Company: LNAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001731122-25-001544
Chunk: 54

Company: Lunai Bioworks Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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 Derivative Complaint, filed a motion
to dismiss the Derivative Complaint on a variety of procedural and substantive grounds. A hearing on the motion dismiss was held on October
3, 2024 and the court subsequently took the motion under submission. On October 22, 2024, the plaintiffs filed a notice of certain subsequent
events that they allege relate to their pending motion to dismiss. On October 29, 2024, the court granted the director defendants’
motion to dismiss and dismissed the Derivative Complaint without prejudice, but also without leave to amend.

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On November 27, 2024, Weird Science
and Wittekind filed a notice of appeal of the court’s decision granting the director defendants’ motion to dismiss. The appeal
remains pending.

On June 21, 2024, the Company filed
suit against Weird Science, Gumrukcu, Wittekind, and certain trusts in connection with the February 16, 2018 merger involving the Company
and two companies closely associated with Gumrukcu. In the complaint, the Company alleges that Gumrukcu and others deliberately and fraudulently
concealed a murder-for-hire scheme from the Company in order to induce the Company to enter into the merger agreement, which resulted
in the defendants receiving shares and compensation. The Company asserts claims for fraudulent concealment, equitable fraud, unjust enrichment,
and civil conspiracy and seeks, inter alia, equitable relief, including, but not limited to, return to the Company any shares received
in connection with the merger, and damages. On October 1, 2024, the defendants moved to dismiss the complaint. A hearing took place on
June 25, 2025, and on November 7, 2025, the Court granted defendants’ motion and dismissed the complaint.

Lunai commenced an action against Predictive Oncology, Inc. (“POAI”)
in the Delaware Court of Chancery claiming that POAI breached a “definitive” January 2025 Letter Agreement pursuant to which
Lunai was going to acquire POAI. As a result of its breach, POAI made that acquisition impossible and dramatically devalued the share
price of stock Lunai had already acquired as well as the value of the company it was contractually entitled to acquire. Lunai sought specific
performance or, in the alternative, money damages. The parties have exchanged paper discovery and noticed depositions. The action has
been held in abeyance