Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000250
Chunk: 31

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 31
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aseco ApS (the “Holder”),
a Danish limited company and an existing stockholder of the Company, each with a face value amount of $600,000, convertible into shares
of Common Stock. The outstanding principal amount of the Convertible Notes was due and payable on February 6, 2023. Interest on the Convertible
Notes commenced accruing on the date of issuance at six percent (6%) per annum, computed on the basis of twelve 30-day months, and was
compounded monthly on the final day of each calendar month based upon the principal and all accrued and unpaid interest outstanding as
of such compound date. The interest was payable in cash on a semi-annual basis.

The conversion price was equal to $12.00 per share of Common Stock. The Holder did not exercise its conversion feature that expired on February 6, 2021. The Company evaluated the Convertible Notes in accordance with ASC 470-20 and identified that they each contain an embedded conversion feature that shall not be bifurcated from the host document (i.e., the Convertible Notes) as they are not deemed to be readily convertible into cash. All proceeds received from the issuance were recognized as a liability on the balance sheet.

Effective December 30, 2022
(the “Effective Date”), the Company amended and restated the Convertible Notes (the “Amended and Restated Secured
Notes”). Pursuant to the Amended and Restated Secured Notes, the due date was extended to February 28, 2024. The Amended and Restated Secured Notes are convertible by the Holder if the Company consummates a
public offering or private placement of Common Stock or securities convertible into Common Stock. The conversion price shall be the
price being paid by the investors in such offering. The interest rate was increased to twelve percent (12%)
per annum, which was prepaid by the Company in full on the date of amendment through the issuance of 198,439
shares of the Company’s Common Stock: 29,419
shares for accrued interest up to the Effective Date and 169,020
shares related to the prepayment of interest through the extension date of the Amended and Restated Secured Notes using the closing
market price on the Effective Date, of $1.03.
The obligations of the Company under the Amended and Restated Secured Notes were secured by a security agreement (the
“Security Agreement”). The Company evaluated the Amended and Restated