Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000250
Chunk: 29

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 29
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2023, the Company entered into Subscription Agreements with two investors to purchase Convertible Promissory
Notes for an aggregate principal amount of $560,000 (the “December Notes”). The Company received a total of $560,000 in gross
proceeds from the private placement prior to the end of the quarter ending December 31, 2023, and it subsequently received $20,000 in
January 2024. The December Notes bear an interest rate of 12% per annum and shall mature one year after their respective dates of
issuance (the “Maturity Date”). The Company is 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 December Notes. Notwithstanding the immediate foregoing,
at the option of the Holder, interest may accrue on the December Notes on a quarterly basis. The December Notes are convertible into shares
of the Company’s Common Stock in whole or in part at any time and from time to time, after the Original Issue Date and prior to
the Maturity Date, at a conversion price of $3.38 per share. The December Notes will be accounted for under ASC 470-20, and all proceeds
received from the issuance will be recognized as a liability on the balance sheet. The December Notes principal balance at March 31, 2024,
is $560,000.

As of March 31, 2024, the Company
accrued interest expense of $37,463 related to the 2024 Notes and December 2023 Notes. The 2024 Notes and December 2023 Notes balance
at March 31, 2024 was $1,645,000.

The 2023 Notes —Between
September 5, 2023, and October 5, 2023, the Company entered into Subscription Agreements with five investors to purchase 5% Original Issue
Discount Convertible Promissory Notes (the “2023 Notes”) for an aggregate principal amount of $2,105,263. The Company received
a total of $2,000,000 in gross proceeds from the private placement, after taking into account the 5% original issue discount. The
discount of $105,263 will be accreted over the life of the 2023 Notes. The 2023 Notes bear an interest rate of 12% per annum and shall
mature on September