Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 1060

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 8
Chunk 1060
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 and 2024, was $725,684 and $1,011,322 respectively.

NOTE 9 — INCOME TAXES

The Company accounts for income
taxes in accordance with FASB ASC Topic 740, Accounting for Income Taxes; which requires the Company to provide a net deferred tax asset
or liability equal to the expected future tax benefit or expense of temporary reporting differences between book and tax accounting and
any available operating loss or tax credit carryforwards. The amount of and ultimate realization of the benefits from the deferred tax
assets for income tax purposes is dependent, in part, upon the tax laws in effect, the Company’s future earnings, and other future
events, the effects of which cannot be determined.

As of June 30, 2025 and 2024,
the Company had net operating loss carryforwards of approximately $541,603,425 and $489,177,759 respectively, giving rise to deferred
tax assets of $76,296,814 and $144,191,530, respectively. The net operating loss carryforwards generated prior to January 1, 2018 expire
over various dates from 2031 to 2038. All subsequent net operating loss carryforwards are indefinite.

The Company files Danish and U.S.
income tax returns and these returns are generally no longer subject to tax examinations for years prior to 2021 for the Danish tax returns
and 2022 for the U.S. tax returns.

The temporary differences, tax
credits and carry forwards gave rise to the following deferred tax assets (liabilities) at June 30, 2025 and 2024:

    Schedule of deferred tax assets and liabilities 

    June 30

    2025 
    2024
  
    Depreciation 
    $(24,619) 
    $8,258 
  
    Excess of tax over book depreciation of patents 
     —  
     8,415 
  
    Stock/options compensation 
     463,099  
     6,672,252 
  
    Depreciation and amortization 
     —  
     188,422 
  
    Net operating loss carryforwards 
     76,296,814  
     148,832,041 
  
     Impairment expense 
     —  
     16,188,497 
  
    Contingent consideration fair value 
     —  
     (909,577)