Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 143

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 143
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 was extended to February 28, 2024. The Amended and Restated Secured Notes
were convertible by the Holder if the Company consummated a public offering or private placement of Common Stock or securities convertible
into Common Stock. The conversion price was to be the price being paid by the investors in such offering. The interest rate was increased
to twelve percent (12%) per annum, which was prepaid by the Company in full on the date of amendment through the issuance of 198,439 shares
of the Company’s Common Stock: 29,419 shares for accrued interest up to the Effective Date and 169,020 shares related to the prepayment
of interest through the extension date of the Amended and Restated Secured Notes using the Common Stock closing market price on the Effective
Date, of $1.03. The obligations of the Company under the Amended and Restated Secured Notes were secured by a security agreement (the
“Security Agreement”). The Company evaluated the Amended and Restated 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 warrants to purchase 1,132,075shares of Common Stock. There were no Amended and Restated Secured Notes outstanding after the foregoing conversion.

F-21

Notes Payable—

Bridge Loans —Between
March 26, 2024 and June 4, 2024 the Company issued Paseco ApS promissory notes (the “Notes”) in the aggregate principal and
interest