Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 148

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 148
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2022, the
Company entered into a third amendment to the Promissory Note. Pursuant to the third amendment, the Company’s obligations under
the Promissory Note were secured by a Security Agreement. To secure the Company’s obligations under each of the Amended and Restated
Secured Notes and 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 the Holder. Upon an Event of Default (as defined
in the Amended and Restated Secured Notes and Promissory Note, respectively) the Holder 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.

On June 12, 2023, the Holder notified
the Company that it wanted to apply the Interest Payment due to it towards the Company’s next private placement. Therefore, on June
26, 2023, in conjunction with the Company’s private placement, the Company issued (i) 567,588 shares of its Common Stock, par value
$0.0001 per share and (ii) warrants to purchase 283,794 shares of Common Stock at a purchase price of $0.53 per share and applied the
Interest Payment of $300,822 it owed to the Holder.

F-23

On July 31, 2023, the Company and
the Holder agreed to amend the Promissory Note (the “Fourth Amendment”) to provide the Holder with limited conversion rights
in connection with the Company’s next private placement. Per the terms of the Fourth Amendment, the Holder could elect to convert
$2 million of the outstanding principal balance of the Promissory Note into the Units being offered in a private placement at the price
per Unit being paid by the investors in the private placement (the “Conversion Right”). On August 1, 2023, the Holder notified
the Company of its election to exercise the Conversion Right. As a result, $2 million of the outstanding principal balance of the Promissory
Note was converted into 280,505 Units at $7.13 per unit, comprised of an aggregate of (i) 280,505 shares of Series A Convertible Preferred
Stock of the Company and (ii) Warrants to purchase an aggregate of 1,402,525 shares