Company: LRHC
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001213900-25-048370
Chunk: 30

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 1
Chunk 30
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 877,872 shares of common stock which represented 1,392,198 warrants.
The remaining warrant was repurchased by the Company for $379,083 in cash on January 24, 2025, resulting in the elimination of all vested
warrants (1,202,244 warrants) held by the investor as of March 31, 2025.

Warrants issued to two investors who loaned money
to the Company, Emmis Capital II, LLC and the Company’s CEO, Joseph La Rosa, on November 14, 2022 and December 2, 2022, respectively,
included full ratchet antidilutive protections. The original warrants each covered 50,000 shares at a strike price of $5.00. By the end
of 2024, due to various debt and equity transactions the new strike price on these warrants became $0.37, resulting in the number of shares
covered by each warrant to increase to 667,913, and a 2024 deemed dividend of $1,476,044. In the first quarter of 2025, the warrants were
revalued due to equity transactions triggering the ratchet antidilutive protections bringing the strike price of these warrants down to
$0.19 resulting in the number of shares covered by each warrant to increase to 1,331,913, and a 2025 deemed dividend of $186,233.

At March 31, 2025, warrants outstanding that have vested and are expected
to vest are as follows:

              Weighted                  Average              Weighted   Remaining              Average   Contractual   Aggregate      Number of   Exercise   Life   Intrinsic      Shares   Price   (in years)   Value   Vested    2,774,879   $0.58    2.7   $—   Expected to vest   —    —    —    —   Total    2,774,879   $0.58    2.7   $—  

17

La Rosa Holdings Corp. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements

Additional information with respect to warrant activity:

    Weighted 

    Average 

    Number of  
    Exercise 

    Shares