On June 3, 2024, Kiromic BioPharma, Inc. issued a 25% Senior Secured Convertible Promissory Note to an accredited investor. The Note has a principal amount of $2,000,000, bears interest at a rate of 25% per annum and matures on June 3, 2025, on which the principal balance and accrued but unpaid interest under the Note shall be due and payable. The Stated Rate will increase to 27% per annum or the highest rate then allowed under applicable law upon occurrence of an event of default, including the failure by the Company to make payment of principal or interest due under the Note on the Maturity Date, and any commencement by the Company of a case under any applicable bankruptcy or insolvency laws.

The Note is convertible into shares of the Company?s common stock, par value $0.001 per share, at an initial conversion price of $2.50 per share, subject to a beneficial ownership limitation equivalent to 19.99%. The unpaid principal of and interest on the Note constitute unsubordinated obligations of the Company and are senior and preferred in right of payment to all subordinated indebtedness and equity securities of the Company outstanding as of the Issuance Date; provided, however, that the Company may incur or guarantee additional indebtedness after the Issuance Date, whether such indebtedness are senior, pari passu or junior to the obligations under the Note, which are secured by all of the Company?s right, title and interest, in and to, (i) all fixtures and equipment and (ii) all of the Company?s intellectual property as specified in the Note, subject to certain exclusions as described in the Note.