Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 48

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 48
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 approval.

The EPFA was determined to represent a combination
of a purchased put option on the Company’s common stock (prior to an Advance, the “EPFA Option”) as well a forward
contract to deliver the Company’s common stock (after an Advance, but prior to delivery of the shares). The EPFA Option was determined
to be a freestanding financial instrument which did not meet the criteria to be accounted for as a derivative instrument or to be recognized
within equity. Pursuant to ASC 815 Derivatives and Hedging (“ASC 815”), the Company will therefore recognize the EPFA
Option as an asset or liability, measured at fair value at the date of issuance and at each reporting period, with changes in fair value
recognized in earnings. The EPFA Option was determined to have a fair value of $0 on the date of issuance as well as September 30, 2025.
In addition, as the EPFA Option did not meet the requirements for equity classification, the Company expensed the issuance costs incurred
in association with the EPFA in the periods in which they were incurred.

Second
Amended 2022 Plan

On
July 9, 2025, our Compensation Committee, our Board of Directors, and the stockholders approved the Second Amended 2022 Plan. Pursuant
to the Second Amended 2022 Plan (i) the total number of shares of common stock subject to the plan was revised from 156,250 shares (as
adjusted for the 80-for-1 reverse stock split effected by the Company on July 7, 2025) to 374,961 shares to ensure sufficient shares
are available for future grants, and (ii) the term “Consultant” was clarified to include not only a person, including an
advisor, engaged by the Company, its subsidiary or affiliate to render services to the Company or its subsidiary, but also a legal entity
wholly-owned by such person. The Second Amended 2022 Plan replaced the Amended and Restated La Rosa Holdings 2022 Equity Incentive Plan
adopted on November 19, 2024 by the stockholders of the Company, in its entirety. On July 11, 2025, the Company filed a preliminary information
statement on Schedule 14C with the SEC notifying stockholders of such written consent. On July 21, 2025, the Company filed a definitive
preliminary statement on Schedule 14C with the