Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 196

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1B
Chunk 196
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 consideration liability, and the fair value of equity instruments issued.

    F-9

Functional Currency and Foreign
Currency Translation – The functional currency of Renovaro Denmark is the Danish Kroner (“DKK”) and the functional
currency of Renovaro Cube is the Euro (“EUR”) and the functional currency of BioSymetrics Corp. is Canadian Dollar (“CAD”).
The Company’s reporting currency is the U.S. Dollar for the purpose of these financial statements. The Company’s balance sheet
accounts are translated into U.S. dollars at the period-end exchange rates and all revenue and expenses are translated into U.S. dollars
at the average exchange rates prevailing during the years ended June 30, 2025, and 2024. Translation gains and losses are deferred and
accumulated as a component of other comprehensive income in stockholders’ equity. Transaction gains and losses that arise from exchange
rate fluctuations from transactions denominated in a currency other than the functional currency are included in the statement of operations
as incurred.

Cash and Cash Equivalents –
The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.

Concentration of Credit Risk
– Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in financial
institutions, which, at times, exceed the amount of deposit insurance provided within the relevant jurisdiction where the deposits are
held. As of June 30, 2025, and June 30, 2024, the Company has not experienced losses on these accounts and management believes the Company
is not exposed to significant risks on such accounts.

Investment in Equity Securities
– The Company accounts for investments in equity securities in accordance with ASC 321, Investments—Equity Securities.
Equity securities with readily determinable fair values are measured at fair value, with changes in fair value recognized in net income
or loss. Equity securities without readily determinable fair values are measured at cost, less impairment, if any, and adjusted for observable
price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company evaluates such investments
at each reporting period for impairment or other observable transactions that would require adjustment. On February 28, 2025, the Company
purchased $500,000 of equity securities. During the year ended June 30, 2025, the Company recorded a change in fair value of equity securities
for $112,149 (see Note 3). The investment in equity