Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 70

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 70
---
We may not be able to protect our intellectual property rights throughout the world.

Filing, prosecuting and defending
patents on our product candidates in all countries throughout the world would be prohibitively expensive, and our intellectual property
rights in some countries outside the United States can be less extensive than those in the United States. In addition, the laws of some
foreign countries do not protect intellectual property rights to the same extent as federal and state laws in the United States. Consequently,
we may not be able to prevent third parties from practicing our inventions in all countries outside the United States, or from selling
or importing products made using our inventions in and into the United States or other jurisdictions. Competitors may use our technologies
in jurisdictions where we have not obtained patent protection to develop their own products and may also export infringing products to
territories where we have patent protection, but enforcement is not as strong as that in the United States. These products may compete
with our products and our patents or other intellectual property rights may not be effective or sufficient to prevent them from competing.

Risks Related to Employee Matters and Managing Growth

<div align='center'>45</div>

We have limited corporate infrastructure and may experience difficulties in managing growth.

As of June 30, 2024, we had 25
full time employees. We rely on third-party contractors for the provision of professional, scientific, regulatory, and other services.
As our development and commercialization plans and strategies develop, we may need additional managerial, scientific, operational, financial,
and other resources. Our management may need to divert a disproportionate amount of its attention away from our day-to-day operations
and devote a substantial amount of time to managing these growth activities. We might not be able to effectively manage the expansion
of our operations, which may result in weaknesses in our infrastructure, operational inefficiencies, loss of business opportunities, loss
of employees and reduced productivity among remaining employees. Our expected growth could require significant capital expenditures and
may divert financial resources from other projects, such as the development of our current and potential future product candidates. If
our management is unable to effectively manage our growth, our expenses may increase more than expected and our ability to generate and
grow revenue could be reduced and we might not be able to implement our business strategy. Our future financial performance, our ability
to commercialize product candidates, develop a scalable infrastructure and compete effectively will depend, in part, on our ability to
effectively manage any future growth.

Management and employee turnover creates uncertainties and