Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 185

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1B
Chunk 185
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 assumptions.

How
the Critical Audit Matter was Addressed in the Audit

We
identified the evaluation of the impairment analysis for goodwill as a critical audit matter because of the significant estimates and
assumptions management makes in performing impairment tests for the RenC reporting unit. These required a high degree of auditor judgment
and an increased extent of effort when performing audit procedures to evaluate the reasonableness of such estimates and assumptions.

Our
audit procedures related to the following:

●We
                                            tested management’s processes for estimating the fair value of the reporting unit at
                                            each respective date

●We
                                            evaluated whether the valuation techniques used were appropriate and reasonable and

●We
                                            evaluated the significant assumptions and underlying data used in developing the fair value
                                            of goodwill

In
addition, professionals with specialized skill and knowledge were utilized by the Firm to assist in the performance of these procedures.

/s/
Sadler, Gibb & Associates, LLC

We
have served as the Company’s auditor since 2018.

Draper,
UT

September
29, 2025

F-3

LUNAI BIOWORKS INC. FKA: RENOVARO INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

    June
    30,

    2025 
    2024

    ASSETS 

    CURRENT
    ASSETS: 

    Cash 
    $92,700  
    $220,467 
  
    Insurance
    receivable 
     —  
     1,108,247 
  
    Investment
    in equity securities 
     387,851  
     — 
  
    Prepaids
    and other assets 
     566,081  
     668,929 
  
    Total
    Current Assets 
     1,046,632  
     1,997,643 

    Property
    and equipment, net 
     367,843  
     482,121 

    OTHER
    ASSETS 

    Definite
    life intangible assets, net 
     14,994  
     30,043 
  
    Software
    platform 
     143,000  
     — 
  
    Trademarks 
     8,000  
     — 
  
    Goodwill 
     5,963,000  
     159,330,161 
  
    Deposits