Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001731122-25-000258
Chunk: 88

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 8
Chunk 88
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 filed by the Company on July 13, 2020 and February 11, 2022. The Company moved to dismiss the Verified Complaint on September
15, 2023.

On
December 4, 2023, in lieu of opposing the motion to dismiss, Plaintiffs filed a Verified First Amended Complaint (“FAC”).
In the FAC, Plaintiffs assert claims against the Company and others for purported breaches of the Investor Rights Agreement, fraud, tortious
interference with a contract, and several other torts. Plaintiffs seek compensatory, exemplary, and punitive damages, as well as certain
declaratory relief, specific performance, and pre- and post-judgment interest, costs, and attorneys’ fees. The Company filed a motion
to dismiss the FAC on December 18, 2023, and the court held a hearing on the Company’s motion to dismiss on November 15, 2024. At
the hearing, the court dismissed (1) all claims brought on behalf of Wittekind and the Trusts, (2) the fraudulent concealment claim against
the Company and others (without prejudice), and (3) the breach of contract claim against the Company related to a registration statement
that was not filed in 2023. At the hearing, the court also found that punitive damages were not available to Plaintiffs. The court took
the remaining issues briefed on the Company’s motion to dismiss under advisement. The Company denies Plaintiffs’ allegations
and remaining claims and intends to vigorously defend against these claims.

On August 24, 2023, counsel on
behalf of Weird Science, Wittekind, individually, and Wittekind, as trustee of the Trusts served a demand to inspect the Company’s
books and records (the “Demand”) pursuant to Delaware General Corporation Law, § 220 (“Section 220”). The
Demand seeks the Company’s books and records in connection with various issues identified in the Demand. The Company takes its obligations
under Section 220 seriously and, to the extent that the requests are proper under Section 220, intends to comply with those obligations.

On January 19, 2024, Weird Science
and Wittekind sent the Board of Directors a letter demanding it take corrective actions with respect to twenty-one issues identified
therein. On February 27, 2024, Weird Science and Wittekind sent the Board of Directors a supplemental letter that expanded their demand
for corrective actions to twenty-six