Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000250
Chunk: 81

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 81
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Net Loss

Net loss for the three months ended
March 31, 2024, and 2023, was $58,990,070 and $4,328,296, respectively, representing an increase in net loss of $54,661,774 or approximately
1,263%. The increase in net loss was primarily due to the indefinite life intangible assets impairment charge of $42,611,000, an increase
in general and administrative expenses of $3,856,322 and an increase in the change in fair value of contingent consideration of ($7,289,156)

Net loss for the nine months ended
March 31, 2024, and 2023, was $72,694,219 and $16,485,804, respectively, representing an increase in net loss of $56,208,415 or approximately
341%. The increase in net loss was primarily due to the indefinite life intangible assets impairment charge of $42,611,000, an increase
in general and administrative expenses of $7,193,021 and an increase in the change in fair value of contingent consideration of ($7,289,156)

Liquidity and Capital Resources

We have historically satisfied
our capital and liquidity requirements through funding from stockholders, the sale of our Common Stock and warrants, and debt financing.
We have never generated any sales revenue to support our operations and we expect this to continue until our therapies or products are
approved for marketing in the United States and/or Europe. Even if we are successful in having our therapies or products approved for
sale in the United States and/or Europe, we cannot guarantee that a market for the therapies or products will develop. We may never be
profitable.

As noted above under the heading
“Going Concern and Management’s Plans,” through March 31, 2024, we have incurred substantial losses. We will need additional
funds for (a) research and development, (b) increases in personnel, (c) the purchase of equipment, specifically to advance towards an
Investigational New Drug Application (IND) following Pre-IND readouts from the FDA for RENB-DC11, RENB-HV12, RENB-HV21 and RENB-HB01 and
(d) investment in the development and validation of our AI driven cancer diagnostics platform. The availability of any required additional
funding cannot be assured. In addition, an adverse outcome