Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001731122-25-000258
Chunk: 37

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 June 30, 2025, (the “Maturity Date”). The Company is required to pay principal and interest on the
Maturity Date.

On February 7, 2025, the Company entered into a credit
agreement with a third party with a total capacity of up to $4,000,000. The credit agreement matures on the earlier of February 6, 2030
or in the event of a default in which the lender accelerates the maturity of the loan. Any borrowings under the loan bear interest at
10% per annum and are payable at maturity. In the event any borrowing remains unpaid at when the borrowing becomes due, the interest rate
increases to 15% per annum. All principal and interest are due at maturity, the agreement does not require periodic payments nor are there
any prepayment penalties for any borrowings under the credit agreement.

Additionally, for each borrowing under the credit agreement,
the lender will receive warrants equal to the quotient of the principal borrowed divided by the value of an American call option determined
by the use of a Black-Scholes option pricing model as of the borrowing date. Any warrants issued will have an exercise price equal to
the closing price of the Company’s common stock as quoted per NASDAQ and will have a 5-year term.

 On February 7, 2025, the Company entered into a credit
agreement with a third party with a total capacity of up to $4,000,000. The credit agreement matures on the earlier of February 6, 2030
or in the event of a default in which the lender accelerates the maturity of the loan. Any borrowings under the loan bear interest at
10% per annum and is payable at maturity. In the event any borrowings remain unpaid at when the borrowings become due, the interest rate
increases to 15% per annum. All principal and interest is due at maturity, the agreement does not require periodic payments nor are there
any prepayment penalties for any borrowings under the credit agreement.

Additionally, for each borrowing under the credit agreement,
the lender will receive warrants equal to the quotient of the principal borrowed divided by the value of an American call option determined
by the use of a Black-Scholes option pricing model as of the borrowing date. Any warrants issued will have an exercise price equal to
the closing price of the Company’s common stock as quoted per NASDAQ and will have a 5 year term.

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