Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 60

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 60
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 product candidates based on our technology or the inability to proceed with the development, manufacture
or sale of products requiring such licenses. If we defend ourselves against charges of patent infringement or to protect our proprietary
rights against third parties, substantial costs will be incurred regardless of whether we are successful. Such proceedings are typically
protracted with no certainty of success. An adverse outcome could subject us to significant liabilities to third parties and force us
to curtail or cease the research and development of our technology.

Parties making claims against us
may obtain injunctive or other equitable relief, which could effectively block our ability to further develop and commercialize our product
candidates. Defense of these claims, regardless of their merit, would involve substantial litigation expense and would be a substantial
diversion of resources from our business. In the event of a successful claim of infringement against us, we may have to pay substantial
damages, including treble damages and attorneys’ fees for willful infringement, pay royalties, redesign our infringing products
or obtain one or more licenses from third parties, which may be impossible or require substantial time and monetary expenditure. Additionally,
parties making claims against us may be able to sustain the costs of complex patent litigation more effectively than we can because they
have substantially greater resources. Furthermore, because of the substantial amount of discovery required in connection with intellectual
property litigation or administrative proceedings, there is a risk that some of our confidential information could be compromised by disclosure.
In addition, any uncertainties resulting from the initiation and continuation of any litigation could have a material adverse effect on
our ability to raise additional funds or otherwise have a material adverse effect on our business, results of operations, financial condition
and prospects.

Issues in the development and use of AI, including machine learning and computer vision, in Renovaro Cube’s AI platform may result in reputational harm or liability.

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AI is
integrated into Renovaro Cube’s platform and is a significant element of its business offerings going forward. As with many developing
technologies, AI presents risks, challenges and unintended consequences that could affect its further development, adoption, and use,
and therefore Renovaro Cube’s business. AI algorithms and training methodologies may be flawed. Data sets may be insufficient, of
poor quality, or contain biased information. Inappropriate or controversial data practices by data scientists, engineers, and end-users of
Renovaro Cube’s systems could impair the acceptance of AI solutions. If the analyses that AI applications