Company: LNAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001731122-25-001544
Chunk: 20

Company: Lunai Bioworks Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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. The value of each stock option is estimated
on the date of grant using the Black-Scholes option-pricing model. The weighted-average assumptions used to estimate the fair values of
the stock options granted using the Black-Scholes option-pricing model. During the three months ended September 30, 2025, the Company
granted no options.

Schedule of weighted-average assumptions used to estimate the fair values of the stock options granted

Lunai Bioworks Inc.

Expected term (in years)

5.5

Volatility

109.45% - 118.99
%

Risk free interest rate

3.86% - 4.40
%

Dividend yield

0
%

On August 23, 2024, Avram Miller,
a former member of the Company’s board of directors (the “Board of Directors”), forfeited 83,333 shares of
Common Stock from the original 100,000 shares of Common Stock for advisory services originally granted to him on October 11,
2023. As consideration for such forfeiture, the Company granted to Mr. Miller, an option to purchase 97,826 shares of Common
Stock of the Company with a per-share exercise price of $6.90. The Company determined that this transaction represented a modification
of the original award. The Company measured the fair value of the options issued as compared to the fair value of the original issuance
and determined that there was no incremental compensation to recognize as the fair value of the options was less than the fair value of
the Common Stock. Therefore, the Company will recognize the remaining fair value of the original award over the remaining vesting period,
which is one year. The Company recognized stock-based compensation expense of $185,373 related to the vesting of the stocks options
during the quarter ended September 30, 2025. At September 30, 2025, the Company had zero unrecognized compensation cost related to the
options which fully vested on August 23, 2025.

    15

In
total, the Company recognized stock-based compensation expense of $181,312 net a recapture of $127,032 related to options and $36,973
related to restricted stock awards for the three months ended September 30, 2025. For the three months ended September 30, 2024, the Company
recognized stock-based compensation expense related to options of $357,648. At
September 30, 2025