Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 89

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 89
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 in connection with S-3 registration statements filed by the Company on July 13, 2020 and February 11, 2022. The Company moved to
dismiss the Verified Complaint on September 15, 2023.

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On December
4, 2023, in lieu of opposing the motion to dismiss, Plaintiffs filed a Verified First Amended Complaint (“FAC”). In the FAC,
Plaintiffs assert claims against the Company and others for purported breaches of the Investor Rights Agreement, fraud, tortious interference
with a contract, and several other torts. Plaintiffs seek compensatory, exemplary, and punitive damages, as well as certain declaratory
relief, specific performance, and pre- and post-judgment interest, costs, and attorneys’ fees. The Company filed a motion to dismiss
the FAC on December 18, 2023. The Court scheduled oral argument on the motions to dismiss for November 15, 2024. The Company denies Plaintiffs’
allegations and intends to vigorously defend against the claims.

On August 24, 2023, counsel on
behalf of Weird Science, Wittekind, individually, and Wittekind, as trustee of the Trusts served a demand to inspect the Company’s
books and records (the “Demand”) pursuant to Delaware General Corporation Law, § 220 (“Section 220”).
The Demand seeks the Company’s books and records in connection with various issues identified in the Demand. The Company takes its
obligations under Section 220 seriously and, to the extent that the requests are proper under Section 220, intends to comply with those
obligations.

On
January 19, 2024, Weird Science and Wittekind sent the Company’s Board of Directors a letter demanding it take corrective actions
with respect to twenty-one issues identified therein. On February 27, 2024, Weird Science and Wittekind sent the Company’s Board
of Directors a supplemental letter that expanded their demand for corrective actions to twenty-six issues. In response to these demand
letters, the Board of Directors initially formed a Special Committee (“Special Committee”) of independent directors on February
29, 2024. The Special Committee retained Stradling Yocca Carlson & Rauth LLP as its counsel to investigate the issues identified in
the demand letters. The Special Committee’s investigation is ongoing.

On January
23, 2024, Weird Science and Witte