Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000250
Chunk: 14

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 14
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lease term based on the total lease payments and is included in operating expenses in the condensed consolidated statements of operations.
For operating leases that reflect impairment, the Company will recognize the amortization of the operating lease right-of-use assets on
a straight-line basis over the remaining lease term with rent expense still included in general and administrative expenses in the unaudited
condensed consolidated statements of operations.

The Company has elected the practical
expedient to not separate lease and non-lease components. The Company’s non-lease components are primarily related to property maintenance,
insurance, and taxes, which vary based on future outcomes, and thus are recognized in general and administrative expenses when incurred
(see Note 7.)

Research and Development Expenses– The Company expenses research and development costs incurred in formulating, improving, validating, and creating alternative
or modified processes related to and expanding the use of the Oncology, HIV and HBV therapies and technologies for use in the prevention,
treatment, amelioration of and/or therapy for Oncology, HIV and HBV. Research and development expenses for the three and nine months ended
March 31, 2024, amounted to $1,087,156, and $2,274,321, respectively. Research and development expenses for the three and nine months
ended March 31, 2023, amounted to $239,137, and $3,170,471, respectively.

Income Taxes– The
Company accounts for income taxes in accordance with FASB ASC Topic 740, “Accounting for Income Taxes”, which requires an
asset and liability approach for accounting for income taxes.

Loss Per Share– The
Company calculates earnings/ (loss) per share in accordance with FASB ASC Topic 260, “Earnings Per Share”. Basic earnings
per common share (EPS) are based on the weighted average number of shares of Common Stock outstanding during each period. Diluted earnings
per common share are based on shares outstanding (computed as under basic EPS) and potentially dilutive shares of Common Stock. Potential
shares of Common Stock included in the diluted earnings per share calculation include in-the-money stock options that have been granted
but have not been exercised and shares issuable upon conversion of convertible preferred stock and convertible notes. Because of the net
loss for the three and nine months ended March 31, 2024, and 2023, the dilutive shares for all periods were excluded from the Diluted
EPS calculation as the effect of these potential shares