Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001731122-25-000258
Chunk: 73

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 8
Chunk 73
---
 Schedule of contingent consideration liability 

    Stock Price 
    $0.84 
  
    Exercise Price 
     $0.46 - $8.23 
  
    Volatility 
     120.1% - 158.2% 
  
    Risk Free Rate 
     0.28% - 4.45% 
  
    Expected Dividends 
     0%
  
    Expected Term (years) 
     0.01 – 8.99 

The following table sets forth
the Level 3 liability at December 31, 2024, which is recorded on the consolidated balance sheet at fair value on a recurring basis. As
required, this liability is classified based on the lowest level of input that is significant to the fair value measurement:

    10

Schedule of fair value measurement on recurring basis

Fair Value Measurements at
Reporting Date Using

Quoted Prices in  Active Markets for Identical Assets Inputs
 
Significant Other  Observable Inputs
 
Significant Other Unobservable Inputs

(Level 1)
 
(Level 2)
 
(Level 3)

The roll forward of the contingent consideration liability is as follows:

Balance June 30, 2024

—

—

$
12,310,000

Fair value adjustment

—

—

(6,660,000
)

Contingent Consideration Liability at December 31, 2024

—

—

$
5,650,000

NOTE 4 — INTANGIBLE ASSETS AND GOODWILL

On February 13, 2024, the Company
acquired Renovaro Cube as a wholly owned subsidiary pursuant to a stock purchase agreement. As part of the acquisition of Renovaro
Cube, the Company acquired goodwill valued at $159,464,039.

Impairment – During the six months ended December
31, 2024, the results of the assessment indicated that the carrying value of the RENC reporting unit exceeded its fair value, due to the
decline in the estimated fair value of the reporting unit based on the Company’s market capitalization. Management concluded the
significant driver for the change in the economic benefits was due to the Company’s continued inability to raise capital for the
further development of the technologies within this reporting unit. Therefore, an impairment adjustment of $47,614,729 was recorded for
the period ended December 31, 2024.

At December 31, 2024 and June 30,
2024, definite-life and indefinite