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

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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AP”) and follows the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”).
The accompanying financial statements are unaudited. In the opinion of management, all adjustments (which include only normal recurring
adjustments) necessary to present fairly the financial position, results of operations and cash flows at December 31, 2024, and 2023 and
for the periods then ended have been made. Certain information and footnote disclosures normally included in financial statements prepared
in accordance with 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 December 31, 2024 are not necessarily indicative of the operating results for
the full year.

Consolidation – For
the three and six months ended December 31, 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.

Loss Per Share –Basic
earnings per common share (EPS) are based on the weighted average number of shares of Common Stock outstanding during each period. Diluted
earnings per common share are based on shares outstanding (computed as under basic EPS) and potentially dilutive shares of Common Stock.
Potential shares of Common Stock included in the diluted earnings per share calculation include in-the-money stock options that have been
granted but have not been exercised and shares issuable upon conversion of convertible preferred stock and convertible notes. Because
of the net loss for the three and six months ended December 31, 2024, and 2023, the dilutive shares for all periods were excluded from
the Diluted EPS calculation as the effect of these potential shares of Common Stock is anti-dilutive. The Company had 19,321,772 and 18