Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001731122-25-000258
Chunk: 11

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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,217,727
potential shares of Common Stock excluded from the Diluted EPS calculation as of December 31, 2024, and 2023, respectively.

    8

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 December 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.

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 beginning after December 15, 2023, and interim periods
within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted this ASU on July 1, 2024. The
adoption of this ASU had no impact on the Company’s condensed consolidated financial statements.

In December 2023, the FASB issued
ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which enhances the transparency and
decision usefulness of income tax disclosures by requiring; (1) consistent categories and greater disaggregation of information in the
rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the
effectiveness of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2025, with early adoption
permitted. These