Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 101

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 101
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 December Notes will be accounted for under ASC 470-20.

On June 14, 2024, in a private
placement the Company sold 317,715 Units to an investor who surrendered and terminated $440,000 in aggregate principal amount and $28,453
of interest accrued on the December Notes and paid in cash an aggregate amount of $66,000 to the Company in consideration for the Units,
each such Unit consisting of (i) one share of the Company’s common stock, $0.0001 par value per share and (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 per share, payable in cash. The December Notes principal balance at June 30, 2024, is $120,000 (see Note 8 to the Financial Statements).

The 2023 Notes —Between
September 5, 2023, and October 5, 2023, the Company entered into Subscription Agreements with five investors to purchase 5% Original Issue
Discount Convertible Promissory Notes (the “2023 Notes”) for an aggregate principal amount of $2,105,263. The Company received
a total of $2,000,000 in gross proceeds from the private placement, after taking into account the 5% original issue discount. The
discount of $105,263 was to be accreted over the life of the 2023 Notes. The 2023 Notes had an interest rate of 12% per annum and were
due to mature on September 5, 2024 (the “Maturity Date”). The Company was required to pay interest quarterly, in arrears,
in cash, on the first day of each quarter of each year following the issue date prior to the maturity of the 2023 Notes. Notwithstanding
the immediately foregoing, at the option of the holder, interest could accrue on the notes on a quarterly basis. The 2023 Notes were convertible
into shares of the Company’s Common Stock upon the occurrence of a Qualified Offering (as defined below) or upon the Maturity Date.

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The 2023 Notes were subject to
mandatory conversion (“Mandatory Conversion”) in the event the Company closed an offering of its Common Stock and received
gross proceeds of not less than $10,000,000 (