Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 34

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 34
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 in substantially the same form as the Initial Note (the “Incremental
Notes” and together with the Initial Note, the “Notes”). The purchase price paid by the Investor under the SPA for
the Initial Note and Incremental Warrants was $4,963,750.

The Initial Note accrues interest at a rate of
12% per annum, calculated on the basis of a 360-day year. Interest is payable quarterly in arrears, meaning that payments are due at
the end of each calendar quarter for interest accrued during that quarter. The interest expense incurred for the Initial Note was $168,666
and $492,929, for the three months and nine months ended September 30, 2025, respectively. 

In
connection with the closing of the Initial Note, the Company entered into a Registration Rights Agreement dated February 4, 2025, obligating
the Company to file and maintain the effectiveness of one or more registration statements with the SEC covering the resale of the shares
of common stock issuable upon conversion of the Notes and related instruments. The Company was required to file an initial registration
statement with the SEC within 30 calendar days of the closing date and have it declared effective within 90 calendar days (or 120 days
if subject to full SEC review). The Company successfully filed the registration statement on time per the agreed terms for the Initial
Note. The Company is also subject to certain limitations on entering into conflicting registration rights agreements through the applicable
date and must allocate available registration capacity pro rata among holders.

The
Notes may be prepaid by the Company, in whole or in part, at its option with at least 30 calendar days’ notice to the holder, provided
no Event of Default has occurred and is continuing. Voluntary prepayments are subject to a redemption premium equal to 120% of the outstanding
principal, accrued interest, and any applicable charges being redeemed. The Company may not issue more than one redemption notice within
any 20-trading-day period, and such notices are irrevocable once issued.

Certain
mandatory redemptions, including those triggered by Events of Default, Bankruptcy Events, or Change of Control transactions, are contractually
deemed voluntary prepayments and are also subject to the 120% redemption premium. The redemption price in such scenarios is the greater
of (i) 120% of the outstanding amount or (ii) a formula based on the conversion rate and the highest closing price of the Company’s