Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000250
Chunk: 11

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 11
---
 Company’s reporting
currency is the U.S. Dollar for the purpose of these financial statements. The Company’s balance sheet accounts are translated
into U.S. dollars at the period-end exchange rates and all revenue and expenses are translated into U.S. dollars at the average
exchange rates prevailing during the periods ended March 31, 2024, and 2023. Translation gains and losses are deferred and
accumulated as a component of other comprehensive income in stockholders’ equity. Transaction gains and losses that arise from
exchange rate fluctuations from transactions denominated in a currency other than the functional currency are included in the
statement of operations as incurred.

Cash and Cash Equivalents–
The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.

Concentration of Credit Risk– Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in financial
institutions, which, at times, exceed the amount of deposit insurance provided within the relevant jurisdiction where the deposits
are held. As of March 31, 2024 and June 30, 2023, the Company has not experienced losses on these accounts and management believes the
Company is not exposed to significant risks on such accounts.

8

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

NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Property and Equipment–
Property and equipment are stated at cost. Expenditures for major renewals and betterments that extend the useful lives of property and
equipment are capitalized and depreciated upon being placed in service. Expenditures for maintenance and repairs are charged to expense
as incurred. Depreciation is computed for financial statement purposes on a straight-line basis over the estimated useful lives of the
assets, which range from four to ten years (see Note 5).

Intangible Assets–The
Company has both definite and indefinite life intangible assets.

Definite life intangible assets
include patents. The Company accounts for definite life intangible assets in accordance with Financial Accounting Standards Board (“FASB”)
Accounting Standards Codification (“ASC”) Topic 350, “Goodwill and Other Intangible Assets”. Definite life intangible
assets are recorded at cost. Patent costs consist of costs incurred to acquire the underlying patent. If it is determined that a patent