Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000250
Chunk: 80

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 80
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, respectively, representing an increase of $848,019
or approximately 355%. The variance is primarily driven by an increase of $584,912 in collaborating partner expenses with CDMO and CROs, $115,616 in consumables related to pre-clinical testing and $150,811 in consulting expenses related to regulatory
and outsourced consultants.

Research and development expenses
for the nine months ended March 31, 2024, and 2023, were $2,274,321 and $3,170,471, respectively, representing a decrease of $896,150
or approximately 28%. The variance is primarily driven by a decrease of $1,603,896 in collaborating partner expenses with CDMO and CROs related to discontinued product candidates, partially offset by an increase in consumables of $355,235 and consulting expenses of $351,466.

Intangible assets impairment
expense for the three and nine months ended March 31, 2024, was $42,611,000. This was due to the termination of the license agreement with Weird Science, LLC in March 2024 as that resulted in the Company abandoning the development of certain technology included in its in-process research and development and recording an impairment of $42,611,000 in the period ended March 31, 2024.

The Company recorded other expense
of $7,609,230 for the three months ended March 31, 2024, compared to other expense of $264,860 for the three months ended March 31, 2023,
representing an increase in other expense of $7,344,370 or 2,773%. The variance is primarily due to an increase of $(7,289,156) in change
in fair value of contingent consideration following the acquisition of GEDi Cube.

The Company recorded other expense
of $8,159,190 for the nine months ended March 31, 2024, compared to other expense of $863,886 for the nine months ended March 31, 2023,
representing a decrease in other expense of $7,295,304 or 844%. The variance is primarily due to the loss on extinguishment of contingent
consideration liability of $419,182 in the prior period, and an increase of $(7,289,156) in change in fair value of contingent consideration
in the current period, partially offset by an increase of $447,291 in interest expense in the current period