Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000250
Chunk: 76

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 76
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 and classification of assets or the amounts and classification of liabilities that may
result from the outcome of this uncertainty.

Management has reduced overhead
and administrative costs by streamlining the organization to focus around two of its therapies (oncology and a HIV therapeutic vaccine)
and investment in the development and validation of our AI driven cancer diagnostics platform. The Company has tailored its workforce
to focus on these therapies. 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.

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Funding that we may receive during
the fiscal year 2024 is expected to be used to satisfy existing and future obligations and liabilities and working capital needs, to support
commercialization of our products and conduct the clinical and regulatory work to develop our product candidates, and to begin building
working capital reserves.

Results of Operations as restated for the three and nine months ended March 31, 2024, compared to the three and nine months ended March 31, 2023

During the preparation of the
Company’s response to an SEC comment letter dated July 12, 2024, the Company’s management identified an error in the March
31, 2024 financial statements resulting from an error in the method used to measure the impairment charge associated with the termination
of a license agreement with Weird Science, LLC. The error resulted in, among other things, an overstatement of the Company's assets and
an understatement of the Company's net loss and net loss per share for the three and nine months ended March 31, 2024. Refer to “Note
2 - Restatement of Previously Issued Financial Statements” for additional information.