Company: LNAI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000765
Chunk: 62

Company: Lunai Bioworks Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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 repayment of a finance agreement.

Off-Balance Sheet Arrangements 

The Company does not have any off-balance
sheet arrangements that have or are reasonably likely to have a current or future effect on the Company’s financial condition, changes
in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material
to investors.

Significant Accounting Policies and Critical Accounting
Estimates 

The methods, estimates, and judgments
that we use in applying our accounting policies have a significant impact on the results that we report in our financial statements. Some
of our accounting policies require us to make difficult and subjective judgments, often as a result of the need to make estimates regarding
matters that are inherently uncertain.

For a summary of our accounting
policies, see Note 1 to the unaudited condensed consolidated financial statements.

Item 3. Quantitative and Qualitative Disclosures
About Market Risk. 

As a “smaller reporting company”
as defined by Rule 12b-2 of the Securities Exchange Act of 1934, the Company is not required to provide the information required by this
Item.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Our Chief Executive Officer and
Chief Financial Officer (the “Certifying Officers”) are responsible for establishing and maintaining disclosure controls and
procedures for the Company. The Certifying Officers have designed such disclosure controls and procedures to ensure that material information
is made known to them, particularly during the period in which this Report was prepared.

The Certifying Officers are responsible
for establishing and maintaining adequate internal control over financial reporting for the Company and used the “Internal Control
over Financial Reporting Integrated Framework” issued by the Committee of Sponsoring Organizations (“COSO”) to conduct
an extensive review of the Company’s “disclosure controls and procedures” (as defined in the Exchange Act, Rules 13a-15(e)
and 15-d-15(e)) as of the end of each of the periods covered by this Report (the “Evaluation Date”). Based upon that evaluation,
the Certifying Officers concluded that, as of March 31, 2025, our disclosure controls and procedures were not effective in ensuring that
the information we were required to disclose in reports that we file or submit under the Securities and Exchange Act of 1934, as amended,
is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. The deficiency is attributed
to the Company not having