Company: LNAI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000765
Chunk: 102

Company: Lunai Bioworks Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 102
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 Date, the Sellers held approximately 49% of the issued and outstanding shares of Common Stock immediately following the closing
of the Transaction and the conversion of the Series A Convertible Preferred Stock.

The assets
acquired and liabilities assumed were initially recognized provisionally in the accompanying consolidated balance sheets at their estimated
fair values as of the acquisition date. The fair values as of the acquisition date are based on information that existed as of the acquisition
date. The Company completed its accounting for this acquisition during the period ended June 30, 2024. As a result of the completion of
the Company’s analysis, the amount of provisional in-process research and development was determined to have a value of nil. Accordingly,
the amount of goodwill recognized was increased to include the previously recognized provisional amount of in-process research and development.
There was no impact to the Company’s consolidated statement of operations as a result of this change to the provisional allocation.

The acquisition-date
fair value of the consideration transferred totaled approximately $156.6 million, which consisted of the following:

    Schedule of acquisition date fair value 

    Common stock 
    $136,001,631 
  
    Contingent consideration 
     20,557,500 
  
    Total consideration transferred 
    $156,559,131 

The
fair value of the Company’s common shares issued as consideration was based on the closing price of the Company’s common stock
as of the Acquisition Date. The fair value of the contingent consideration was based on the Sellers’ right to receive additional
shares of common, pro rata, upon the exercise or conversion of warrants, options and convertible notes payables outstanding as of the
Closing Date. 

The
following table details the provisional fair values of the assets acquired and liabilities assumed at the acquisition date:

    Schedule of fair value of assets acquired and liabilities assumed 

    Cash 
    $65,851 
  
    Prepaid & Other Assets 
     151,544 
  
    Fixed Assets 
     16,243 
  
    Operating lease ROU 
     624,366 
  
    Total Assets Acquired: 
     858,004 

    Accounts Payable 
     583,577 
  
    Accrued Expenses 
     722,509 
  
    Operating Lease liability 
     624,367 
  
    Notes Payable 
     1,832,460 
  
    Total Liabilities Assumed 
     3,762,913 
  
    Net Assets Acquired