Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 175

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 175
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 from the Company in order to induce the Company to enter into the merger agreement, which resulted
in the defendants receiving shares and compensation. The Company asserts claims for fraudulent concealment, equitable fraud, unjust enrichment,
and civil conspiracy and seeks, inter alia, equitable relief, including, but not limited to, return to the Company any shares received
in connection with the merger, and damages. On October 1, 2024, the defendants moved to dismiss the complaint.

NOTE 12 — RELATED PARTY TRANSACTIONS

As of June 30, 2024, the Company
has accrued $220,402 of compensation related expenses for the Company’s Chief Executive Officer, Mark Dybul, related to budget constraints.

On February 16, 2024, the Company
received an exercise notice from RS Bio ApS (“RS Bio”) to exercise 471,699 warrants outstanding at an exercise price of $0.53
per share. Mr. Rene Sindlev, the Chairman of the Company’s Board of Directors, holds the sole voting and disposition power of the
shares owned by RS Bio. RS Bio applied $250,000 of one of its outstanding note payable balance to the exercise price (see Note 8.)

On February 5, 2024, the Company
entered into an agreement with RS Bio to issue a 5% Original Issue Discount Secured Promissory Note for the principal amount of $105,263.
The Company received $100,000 in gross proceeds after taking into account the 5% original issue discount. The Note bears an interest rate
of 12% per annum and matured on March 1, 2024 . The obligations under this Note are secured by the Amended and Restated Security Agreement
(see Note 8). The Company is required to pay interest on the maturity date. For the year ended June 30, 2024, discount amortization of
$5,263 was charged to interest expense. As of June 30, 2024, the Company accrued $6,316 of interest expense that is included in accrued
expenses on the balance sheet. The Note balance, net of discount at June 30, 2024 is $105,263 (see Note 8.)

F-36

On January 2, 2024, the Company entered into an agreement with RS Bio to issue
a 5% Original Issue Discount Secured Promissory Note for the principal amount of $526,315 (the “January