Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 621

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1B
Chunk 621
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 a remaining unamortized discount
of $215,085, for a net balance of $618,861, which was fully repaid in February 2025. As of December 31, 2023, the remaining gross balance of the Cash Advance was $84,463 and a net carrying value
of $77,042, which was fully repaid in January 2024.

Notes Payable-Senior Secured Promissory Notes

On February 20, 2024, the Company entered into
a securities purchase agreement with an accredited investor for the issuance of a senior secured promissory note with an aggregate principal
amount of $1,052,632 with a maturity date twelve months from the issue date. The note had an original issue discount of 5% and a coupon
rate of 13% per annum. In addition, the Company issued 67,000 shares of the Company’s common stock as a commitment fee, a warrant
to purchase 120,000 shares of the Company’s common stock with an exercise price of $3.00, exercisable until the five-year anniversary
of the closing date, and a second warrant to purchase 95,000 shares of the Company’s common stock with an exercise price of $2.25.
The second warrant would only become exercisable if the note was not fully paid on or before the maturity date, at which point the warrant
was exercisable until the five-year anniversary of the vesting date. The second warrant would be cancelled and extinguished if the note
was fully paid on or before the note maturity date. The investor also had a security interest in certain property of the Company and its subsidiaries to secure the prompt payment, performance,
and discharge in full of all of the Company’s obligations under the note. The principal amount and interest under the note were
convertible into shares of the Company’s common stock at a conversion price of $2.50 per share unless the Company failed to make
an amortization payment when due, in which case the conversion price would be the lower of $2.50 or 85% of the lowest volume weighted
average price (VWAP) of the shares prior to five days of the conversion. The proceeds of the note were used for business development and general
working capital purposes. In connection with this financing, the Company also issued to its placement agent, Alexander Capital L.P. (“Alexander
Capital”), a 5-year warrant to purchase 21,053 shares of the Company