Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 98

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 98
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000 in cash. In addition, the Company issued 280,505 Units in connection with the conversion of $2,000,000 of
the Promissory Note (see Note 10 to the Financial Statements).

The Company issued an aggregate of 561,010 shares
of Preferred Stock, which were initially convertible into an aggregate of 5,610,100 shares of common stock. In connection
with the Private Placement, the Company sold Warrants to purchase an aggregate of 2,805,050 shares of common stock. The Warrants
are exercisable for five years from the date of issuance and have an exercise price of $0.65 per share, payable in cash (see Note 10 to the Financial Statements).

Warrant Exercises

On December 4, 2023, the Company issued 525,945 shares
of Common Stock pursuant to warrants exercised for cash proceeds of $341,865 (see Note 10 to the Financial Statements).

On February 20, 2024, 2,953,700
warrants outstanding were exercised at prices ranging from $0.53 to $0.65 per share and the aggregate $1,750,000 of a promissory note
held by the holder was applied to the exercise price of the warrants (see Note 10 to the Financial Statements).

On February 20, 2024, 471,699 warrants outstanding were exercised at $0.53
per share valued at $250,000. A promissory note held by the holder was applied to the exercise price of the warrants in lieu of cash proceeds
(see Note 10 to the Financial Statements).

Debt

Convertible Notes Payable —

March 2024 Note —
On March 14, 2024, the Company entered into a Subscription Agreement with an investor to issue a Convertible Promissory Note in the amount
of $500,000 (the “March 2024 Note”). The March 2024 Note had an interest rate of 10% per annum and was due to mature on March
15, 2025. The Company was 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 March 2024 Note. Notwithstanding the immediately foregoing, at the option of the holder, interest
could accrue on this note on a quarterly basis. The March 2024 Note was convertible at the option of the holder