Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 162

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1B
Chunk 162
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13, 2020 and February 11, 2022. The Company moved to dismiss the Verified Complaint on September
15, 2023.

On December
4, 2023, in lieu of opposing the motion to dismiss, Plaintiffs filed a Verified First Amended Complaint (“FAC”). In the FAC,
Plaintiffs assert claims against the Company and others for purported breaches of the Investor Rights Agreement, fraud, tortious interference
with a contract, and several other torts. Plaintiffs seek compensatory, exemplary, and punitive damages, as well as certain declaratory
relief, specific performance, and pre- and post-judgment interest, costs, and attorneys’ fees. The Company filed a motion to dismiss
the FAC on December 18, 2023 and the court held a hearing on November 15, 2024. At the hearing, the court dismissed (1) all claims brought
on behalf of Wittekind and the Trusts, (2) the fraudulent concealment claim against the Company and others (without prejudice), and (3)
the breach of contract claim against the Company related to a registration statement that was not filed in 2023. At the hearing, the court
also found that punitive damages were not available to Plaintiffs. The court took the remaining issues briefed on the Company’s
motion to dismiss under advisement.

On February
26, 2025, the Court ruled on the balance of the claims against the Company and (1) denied the Company’s motion to dismiss Weird
Science’s breach of contract claims related to registration statements filed in 2020 and 2022; (2) dismissed the fraudulent inducement
claim as time barred; and (3) dismissed the declaratory judgment claim. The Company denies Plaintiffs’ allegations and remaining
claims and intends to vigorously defend against these claims.

53

On August
24, 2023, counsel on behalf of Weird Science, Wittekind, individually, and Wittekind, as trustee of the Trusts served a demand to inspect
the Company’s books and records (the “Demand”) pursuant to Delaware General Corporation Law, § 220 (“Section
220”). The Demand seeks the Company’s books and records in connection with various issues identified in the Demand. The Company
takes its obligations under Section 220 seriously and, to the extent that the requests are proper under Section 220, intends to comply
with those obligations.

On January 19, 2024, Weird