Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 320

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 2
Chunk 320
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income tax expense (benefit) results primarily from the reversal of temporary timing differences between tax and financial statement
income.

NOTE 10 — STOCKHOLDERS’ EQUITY

Preferred Stock —
The Company has 10,000,000
authorized shares of Preferred Stock, par value $0.0001
per share, 1,000,000
of which have been designated as Series A Convertible Preferred Stock. At June 30, 2025 and 2024, there were 0 zero shares of
Preferred Stock issued and outstanding.

Voting — Holders
of Series A Preferred Stock shall be permitted to vote on all matters required or permitted to be voted on by the holders of Common Stock
of the Company and shall be entitled to that number of votes equal to ten votes for the number of shares of Common Stock into which such
holder’s shares of Preferred Stock could then be converted in accordance with conversion rights.

    F-21

Dividends — The
Company shall pay dividends on shares of Series A Preferred Stock equal (on an as-if-converted-to-Common-Stock basis) to and in the same
form as dividends actually paid on shares of the Common Stock when, as and if such dividends are paid on shares of the Common Stock. No
other dividends shall be paid on shares of Preferred Stock.

Liquidation Rights —
In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company, the holders of shares of Series A
Preferred Stock then outstanding shall be entitled to be paid out of the assets of the Company available for distribution to its stockholders,
before any payment shall be made to the holders of Common Stock by reason of their ownership thereof, an amount in cash equal to the aggregate
liquidation value of all shares held by such holder. The Series A Preferred Stock is not participating preferred.

Conversion Rights — On
or after the date of issuance, any holder of Series A Preferred Stock shall have the right by written election (a “Series A Election
Notice”) to the Company to convert all or any portion of the outstanding Shares of Series A Preferred Stock held by such holder
into an aggregate number of shares of Common Stock as is determined by multiplying the number of Shares to be converted by ten (10) (the
“Conversion Ratio”).

Common Stock — The
Company has 350,000,000 authorized shares of Common Stock, par value $0.0001 per share. At June 30, 2025 and