Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000250
Chunk: 30

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 30
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5, 2024 (the “Maturity Date”). The Company is 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 may accrue on the Notes on a quarterly basis. The 2023 Notes are convertible into shares
of the Company’s Common Stock upon the occurrence of a Qualified Offering (as defined below) or upon the Maturity Date.

17

RENOVARO INC. AND SUBSIDIARIES
NOTES TO UNAUDITED RESTATED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8 — DEBT (Continued)

The 2023 Notes are subject to mandatory
conversion (“Mandatory Conversion”) in the event the Company closes an offering of its Common Stock and receives gross proceeds
of not less than $10,000,000 (“Qualified Offering”). The conversion price per share of Common Stock in the case of a Mandatory
Conversion shall be 95% of the offering price per share in the Qualified Offering, subject to a floor of $4.50 per share. In addition,
if no Qualified Offering occurs prior to the Maturity Date, the 2023 Notes shall automatically convert into shares of Common Stock on
the Maturity Date at a conversion price per share equal to the closing sale price of the Common Stock on the Maturity Date, subject to
a floor of $4.50 per share.

On January 11, 2024, the Company
entered into an amendment with one of the investors of the 2023 Notes whereas the conversion terms were amended to provide for optional
conversion at a conversion price of $3.38 per share. All other terms of the Promissory Note remained the same. The Company treated this
as a modification for accounting purposes.

For the three and nine months ended
March 31, 2024, discount amortization of $26,316 and $55,694 was charged to interest expense, respectively. As of March 31, 2024, the
Company accrued interest expense of $134,719. The 2023 Notes balance, net of discount at March 31, 2024 is $2,055,694.

The Convertible Notes —On February 6, 2020, the Company issued two Convertible Notes (the “Convertible Notes”) to P