Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 3

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 3
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 30, 2025 and 2024, respectively.

We do not expect to generate revenues
for the foreseeable future. We expect to continue to incur significant expenses and operating losses for the foreseeable future. We anticipate
these losses to increase as we continue to research, develop, and seek regulatory approvals for our product candidates and any additional
product candidates we may acquire, in-license or develop, and potentially begin to commercialize product candidates that may achieve regulatory
approval. We may encounter unforeseen expenses, difficulties, complications, delays, and other unknown factors that may adversely affect
our business. The size of our future net losses will depend, in part, on the rate of future growth of our expenses and our ability to
generate revenues. If any of our product candidates fails in clinical studies or does not gain regulatory approval, or if approved, fails
to achieve market acceptance, we may never become profitable. Even if we achieve profitability in the future, we may not be able to sustain
profitability in subsequent periods. We anticipate that our expenses will increase in the future as we continue to invest in research
and development of our existing product candidates, investigate and potentially acquire new product candidates and expand our manufacturing
and commercialization activities.

20

 There is substantial
doubt about our ability to continue as a going concern, which may hinder our ability to obtain future financing.

Our consolidated financial statements
as of June 30, 2025, have been prepared under the assumption that we will continue as a going concern for the next twelve months. As of
June 30, 2025, we had cash and cash equivalents of $92,700 and an accumulated deficit of $510 million. We do not believe that our cash
and cash equivalents are sufficient for the next twelve months. As a result of our financial condition and other factors described herein,
there is substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern will depend on
our ability to obtain additional funding, as to which no assurances can be given. We continue to analyze various alternatives, including
potentially obtaining debt or equity financings or other arrangements. Our future success depends on our ability to raise capital. We
cannot be certain that raising additional capital, whether through selling additional debt or equity securities or obtaining a line of
credit or other loan, will be available to us or, if available, will be on terms acceptable to us. If we issue additional securities to
raise funds, these securities may