Company: LNAI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000765
Chunk: 26

Company: Lunai Bioworks Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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 The value of each warrant is estimated on the date of grant using
the Black-Scholes option-pricing model. The weighted-average assumptions used to estimate the fair values of the warrants granted using
the Black-Scholes option-pricing model are as follows in the nine months ended March 31, 2025:

    Schedule of Black-Scholes option-pricing model 

    Renovaro Inc.
  
    Expected term (in years) 
     0.50 
  
    Volatility 
     162.35%
  
    Risk free interest rate 
     4.40%
  
    Dividend yield 
     0%

On February 24, 2025, the Company issued 3,175,000 warrants to Paseco ApS.
The company recognized stock-based compensation related to warrants of $1,235,538 in the period ended March 31, 2025. At
March 31, 2025, the Company had zero unrecognized compensation cost related to non-vested warrants.

NOTE 7 — COMMITMENTS AND CONTINGENCIES 

Commitments

On January 31, 2020, the Company
entered into a Statement of Work and License Agreement (the “HBV License Agreement”) by and among the Company, G Tech Bio,
LLC, a California limited liability company (“G Tech”), and G Health Research Foundation, a not-for-profit entity organized
under the laws of California doing business as Seraph Research Institute (“SRI”) (collectively the “Licensors”),
whereby the Company acquired a perpetual, sublicensable, exclusive license (the “HBV License”) for a treatment under development
(the “Treatment”) aimed to treat Hepatitis B Virus (HBV) infections.

The HBV License Agreement states
that in consideration for the HBV License, the Company shall provide cash funding for research costs and equipment and certain other in-kind
funding related to the Treatment over a 24-month period, and provides for an up-front payment of $1.2 million within 7 days of January
31, 2020, along with additional payments upon the occurrence of certain benchmarks in the development of the technology set forth in the
HBV License Agreement, in each case subject to the terms of the HBV License Agreement. Additionally, the HBV License Agreement provides
for cooperation related to the development of intellectual property related to the Treatment and for a 2% royalty to G Tech on any net
sales that may occur