Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 130

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 130
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 do not include any adjustments relating to the recoverability and classification of
recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.

Management has reduced overhead and administrative costs by streamlining the organization
to focus around the development and validation of its AI driven cancer diagnostics platform. The Company has tailored its workforce to
focus on these activities. In addition, the Company intends to attempt to secure additional required funding through equity or debt financing.
However, there can be no assurance that the Company will be able to obtain any sources of funding. Such additional funding may not be
available or may not be available on reasonable terms, and, in the case of equity financing transactions, could result in significant
additional dilution to our stockholders. If we do not obtain required additional equity or debt funding, our cash resources will be depleted
and we could be required to materially reduce or suspend operations, which would likely have a material adverse effect on our business,
stock price and our relationships with third parties with whom we have business relationships, at least until additional funding is obtained.
If we do not have sufficient funds to continue operations, we could be required to seek bankruptcy protection or other alternatives that
could result in our stockholders losing some or all of their investment in us.

Funding that we may receive during
the fiscal year 2025 is expected to be used to satisfy existing and future obligations and liabilities and working capital needs, to support
commercialization of our products, to conduct the clinical and regulatory work to develop our product candidates, and to begin building
working capital reserves.

NOTE 4 — FAIR VALUE MEASUREMENTS

The Company accounts for fair value
measurements for financial assets and financial liabilities in accordance with FASB ASC Topic 820, “Fair Value Measurements”.
The authoritative guidance among other things, defines fair value, establishes a consistent framework for measuring fair value and expands
disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value
is defined as the exit price, representing the amount that would either be received to sell an asset or be paid to transfer a liability
in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based
on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the guidance
establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value