Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 78

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 78
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 changes in operating assets and
liabilities. Net cash used in operating activities for the years ended June 30, 2025 and 2024 was $7,874,647 and $10,971,430, respectively,
representing a decrease of $3,096,783. The decrease is primarily related to the changes in our operating assets and liabilities.

Net cash used in investing activities
for the years ended June 30, 2025 and 2024 was $500,000 and $1,260,179, respectively, representing an decrease of $760,179. The decrease
in cash used is primarily due to notes receivable prior to acquisition of Renovaro Cube of $1,255,600 in the prior period compared to
$500,000 used for investment in equity securities in year ended June 30, 2025.

61

Net cash provided by financing
activities for the years ended June 30, 2025 and 2024 was $8,382,772 and $10,517,455, respectively, representing a decrease of $2,134,683.
The net cash provided by financing activities in the current year consists primarily of $2,376,181 of proceeds from private placements,
$6,977,822 from the issuance of notes, and partially offset by repayments of $971,231 under a finance agreement. The
prior year net cash from financing activities primarily consisted of 3,000,000 of proceeds from private placements, $8,045,663
from the issuance of notes, and $341,865 of proceeds from the exercise of warrants, partially offset by repayments of $870,073 under a
finance agreement.

Off-Balance Sheet Arrangements

As of June 30, 2025, and 2024,
we had no off-balance sheet arrangements. We are not aware of any material transactions which are not disclosed in our consolidated financial
statements.

Significant Accounting Policies and Critical Accounting Estimates

Our management’s discussion
and analysis of our financial condition and results of operations is based on our consolidated financial statements, which have been prepared
in accordance with accounting principles generally accepted in the U.S. The preparation of these financial statements requires us to make
estimates and assumptions that affect the reported amounts of assets, liabilities, and expenses. On an ongoing basis, we evaluate our
critical accounting policies and estimates. We base our estimates on historical experience and on various other assumptions that we believe
to be reasonable in the