Company: LRHC
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001213900-25-048370
Chunk: 23

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 1
Chunk 23
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 per 30-day period, prorated
for partial periods, until cured. The Company is also subject to certain limitations on entering into conflicting registration rights
agreements through the applicable date and must allocate available registration capacity pro rata among holders.

The Notes may be prepaid by the Company, in whole
or in part, at its option with at least 30 calendar days’ notice to the holder, provided no Event of Default has occurred and is
continuing. Voluntary prepayments are subject to a redemption premium equal to 120% of the outstanding principal, accrued interest, and
any applicable charges being redeemed. The Company may not issue more than one redemption notice within any 20-trading-day period, and
such notices are irrevocable once issued.

Certain mandatory redemptions, including those triggered by
Events of Default, Bankruptcy Events, or Change of Control transactions, are contractually deemed voluntary prepayments and are also subject
to the 120% redemption premium. The redemption price in such scenarios is the greater of (i) 120% of the outstanding amount or (ii) a
formula based on the conversion rate and the highest closing price of the Company’s common stock during a specified period.

Other redemptions, such as those triggered by subsequent placements
or asset sales, are payable at 100% of the applicable amount and are not subject to a premium.

Cash Advance Agreements

 On February 5, 2025, the Company paid off their Standard Merchant Cash
Advance Agreement (the “Cash Advance”) with Cedar Advance LLC (“Cedar”) in the amount of $354,450, resulting in
a loss on extinguishment of debt of $83,310. The Company also paid off their other Standard Merchant Cash Advance Agreement (the “Arin
Cash Advance Agreement”) with Arin Funding LLC (“Arin”) in the amount of $340,421, resulting in a loss on extinguishment
of debt of $68,615. The amortization of financing fees incurred for MCA loans were $63,160 and $7,420 for the three months ended March
31, 2025 and 2024, respectively.

Notes Payable-Senior Secured Promissory Notes

During the three months ended March 31, 2025, the Company repaid in
full all outstanding senior secured promissory notes issued in 2024 to an accredited investor. On February 5, 2025, in connection with
the execution