Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 81

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 81
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 respect to our business
and financial condition. In addition, the Sarbanes-Oxley Act, as well as rules subsequently adopted by the SEC and The Nasdaq Stock Market
to implement provisions of the Sarbanes-Oxley Act, impose significant requirements on public companies, including requiring establishment
and maintenance of effective disclosure and financial controls and changes in corporate governance practices. As a Smaller Reporting Company
and Non-accelerated Filer, we are able to take advantage of certain accommodations afforded to such companies, including being exempt
from the requirement to conduct an audit of our internal controls. In the event we no longer qualify as a Smaller Reporting Company and
Non-accelerated Filer, we will lose such accommodations, which could involve significant costs that could affect our operations. Changes
in reporting requirements, the current political environment and the potential for future regulatory reform may lead to substantial new
regulations and disclosure obligations, which may lead to additional compliance costs and impact the manner in which we operate our business
in ways we cannot currently anticipate.

The rules and regulations applicable
to public companies have substantially increased our legal and financial compliance costs and make some activities more time-consuming
and costly. To the extent these requirements divert the attention of our management and personnel from other business concerns, they could
have a material adverse effect on our business, financial condition and results of operations.

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Because we do not anticipate paying any cash dividends on our capital stock in the foreseeable future, capital appreciation, if any, will be the sole source of potential gain for our stockholders.

We have never declared or paid
cash dividends on our capital stock. We currently intend to retain all of our future earnings, if any, to finance the growth and development
of our business. As a result, capital appreciation, if any, of our Common Stock will be the sole source of gain for our stockholders for
the foreseeable future.

Future sales and issuances of our Common Stock or rights to purchase Common Stock, including pursuant to our equity incentive plans, could result in additional dilution of the percentage ownership of our stockholders and could cause our stock price to fall.

We expect that significant additional
capital will be needed in the future to continue our planned operations. To raise capital, we may sell substantial amounts of Common Stock
or securities convertible into or exchangeable for Common Stock in one or more transactions at prices and in a manner, we determine from
time to time. These future issuances of