Company: LNAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001731122-25-001544
Chunk: 50

Company: Lunai Bioworks Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 50
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 to the complaint. Management is unable to determine the likelihood of a loss, including
a possible range of losses, if any, arising from this matter as of the reporting date.

State Derivative Litigation.
On October 20, 2022, Susan Midler filed a shareholder derivative action in the Superior Court of California, Los Angeles County (the “Midler
Matter”). The Midler Matter, filed on behalf of the Company, names Serhat Gümrükcü and certain of the Company’s
current and former directors as defendants. The Midler Matter also names the Company as a nominal defendant. The Midler Matter sets out
claims for breaches of fiduciary duty, contribution and indemnification, aiding and abetting, and gross mismanagement. Plaintiff does
not quantify any alleged injury, but seeks damages, disgorgement, restitution, and other costs and expenses. On January 20, 2023, the
Court stayed the Midler Matter pending resolution of the defendants’ anticipated motion to dismiss in the Securities Class Action
Litigation. On June 28, 2024, the United States District Court for the Central District of California denied defendants’ motion
to dismiss the Securities Class Action Litigation. On July 31, 2025, the court stayed the Midler Matter for 120 days. On November 3, 2025,
plaintiff in the Koenig Matter filed a motion for preliminary approval of the Koenig-Solak-Midler Settlement in the United States District
Court for the Central District of California. The defendants have not yet responded to the complaint. Management is unable to determine
the likelihood of a loss, including a possible range of losses, if any, arising from this matter as of the reporting date.

35

On October
21, 2022, the Company filed a Complaint in the Superior Court of the State of California for the County of Los Angeles against Serhat
Gümrükcü (“Gumrukcu”), William Anderson Wittekind (“Wittekind”), G Tech Bio, SG & AW Holdings,
LLC, and SRI (collectively, the “Defendants”). The Complaint alleges that the Defendants engaged in a “concerted, deliberate
scheme to alter, falsify, and misrepresent to the Company the results of multiple studies supporting its Hepatitis B and SARS-CoV-2/influenza
pipelines.” Specifically, “Defendants manipulated negative results to reflect positive outcomes from various studies