Company: LNAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001731122-25-001544
Chunk: 7

Company: Lunai Bioworks Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 7
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 The Company had 1,244,888 and 1,729,342 potential shares of Common Stock excluded from
the Diluted EPS calculation as of September 30, 2025, and 2024, respectively.

    7

Functional Currency & 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 periods ended September 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.

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 period ended September 30, 2025, the Company recorded a change in fair value of equity
securities for $156,849 and sold the securities for $544,700. The investment in equity securities balance at September 30, 2025, was zero.

New Accounting Pronouncements
Not Yet Adopted - Recent accounting pronouncements issued by the FASB that have not yet been adopted by the Company are not expected
to have a material impact on the Company’s present or future consolidated financial statements.

NOTE 2 — GOING CONCERN

The Company’s consolidated
financial statements are prepared using the generally accepted accounting principles