Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001731122-25-000258
Chunk: 32

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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. The Company measured the fair value of the options issued as compared
to the fair value of the original issuance and determined that there was no incremental compensation to recognize as the fair value of
the options was less than the fair value of the Common Stock. Therefore, the Company will recognize the remaining fair value of the original
award over the remaining vesting period, which is one year. The Company recognized stock-based compensation expense of $538,127 related
to the vesting of the stocks options during the period ended December 31, 2024. At December 31, 2024, the Company had $806,716 of unrecognized
compensation cost related to the options which vest at August 23, 2025.

NOTE 9 — SEGMENT REPORTING

For the period ending December
31, 2024, the Company had two reportable segments. These segments have different strategic and economic goals and are managed separately
because they require different technology and marketing strategies.

    Reportable Segment
     
    Description 
  
    RENB (United States)
     
    Developing new immunotherapies to combat cancer 
  
    RENC (Netherlands)
     
    Developing a predicative artificial intelligence based diagnostic methodology for the use of earlier cancer detection 

The Company’s
chief executive officer is the chief operating decision maker and reviews the internal management reports for each segment at least quarterly.
During the period ending December 31, 2024, there were no significant inter-company revenues or expenses. The chief operating decision
maker assesses performance for each segment and decides how to allocate resources based on segment operating losses that also is reported
on the consolidated statement of operations. The measure of segment assets is reported on the balance sheet as total consolidated assets.
The accounting policies of each segment are the same as those described in the summary of significant accounting policies.

    Schedule of segment operating loss and asset
    information 

    Operating loss 
    Assets
  
    United States 
    $8,733,302  
    $2,744,766 
  
    Netherlands 
     49,151,567  
     108,595,506 

    $57,884,869  
    $111,340,272 

The chief
operating decision maker uses loss from operations to evaluate the performance of each segment’s assets in deciding how to allocate
available capital between segments. The chief operating decision maker also uses loss from operations in their competitive analysis by
benchmarking the Company’s competitors.