Company: LNAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001731122-25-001544
Chunk: 120

Company: Lunai Bioworks Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 120
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  Ended  September 30, 2025
 
Three Months Ended  September 30, 2024

Net Cash Used in Operating Activities
 
$
(1,349,110
)
 
$
(2,016,328
)

Net Cash Provided by Investing Activities

544,700

—

Net Cash Provided by Financing Activities

1,343,357

2,029,183

Effect of exchange rates on cash

(6,839
)

(12,751
)

Change in Cash and Cash Equivalents
 
$
532,108

$
104

Cash Flows

The decrease in our cash used in
operating activities is primarily related to the changes in our operating assets and liabilities. The change is primarily driven by our
net income offset by significant non-cash charges such as stock-based compensation, impairments and change in fair value of contingent
consideration. Additionally, our operating cash flow was positively impacted by changes in our operating assets and liabilities, primarily
other receivables, prepaid expenses and accounts payable.

33

Cash used provided by investing
activities during the period related to proceeds from the sale of equity securities of $544,700.

Cash provided by financing activities
during the period primarily related to net proceeds of $1,343,357 from issuance of $1,615,000, net of $18,495 placement costs, in notes
payable that were partially offset by $271,643 in repayment of a finance agreement.

Off-Balance Sheet Arrangements 

The Company does not have any off-balance
sheet arrangements that have or are reasonably likely to have a current or future effect on the Company’s financial condition, changes
in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material
to investors.

Significant Accounting Policies and Critical Accounting
Estimates 

The methods, estimates, and judgments
that we use in applying our accounting policies have a significant impact on the results that we report in our financial statements. Some
of our accounting policies require us to make difficult and subjective judgments, often as a result of the need to make estimates regarding
matters that are inherently uncertain.

For a summary of our accounting
policies, see Note 1 to the unaudited condensed consolidated financial statements.

Item 3. Quantitative and Qualitative Disclosures
About Market Risk. 

As a “smaller reporting company”
as defined by Rule 12b-2 of the Securities Exchange Act of 193