Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 1180

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 1180
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 and make some activities more time-consuming
and costly. To the extent these requirements divert the attention of our management and personnel from other business concerns, they could
have a material adverse effect on our business, financial condition and results of operations.

Because we do not anticipate
paying any cash dividends on our capital stock in the foreseeable future, capital appreciation, if any, will be the sole source of potential
gain for our stockholders.

We have never declared or paid
cash dividends on our capital stock. We currently intend to retain all of our future earnings, if any, to finance the growth and development
of our business. As a result, capital appreciation, if any, of our Common Stock will be the sole source of gain for our stockholders for
the foreseeable future.

Future sales and issuances
of our Common Stock or rights to purchase Common Stock, including pursuant to our equity incentive plans, could result in additional dilution
of the percentage ownership of our stockholders and could cause our stock price to fall.

We expect that significant additional
capital will be needed in the future to continue our planned operations. To raise capital, we may sell substantial amounts of Common Stock
or securities convertible into or exchangeable for Common Stock in one or more transactions at prices and in a manner, we determine from
time to time. These future issuances of Common Stock or Common Stock-related securities, together with the exercise of outstanding options
or warrants, and any additional shares that may be issued in connection with acquisitions or licenses, if any, may result in material
dilution to our investors. Such sales may also result in material dilution to our existing stockholders, and new investors could gain
rights, preferences, and privileges senior to those of holders of our Common Stock. Pursuant to our equity incentive plans, our Compensation
Committee is authorized to grant equity-based incentive awards to our employees, non-employee directors and consultants. Future grants
of RSUs, options and other equity awards and issuances of Common Stock under our equity incentive plans will result in dilution and may
have an adverse effect on the market price of our Common Stock.

Some terms of our charter
documents and Delaware law may have anti-takeover effects that could discourage an acquisition of us by others, even if an acquisition
would be beneficial to our stockholders and may prevent attempts by our stockholders to replace or remove our current management.

Our Certificate of Incorporation,
and our Bylaws, as well as Delaware law, could make it more