Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 147

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 147
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the Promissory Note and PIK interest in accordance with ASC 470-Debt and ASC 835-Interest, respectively. Pursuant to ASC 470-20, proceeds
received from the issuance are to be recognized at their relative fair value, thus the liability is shown net of the corresponding discount
of $493,192, which is the relative fair value of the shares issued for the PIK interest on the closing date using the effective interest
method. The discount of $493,192 will be accreted over the life of the Promissory Note.

On February 11, 2021, the Company
entered into an amendment to the Promissory Note that extended the Maturity Date to November 30, 2022. All other terms of the Promissory
Note remained the same. The change in Maturity Date required an additional year of interest at the fixed rate of 6% per annum, which was
prepaid by the Company in full on the date of the amendment through the issuance of 74,054 shares of the Company’s Common Stock
based on the closing market price on that date for a total value of $298,178.

On May 17, 2022, the Company entered
into a second amendment to the Promissory Note that extended the Maturity Date to November 30, 2023 and increased the interest rate from
6% to 12% per annum. All other terms of the Promissory Note remained the same. The change in Maturity Date required an additional year
of interest at the fixed rate of 12% per annum. Pursuant to the amendment, the Company prepaid interest for the period November 30, 2022
until May 30, 2023 on the date of the amendment through the issuance of 47,115 shares of the Company’s Common Stock based on the
closing market price on that date for a total value of $299,178. All other accrued interest payable from May 30, 2023 to the Maturity
Date was required to be paid by the Company on May 30, 2023, at the option of the Holder in either (i) cash or (ii) shares of the Company’s
Common Stock, valued at the closing sale price of the Common Stock on the Nasdaq Capital Market on May 30, 2023. The Holder elected the
interest be paid in cash (the “Interest Payment”).

Effective December 30,