Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001731122-25-000258
Chunk: 112

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 8
Chunk 112
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Our operating expenses for the
three months ended December 31, 2024 and 2023, were $4,546,316 and $4,270,075 respectively, representing
an increase of $276,241 or approximately 6%. The increase in operating expenses primarily relates to the increase in general
and administrative expenses of $736,731, partially offset by the decrease in research and development expenses of $459,437.

Our operating expenses for the
six months ended December 31, 2024 and 2023, were $57,884,869 and $13,154,189 respectively, representing
an increase of $44,730,680, or approximately 340%. The increase in operating expenses primarily relates to the increase in goodwill
impairment of $47,614,729, partially offset by the decrease in general and administrative expenses of $2,252,229 and the decrease
in research and development expenses of $635,892.

General and administrative expenses
for the three months ended December 31, 2024, and 2023, were $4,353,123 and $3,616,392, respectively, representing an increase of $736,731
or approximately 20%. The variance is related to an increase in consulting fees expense of $667,815, compensation and related expenses
of $354,968, and accounting fees of $134,620, partially offset by a decrease in non-cash stock-based compensation expense of $440,597.

General and administrative expenses
for the six months ended December 31, 2024, and 2023, were $9,654,373 and $11,906,602, respectively, representing a decrease of $2,252,229
or approximately 19%. The variance is related to a decrease in consulting fees expense of $2,098,916, and non-cash stock-based compensation
expense of $1,066,778, partially offset by an increase in compensation and related expenses of $637,587 and legal expenses of $192,571.

Research and development expenses
for the three months ended December 31, 2024, and 2023, were $161,084 and $620,521, respectively, representing a decrease of $459,437
or approximately 74%. The variance is primarily driven by a decrease of $236,026 in collaborating partner expenses with
CDMO and CROs and $205,057 in consumables related