Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000254
Chunk: 26

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 26
---
a former member of 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 $222,306
related to the vesting of the stocks options during the period ended September 30, 2024. At September 30, 2024, the Company had $1,122,537
of unrecognized compensation cost related to the options which vest at August 23, 2025.

16

NOTE 10 — SEGMENT REPORTING

For the period ending September
30, 2024, the Company had two reportable segments. These segments have different strategic and economic goals and are managed separately
because they require different technology and marketing strategies.

| Reportable Segment   |     | Description                                                                                                           |
| RENB (United States) |     | Developing new immunotherapies to combat cancer                                                                       |
| RENC (Netherlands)   |     | Developing a predicative artificial intelligence based diagnostic methodology for the use of earlier cancer detection |

The Company’s
chief executive officer is the chief operating decision maker and reviews the internal management reports for each segment at least quarterly.
During the quarter ended September 30, 2024, there were no significant inter-company revenues or expenses. The chief operating decision
maker assesses performance for each segment and decides how to allocate resources based on segment operating losses that also is reported
on the consolidated statement of operations. The measure of segment assets is reported on the balance sheet as total consolidated assets.
The accounting policies of each segment are the same as those described in the summary of significant accounting policies.

| Schedule of segment operating loss and 
 asset information                      |     | Operating loss |            |     | Assets |