Company: LNAI
Filing Date: 2025-07-18
Form Type: PRE 14A
Source: 0001731122-25-000995
Chunk: 22

Company: Lunai Bioworks Inc.
Filing Date: 2025-07-18
Form: PRE 14A
Chunk 22
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NTIL THEY ARE REQUESTED TO DO SO.</div>

Accounting Consequences

The par value per share of
common stock would remain unchanged at $0.0001 per share after the Reverse Split. As a result, on the effective date of the Reverse Split,
the stated capital on our balance sheet attributable to the common stock will be reduced proportionally, based on the Final Split Ratio
selected by our Board, from its present amount, and the additional paid-in capital account shall be credited with the amount by which
the stated capital is reduced. The per share common stock net income or loss and net book value will be increased because there will be
fewer shares of common stock outstanding. The shares of common stock held in treasury, if any, will also be reduced proportionately based
on the Final Split Ratio selected by our Board. Retroactive restatement will be given to all share numbers in the financial statements,
and accordingly all amounts including per share amounts will be shown on a post-Reverse Split basis. We do not anticipate that any other
accounting consequences would arise as a result of the Reverse Split.

No Appraisal Rights

Our stockholders are not
entitled to dissenters’ or appraisal rights under the Delaware General Corporation Law with respect to this Proposal 1 and we will
not independently provide our stockholders with any such right if the Reverse Split is implemented.

Material Federal U.S. Income Tax Consequences of the Reverse Split

The following is a
summary of certain material U.S. federal income tax consequences of a Reverse Split to our stockholders. The summary is based on the
Internal Revenue Code of 1986, as amended, or the Code, applicable Treasury Regulations promulgated thereunder, judicial authority
and current administrative rulings and practices as in effect on the date of this Proxy Statement. Changes to the laws could alter
the tax consequences described below, possibly with retroactive effect. We have not sought and will not seek an opinion of counsel
or a ruling from the Internal Revenue Service regarding the federal income tax consequences of a Reverse Split. This discussion only
addresses stockholders who hold common stock as capital assets. It does not purport to be complete and does not address stockholders
subject to special tax treatment under the Code, including, without limitation, financial institutions, tax-exempt organizations,
insurance companies, dealers in securities, foreign stockholders, stockholders who hold their pre-Reverse Split shares as part of a
straddle, hedge or conversion transaction, and stockholders who