Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 1941

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 1941
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2) of the Securities Act, 18 of the above convertible promissory notes, representing an
aggregate amount of principal and accrued interest of $598,836, for 591 shares of the Company’s series A preferred stock at an exchange
rate of $1,000 per share.

On the closing of the Company’s IPO on October
12, 2023, the Company repaid the principal and accrued interest of three of the remaining convertible notes totaling $94,433, and the
remaining convertible note with a principal balance plus accrued interest of $26,265 was converted into 6,566 shares of the Company’s
unregistered, restricted Common Stock based on the IPO price of $5.00.

F-25

Note 7 — 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. The strike price of warrants granted in 2022 were set when the Company completed the IPO pricing agreement
with the Company’s underwriters on October 9, 2023, which was $5.00.

Warrants issued to two investors who loaned money
to the Company, Emmis Capital II, LLC and the Company’s CEO, Joseph La Rosa, on November 14, 2022 and December 2, 2022, respectively,
included full ratchet antidilutive protections. The original warrants each covered 50,000 shares at a strike price of $5.00. The February
20, 2024 debt raise transaction required the Company to issue a warrant to Alexander Capital with a strike price of $1.50 (the fair market
value of the Company’s common stock at the time of issuance). In accordance with the full ratchet antidilutive terms, the warrants
were adjusted to reflect the strike price of the warrant issued to Alexander Capital and the number of shares covered by each of the warrants
increased to 166,667. The difference in the fair value between each warrant immediately before and after the trigger was, in aggregate,
$230,667, which is considered a deemed dividend.

In addition, on August 7, 2024, the Company, entered into a securities
purchase agreement with an institutional accredited investor, Brown Stone Capital Ltd., pursuant to which the Company agreed to issue
up to 3,051,336 shares of the Company’s common stock, and/or pre-funded warrants to purchase shares of