Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 179

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 179
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 2025   2024      (unaudited)   (audited)   Weighted average fair value  $0.06   $0.87   Dividend yield   —    —   Expected volatility factor   65.8%   72.7%  Risk-free interest rate   3.7%   4.3%  Expected life (in years)   2.4    5.5  

Note
8 — Stockholders’ Equity

Equity
Purchase Facility Agreement

On
August 4, 2025, the Company and an institutional investor (the “Investor”) entered into an Equity Purchase Facility Agreement
(the “EPFA”), pursuant to which the Company has the right to issue and sell to the Investor up to $150 million (subsequently
amended to $1 billion on September 18, 2025) in newly issued shares of the Company’s common stock (the “Commitment Amount”).
The term of the facility provided under the EPFA expires on the earlier to occur of (i) the first day of the next month following the
36-month anniversary of the first trading date after the Agreement Date and (ii) the date on which the Investor shall have made payment
of advances pursuant to the EPFA for common shares equal to the Commitment Amount; provided that the Company may terminate the EPFA effective
upon five trading days’ prior written notice to the Investor (provided that there are no outstanding advance notices the common
shares under which have yet to be issued).

On
September 18, 2025, the Company and the Investor entered into the Amended and Restated Equity Purchase Facility Agreement in order to
increase the Commitment Amount to $1 billion as described above. All other terms and provisions were substantially the same as the initial
EPFA.

26

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

Under
the terms of the EPFA, the Company has the right (but not the obligation) to request that the Investor purchase shares of the Company’s
Common Stock, subject to certain conditions and limitations (an “Advance”). The purchase price of the shares to be sold under
an Advance is 100% of the Market Price, which is generally defined as the lower of (i) the lowest price of the Common Stock traded during