Company: LRHC
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001213900-25-048370
Chunk: 111

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 8
Chunk 111
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5 
     2,774,879  
    $0.58 

As of March 31, 2025 and December 31, 2024, there
was no unrecognized expense related to warrants.

The valuation methodology used to determine the
fair value of the warrants was the Black-Scholes option-pricing model. The Black-Scholes model requires the use of a number of assumptions
including volatility of the stock price, the average risk-free interest rate, and the weighted average expected life of the warrant.

Estimated volatility is a measure of the amount
by which the Company’s stock price is expected to fluctuate each year during the expected life of the award. The Company’s
estimated volatility is an average of the historical volatility of peer entities over the shorter of i) the period equal to the expected
life of the award or ii) the period over which the peer company was publicly traded. The Company uses the historical volatility of peer
entities due to the lack of sufficient historical data of its stock price.

The risk-free interest rate assumption is based
upon observed interest rates on zero coupon U.S. Treasury bonds whose maturity period is appropriate for the term of the award at the
grant date.

The weighted average fair value of warrants granted for the period
ended March 31, 2025 and December 31, 2024 and the assumptions used in the Black-Scholes model are set forth in the table below.

     March 31,   December 31,      2025   2024   Weighted average fair value  $0.92   $0.87   Dividend yield   —    —   Expected volatility factor   70.5%   72.7%  Risk-free interest rate   4.3%   4.3%  Expected life (in years)   3.9    5.5  

18

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

Note 8 — Stockholders’ Equity

Common Stock Issuances

On January 17, 2025, the Company issued 399,562
shares of common stock as an exercise of a prefunded warrant which was part of the securities purchase agreement with an institutional
accredited investor, Abri Advisors, Ltd., a corporation organized under the laws of Bermuda, agreed to on November 1