Company: LNAI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000765
Chunk: 17

Company: Lunai Bioworks Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 the volatility of the Company’s
underlying stock. The key inputs to valuing the contingent consideration liability as of March 31, 2025, were:

    Schedule of contingent consideration liability 

    Stock Price 
    $0.54 
  
    Exercise Price 
     $0.46 - $8.23 
  
    Volatility 
     123.1% - 157.4% 
  
    Risk Free Rate 
     3.82% - 4.09% 
  
    Expected Dividends 
     0%
  
    Expected Term (years) 
     2.91 – 8.75 

The following table sets forth the Level 3 liability
at March 31, 2025, which is recorded on the consolidated balance sheet at fair value on a recurring basis. As required, this liability
is classified based on the lowest level of input that is significant to the fair value measurement.

The roll forward of contingent consideration liability
is as follows:

    Schedule
    of contingent consideration liability  

    Balance June 30, 2024  
    $12,310,000 

     — 
  
    Fair value adjustment  
     (10,990,000)
  
    Fair Value at March 31, 2025  
    $1,320,000 

NOTE 4 — INTANGIBLE ASSETS AND GOODWILL

On February 13, 2024, the Company
acquired Renovaro Cube as a wholly owned subsidiary pursuant to a stock purchase agreement. As part of the acquisition of Renovaro
Cube, the Company acquired goodwill valued at $159,464,039.

Impairment – During the nine months ended March
31, 2025, the results of the assessment indicated that the carrying value of the RENC reporting unit exceeded its fair value, due to the
decline in the estimated fair value of the reporting unit based on the Company’s market capitalization. Management concluded the
significant driver for the change in the economic benefits was due to the Company’s continued inability to raise capital for the
further development of the technologies within this reporting unit. Therefore, an impairment adjustment of $47,614,729 was recorded for
the period ended March 31, 2025.

    11

At March 31, 2025 and June 30,
2024, definite-life and indefinite-life intangible assets consisted of the following: