Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 419

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 3
Chunk 419
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 cash equal to the aggregate
liquidation value of all shares held by such holder. The Series A Preferred Stock is not participating preferred.

Conversion Rights — On
or after the date of issuance, any holder of Series A Preferred Stock shall have the right by written election (a “Series A Election
Notice”) to the Company to convert all or any portion of the outstanding Shares of Series A Preferred Stock held by such holder
into an aggregate number of shares of Common Stock as is determined by multiplying the number of Shares to be converted by ten (10) (the
“Conversion Ratio”).

Common Stock — The
Company has 350,000,000 authorized shares of Common Stock, par value $0.0001 per share. At June 30, 2025 and 2024, there were 177,392,907
and 158,452,644 shares issued and outstanding, respectively.

Voting — Holders
of Common Stock are entitled to one vote for each share held of record on each matter submitted to a vote of stockholders, including the
election of directors, and do not have any right to cumulate votes in the election of directors.

Dividends — Holders
of Common Stock are entitled to receive ratably such dividends as the Company’s Board of Directors from time to time may declare
out of funds legally available.

Liquidation Rights —
In the event of any liquidation, dissolution or winding-up of the affairs of the Company, after payment of all debts and liabilities,
the holders of Common Stock will be entitled to share ratably in the distribution of any remaining assets.

Purchase Agreement with
Lincoln Park Capital

On June
20, 2023, the Company entered into a purchase agreement (the “2023 Purchase Agreement”) with Lincoln Park, pursuant to which
the Company may sell and issue to Lincoln Park, and Lincoln Park is obligated to purchase, up to $20,000,000 of shares of Common Stock
over the 36-month term of the 2023 Purchase Agreement. Concurrently with entering into the 2023 Purchase Agreement, the Company also entered
into a registration rights agreement with Lincoln Park, pursuant to which it agreed to provide Lincoln Park with certain registration
rights related to the shares issued under the 2023 Purchase Agreement.

In consideration for entering
into the 2023 Purchase Agreement, the Company issued 696,021 shares of Common Stock to Lincoln Park as a commitment fee on June 20, 2023.

During the