Company: LNAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001731122-25-001544
Chunk: 69

Company: Lunai Bioworks Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 69
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 issue discount. The discount of
$50,000 will be accreted over the life of the note. The note bears an interest rate of 12% per annum and matured on December 31, 2024.
On February 24, 2025 RS Bio assigned its ownership rights to Rene Sindlev with all terms remaining unchanged. On July 7, 2025, the Company
entered into an Exchange Agreement to exchange the existing promissory note for a new convertible promissory note. The exchange resulted
in a $591,198 loss on extinguishment of debt. Immediately following the issuance of the convertible note on July 7, 2025, the investor
elected to convert the entire note balance for shares of common stock. The note balance, net of discount at September 30, 2025 was zero.

    13

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. On July 7, 2025, the Company entered into an Exchange Agreement
to exchange the existing promissory note for a new convertible promissory note. The exchange resulted in a $694,985 loss on extinguishment
of debt. Immediately following the issuance of the convertible note on July 7, 2025, the investor elected to convert the entire note balance
for shares of common stock. The Promissory Note balance at September 30, 2025 was zero.

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