Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 81

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 81
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500,000 at the time of purchase and is subsequently remeasured to fair value at the end of each reporting period.
As of June 30, 2025, the Company held 467,290 shares of common stock in connection with the investment in equity securities. 

Level 3 liabilities held as of June 30, 2025,
consisted of a contingent consideration liability related to the February 13, 2024, acquisition of Renovaro Cube (see Note 3).

Stock-Based Compensation -
The Company has granted stock options, restricted share units (“RSUs”) and warrants to certain employees, officers, directors,
and consultants. The Company accounts for options in accordance with the provisions of FASB ASC Topic 718, Compensation –
Stock Compensation. Stock based compensation costs for the vesting of options and RSUs granted to certain employees, officers,
directors, and consultants for the years ended June 30, 2025 and 2024 were $3,313,291 and $4,673,129, respectively (see Note 10 to the
Financial Statements).

The Company recognizes compensation
costs for stock option awards to employees, officers and directors based on their grant-date fair value. The value of each stock option
is estimated on the date of grant using the Black-Scholes option-pricing model. The weighted-average assumptions used to estimate the
fair value of the stock options granted using the Black-Scholes option-pricing model are the expected term of the award, the underlying
stock price volatility, the risk-free interest rate, and the expected dividend yield. The Company accounts for forfeitures as they occur.

The Company records stock-based
compensation for services received from non-employees in accordance with ASC 718, Compensation—Stock Compensation Non-Employees.
All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based
on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.
Equity instruments issued to consultants and the cost of the services received as consideration are measured and recognized based on the
fair value of the equity instruments issued and are recognized over the consultants’ required service period, which is generally
the vesting period (see Note 10 to the Financial Statements).

The Company does not have sufficient
historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior.
Accordingly, the Company has elected to use the “s