Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 30

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 30
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 assumptions
and methodologies for the prior quarter ended March 31, 2025 and right before the exchange on June 18, 2025:

     June 18,   March 31,      2025(1)   2025(1)   Face Value  $2,500,000   $2,500,000   Exercise Price  $2,256,250   $2,256,250   Stock Price  $10.40   $14.40   Exercise Threshold   20% of Min price    20% of Min price   Valuation per Incremental Warrant upon exercise  $11,320,000   $10,170,000   Discount Rate   36.97%   30.69%  Risk Free Rate   4.20%   4.03%  Annualized Volatility   92.00%   100.00%  Forecast horizon (years)   0.08    0.08  

(1)The
fair value analysis of the Incremental Warrants was performed under the assumption of immediate conversion as of the valuation date.
The stock price, classified as a Level 1 input under the fair value hierarchy, was utilized in the analysis. Potential ownership limitations
or conversion blockers were not incorporated into the valuation, as the analysis assumed full conversion in a single transaction without
restriction.

A
summary of the Company’s liabilities measured at fair value on a recurring basis is as follows:

    As of September 30, 2025 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Liabilities 

    Derivative liabilities 
    $-  
    $-  
    $-  
    $- 
  
    Convertible note 
    $-  
    $-  
    $7,958,504  
    $7,958,504 

    As of December 31, 2024 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Liabilities 

    Derivative liabilities 
    $-  
    $-  
    $1,607,544  
    $1,607,544 

17

La
Rosa Holdings Corp. and Subsidiaries
Notes to