Company: LNAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001731122-25-001544
Chunk: 65

Company: Lunai Bioworks Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 65
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 Secured Notes. The
Convertible Notes mature on July 31, 2025, and do not bear any interest. The exchange resulted in a $6,329,592 loss on extinguishment
of debt.

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 5.36 million shares of common stock (the “Conversion Shares”), based on the stated $3.00 per share conversion price. The
$3.00 (on a post reverse split basis) 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 5.36 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.

Bridge Loans — From June 4, 2025
to June 14, 2025, the Company entered into agreements with Paseco ApS, a Danish entity controlled by a shareholder (“Paseco ApS”)
and Laksya Ventures Inc. to issue Promissory Notes for the principal amount of $1,725,000 to each note holder. The Company received $3,450,000
in gross proceeds. The notes bear an interest rate of 10% per annum and mature on December 31, 2025. On July 7, 2025, the Company entered
into an Exchange Agreement to exchange the existing promissory notes for new convertible promissory notes. The exchange resulted in a
$2,262,774 loss on extinguishment of debt. Immediately following the issuance of the convertible notes on July 7, 2025, the investors
elected to convert the entire note balance for shares of common stock. The notes balance at September 30, 2025, was zero with Paseco ApS
and Laksya Ventures Inc.

From October 21, 2024 to January
24, 2025, the Company entered into agreements with Paseco ApS, a Danish entity controlled by a shareholder (“Paseco ApS”),
to issue Promiss