Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 66

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 66
---
 technology and telecommunications systems, including those provided by third parties and their vendors, for significant
elements of our operations, such as our information management systems, research and development, scientific and medical data analysis
and general administrative activities. In addition, our third-party service providers depend upon technology and telecommunications
systems provided by outside vendors. We expect to expand and strengthen a number of enterprise software systems that affect a broad range
of business processes and functions, including, for example, systems handling human resources, financial controls and reporting, customer
relationship management, regulatory compliance, security controls and other infrastructure operations. These expansions may prove more
difficult than we expect and could cause disruptions in our operations or additional expense.

Information technology and telecommunications
systems are vulnerable to damage from a variety of sources, including telecommunications or network failures, malicious human acts and
natural disasters. Moreover, despite network security and back-up measures, some of our servers are potentially vulnerable to
physical or electronic break-ins, computer viruses and similar disruptive events. Despite the precautionary measures we have
taken to detect and prevent or solve problems that could affect our information technology and telecommunications systems, failures or
significant downtime of these systems or those used by its third-party service providers and their vendors could prevent us
from conducting tests, preparing and providing our orts to future customers, billing payors, conducting research and development activities,
maintaining our financial controls and other reporting functions, and managing the administrative aspects of our business. In addition,
the loss of formulas or data from completed, ongoing or planned pre-clinical studies could result in delays in our regulatory approval
efforts and significantly increase our costs to recover or reproduce the data. To the extent that any disruption or security breach were
to result in a loss of or damage to our data or applications, or inappropriate disclosure of confidential or proprietary information,
we could incur liability and further development of our product candidates could be delayed. Any disruption or loss of information technology
or telecommunications systems on which critical aspects of our operations depend could have an adverse effect on our business.

<div align='center'>43</div>

Intellectual property litigation may lead to unfavorable publicity that harms our reputation.

During
the course of any intellectual property litigation, there could be public
announcements of the initiation of the litigation as well as results of hearings, rulings on motions and other interim proceedings in
the litigation. Such announcements could harm our reputation, the perceived value of our intellectual property or the potential market
for our products, which could have a material adverse effect on