Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 36

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 36
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 Annual Report on Form 10-K and the section titled “Legal Proceedings” in Part I, Item
3 of this Annual Report on Form 10-K.

The results of litigation, investigations,
claims, and regulatory proceedings cannot be predicted with certainty, and determining reserves for pending litigation and other legal
and regulatory matters requires significant judgment. There can be no assurance that our expectations will prove correct, and even if
these matters are resolved in our favor or without significant cash settlements, these matters, and the time and resources necessary to
litigate or resolve them, could harm our business, financial condition, and operating results.

Negative publicity has had and may continue to have a negative impact on our business and may have a long-term effect on our relationships with our customers, partners and collaborators.

Our business and reputation have
been negatively affected by negative publicity resulting from the arrest and indictment of Serhat Gümrükcü, a co-founder
of the Company and an inventor of some of the Company’s intellectual property. If we are unable to rebuild the trust of our collaborators,
research institutions and investors, and if further negative publicity continues, we could experience a substantial negative impact on
our business. We have experienced claims and litigation as a consequence of these matters, including stockholder class actions in connection
with a decline in our stock price and litigation with Mr. Gümrükcü. Related legal expenses of defending these claims have
negatively impacted our operating results. Continuing higher legal fees, potential new claims, liabilities from existing cases and continuing
negative publicity could continue to have a negative impact on our operating results.

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Risks Related to Our Limited Operating History

Renovaro Biosciences is a pre-clinical biotechnology company and may never be able to successfully develop marketable products or generate any revenue. We have a very limited relevant operating history upon which an evaluation of our performance and prospects can be made. There is no assurance that our future operations will result in profits. If we cannot generate sufficient revenues, we may suspend or cease operations.

Renovaro Biosciences is an early-stage
biotechnology company and has not generated any revenues to date. All of our product candidates are in the discovery stage or pre-clinical
development stage. Moreover, we cannot be certain that our research and development efforts will be successful or, if successful, that
our potential treatments will ever be approved for sale to generate commercial revenues. Our therapeutic pipeline includes cell, gene
and immunotherapy involving