Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000250
Chunk: 4

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 4
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 Item 2.                         | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                    |   36 |
| Item 3.                         | Quantitative and Qualitative Disclosures About Market Risk                                                               |   45 |
| Item 4.                         | Controls and Procedures                                                                                                  |   45 |
| PART II – OTHER INFORMATION:    |                                                                                                                          |   46 |
| Item 1.                         | Legal Proceedings                                                                                                        |   46 |
| Item 1A.                        | Risk Factors                                                                                                             |   48 |
| Item 2.                         | Unregistered Sales of Equity Securities and Use of Proceeds                                                              |   63 |
| Item 3.                         | Defaults Upon Senior Securities                                                                                          |   64 |
| Item 4.                         | Mine Safety Disclosures                                                                                                  |   64 |
| Item 5.                         | Other Information                                                                                                        |   64 |
| Item 6.                         | Exhibits                                                                                                                 |   65 |
| Signatures                      |                                                                                                                          |   66 |

<div align='center'>i

PART I – FINANCIAL INFORMATION</div>

Item 1. Restated Financial Statements.

During the
preparation of the Company’s response to an SEC comment letter dated July 12, 2024, the Company’s management identified an
error in the March 31, 2024 financial statements resulting from an error in the method used to measure the impairment charge associated
with the termination of a license agreement with Weird Science, LLC. The error resulted in, among other things, an overstatement of the
Company's assets and an understatement of the Company's net loss and net loss per share for the three and nine months ended March 31,
2024. Refer to “Note 2 - Restatement of Previously Issued Financial Statements” for additional information.

Additionally, during the
preparation of the Company’s Form 10-Q for the period ended December 31, 2024, the Company determined that certain warrants which
were exercised during the three months ended March 31, 2024, had not been appropriately reflected as a component of the change in fair
value of the contingent consideration during the three and nine months ended March 31, 2024.

The accompanying restated financial
statements have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance
with the instructions for Form 10-Q. Accordingly, they do not include all of the information and footnotes