Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 123

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 123
---

at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could
differ from those estimated. Significant estimates include the fair value and potential impairment of intangible assets, the fair value
of the contingent consideration liability, and the fair value of equity instruments issued.

Functional Currency and Foreign Currency Translation– The functional currency of Renovaro Denmark is the Danish Kroner (“DKK”) and the functional
currency of Renovaro Cube is the Euro (“EUR”). The 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 years ended June 30,
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 June 30, 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.

Insurance Receivable–
The Company recognizes insurance receivables associated with expected recoveries of costs incurred for litigation which is probable of
incurring a loss and for which it is probable the Company will receive coverage under its existing insurance policies. The Company records
any such recoveries on a gross basis and does not net such amounts against any related loss contingency accruals.

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