Company: LRHC
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001213900-25-048370
Chunk: 101

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 8
Chunk 101
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 transaction details such as the price of the Company’s common stock, contractual terms, maturity, and risk-free
rates, as well as assumptions about future financings, volatility, probability of contingencies, and holder behavior. The fair value of
the derivative liability on the issuance date and the balance sheet date and the assumptions used in the Black-Scholes model are set forth
in the table below.

    December 31, 

    2024 
  
    Weighted average fair value 
    $0.87 
  
    Dividend yield 
     — 
  
    Expected volatility factor 
     72.7%
  
    Risk-free interest rate 
     4.3%
  
    Expected life (in years) 
     5.5 

Contract Liabilities and Performance Obligations

Contract liabilities consist of unsatisfied performance
obligations related to annual dues received at the start of the calendar year. As of March 31, 2025, the Company has approximately $199
thousand of remaining performance obligations, all of which will be recognized into revenue by the end of the calendar year. The Company
has elected to exclude disclosures regarding remaining performance obligations that have an original expected duration of one year or
less.

12

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

Note 5 — Borrowings

Line of Credit 

 The Company has a line of credit with Regions Bank that allows for
advances up to $150,000 with interest at the Prime Rate plus 4.75% with a floor of 4.75% and no maturity date. On March 31, 2025, the
outstanding balance on the line of credit was $144,618 at a prime rate of 7.50% plus 4.75%, or 12.25%. On December 31, 2024, the outstanding
balance on the line of credit was $148,976 at a prime rate of 7.75% plus 4.75%, or 12.50%. The line of credit is collateralized by Company
assets. The interest expense incurred for the line of credit was $4,494 and $365 for the three months ended March 31, 2025 and 2024, respectively. 

Security Purchase Agreement

On February 4, 2025, the Company and an Investor
entered into the SPA, pursuant to which the Company