Company: LRHC
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001213900-25-048370
Chunk: 99

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 8
Chunk 99
---

  
    Exercise Price 
    $2,256,250  
    $2,256,250 
  
    Stock Price 
    $0.40  
    $0.18 
  
    Exercise Threshold 
     20% of Min price(2)  
     20% of Min price(2) 
  
    Valuation per Incremental Warrant upon exercise 
    $12,600,000  
    $10,170,000 
  
    Discount Rate 
     28.70% 
     30.69%
  
    Risk Free Rate 
     4.18% 
     4.03%
  
    Annualized Volatility 
     88.0% 
     100.0%
  
    Forecast horizon (years) 
     0.08  
     0.08 

(1)The fair value analysis of the Incremental Warrants was performed
under the assumption of immediate conversion as of the valuation date. The stock price, classified as a Level 1 input under the fair
value hierarchy, was utilized in the analysis. Potential ownership limitations or conversion blockers were not incorporated into the
valuation, as the analysis assumed full conversion in a single transaction without restriction.

11

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

A summary of the Company’s liabilities
measured at fair value on a recurring basis is as follows:

    As of December 31, 2024 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Liabilities 

    Derivative liabilities 
    $-  
    $-  
    $1,607,544  
    $1,607,544 

At December 31, 2024, the estimated fair value of the derivative
liability tied to the three vested warrants held by an institutional 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 
    $             -   
    $    -