Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 146

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 146
---
,000
(the “November 2023 Note”). The Company received a total of $950,000
in gross proceeds after taking into account the 5%
original issue discount. The discount of $50,000
will be accreted over the life of the Note. The November 2023 Note bears an interest rate of 12%
per annum and was due to mature on January 1, 2024 (the “Maturity Date”). On January 1, 2024, the Company entered into an amendment with RS
Bio for the November 2023 Note to extend the maturity date to March 1, 2024 and was extended to December 31, 2024. The Company is required to pay interest on the maturity
date. The November 2023 Note will be accounted for under ASC 470-20, and all proceeds received from the issuance will be recognized
as a liability on the balance sheet net of discount. On February 16, 2024, the Company received notice from the holder to exercise 471,699
warrants outstanding at $0.53
per share and apply $250,000
of the note balance to the exercise price of the warrants. For the year ended June 30, 2024, discount amortization of $50,000
was charged to interest expense. As of June 30, 2024, the Company accrued $69,083
of interest expense that is included in accrued expenses on the balance sheet. The November 2023 Note balance, net of discount at
June 30, 2024 is $750,000.

F-22

Promissory Note —On
March 30, 2020 (the “Issuance Date”), the Company issued a Promissory Note in the principal amount of $5,000,000 (the “Promissory
Note”) to the Holder. The principal amount of the Promissory Note was originally payable on November 30, 2021 (the “Maturity
Date”). The Promissory Note bore interest at a fixed rate of 6% per annum, computed based on the number of days between the Issuance
Date and the Maturity Date, and the interest was prepaid by the Company in full on the Issuance Date through the issuance of 188,485 shares
of the Company’s Common Stock based on the closing market price on that date for a total value of $501,370. The Company evaluated