Company: LNAI
Filing Date: 2025-10-15
Form Type: DEF 14A
Source: 0001731122-25-001378
Chunk: 32

Company: Lunai Bioworks Inc.
Filing Date: 2025-10-15
Form: DEF 14A
Chunk 32
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(A)
BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</div>

Described below are transactions
or series of transactions that occurred from July 1, 2023 through the date of this proxy statement (the “”)
between us and our executive officers, directors or the beneficial owners of 5% or more of our Common Stock, and certain persons affiliated
with or related to these persons, including family members, in which they had or will have a direct or indirect material interest in an
amount that exceeds the lesser of $120,000 or 1% of the average of our total assets as of year-end for the last two completed fiscal years,
other than compensation arrangements that are otherwise required to be described under “Executive Compensation.”

<div align='center'>21</div>

Transactions with Related Persons

Advisory Agreement with Avram Miller

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 $1,159,470 related to the vesting of the stocks options
during the year ended June 30, 2025. At June 30, 2025, the Company had $185,373 of unrecognized compensation cost related to the
options which vest at August 23, 2025.

Debt Agreements

On July 7, 2025, Lunai Bioworks Inc. (“Lunai”)
entered into an Exchange Agreement (the “Exchange Agreement”) with certain accredited investors (the “Investors”),
all of whom are existing shareholders of the Company. Pursuant to the