Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 137

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 137
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 Company entered into a Standard
Merchant Cash Advance Agreement (the “Cash Advance”) with Cedar Advance LLC (“Cedar”) for the purchase and sale
of future receipts pursuant to which the Company sold in the aggregate $764,150 in future receipts of the Company for $500,650. The Company
recorded a debt discount in the amount of $237,150 based upon the difference between the amount of future receipts sold and the actual
proceeds received by the Company and debt issuance costs of $26,350. The debt discount and debt issuance costs were reflected as a reduction
on the outstanding liability and were being amortized as non-cash interest expense using the effective interest method over the term of
the agreement. The Cash Advance was fully repaid in January 2024.

On May 20, 2024, the Company entered into another
Standard Merchant Cash Advance Agreement (the “2024 Cash Advance”) with Cedar for the purchase and sale of future receipts
pursuant to which the Company sold in the aggregate $761,250 in future receipts of the Company for $500,000. Future receipts include cash,
check, credit or debit card, electronic transfer, or other form of monetary payment. Until the purchase price has been repaid, the Company
agreed to pay Cedar $23,000 per week. In addition, the Company granted Cedar a security interest in all the Company’s accounts,
including deposit accounts and accounts receivable and proceeds. The Company recorded a debt discount in the amount of $236,250 based
upon the difference between the amount of future receipts sold and the actual proceeds received by the Company and debt issuance costs
of $25,000. The debt discount and debt issuance costs were reflected as a reduction on the outstanding liability and are being amortized
as non-cash interest expense using the effective interest method over the term of the agreement.

F-21

On October 7, 2024, the Company entered into a
Standard Merchant Cash Advance Agreement (the “Cedar Cash Advance Agreement”) with Cedar pursuant to which the Company sold
to Cedar $616,250 of its future receivables, including cash, check, credit or debit card, electronic transfer, or other form of monetary
payments from third parties (the “Receivables Purchased Amount”), for a purchase price of $425,000 less underwriting fees
and expenses paid, or for net funds of $403,750 to the Company. The parties agreed that a portion of the