Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 507

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 4
Chunk 507
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under the referenced Promissory and Bridge Notes, except for those originally entered into by Renovaro Cube, are secured by a Security
Agreement. To secure the Company’s obligations under the Promissory Note, the Company entered into a Security Agreement with the
Holder, pursuant to which the Company granted a lien on all assets of the Company (the “Collateral”) for the benefit of Paseco
ApS, Rene Sindlev and Laksya Ventures. Upon an Event of Default (as defined in the notes, respectively) Paseco ApS, Rene Sindlev and Laksya
Ventures may, among other things, collect or take possession of the Collateral, proceed with the foreclosure of the security interest
in the Collateral or sell, lease, or dispose of the Collateral (see Note 8 to the Financial Statements).

    F-19

Finance Agreement —

On November 30, 2024, the Company
entered into a premium finance agreement (the “Agreement”) related to insurance, which
resulted in the recognition of a liability and prepaid expense with a principal amount of $1,018,930 at 7.50% interest per
annum, which is reflected on the consolidated balance sheet under “other current liabilities” and “prepaid assets and
other assets”, respectively. The repayment of the Agreement will be made in nine equal monthly installments of $93,401 after
a down payment of $204,000. For the years ended June 30, 2025 and 2024 the Company made payments of $971,231 and $870,073, respectively.
The remaining balance at June 30, 2025 is $271,643; the amount is reflected in other current liabilities. For
the years ended June 30, 2025 and 2024 the Company recorded total interest expense in the amount of $24,555 and $20,128 related to
the Agreement. This amount is reflected in other income and expenses.

Total
interest expense recorded for the years ended June 30, 2025 and 2024, was $725,684 and $1,011,322 respectively.

NOTE 9 — INCOME TAXES

The Company accounts for income
taxes in accordance with FASB ASC Topic 740, Accounting for Income Taxes; which requires the Company to provide a net deferred tax asset
or liability equal to the expected future tax benefit or expense of temporary reporting