Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000250
Chunk: 37

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 37
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 possession
of the Collateral, proceed with the foreclosure of the security interest in the Collateral or sell, lease, or dispose of the Collateral.

On June 12, 2023, the Holder notified
the Company that it wanted to apply the Interest Payment due to it towards the Company’s next private placement. Therefore, on June
26, 2023, in conjunction with the Company’s private placement, the Company issued (i) 567,588 shares of its Common Stock, par value
$0.0001 per share and (ii) warrants to purchase 283,794 shares of Common Stock at a purchase price of $0.53 per share and applied the
Interest Payment of $300,822 it owed to the Holder.

20

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

NOTE 8 — DEBT (Continued)

On July 31, 2023, the Company
and the Holder agreed to amend the Promissory Note (the “Fourth Amendment”) to provide the Holder with limited conversion
rights in connection with the Company’s next private placement. Per the terms of the Fourth Amendment, the Holder could elect to
convert $2 million of the outstanding principal balance of the Promissory Note into the Units being offered in a private placement at
the price per Unit being paid by the investors in the private placement (the “Conversion Right”). On August 1, 2023, the Holder
notified the Company of its election to exercise the Conversion Right. As a result, $2 million of the outstanding principal balance of
the Promissory Note was converted into 280,505 Units at $7.13 per unit, comprised of an aggregate of (i) 280,505 shares of Series A Convertible
Preferred Stock of the Company and (ii) Warrants to purchase an aggregate of 1,402,525 shares of Common Stock with an exercise price of
$0.65 per share. The Series A Convertible Preferred Stock acquired by the Holder was initially convertible into 2,805,050 shares of Common
Stock. A $3 million principal balance remains outstanding under the Promissory Note after the foregoing conversion. The Company concluded
that in accordance with ASC 470-20-40-4, the difference between the fair value of the Preferred Shares and warrants and the carrying value
of the portion of the Note