Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000250
Chunk: 40

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 40
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 of the Company available for distribution to its stockholders,
before any payment shall be made to the holders of Common Stock by reason of their ownership thereof, an amount in cash equal to the aggregate
liquidation value of all Shares held by such holder. The Series A Preferred Stock is not participating preferred.

Conversion Rights —On
or after the date of issuance, any holder of Series A Preferred Stock shall have the right by written election (a “Series A Election
Notice”) to the Company to convert all or any portion of the outstanding Shares of Series A Preferred Stock held by such holder
into an aggregate number of shares of Common Stock as is determined by multiplying the number of Shares to be converted by ten (10) (the
“Conversion Ratio”).

Common Stock—During
the period ended March 31, 2024, the Company increased its authorized shares of Common Stock. The Company has 350,000,000
authorized shares of Common Stock, par value $0.0001
per share. At March 31, 2024, and June 30, 2023, there were 150,913,997
and 63,698,144
shares issued and outstanding, respectively. At March 31, 2024, the Company has 3,425,399 shares issuable,
which are included in shares outstanding, related to the contingent consideration settlement (see Notes 4 and 12).

Voting —Holders of
Common Stock are entitled to one vote for each share held of record on each matter submitted to a vote of stockholders, including the
election of directors, and do not have any right to cumulate votes in the election of directors.

Dividends —Holders
of Common Stock are entitled to receive ratably such dividends as the Board from time to time may declare out of funds legally available.

Liquidation Rights —
In the event of any liquidation, dissolution, or winding up of affairs of the Company, after payment of all debts and liabilities and
preferences to holders of preferred stock, the holders of Common Stock will be entitled to share ratably in the distribution of any of
the remaining assets.

Purchase Agreement with Lincoln Park Capital

On June
20, 2023, the Company entered into a purchase agreement (the “2023 Purchase Agreement”) with Lincoln Park Capital Fund, LLC
(“Lincoln Park”), pursuant to which the Company may sell and issue to Lincoln Park, and Lincoln Park is obligated to purchase,
up to $