Company: LRHC
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001213900-25-048370
Chunk: 103

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 8
Chunk 103
---
% 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 of the SPA, the Company paid the remaining principal and accrued interest on the third and final outstanding note,
thereby 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 1,381,164 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