Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 209

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1B
Chunk 209
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2025, 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 $122,804,700 was recorded for
the period ended June 30, 2025.

NOTE 7 — LEASES

Operating
Leases — On June 19, 2018, Lunai entered into a Lease Agreement for a term of ten years from September 1, 2018, with Century
City Medical Plaza Land Co., Inc., pursuant to which the Company agreed to lease approximately 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, cancel