Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 109

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 109
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2,453 rentable square feet. On February
20, 2019, Lunai entered into an Addendum to the original Lease Agreement with an effective date of December 1, 2019, where it expanded
the lease area to include another 1,101 square feet for a total rentable 3,554 square feet. The base rent increases by 3% each year, and
ranges from $17,770 per month for the first year to $23,186 per month for the tenth year. The equalized monthly lease payment for the
term of the lease is $20,050.

Renovaro Cube leases an office
facility in Amsterdam, Netherlands, under a 30-month operating lease agreement commencing on September 1, 2023, with a maturity date of
February 28, 2026. In determining lease asset values, the Company considers fixed and variable payment terms, prepayments, incentives,
and options to extend, terminate or purchase. The Company mutually terminated this lease on April 29, 2025.

Lunai entered an office lease
in Boca Raton, Florida, under a 36-month operating lease agreement commencing on November 1, 2024, with a maturity date of October 31,
2027. In determining lease asset values, the Company considers fixed and variable payment terms, prepayments, incentives, and options
to extend, terminate or purchase.

The Company identified and assessed
the following significant assumptions in recognizing the right-of-use assets and corresponding liabilities:

Expected lease term —
The expected lease term includes both contractual lease periods and, when applicable, cancelable option periods when it is reasonably
certain that the Company would exercise such options. The Company’s leases have a remaining lease term of 26 and 28 months. As of
June 30, 2025, the weighted-average remaining term is 1.95 years.

Incremental borrowing rate
— The Company’s lease agreements do not provide an implicit rate. As the Company does not have any external borrowings for
comparable terms of its leases, the Company estimated the incremental borrowing rate based on the U.S. Treasury Yield Curve rate that
corresponds to the length of each lease. This rate is an estimate of what the Company would have to pay if borrowing on a collateralized
basis over a similar term in an amount equal to the lease payments in a similar economic environment. As of June 30, 2025, the weighted-average
discount