Company: LNAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001731122-25-001544
Chunk: 106

Company: Lunai Bioworks Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 106
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and Wittekind filed a notice of appeal of the court’s decision granting the director defendants’ motion to dismiss. The appeal
remains pending.

On June 21, 2024, the Company filed
suit against Weird Science, Gumrukcu, Wittekind, and certain trusts in connection with the February 16, 2018 merger involving the Company
and two companies closely associated with Gumrukcu. In the complaint, the Company alleges that Gumrukcu and others deliberately and fraudulently
concealed a murder-for-hire scheme from the Company in order to induce the Company to enter into the merger agreement, which resulted
in the defendants receiving shares and compensation. The Company asserts claims for fraudulent concealment, equitable fraud, unjust enrichment,
and civil conspiracy and seeks, inter alia, equitable relief, including, but not limited to, return to the Company any shares received
in connection with the merger, and damages. On October 1, 2024, the defendants moved to dismiss the complaint. A hearing took place on
June 25, 2025, and on November 7, 2025, the Court granted defendants’ motion and dismissed the complaint.

Lunai commenced an action against Predictive Oncology, Inc. (“POAI”)
in the Delaware Court of Chancery claiming that POAI breached a “definitive” January 2025 Letter Agreement pursuant to which
Lunai was going to acquire POAI. As a result of its breach, POAI made that acquisition impossible and dramatically devalued the share
price of stock Lunai had already acquired as well as the value of the company it was contractually entitled to acquire. Lunai sought specific
performance or, in the alternative, money damages. The parties have exchanged paper discovery and noticed depositions. The action has
been held in abeyance while the parties attempt to negotiate a settlement.

Item 1A. Risk Factors.

As a “smaller reporting company”
as defined by Rule 12b-2 of the Securities Exchange Act of 1934, the Company is not required to provide the information required by this
Item.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

On July 7, 2025, the Company issued 5.36 million shares
of common stock, valued at $16.1 million upon the conversion of convertible notes (see Note 6).

Item 3. Defaults Upon Senior Securities. 

None