Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 166

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 166
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for shares exercised) and at June 30, 2024 (for outstanding
warrants), less the applicable exercise price.

Restricted Stock Awards (RSA)

The Company recognized stock-based
compensation expense related to RSAs of $1,415,157 for the year ended June 30, 2024. The restricted stock awards are related to a
grant of 1,000,000 shares of restricted stock with a 3-year vesting period made to a director as consideration for advisory
services, with a total value of $2,760,000. At June 30, 2024, the Company had $1,344,843 of unrecognized stock-based compensation expense
remaining to be amortized.

The Company recognized stock-based
compensation expense related to other RSAs of $108,000 for the year ended June 30, 2023. These restricted stock awards are related to
a grant of 100,000 shares of restricted stock made to a consultant as consideration for consulting services.

F-32

NOTE 11 — COMMITMENTS AND CONTINGENCIES

Commitments

On January 31, 2020, the Company
entered into a Statement of Work and License Agreement (the “HBV License Agreement”) by and among the Company, G-Tech, and
G Health Research Foundation, a not for profit entity organized under the laws of California doing business as Seraph Research Institute
(“SRI”) (collectively the “Licensors”), whereby the Company acquired a perpetual, sublicensable, exclusive license
(the “HBV License”) for a treatment under development (the “Treatment”) aimed to treat Hepatitis B Virus (HBV)
infections.

The HBV License Agreement states
that in consideration for the HBV License, the Company shall provide cash funding for research costs and equipment and certain other in-kind
funding related to the Treatment over a 24 month period, and provides for an up-front payment of $1.2 million within 7 days of January
31, 2020, along with additional payments upon the occurrence of certain benchmarks in the development of the technology set forth in the
HBV License Agreement, in each case subject to the terms of the HBV License Agreement. Additionally, the HBV License Agreement provides
for cooperation related to the development of intellectual property related to the Treatment and for a 2% royalty to G-Tech on any net
sales that may occur under the HBV License. On February 6,