Company: LRHC
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001213900-25-048370
Chunk: 125

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 8
Chunk 125
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 Company that, under Nasdaq
rules, the Company has 60 calendar days to submit a plan to regain compliance, and if the Staff accepts such plan, they can grant an exception
of up to 180 calendar days from the Filing’s due date (or until November 17, 2025) to regain compliance.

The notice from Nasdaq has no immediate effect
on the listing of the Company’s common stock and its common stock will continue to be listed on The Nasdaq Capital Market under
the symbol “LRHC”. The Company intends to regain compliance with Nasdaq Listing Rule 5250(c)(1) as a result of filing of this
Quarterly Report on Form 10-Q.

Amendment to CEO Employment Agreement

On February 3, 2025, on the approval of the Compensation
Committee of the Board of Directors (the “Compensation Committee”) of the Company amended the employment agreement between
the Company and Joseph La Rosa, the Company’s Chief Executive Officer. The amendment provided Mr. La Rosa with a right to receive
certain annual equity awards and milestone equity awards not only in the form of stock options but also in the form of restricted stock
units and amended Section 4.3(b) to include subsection (vii), according to which for every $1,000,000 raised by the Company through financing,
Mr. La Rosa shall be granted an equity award equal to 2% of the outstanding shares of common stock of the Company.

February 2025 Financing

On February 4, 2025, we entered into the SPA with
an institutional investor (“2025 Investor”) pursuant to which we issued and sold to the 2025 Investor on such date: (i) a
Senior Secured Convertible Note in the original principal amount of $5,500,000 which matures on the two-year anniversary of the Closing
Date (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, in substantially the same form as the Initial
Note (Incremental Notes and together with the Initial Note, the “Notes”). The purchase price paid by 2025 Investor under the
SPA for the Initial Note and Incremental Warrants was $4,963,750, which was used by the Company to pay-off certain indebtedness, pay certain