Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 141

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 141
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3 Notes. The 2023 Notes had an interest rate of 12% per annum and were
due to mature on September 5, 2024 (the “Maturity Date”). The Company was required to pay interest quarterly, in arrears,
in cash, on the first day of each quarter of each year following the issue date prior to the maturity of the 2023 Notes. Notwithstanding
the immediately foregoing, at the option of the holder, interest could accrue on the notes on a quarterly basis. The 2023 Notes were convertible
into shares of the Company’s Common Stock upon the occurrence of a Qualified Offering (as defined below) or upon the Maturity Date.

The 2023 Notes were subject to
mandatory conversion (“Mandatory Conversion”) in the event the Company closed an offering of its Common Stock and received
gross proceeds of not less than $10,000,000 (a “Qualified Offering”). The conversion price per share of Common Stock in the
case of a Mandatory Conversion was to be 95% of the offering price per share in the Qualified Offering, subject to a floor of $4.50 per
share. In addition, if no Qualified Offering occurred prior to the Maturity Date, the 2023 Notes were to automatically convert into
shares of Common Stock on the Maturity Date at a conversion price per share equal to the closing sale price of the Common Stock on the
Maturity Date, subject to a floor of $4.50 per share.

F-20

On January 11, 2024, the Company
entered into an amendment with one of the investors of the 2023 Notes whereas the conversion terms were amended to provide for optional
conversion at a conversion price of $3.38 per share. All other terms of the Promissory Note remained the same. The Company treated this
as a modification for accounting purposes.

On June 14, 2024, the Company
sold 1,546,449Units
to the holders of the 2023 Notes who surrendered and terminated $2,293,825in
aggregate principal amount and interest accrued thereon of the 2023 Notes and paid in cash an aggregate amount of $443,575(of
which $318,063was
applied against the Company’s Promissory Notes), to the Company in consideration for the Units, each such Unit consisting of
(i) one share of the Company’s common stock, $0.0001par
value per share and