Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 1179

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 1179
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 been unrelated to the operating performance of particular companies.

Sales of a substantial number of shares of our
Common Stock in the public market could cause our stock price to fall.

The market price of our Common
Stock could decline as a result of substantial sales of our Common Stock in the public market, or the perception that such sales could
occur. Because the majority of our outstanding shares of Common Stock are registered and unrestricted, they may be sold in the public
market at any time. Any such sales, or the availability of those shares for sale, could adversely affect the trading price of our Common
Stock and make it more difficult for us to raise capital through future equity offerings. In addition, a decline in the trading price
of our Common Stock could impair our ability to retain and recruit employees, many of whom are granted stock-based awards that vest over
time and are influenced by the market value of our Common Stock.

48

We have incurred and will
continue to incur increased costs as a result of being a public company and our management expects to devote substantial time to public
company compliance programs.

As a public company, we have incurred
and will continue to incur significant legal, accounting and other expenses. We are subject to the reporting requirements of the Exchange
Act, which require, among other things, that we file with the SEC annual, quarterly, and current reports with respect to our business
and financial condition. In addition, the Sarbanes-Oxley Act, as well as rules subsequently adopted by the SEC and The Nasdaq Stock Market
to implement provisions of the Sarbanes-Oxley Act, impose significant requirements on public companies, including requiring establishment
and maintenance of effective disclosure and financial controls and changes in corporate governance practices. As a Smaller Reporting Company
and Non-accelerated Filer, we are able to take advantage of certain accommodations afforded to such companies, including being exempt
from the requirement to conduct an audit of our internal controls. In the event we no longer qualify as a Smaller Reporting Company and
Non-accelerated Filer, we will lose such accommodations, which could involve significant costs that could affect our operations. Changes
in reporting requirements, the current political environment and the potential for future regulatory reform may lead to substantial new
regulations and disclosure obligations, which may lead to additional compliance costs and impact the manner in which we operate our business
in ways we cannot currently anticipate.

The rules and regulations applicable
to public companies have substantially increased our legal and financial compliance costs