Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 102

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 102
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a “Qualified Offering”). The conversion price per share of Common Stock in the
case of a Mandatory Conversion was to be 95% of the offering price per share in the Qualified Offering, subject to a floor of $4.50 per
share. In addition, if no Qualified Offering occurred prior to the Maturity Date, the 2023 Notes were to automatically convert into
shares of Common Stock on the Maturity Date at a conversion price per share equal to the closing sale price of the Common Stock on the
Maturity Date, subject to a floor of $4.50 per share.

On January 11, 2024, the Company
entered into an amendment with one of the investors of the 2023 Notes whereas the conversion terms were amended to provide for optional
conversion at a conversion price of $3.38 per share. All other terms of the Promissory Note remained the same. The Company treated this
as a modification for accounting purposes.

On June 14, 2024, the Company sold 1,546,449 Units to the holders of the 2023
Notes who surrendered and terminated $2,293,825 in aggregate principal amount and interest accrued thereon of the 2023 Notes and paid
in cash an aggregate amount of $443,575 (of which $318,063 was applied against the Company’s Promissory Notes), 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 and $1.4765 per share, payable in cash. The 2023 Notes principal balance
at June 30, 2024, is zero.

For the year ended
June 30, 2024, discount amortization of $78,567 was charged to interest expense and $26,696 of discount amortization was charged to other
income and expense due to the early termination of the notes, respectively. In the year ended June 30, 2024, the Company recorded interest
expense of $189,614 related to the 2023 Notes. The 2023 Notes balance, net of discount at June 30, 2024 is zero (see Note 8 to the Financial