Company: LRHC
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001213900-25-078012
Chunk: 26

Company: La Rosa Holdings Corp.
Filing Date: 2025-08-18
Form: 10-Q
Item: Item 1
Chunk 26
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calculated using the Monte Carlo simulation with the following factors, assumptions and methodologies for the prior quarter
ended March 31, 2025 and right before the exchange on June 18, 2025:

     June 18,   March 31,      2025(1)   2025(1)   Face Value  $2,500,000   $2,500,000   Exercise Price  $2,256,250   $2,256,250   Stock Price  $10.40   $14.40   Exercise Threshold   20% of Min price    20% of Min price   Valuation per Incremental Warrant upon exercise  $11,320,000   $10,170,000   Discount Rate   36.97%   30.69%  Risk Free Rate   4.20%   4.03%  Annualized Volatility   92.00%   100.00%  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.

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

    As
    of June 30, 2025

    Level
    1

    Level
    2

    Level
    3

    Total

    Liabilities

    Derivative
    liabilities
     
    $
    -

    $
    -

    $
    -

    $
    -

    Convertible Note
     
    $
    -

    $
    -

    $
    7,297,000

    $
    7,297,000

    As of December 31, 2024 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Liabilities 

    Derivative liabilities 
    $         -  
    $     -  
    $1