Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000250
Chunk: 38

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 38
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 being converted should be recognized as an extinguishment. The extinguishment loss of $120,018 is recorded
in Other Income/Loss in the Statement of Operations. On November 30, 2023, the Company and the Holder agreed to amend the Promissory Note
(the “Fifth Amendment”) to where the Company and the Holder extended the maturity of the Original Note until February 29,
2024. In addition, all interest payable from November 30, 2023 to the Maturity Date was payable and is currently payable by the Company
as of November 30, 2023. On February 16, 2024, the Company received notice from the holder to exercise 2,953,700 warrants outstanding
ranging from $0.53 to $0.65 per share and apply $1,750,000 of the note balance to the exercise price of the warrants. On February 29,
2024, the Company and the Holder agreed to amend the Promissory Note (the “Sixth Amendment”) to where the Company and the
Holder extended the maturity of the Original Note until May 1, 2024. On May 1, 2024, the Company and the Holder agreed to amend the Promissory
Note (the “Seventh Amendment”) to extend the maturity of the Original Note until May 1, 2024. For the three and nine months
ended March 31, 2024, discount amortization of $72,500 and $357,536 was charged to interest expense. For the three and nine months ended
March 31, 2023, discount amortization of $74,621 and $223,863 was charged to interest expense. The Promissory Note balance, net of discount
at March 31, 2024 is $1,237,500.

Finance Agreement—

On November 30, 2023, 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 $ 906,834at 7.90% 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 $ 77,127after a down payment of $ 235,000. For the three and nine months ended March 31, 2024