Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 179

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 179
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 upon the exercise or conversion of any of the Company’s derivative
securities (subject to certain exceptions) that are outstanding at the Closing Date (the “Closing Derivative Securities”).
Each Seller’s pro rata percentage of the Exchange Consideration is equal to the ratio of the aggregate number of GEDi Cube Shares
owned by such Seller divided by the aggregate number of GEDi Cube Shares issued and outstanding, in each case, as of the Closing Date.

The transaction was accounted for in accordance with the provisions of ASC 805-10 - Business Combinations.As a result
of the issuance of the Closing Consideration on the Closing Date and based on the number of shares of Common Stock outstanding as of the
Closing Date, the Sellers held approximately 49% of the issued and outstanding shares of Common Stock immediately following the closing
of the Transaction and the conversion of the Series A Convertible Preferred Stock.

The assets acquired and liabilities assumed were initially recognized provisionally
in the accompanying consolidated balance sheets at their estimated fair values as of the acquisition date. The fair values as of the acquisition
date are based on information that existed as of the acquisition date. The Company completed its accounting for this acquisition during
the period ended June 30, 2024. As a result of the completion of the Company’s analysis, the amount of in-process research and development
was determined to have a value of nil. Accordingly, the amount of goodwill recognized was increased to include the previously recognized
amount of in-process research and development. There was no impact to the Company’s consolidated statement of operations as a result
of this change to the allocation.

The acquisition-date fair value of the consideration transferred totaled approximately
$156.6 million, which consisted of the following:

| Schedule of acquisition         
 date fair value                 |     |   |             |
|:--------------------------------|:----|:--|------------:|
| Common stock                    |     | $ | 136,001,631 |
| Contingent consideration        |     |   |  20,557,500 |
| Total consideration transferred |     | $ | 156,559,131 |

F-38

The fair value of the Company’s common shares issued as consideration was based on the closing price of the Company’s common stock as of the Acquisition Date. The fair value of the contingent considerationwas based on the Sellers’ right to receive additional shares of common, pro rata, upon the exercise or conversion of warrants, options and convertible notes payables outstanding as of the