Company: LNAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001731122-25-001544
Chunk: 74

Company: Lunai Bioworks Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 74
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Prevention and Treatment”).

The Development License Agreement
was entered into pursuant to the existing Framework Agreement between the parties dated November 15, 2019. The Development License Agreement
states that in consideration for the Development License, the Company shall provide cash funding for research costs and equipment and
certain other in-kind funding related to the Prevention and Treatment over a 24-month period. Additionally, the Development License Agreement
provides for an up-front payment of $10,000,000 and a $760,000 payment for expenditures to date prior to the effective date related to
research towards the Prevention and Treatment within 60 days of April 18, 2021. The Development License Agreement provides for additional
payments upon the occurrence of certain benchmarks in the development of the technology set forth in the Development License Agreement,
in each case subject to the terms of the Development License Agreement.

    16

The Development License Agreement
provides for (i) cooperation related to the development of intellectual property related to the Prevention and Treatment and (ii) a 3%
royalty to G Tech on any net sales that may occur under the Development License Agreement. The Company is no longer pursuing any product
candidates that relate to this license. The Company has filed a claim against the Licensors to recover all monies it paid related to this
license (see Contingencies below).

On August 25, 2021, the Company
entered into an ALC Patent License and Research Funding Agreement in the HIV Field (the “ALC License Agreement”) with Serhat
Gümrükcü and SRI (collectively, the “Licensors”) whereby the Licensors granted the Company an exclusive, worldwide,
perpetual, fully paid-up, royalty-free license, with the right to sublicense, proprietary technology subject to a U.S. patent application,
to make, use, offer to sell, sell or import products for use solely for the prevention, treatment, amelioration of or therapy exclusively
for HIV in humans, and research and development exclusively relating to HIV in humans; provided the Licensors retained the right to conduct
HIV research in the field. Pursuant to the ALC License Agreement, the Company granted a non-exclusive license back to the Licensors, under
any patents or other intellectual property owned or controlled by the Company, to the extent arising from the ALC License, to make, use,
offer to sell, sell or import products for use in the diagnosis,