Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 342

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 2
Chunk 342
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 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.

NOTE 13 — ACQUISITIONS

BioSymetrics Inc. Acquisition:

On February 26, 2025, Lunai Bioworks Inc., a Delaware
corporation (“Lunai”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with
Renovaro Acquisition Sub, a Delaware corporation and wholly owned subsidiary of Lunai (“Merger Sub”), and Biosymetrics,
Inc., a Delaware corporation (“Biosymetrics”), pursuant to which Lunai agreed to acquire Biosymetrics pursuant to the
merger of Merger Sub with and into Biosymetrics, with Biosymetrics as the surviving corporation and a wholly owned subsidiary of Lunai
(the “Transaction”). On April 8, 2025, Lunai consummated the Transaction and issued 15.0 million shares of Lunai’s
common stock, par value $0.0001 per share (the “Shares”), to the former stockholders of Biosymetrics in accordance
with the terms of the Merger Agreement.

        The
offer and sale of the Shares have not been registered under the Securities Act of 1933, as amended (the “Securities Act”),
in reliance on the exemption from registration requirements thereunder provided by Section 4(a)(2) thereof. Lunai relied in part upon
representations contained in the Merger Agreement that all those receiving Shares in connection with the Transaction are “accredited
investors” as defined in Rule 501(a) under the Securities Act.

The
transaction was accounted for in accordance with ASC 805-10 - Business Combinations. The assets acquired and liabilities
assumed are initially recognized in the accompanying consolidated balance sheets at their estimated fair values as of the acquisition
date. The fair values as of the acquisition date are based on information that existed as of the