Company: LRHC
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001213900-25-048370
Chunk: 20

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 1
Chunk 20
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 investor and remeasured on a recurring basis amounted to $1,607,544.

    As of March 31, 2025 

    Level 1  
    Level 2  
    Level 3 
    Total 
  
    Liabilities 

    Derivative liabilities 
    $-   
    $        -  
    $81,360,000  
    $81,360,000 
  
    Convertible note 
    $             -   
    $    -  
    $15,295,000  
    $15,295,000

At March 31, 2025, warrants held by an institutional
investor were eliminated through exercising and a redemption and cancellation agreement for $379,083. The Company recorded a derivative
liability related to the Incremental Warrants issued in connection with the SPA dated February 4, 2025. The Incremental Warrants’
fair value at date of issuance was $100,800,000 and were remeasured at March 31, 2025 with a fair value of $81,360,000. The analysis assumes
immediate conversion upon issuance and does not incorporate ownership limitations or conversion blockers that could otherwise restrict
full exercise or conversion. 

The following table provides a summary of changes
in fair value associated with the Level 3 liabilities for the three-month periods ended March 31, 2025 and 2024:

  Balance – January 1, 2025  $0   Issuance of Convertible Note   33,000,000   Change in fair value of Convertible Note   (17,705,000)  Balance – March 31, 2025  $15,295,000  

    2025  
    2024 
  
    Balance – January 1, 
    $1,607,544  
    $- 
  
    Issuance of derivative liability 
     100,800,000  
     117,300 
  
    Cash paid to settle derivative liability 
     (379,083) 
     - 
  
    Issuance of cashless shares for exercising  warrants 
     (328,587) 
     - 
  
    Extinguishment of derivative liability 
     (366,308) 
     - 
  
    Change in fair market value - extinguished warrants