Company: LRHC
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001213900-25-078012
Chunk: 33

Company: La Rosa Holdings Corp.
Filing Date: 2025-08-18
Form: 10-Q
Item: Item 1
Chunk 33
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by fully extinguishing the Company’s debt obligations to the investor under the 2024 note issuances.

In addition, the accredited investor elected
to convert an aggregate principal and interest amount of $483,751 of the notes into 17,265 shares of the Company’s common stock
in accordance with the terms of the applicable note agreements. The Company also settled all vested and outstanding warrants previously
held by the investor. Two of the three warrants were exercised for a total of 10,974 shares of common stock. The remaining warrant was
repurchased by the Company for $379,083 in cash on January 24, 2025, resulting in the elimination of all vested warrants held by the
investor.

On January 8, 2025, the Company and the accredited
investor entered into that certain Waiver, waiving the Event of Default (as defined) under these senior secured promissory notes. The
waiver included, among other provisions, waiving the rights to all default penalties, default interest, the acceleration of any amounts
and waiving the restriction for the Company to enter into a variable rate transaction, of which the consummation could be considered
an event of default, provided the proceeds from such financing are used to repay, in full, the notes described above.

On January 22, 2025, the Company and the Holder
signed an amendment No. 1 to the Waiver. Pursuant to the Amendment, the Company shall pay 100% of any cash proceeds raised by the Company
from the sale of securities pursuant to its Registration Statement on Form S-3 to the Holder first towards the repayment of the Redemption
Price until it is paid in full, and after that towards the repayment of the Notes. The Amendment also provides that, if the Redemption
Agreement becomes null and void pursuant to the terms 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.

15

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

The interest expense incurred for these senior
secured promissory notes was $0 and $23,798 for the three-months and six-months ended June 30, 2025, respectively. The interest expense
incurred for the senior secured promissory notes was $76,301 and $90,922 for the three-months and six