Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 178

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 178
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 existing warrants 
     1,328,000  
     0.19 
  
    Exercised 
     (1,392,198) 
     0.37 
  
    Expired or forfeited 
     (1,202,244) 
     0.37 
  
    Balance — March 31, 2025 
     2,665,215  
    $0.60 
  
    Granted 
     1,039,878  
     0.14 
  
    Grants pursuant to a ratchet provision 
     —  
     — 
  
    Balance — June 30, 2025 
     3,705,093  
    $0.43 
  
    Granted 
     —   
     —  
  
    Grants cancelled pursuant to warrant exchange 
     (3,703,704) 
     0 
  
    Balance — September 30, 2025 
     1,389  
    $796.70 

As
of September 30, 2025 and December 31, 2024, there was no unrecognized expense related to warrants.

The
valuation methodology used to determine the fair value of the warrants was the Black-Scholes option-pricing model. The Black-Scholes
model requires the use of a number of assumptions including volatility of the stock price, the average risk-free interest rate, and the
weighted average expected life of the warrant.

Estimated
volatility is a measure of the amount by which the Company’s stock price is expected to fluctuate each year during the expected
life of the award. The Company’s estimated volatility is an average of the historical volatility of peer entities over the shorter
of i) the period equal to the expected life of the award or ii) the period over which the peer company was publicly traded. The Company
uses the historical volatility of peer entities due to the lack of sufficient historical data of its stock price.

The
risk-free interest rate assumption is based upon observed interest rates on zero coupon U.S. Treasury bonds whose maturity period is
appropriate for the term of the award at the grant date.

The
weighted average fair value of warrants granted for the period ended September 30, 2025 and December 31, 2024 and the assumptions used
in the Black-Scholes model are set forth in the table below.

     September 30,   December 31,