Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 835

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 7A
Chunk 835
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”). As of June 30, 2025, there are 17,414 Escrow Shares remaining (see Note 10).

On February 13, 2024, the Company
acquired 100% of Renovaro Cube. As a result of the acquisition, Renovaro Cube became a wholly-owned subsidiary of the Company (see Note
13).

On April 8, 2025, the Company acquired
100% of Biosymetrics, Corp. As a result of the acquisition, Biosymetrics, Corp. became a wholly-owned subsidiary of the Company (see Note
13).

Use of Accounting Estimates
- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities
at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could
differ from those estimated. Significant estimates include the fair value and potential impairment of intangible assets, the fair value
of the contingent consideration liability, and the fair value of equity instruments issued.

    F-9

Functional Currency and Foreign
Currency Translation – The functional currency of Renovaro Denmark is the Danish Kroner (“DKK”) and the functional
currency of Renovaro Cube is the Euro (“EUR”) and the functional currency of BioSymetrics Corp. is Canadian Dollar (“CAD”).
The Company’s reporting currency is the U.S. Dollar for the purpose of these financial statements. The Company’s balance sheet
accounts are translated into U.S. dollars at the period-end exchange rates and all revenue and expenses are translated into U.S. dollars
at the average exchange rates prevailing during the years ended June 30, 2025, and 2024. Translation gains and losses are deferred and
accumulated as a component of other comprehensive income in stockholders’ equity. Transaction gains and losses that arise from exchange
rate fluctuations from transactions denominated in a currency other than the functional currency are included in the statement of operations
as incurred.

Cash and Cash Equivalents –
The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.

Concentration of Credit Risk
– Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in financial
institutions, which, at times, exceed the amount of deposit insurance provided within the relevant jurisdiction where the deposits are
held. As of June