Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 137

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 137
---
 Company entered into a sublease termination agreement with the Subtenant, whereby the Subtenant and the Company agreed to terminate the sublease effective as of April 30, 2023. The Subtenant agreed to pay the Company $ 139,460along with the security deposit of $ 35,540for a total termination fee of $ 175,000, to permit early termination of the sublease.

The Company recognized operating
income from the sublease on a straight-line basis in its statements of operations over the sublease term.

During the year ended June 30,
2024 and 2023, the net operating lease expenses were as follows:

| Schedule of net operating lease expenses |     | Years ended June 30, |    2024 |     |   |     2023 |   |
|:-----------------------------------------|:----|:---------------------|--------:|:----|:--|---------:|:--|
| Operating Lease Expense                  |     | $                    | 383,549 |     | $ |  322,447 |   |
| Sub-lease Income                         |     |                      |       — |     |   | (352,700 | ) |
| Total Net Lease Expense                  |     | $                    | 383,549 |     | $ |  (30,253 | ) |

Lease expense charged to general
and administrative expenses for the years ended June 30, 2024 and 2023, amounted to $383,549 and $322,447, respectively. During the years
ended June 30, 2024 and 2023, the Company paid $380,983 and $439,519 under operating leases, respectively. The difference between
the operating lease expense for the year ended June 30, 2023 in the amount of $322,447 and the cash paid of $439,519, is primarily made
up of the release of an accrual of $77,242 related to the termination of the Plaza Medical Office Building, LLC lease.

NOTE 8 — DEBT

Convertible Notes Payable —

March 2024 Note —
On March 14, 2024, the Company entered into a Subscription Agreement with an investor to issue a Convertible Promissory Note in the amount
of $500,000 (the “March 2024 Note”). The March 2024 Note had an interest rate of 10% per annum and was due to mature on March 15, 2025.