February 13, 2023, the Company designated 11,000
shares of the authorized preferred stock as series A preferred stock. The holders of the series A preferred stock do not have voting rights,
redemption rights, dividend rights, anti-dilution rights, nor liquidation rights. Each share of the series A preferred stock will automatically
convert into shares of the Company’s Common Stock upon the earlier of the closing date of the Company’s IPO or upon a change
in control of the Company. Upon the Company’s IPO, the value of each share is converted to common stock at a 30% discount of the
IPO price. The discount is accounted for as a deemed dividend that increases the basic net loss per share for common stockholders. 

During 2023, the Company issued 1,523 shares of
its series A preferred stock to 77 investors in a private placement pursuant to Regulation D under the Securities Act, raising $1,523,000.
The Company also exchanged convertible debt with an outstanding balance of $598,836, including accrued interest of $87,836, for 591 shares
of series A preferred stock. On March 27, 2023, the Company exchanged a portion of its related party debt with an outstanding gross balance
of $1,324,631, excluding debt discount of $469,785, and including accrued interest of $28,101, for 1,321 shares of series A preferred
stock. On December 31, 2022, a loan of $556,268 from Celebration Office Condos LLC, a company owned by the Company’s CEO, was forgiven
for one share of series A preferred stock which was issued in March 2023.

Upon the first day of trading of the Company’s
Common Stock on the Nasdaq stock exchange on October 10, 2023, the 3,436 shares of Series A Preferred Stock outstanding automatically
converted into 981,676 shares of the Company’s Common Stock based on the IPO price of $5.00. The 30% discount from the IPO price
resulted in an aggregate discount of $1,472,514, which was accounted for as a