Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000250
Chunk: 59

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 59
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tekind recited many
of the same allegations as in the Derivative Complaint. The Court denied the Application on January 24, 2024. The defendants have not
yet responded to the Derivative Complaint. The Company denies the allegations in the Derivative Complaint and intends to vigorously defend
against the claims asserted therein.

NOTE 11 — RELATED PARTY TRANSACTIONS

As of March 31, 2024, the
Company has accrued $111,750
of compensation related expenses for the Company’s Chief Executive Officer, Mark Dybul, related to budget constraints.

On March 26, 2024, the Company
issued a Promissory Note to Paseco ApS, a Danish entity and greater than 5% shareholder, 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 that maturity to July 1, 2024 (the “Maturity Date”). The Company is required to pay interest
on the maturity date. 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 (see Note 8.)

On February 16, 2024, the Company received an exercise
notice from RS Bio to exercise 471,699 warrants outstanding at an exercise price of $0.53 per share. The holder applied $250,000 of one
of its outstanding note payable balance to the exercise price (see Note 8.)

On February 16, 2024, the Company
received an exercise notice from Paseco ApS to exercise 2,953,700warrants outstanding with exercise prices ranging from $0.53to $0.65per share. The proceeds of $1,750,000were immediately applied to the outstanding note payable balance (see Note 8.)

31

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

NOTE 11 — RELATED PARTY TRANSACTIONS (Continued)

On February 5, 2024, the Company
entered into an agreement with RS Bio to issue a