Company: LNAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001731122-25-001544
Chunk: 70

Company: Lunai Bioworks Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 70
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 to which the Company granted a lien on all assets of the Company (the “Collateral”) for the benefit of Paseco
ApS, Rene Sindlev and Laksya Ventures. Upon an Event of Default (as defined in the notes, respectively) Paseco ApS, Rene Sindlev and Laksya
Ventures may, among other things, collect or take possession of the Collateral, proceed with the foreclosure of the security interest
in the Collateral or sell, lease, or dispose of the Collateral.

NOTE 6 — STOCKHOLDERS’ EQUITY

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 $20,000,000 of shares of Common Stock over the 36-month term of the 2023 Purchase Agreement. Concurrently with entering into the
2023 Purchase Agreement, the Company also entered into a registration rights agreement with Lincoln Park, pursuant to which it agreed
to provide Lincoln Park with certain registration rights related to the shares issued under the 2023 Purchase Agreement.

In consideration for entering into
the 2023 Purchase Agreement, the Company issued 69,602 shares of Common Stock to Lincoln Park as a commitment fee on June 20, 2023.

During the quarter ended September
30, 2025 and 2024, no shares of Common Stock to Lincoln Park were sold under the Purchase Agreement.

Common Stock Issuances 

On July 7, 2025, Lunai Bioworks Inc. (“Lunai”)
entered into an Exchange Agreement (the “Exchange Agreement”) with certain accredited investors (the “Investors”),
all of whom are existing shareholders of the Company. Pursuant to the Exchange Agreement, the Investors agreed to exchange an aggregate
of $9.7 million in outstanding secured promissory notes (the “Secured Notes”) for $16.1 million in new convertible promissory
notes (the “Convertible Notes”), representing a 65% premium to the principal and interest amount of the Secured Notes. The
Convertible Notes mature on July 31, 2025, and do not bear any interest. The exchange was completed to restructure the Company’s
debt obligations and provide additional flexibility to support