Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000250
Chunk: 85

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 85
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 will be monitored, and attention
will be given to this matter as we grow.

The Certifying Officers based their
conclusion on the fact that the Company has identified a material weakness in controls over financial reporting, detailed above. We expect
to be deficient in our disclosure controls and procedures until sufficient capital is available to hire the appropriate internal accounting
staff.

Changes in Internal Controls

There have been no changes in our
internal controls over financial reporting during the three months ended March 31, 2024, that have materially affected or are reasonably
likely to materially affect our internal controls.

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PART II — OTHER INFORMATION</div>

Item 1. Legal Proceedings.

Securities Class Action Litigation.
On July 26, 2022 and July 28, 2022, securities class action complaints (the former, the “Chow Action” and the latter, the
“Manici Action”) were filed by purported stockholders of the Company in the United States District Court for the Central District
of California against the Company and certain of the Company’s current and former officers and directors. The complaints allege,
among other things, that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule
10b-5 thereunder, by making false and misleading statements and omissions of material fact in connection with the Company’s relationship
with Serhat Gümrükcü and its commercial prospects. The complaints seek unspecified damages, interest, fees, and costs.
On November 22, 2022, the Manici Action was voluntarily dismissed without prejudice, but the Chow action remains pending. On October
22, 2023, the Court appointed a lead plaintiff in the Chow Action. The lead plaintiff filed an amended complaint on December 15, 2023.
The Company has filed a motion to dismiss the amended complaint, but expresses no opinion as to the likelihood of a favorable outcome.

Federal Derivative Litigation.
On September 22, 2022, Samuel E. Koenig filed a shareholder derivative action in the United States District Court for the Central District
of California. On January 19, 2023, John Solak filed a substantially similar shareholder derivative action in the United States District
Court for the District of Delaware. Both derivative actions recite similar underlying facts as those alleged in the Securities Class Action
Litigation. The actions, filed on behalf of the Company, name Serhat Gü