Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 239

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1B
Chunk 239
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2024, the plaintiffs filed a notice of certain subsequent
events that they allege relate to their pending motion to dismiss. On October 29, 2024, the court granted the director defendants’
motion to dismiss and dismissed the Derivative Complaint without prejudice, but also without leave to amend.

On November 27, 2024, Weird Science
and Wittekind filed a notice of appeal of the court’s decision granting the director defendants’ motion to dismiss. The appeal
remains pending.

On June 21, 2024, the Company
filed suit against Weird Science, Gumrukcu, Wittekind, and certain trusts in connection with the February 16, 2018 merger involving the
Company and two companies closely associated with Gumrukcu. In the complaint, the Company alleges that Gümrükcüand others
deliberately and fraudulently concealed a murder-for-hire scheme from the Company in order to induce the Company to enter into the merger
agreement, which resulted in the defendants receiving shares and compensation. The Company asserts claims for fraudulent concealment,
equitable fraud, unjust enrichment, and civil conspiracy and seeks, inter alia, equitable relief, including, but not limited to,
return to the Company any shares received in connection with the merger, and damages. On October 1, 2024, the defendants moved to dismiss
the complaint. A hearing took place on June 25, 2025 and the Court took defendants’ motion under advisement.

Lunai commenced an action against
Predictive Oncology, Inc. (“POAI”) in the Delaware Court of Chancery claiming that POAI breached a “definitive”
January 2025 Letter Agreement pursuant to which Lunai was going to acquire POAI. As a result of its breach, POAI made that acquisition
impossible and dramatically devalued the share price of stock Lunai had already acquired as well as the value of the company it was contractually
entitled to acquire. Lunai sought specific performance or, in the alternative, money damages. The parties have exchanged paper discovery
and noticed depositions. The action has been held in abeyance while the parties attempt to negotiate a settlement.

NOTE 12 — RELATED PARTY TRANSACTIONS

As of June 30, 2025, the Company
has accrued $384,949 of compensation related expenses for the Company’s former Chief Executive Officer, Mark Dybul, related to budget
constraints.

    F-