Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000250
Chunk: 117

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 117
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 have a material and adverse effect
on its business, results of operations, financial condition and future prospects. In addition, Renovaro Cube may not be able to effectively
implement new technology-driven products and services as quickly as its competitors or be successful in marketing these products and services
to potential customers. If Renovaro Cube is unable to successfully and timely innovate, Renovaro Cube could experience reputational damage
and decreased demand for its AI platform and other products and technologies and its growth, business, results of operations, financial
condition and future prospects could be materially and adversely affected.

Renovaro Cube’s AI platform and other related products may become obsolete due to fast growing technological innovations or the entry of competitors with more financial and brand power.

AI is a fast growing industry and
Renovaro Cube must successfully adapt and manage technological advancements in AI and AI-related markets, as well as effectively
compete with the emergence of additional competitors in the AI industry in order to maintain and grow Renovaro Cube’s AI business
and products. Thus, the success of Renovaro Cube’s AI platform, other products and business depends in large part on its ability
to keep pace with rapid technological changes in the development and implementation of AI products. For example, the development of groundbreaking
technological innovations in AI, or innovations that would render AI obsolete, would harm Renovaro Cube’s business and make its
platform or other products less durable. Further, the entry of competitors into the AI market that have more financial and brand power
could cause Renovaro Cube’s share of the market to be significantly reduced thereby negatively affecting its business, operating
results and financial condition.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

On March 14, 2024, the Company
entered into a Subscription Agreement with an investor to issue a Convertible Promissory Note in the amount of $500,000 (the “March
2024 Note”). The March 2024 Note bears an interest rate of 10% per annum and shall mature on March 15, 2025. 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 March 2024 Note. Notwithstanding the immediately foregoing, at the option of the holder, interest may accrue on this Note on a
quarterly basis. The March 2024 Note is convertible either at the