Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 27

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 27
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 patient enrollment or retention may result in increased costs, program delays or
both, which could have a harmful effect on our ability to develop our gene therapy product candidates or could render further development
impossible. In addition, we expect to rely on clinical trial sites to ensure proper and timely conduct of our future clinical trials and,
while we intend to enter into agreements governing their services, we will be limited in our ability to control their actual performance.

Risks Related to Our Technology and Intellectual
Property

We have licensed a portion
of our intellectual property from our licensors. If we breach any of our license agreements with these licensors, or otherwise experience
disruptions to our business relationships with our licensors, we could lose intellectual property rights that are important to our business.

We hold rights under license agreements
with our licensors that are important to our business. Our research and development platform is built, in part, around patent rights licensed
from such licensors. Under our existing license agreements, we are subject to various obligations, including diligence obligations with
respect to development and commercialization activities, provision of support with respect to development of licensed intellectual property,
prosecution of intellectual property protection, payment obligations upon achievement of certain milestones and royalties on product sales.
In spite of our efforts, our licensors might conclude that we have materially breached our obligations under such license agreements and
might therefore terminate the license agreements, thereby removing or limiting our ability to develop and commercialize products and technology
covered by these license agreements. If any of these licenses are terminated, or if the underlying patents fail to provide the intended
exclusivity, competitors or other third parties would have the freedom to seek regulatory approval of, and to market, products identical
to ours and we may be required to cease our development and commercialization of product candidates covered by any such licenses. Any
of the foregoing could have a material adverse effect on our competitive position, business, financial condition, results of operations,
and prospects.

Moreover, disputes may arise regarding
intellectual property subject to a licensing agreement, including:

34

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    the scope of rights granted under license agreements and other interpretation-related issues;

    ●
    payment obligations due to licensors under license agreements and other disputes related to the obligations for payment related to intellectual property protection;

    ●
    the extent to which our product candidates, technology and processes infringe on intellectual property of a licensor that is not subject to a licensing agreement;

    ●
    the sublicensing of patent and other rights under our collaborative development relationships;