Company: LNAI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000765
Chunk: 75

Company: Lunai Bioworks Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 75
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 functional currency are included in the statement of operations as incurred.

Investment in Equity Securities
– The Company accounts for investments in equity securities in accordance with ASC 321, Investments—Equity Securities.
Equity securities with readily determinable fair values are measured at fair value, with changes in fair value recognized in net income
or loss. Equity securities without readily determinable fair values are measured at cost, less impairment, if any, and adjusted for observable
price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company evaluates such investments
at each reporting period for impairment or other observable transactions that would require adjustment. On February 28, 2025, the Company
purchased $500,000 of equity securities. During the period ended March 31, 2025, the Company recorded a change in fair value of equity
securities for $210,281 (see note 3). The investment in equity securities balance at March 31, 2025, was $710,281.

Recently Adopted Accounting
Pronouncements – In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable
Segment Disclosures,” which requires a public entity to disclose significant segment expenses and other segment items on an
annual and interim basis and to provide in interim periods all disclosures about reportable segment’s profit or loss and assets
that are currently required annually. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods
within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted this ASU on July 1, 2024. The
adoption of this ASU had no impact on the Company’s condensed consolidated financial statements.

In December 2023, the FASB issued
ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which enhances the transparency and
decision usefulness of income tax disclosures by requiring; (1) consistent categories and greater disaggregation of information in the
rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the
effectiveness of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2025, with early adoption
permitted. These amendments are to be applied prospect