Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 66

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 66
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1,000,000. The Notes bear an interest rate of 18% per annum and
mature on the 6-month anniversary of the Issue Date., (the “Maturity Date”). The Company is required to pay principal
and interest on the Maturity Date.	

From July 3, 2025, to August 19,
2025, the Company issued Promissory Notes in the aggregate principal amount of $695,000. The Notes bear an interest rate of 10% per
annum and mature on June 30, 2026, (the “Maturity Date”). The Company is required to pay principal and interest
on the Maturity Date.	

On July 7, 2025, Renovaro Inc.
(“Renovaro”) entered into an Exchange Agreement (the “Exchange Agreement”) with certain accredited investors (the
“Investors”), all of whom are existing shareholders of the Company. Pursuant to the Exchange Agreement, the Investors agreed
to exchange an aggregate of $9.7 million in outstanding secured promissory notes (the “Secured Notes”) for $16.1 million in
new convertible promissory notes (the “Convertible Notes”), representing a 65% premium to the principal and interest amount
of the Secured Notes. The Convertible Notes mature on July 31, 2025, and do not bear any interest. The exchange was completed to restructure
the Company’s debt obligations and provide additional flexibility to support strategic initiatives.

Immediately following the issuance
of the Convertible Notes on July 7, 2025, the Investors elected to convert the entire $16.1 million principal amount into an aggregate
of 53.6 million shares of common stock (the “Conversion Shares”), based on the stated $0.30 per share conversion price. The
$0.30 per share conversion price of the Convertible Notes represented a premium to the closing price of the Company’s common stock
on July 7, 2025, the date of execution and conversion. As a result, the issuance of the 53.6 million shares of common stock upon conversion
of the Convertible Notes did not constitute a “below market” issuance under applicable Nasdaq listing rules and did not trigger
stockholder approval requirements under Nasdaq Listing Rule 5635(d). The shares were issued without any additional consideration from
the Investors.

As a result of the foregoing transactions,
the Company (i) eliminated $