Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000250
Chunk: 20

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 20
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 31, 2024, consisted of a contingent consideration liability related to the February 13, 2014, acquisition of Renovaro Cube, (the “Acquisition”). As consideration for the Acquisition, the stockholders of Renovaro Cube received (i) 70,834,183shares of Common Stock, (ii) the right to receive contingent shares pro rata upon the exercise of convertible notes, options, and warrants, which were outstanding at closing less (iii) an as of yet undefined discount of the number of shares to be issued as a result of any such exercise. The Company and the stockholders of Renovaro Cube have not determined or agreed on the amount of any such discount which may be applied towards future exercises. Thecontingent consideration liability was recorded at fair value of $ 20,557,500at the time of acquisition and is subsequently remeasured to fair value at the end of each reporting period. At March 31, 2024, there were 8,474,146contingent shares issuable in connection with the Acquisition of Renovaro Cube.

The fair value of the
contingent consideration liability is estimated using a Black-Scholes option-pricing model and a Monte-Carlo option pricing model.
The key inputs to the model are all contractual or observable with the exception being volatility, which is computed, based on the
volatility of the Company’s underlying stock. The key inputs to valuing the contingent consideration liability as of March 31,
2024, were:

12

RENOVARO INC. AND SUBSIDIARIES
NOTES TO UNAUDITED RESTATED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 4 — FAIR VALUE MEASUREMENTS (Continued)

| Schedule of fair value contingent consideration |     |   |               |   |
|:------------------------------------------------|:----|:--|--------------:|:--|
| Stock Price                                     |     | $ |          2.65 |   |
| Exercise Price                                  |     |   | $0.46 - $4.50 |   |
| Volatility                                      |     |   |   109% - 140% |   |
| Risk Free Rate                                  |     |   | 4.11% - 5.26% |   |
| Expected Dividends                              |     |   |             0 | % |
| Discount Rate (Monte-Carlo model only)          |     |