Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 98

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 98
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 months ended September 30, 2024.
Of this $1.3 million is related to professional service, and $1.8 million is related to payroll and benefits which were added to support
the acquisitions, administrative, sales and marketing activities.

Stock-based
compensation

We incurred stock-based compensation of approximately
$2.3 million and $4.8 million in the three and nine months ended September 30, 2025, respectively, primarily due to option and other grants
to our CEO pursuant to the terms of his employment agreement ($2.2 million) and consultant shares granted for various advisory and marketing
functions ($1.5 million) and other grants to our agents and employees in the form of restricted stock units.

We incurred stock-based compensation of approximately
$390 thousand and $4.1 million in the three and nine months ended September 30, 2024, respectively, due to option grants to our CEO pursuant
to the terms of his employment agreement $2.1 million), other employees ($1.0 million), and investors and consultants who provided various
services to the company ($1.0 million).

55

Other
Income (Expense), Net

Other income (expense), net for the three months
ended September 30, 2025, decreased approximately $91 thousand compared to other income (expense), net, for the three months ended September
30, 2024. The decrease in expense in 2025 was primarily due the 2024 loss of $722 thousand offset by the 2024 fair value adjustments for
derivatives and warrants.

Other expense, net for the nine months ended September
30, 2025, increased approximately $9.5 million compared to other expense, net, for the nine months ended September 30, 2024. The increase
in expense in 2025 was primarily due to the loss on issuance of senior secured convertible note for $128.8 million, offset by gain on
extinguishment of incremental warrants $82.3 million, gain of $31.8 million on the change in fair value of convertible note and warrants
and a $4.6 million gain on extinguishment of debt.

Liquidity
and Capital Resources

On September 30, 2025, the Company had a cash balance of $4.0 million
and working capital of $1.2 million.

On
February 4, 2025, the Company and an institutional investor entered into the SPA, pursuant to