Company: LNAI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000765
Chunk: 155

Company: Lunai Bioworks Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 155
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 Note 1 to the unaudited condensed consolidated financial statements.

Item 3. Quantitative and Qualitative Disclosures
About Market Risk. 

As a “smaller reporting company”
as defined by Rule 12b-2 of the Securities Exchange Act of 1934, the Company is not required to provide the information required by this
Item.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Our Chief Executive Officer and
Chief Financial Officer (the “Certifying Officers”) are responsible for establishing and maintaining disclosure controls and
procedures for the Company. The Certifying Officers have designed such disclosure controls and procedures to ensure that material information
is made known to them, particularly during the period in which this Report was prepared.

The Certifying Officers are responsible
for establishing and maintaining adequate internal control over financial reporting for the Company and used the “Internal Control
over Financial Reporting Integrated Framework” issued by the Committee of Sponsoring Organizations (“COSO”) to conduct
an extensive review of the Company’s “disclosure controls and procedures” (as defined in the Exchange Act, Rules 13a-15(e)
and 15-d-15(e)) as of the end of each of the periods covered by this Report (the “Evaluation Date”). Based upon that evaluation,
the Certifying Officers concluded that, as of March 31, 2025, our disclosure controls and procedures were not effective in ensuring that
the information we were required to disclose in reports that we file or submit under the Securities and Exchange Act of 1934, as amended,
is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. The deficiency is attributed
to the Company not having adequate resources to address complex accounting matters. This control deficiency will be monitored, and attention
will be given to this matter as we grow.

The Certifying Officers based their
conclusion on the fact that the Company has identified a material weakness in controls over financial reporting, detailed above. We expect
to be deficient in our disclosure controls and procedures until sufficient capital is available to hire the appropriate internal accounting
staff.

Changes in Internal Controls 

There have been no changes in our
internal controls over financial reporting during the nine months ended March 31, 2025, that have materially affected or are reasonably
likely to materially affect our internal controls.

36

PART II — OTHER INFORMATION

Item 1. Legal Proceedings.

Securities Class Action Litigation.
On July 26, 2022 and