Company: LRHC
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001213900-25-048370
Chunk: 24

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 1
Chunk 24
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 of the SPA, the Company paid the remaining principal and accrued interest on the third and final outstanding note,
thereby fully extinguishing the Company’s debt obligations to the investor under the 2024 note issuances.

In addition, the accredited investor elected to convert an aggregate
principal and interest amount of $483,751 of the notes into 1,381,164 shares of the Company’s common stock in accordance with the
terms of the applicable note agreements. The Company also settled all vested and outstanding warrants previously held by the investor.
Two of the three warrants were exercised for a total of 877,872 shares of common stock. The remaining warrant was repurchased by the Company
for $379,083 in cash on January 24, 2025, resulting in the elimination of all vested warrants held by the investor as of March 31, 2025.

On January 8, 2025, the Company and the accredited
investor entered into that certain Waiver, waiving the Event of Default (as defined) under these senior secured promissory notes. The
waiver included, among other provisions, waiving the rights to all default penalties, default interest, the acceleration of any amounts
and waiving the restriction for the Company to enter into a variable rate transaction, of which the consummation could be considered an
event of default, provided the proceeds from such financing are used to repay, in full, the notes described above.

13

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

On January 22, 2025, the Company and the Holder
signed an amendment No. 1 to the Waiver. Pursuant to the Amendment, the Company shall pay 100% of any cash proceeds raised by the Company
from the sale of securities pursuant to its Registration Statement on Form S-3 to the Holder first towards the repayment of the Redemption
Price until it is paid in full, and after that towards the repayment of the Notes. The Amendment also provides that, if the Redemption
Agreement becomes null and void pursuant to the terms of the Redemption Agreement, then all Proceeds previously paid by the Company to
the Holder pursuant to the Redemption Agreement shall instead be applied towards the repayment of the Notes.

The interest expense incurred for the senior secured promissory
note was $23,798 and $14,955 for the three months ended March 31, 2025 and 2024, respectively.