Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 151

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 151
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 ended December 31, 2024 and 2023, there was no unrecognized expense related to warrants. Unrecognized amortization of
financing fees related to warrants granted in 2022 totaled $149,995, all of which was recognized in 2023. There was no unrecognized amortization
of financing fees related to warrants in 2024.

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
and the assumptions used in the Black-Scholes model are set forth in the table below.

    December 31,  
    December 31, 

    2024  
    2023 
  
    Weighted average fair value 
    $0.87  
    $2.96 
  
    Dividend yield 
     —  
     — 
  
    Expected volatility factor 
     72.7% 
     69.6%
  
    Risk-free interest rate 
     4.3% 
     4.7%
  
    Expected life (in years) 
     5.5  
     5.0 

F-27

Note 8 — Stockholders’ Equity

The Company is authorized to issue two classes
of stock consisting of 250,000,000 shares of Common Stock, $0.0001 par value per share, and 50,000,000 shares of preferred stock, $0.0001
par value per share. On July 22, 2021, the Company issued 6,000