Company: LRHC
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001213900-25-078012
Chunk: 40

Company: La Rosa Holdings Corp.
Filing Date: 2025-08-18
Form: 10-Q
Item: Item 1
Chunk 40
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   Price(1)   (in years)   Value(1)       (audited)   Vested   3,705,093   $0.43    2.40    —   Expected to vest   —    —    —    —   Total   3,705,093   $0.43    2.40    —  

19

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

Additional information with respect to warrant activity:

    Weighted 

    Number  
    Average 

    of  
    Exercise 

    Shares  
    Price 
  
    Balance — December 31, 2024 
     3,931,657  
    $0.66 
  
    Granted/Increase to existing warrants 
     1,328,000  
     0.19 
  
    Exercised 
     (1,392,198) 
     0.37 
  
    Expired or forfeited 
     (1,202,244) 
     0.37 
  
    Balance — March 31, 2025 
     2,665,215  
    $0.60 
  
    Granted 
     1,039,878  
     0.14 
  
    Grants pursuant to a ratchet provision 
     —  
     — 
  
    Balance — June 30, 2025 
     3,705,093  
    $0.43 

As of June 30, 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