Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 140

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 140
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ars, in cash, on the first day of each quarter of each year following the issue date prior to the maturity of the December Notes.
Notwithstanding the immediately foregoing, at the option of the holder, interest may accrue on the December Notes on a quarterly basis.
The December Notes are convertible into shares of the Company’s Common Stock in whole or in part at any time and from time to time,
after the original issue date and prior to the Maturity Date, at a conversion price of $3.38 per share. The December Notes will be accounted
for under ASC 470-20.

On June 14, 2024, in a private
placement the Company sold 317,715 Units to an investor who surrendered and terminated $440,000 in aggregate principal amount and $28,453
of interest accrued on the December Notes and paid in cash an aggregate amount of $66,000 to the Company in consideration for the Units,
each such Unit consisting of (i) one share of the Company’s common stock, $0.0001 par value per share and (ii) one common stock
purchase warrant to purchase one-tenth of a share of Common Stock. The warrants are exercisable for five years from the date of issuance
and have an exercise price of $1.4726 per share, payable in cash. The December Notes principal balance at June 30, 2024, is $120,000.

In the year ended June 30, 2024,
the Company has recorded interest expense of $67,013 related to the January 2024 Notes and December 2023 Notes. The January 2024 Notes
and December 2023 Notes balance at June 30, 2024 was $245,000 of which $120,000 is related to the December 2023 Notes and $125,000 is
related to the January 2024 Notes.

The 2023 Notes —Between
September 5, 2023, and October 5, 2023, the Company entered into Subscription Agreements with five investors to purchase 5% Original Issue
Discount Convertible Promissory Notes (the “2023 Notes”) for an aggregate principal amount of $2,105,263. The Company received
a total of $2,000,000 in gross proceeds from the private placement, after taking into account the 5% original issue discount. The
discount of $105,263 was to be accreted over the life of the 202