Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 736

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 7
Chunk 736
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4 were $188,966,002 and $81,639,296, respectively, representing an increase of $107,326,706 or 131%.
The largest contributors to the increase in operating expenses for the year ended June 30, 2025, were the increase in the non-cash goodwill
impairment of $158,779,429 partially offset by the decreases in the non-cash intangible asset impairment of $42,611,000, general and administrative
expenses of $6,677,558 and in research and development expenses of $2,171,401 compared to the year ended June 30, 2024.

General and administrative expenses
for the years ended June 30, 2025 and 2024, were $17,880,050 and $24,557,608, respectively, representing a decrease of $6,677,558, or
27%. The decrease in general and administrative expenses is primarily related to decreases in consulting expenses of $2,783,367, legal
expenses of $2,260,485, stock based compensation expense of $1,359,838, sales tax expense of $717,744, investor relations expenses of
$526,229, advertising expenses of $247,491, board member compensation of $238,855, partially offset by an increase in compensation related
expenses of $986,127, rent expenses of $174,590, information technology expenses of $145,199 and subscription related expenses of $112,738.

Research and development expenses
for the years ended June 30, 2025, and 2024, were $537,428 and $2,708,829, respectively, representing a decrease of $2,171,401 or 80%.
The decrease in research and development expenses is primarily related to decreases in collaborating partner expenses of $1,351,135 with
CDMO and CROs related to discontinued product candidates, decreases in consulting expenses of $534,564, and decreases in consumables of
$241,982.

Other Income (Expenses)

Net other income (expenses) for
the years ended June 30, 2025 and 2024 was $10,958,513 and $(6,786,532), respectively, representing a change of $17,745,045 or 261%. The
increase in other income was due primarily to the change in the fair value of the contingent consideration in the amount of $11,680,000