Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 162

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 162
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The
fair value analysis of the Convertible Note was performed under the assumption of immediate conversion as of the valuation date. The
stock price, classified as a Level 1 input under the fair value hierarchy, was utilized in the analysis. Potential ownership limitations
or conversion blockers were not incorporated into the valuation, as the analysis assumed full conversion in a single transaction without
restriction.

(2)The
amendment to the Note on June 26, 2025, corrected the term of the Note from 1 year to 2 years and adjusted the alternate conversion price
from the “lesser” of 95% VWAP and the floor price to the “greater” of.

The
fair value of the Incremental Warrants were calculated using the Monte Carlo simulation with the following factors, assumptions
and methodologies for the prior quarter ended March 31, 2025 and right before the exchange on June 18, 2025:

     June 18,   March 31,      2025(1)   2025(1)   Face Value  $2,500,000   $2,500,000   Exercise Price  $2,256,250   $2,256,250   Stock Price  $10.40   $14.40   Exercise Threshold   20% of Min price    20% of Min price   Valuation per Incremental Warrant upon exercise  $11,320,000   $10,170,000   Discount Rate   36.97%   30.69%  Risk Free Rate   4.20%   4.03%  Annualized Volatility   92.00%   100.00%  Forecast horizon (years)   0.08    0.08  

(1)The
fair value analysis of the Incremental Warrants was performed under the assumption of immediate conversion as of the valuation date.
The stock price, classified as a Level 1 input under the fair value hierarchy, was utilized in the analysis. Potential ownership limitations
or conversion blockers were not incorporated into the valuation, as the analysis assumed full conversion in a single transaction without
restriction.

A
summary of the Company’s liabilities measured at fair value on a recurring basis is as follows:

    As of September 30, 2025 

    Level 1  
    Level