Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 142

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 142
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 (ii) one common stock purchase warrant to purchase one-tenth of a share of Common Stock. The warrants are
exercisable for five years from the date of issuance and have an exercise price of $1.4726
and $1.4765per
share, payable in cash. The 2023 Notes principal balance at June 30, 2024, is zero 0.

For the year ended
June 30, 2024, discount amortization of $78,567was charged to interest expense and $26,696of discount amortization was charged to other income and expense due to the early termination of the notes, respectively. In the
year ended June 30, 2024, the Company recorded interest expense of $189,614 related to the 2023 Notes. The 2023 Notes balance, net of
discount at June 30, 2024 is zero 0.

The Convertible Notes —On February 6, 2020, the Company issued two Convertible Notes (the “Convertible Notes”) to Paseco ApS (the “Holder”),
a Danish limited company and an existing stockholder of the Company, each with a face value amount of $600,000, convertible into shares
of Common Stock. The outstanding principal amount of the Convertible Notes was due and payable on February 6, 2023. Interest on the Convertible
Notes commenced accruing on the date of issuance at six percent (6%) per annum, computed on the basis of twelve 30-day months, and was
compounded monthly on the final day of each calendar month based upon the principal and all accrued and unpaid interest outstanding as
of such compound date. The interest was payable in cash on a semi-annual basis.

The conversion price was equal to $12.00 per share of Common Stock. The Holder did not exercise its conversion feature that expired on February 6, 2021. The Company evaluated the Convertible Notes in accordance with ASC 470-20 and identified that they each contain an embedded conversion feature that shall not be bifurcated from the host document (i.e., the Convertible Notes) as they are not deemed to be readily convertible into cash.

Effective December 30, 2022 (the
“Effective Date”), the Company amended and restated the Convertible Notes (the “Amended and Restated Secured Notes”).
Pursuant to the Amended and Restated Secured Notes, the due date