Company: LRHC
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001213900-25-078012
Chunk: 42

Company: La Rosa Holdings Corp.
Filing Date: 2025-08-18
Form: 10-Q
Item: Item 1
Chunk 42
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 the Nasdaq Capital Market (“Shareholder Approval”).
The Company agreed to convene a meeting of stockholders to obtain Shareholder Approval within 120 days after the date of the Exchange
Agreement. The Company obtained the Shareholder Approval effective as of August
11, 2025.

In connection with the issuance of the Series
B Preferred Stock, the Company incurred direct and incremental expenses of $43,000 comprised of legal fees, which reduced the carrying
value of the Preferred Stock.

Convertible preferred stock consisted of the
following as of June 30, 2025:

  June 30, 2025  Shares Authorized  Shares Issued and Outstanding   Carrying Value   Original Issue Price   Conversion Price   Common Shares Upon Conversion   6,000   6,000   $8,261,000   $0.0001   $9.60    794,361  

Convertible preferred stock is classified within
permanent equity and recorded on the accompanying consolidated balance sheet at its issuance date fair value. The holders of the Preferred
Stock have the following rights and preferences:

Voting

Holders of shares of Series B Preferred
Stock have no right to vote on any matter at any time, either as a separate series or class or together with any other series or class
of share of capital stock of the Company, and are not entitled to call a meeting of such holders for any purpose, nor are they entitled
to participate in any meeting of the holders of common stock of the Company, except as provided in the Section 16 of the Certificate of
Designation or as otherwise required by the Nevada Revised Statutes.

Conversion Rights

Subject to the Maximum Percentage, holders of outstanding shares of
Series B Preferred Stock are entitled to convert any portion of the outstanding and unpaid Conversion Amount (as hereinafter defined)
thereof into shares of Common Stock at the Conversion Rate (as hereinafter defined). For such purpose: (i) “Conversion Amount”
means the stated value thereof (or $1,000 per share) and any other unpaid amounts owed to such holder(s) under the Exchange Documents
(as defined in the Exchange Agreement); (ii) “Conversion Rate” means the amount determined by dividing (x) such Conversion
Amount by (y) the Conversion Price; (iii) “Conversion Price”, as of any date of determination and subject to adjustment as
provided therein (if any), at the option of the converting holder(s), either: (A) $20