Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 114

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 114
---
 terms remaining unchanged. The note balance, net of
discount at June 30, 2025 was $750,000.

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 Paseco ApS. There have been eight amendments to the Promissory Note since the issuance date, the most recent of which
is dated August 1, 2024. The principal amount of the Promissory Note, as amended, was payable on November 1, 2024 (the “Maturity
Date”). The Promissory Note, as amended, bears interest at a fixed rate of 12% per annum. On February 24, 2025 Paseco ApS assigned
its ownership rights to Rene Sindlev with all terms remaining unchanged. The Promissory Note balance at June 30, 2025 is $831,497.

The Company’s obligations
under the referenced Promissory and Bridge Notes, except for those originally entered into by Renovaro Cube, are secured by a Security
Agreement. To secure the Company’s obligations under the Promissory Note, the Company entered into a Security Agreement with the
Holder, pursuant to which the Company granted a lien on all assets of the Company (the “Collateral”) for the benefit of Paseco
ApS, Rene Sindlev and Laksya Ventures. Upon an Event of Default (as defined in the notes, respectively) Paseco ApS, Rene Sindlev and Laksya
Ventures may, among other things, collect or take possession of the Collateral, proceed with the foreclosure of the security interest
in the Collateral or sell, lease, or dispose of the Collateral (see Note 8 to the Financial Statements).

    F-19

Finance Agreement —

On November 30, 2024, the Company
entered into a premium finance agreement (the “Agreement”) related to insurance, which
resulted in the recognition of a liability and prepaid expense with a principal amount of $1,018,930 at 7.50% interest per
annum, which is reflected on the consolidated balance sheet under “other current liabilities” and “prepaid assets and
other assets”, respectively. The repayment of the Agreement will be made in nine equal monthly installments of $93