Company: LRHC
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001213900-25-048370
Chunk: 102

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 8
Chunk 102
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 issued to the Investor on such date: (i) a Senior Secured Convertible Note in the
original principal amount of $5,500,000 which matures on February 4, 2027 (the “Initial Note”); and (ii) sixteen (16) warrants
(the “Incremental Warrants”), each to purchase additional Notes in an original principal amount up to $2,500,000 at an exercise
price of $2,256,250, 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 $102,667
and $0 for the three months ended March 31, 2025 and 2024, respectively.

In connection with the closing of the Senior Secured
Convertible 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). Failure to meet filing or effectiveness deadlines, maintain effectiveness, or satisfy Rule 144 information requirements may trigger
cash penalties equal to 2% of the original principal amount of the Notes and applicable incremental notes per 30-day period, prorated
for partial periods, until cured. 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