Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000254
Chunk: 6

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 6
---
 U.S. GAAP have been condensed or omitted. The accompanying unaudited
condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in
the Company’s June 30, 2024 audited financial statements. The results of operations for the period ended September 30, 2024 are
not necessarily indicative of the operating results for the full year.

Consolidation– For
the three months ended September 30, 2024, and 2023, the condensed consolidated financial statements include the accounts and operations
of the Company and its subsidiaries. All material inter-company transactions and accounts have been eliminated in the consolidation.

Accounting Estimates–
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities 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 of assets acquired in a business acquisition, contingent consideration,
and equity instruments issued for goods or services.

Functional Currency & Foreign Currency Translation– The functional currency of Renovaro Biosciences Denmark ApS 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 periods
ended September 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.

Recently Adopted Accounting Pronouncements – In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which requires a public entity to disclose significant segment expenses and other segment items on an
annual and interim basis and to provide in interim periods all disclosures about reportable segment’s profit or loss and assets
that are currently required annually. ASU 2023-07 is effective for fiscal years