Company: LNAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001731122-25-001544
Chunk: 64

Company: Lunai Bioworks Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 64
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 Promissory Notes for an aggregate
principal amount of $120,000 (the “December 2023 Notes”). The Company received a total of $120,000 from the private placement
between December 2023 and January 2024. The December 2023 Notes bear an interest rate of 12% per annum and matured one year after
their respective dates of issuance (the “Maturity Date”). The Company is required to pay interest quarterly, in arrears, in
cash, on the first day of each quarter of each year following the issue date prior to the maturity of the December 2023 Notes.

The January 2024 Note and December
2023 Notes balance at September 30, 2025, was $245,000.

    11

Notes Payable —

On August 18, 2025, the Company
issued Promissory Notes in the aggregate principal amount of $1,000,000 incurring $80,000 of placement costs. The Notes bear an interest
rate of 18% per annum and mature on the 6-month anniversary of the Issue Date, (the “Maturity Date”).
The Company is required to pay principal and interest on the Maturity Date. These notes balance at September 30, 2025, was $938,495 net
amortization placement cost of $18,495.

From July 3, 2025, to August 19,
2025, the Company issued Promissory Notes in the aggregate principal amount of $695,000. The Notes bear an interest rate of 10% per
annum and mature on June 30, 2026, (the “Maturity Date”). The Company is required to pay principal and interest
on the Maturity Date. These notes balance at September 30, 2025, was $695,000.

On July 7, 2025, Lunai Bioworks Inc. (“Lunai”)
entered into an Exchange Agreement (the “Exchange Agreement”) with certain accredited investors (the “Investors”),
all of whom are existing shareholders of the Company. Pursuant to the Exchange Agreement, the Investors agreed to exchange an aggregate
of $9.7 million in outstanding secured promissory notes (the “Secured Notes”) for $16.1 million in new convertible promissory
notes (the “Convertible Notes”), representing a 65% premium to the principal and interest amount of the