Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 33

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 33
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    $0.87 
  
    Dividend yield 
     — 
  
    Expected volatility factor 
     72.7%
  
    Risk-free interest rate 
     4.3%
  
    Expected life (in years) 
     5.5 

Contract
Liabilities and Performance Obligations

Contract
liabilities consist of unsatisfied performance obligations related to annual dues received at the start of the calendar year. As of September
30, 2025, the Company has approximately $72 thousand of remaining performance obligations, all of which will be recognized into revenue
by the end of the calendar year. The Company has elected to exclude disclosures regarding remaining performance obligations that have
an original expected duration of one year or less.

Note
5 — Borrowings

Line
of Credit 

The Company has a line of credit with Regions
Bank that allows for advances up to $150,000 with interest at the Prime Rate plus 4.75% with a floor of 4.75% and no maturity date. On
September 30, 2025, the outstanding balance on the line of credit was $0 at a prime rate of 7.5% plus 4.75%, or 12.25%. On December 31,
2024, the outstanding balance on the line of credit was $148,976 at a prime rate of 7.75% plus 4.75%, or 12.50%. The line of credit is
collateralized by Company assets. The interest expense incurred for the line of credit was $25 and $6,898 for the three months and nine
months ended September 30, 2025, respectively and $377 and $743 for the three months and nine months ended September 30, 2024, respectively.
No amount was drawn on the facility during the first nine months of 2024.

Security
Purchase Agreement

On
February 4, 2025, the Company and an Investor entered into the SPA, pursuant to which the Company issued to the Investor on such date:
(i) a Senior Secured Convertible Note in the original principal amount of $5,500,000 which matures on February 4, 2027 (the “Initial
Note”); and (ii) sixteen (16) warrants (the “Incremental Warrants”), each to purchase additional Notes in an original
principal amount up to $2,500,000 at an exercise price of $2,256,250,