Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000250
Chunk: 32

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 32
---
 Secured Notes and conversion feature to determine
the appropriate accounting treatment based on the terms of the agreement. In accordance with ASC 480- Distinguishing Liabilities
from Equity, the Company determined that the Amended and Restated Secured Notes embody an obligation that may require the Company to
settle with the issuance of a variable number of shares, where the monetary value of the obligation is based predominantly on a
fixed monetary amount of $1,200,000
known at inception. Accordingly, the Company recorded the Amended and Restated Secured Notes as share settled debt. The total value
of the shares issued was $204,392
which included $174,090
of prepaid interest and $30,302
for accrued interest as of December 30, 2022. On June 26, 2023, the Holder notified the Company that it wished to elect to exercise its conversion right triggered by a private placement. Therefore, all outstanding $ 1,200,000Amended and Restated Secured Notes were converted into 2,264,150 shares of Common Stock and 1,132,075warrants. There were no Amended and Restated Secured Notes outstanding after the foregoing conversion.

18

RENOVARO INC. AND SUBSIDIARIES
NOTES TO UNAUDITED RESTATED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8 — DEBT (Continued)

Notes Payable—

Bridge Loans —On
March 26, 2024, the Company issued Paseco ApS a Promissory Note in the principal amount of $160,000. The Note bears an interest rate of
10% per annum and was to mature on May 1, 2024. On May 1, 2024, the Company and Paseco ApS entered into an amendment to the Promissory
Note to extend the maturity date to July 1, 2024 (the “Maturity Date”). The Company is required to pay interest on the maturity
date. The Notes Payable will be accounted for under ASC 470-20, and all proceeds received from the issuance will be recognized as a liability
on the balance sheet. As of March 31, 2024, the Company accrued $215 of interest expense that is included in accrued expenses on the balance
sheet. The Note balance at March 31, 2024 is $160,000.

On February 5, 2024