Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 866

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 7A
Chunk 866
---
 Miller,
a former member of the Company’s board of directors (the “Board of Directors”), forfeited 833,333 shares of
Common Stock from the original 1,000,000 shares of Common Stock for advisory services originally granted to him on October 11,
2023. As consideration for such forfeiture, the Company granted to Mr. Miller, an option to purchase 978,261 shares of Common
Stock of the Company with a per-share exercise price of $0.69. The Company determined that this transaction represented a modification
of the original award. The Company measured the fair value of the options issued as compared to the fair value of the original issuance
and determined that there was no incremental compensation to recognize as the fair value of the options was less than the fair value of
the Common Stock. Therefore, the Company will recognize the remaining fair value of the original award over the remaining vesting period,
which is one year. The Company recognized stock-based compensation expense of $1,159,470 related to the vesting of the stocks options
during the year ended June 30, 2025. At June 30, 2025, the Company had $185,373 of unrecognized compensation cost related to the
options which vest at August 23, 2025.

All of the above options are exercisable
at the market price of the Company’s Common Stock on the date of the grant. On February 13, 2024, the Company repriced 3,849,931
eligible employee and consultant options from the original issued exercise price to a new exercise price of $1.92 per share, the closing
price of the Company’s Common Stock on February 13, 2024. The Company recognized stock-based compensation expense related to the
repricing of options of $921,254 during the year ended June 30, 2024.

 To date the Company has
granted options under the 2014, 2019 and 2023 Plans (“Plan Options”) to purchase 6,088,250 shares of Common Stock. At June
30, 2025, the Company has 5,093,444 options available to be issued under the 2023 Plan.

A summary of the Plan Options outstanding at June 30,
2025 is presented below:

    Schedule of stock options outstanding 

    Options
    Outstanding 
      
    Options
    Exercisable

    Exercise
    Price Ranges