Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001731122-25-000258
Chunk: 173

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 4
Chunk 173
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 waste, unjust enrichment, and contribution/indemnification. Weird Science and Wittekind seek unspecified
compensatory, exemplary, and punitive damages and certain injunctive relief. The Derivative Complaint names the Company as a nominal
defendant. On July 19, 2024, certain of the director defendants, who had agreed to waive service of the summons and Derivative Complaint,
filed a motion to dismiss the Derivative Complaint on a variety of procedural and substantive grounds. A hearing on the motion dismiss
was held on October 3, 2024 and the court subsequently took the motion under submission. On October 22, 2024, the plaintiffs filed a
notice of certain subsequent events that they allege relate to their pending motion to dismiss. On October 29, 2024, the court granted
the director defendants’ motion to dismiss and dismissed the Derivative Complaint without prejudice, but also without leave to
amend.

38

 On November 27, 2024, Weird
Science and Wittekind filed a notice of appeal of the court’s decision granting the director defendants’ motion to dismiss.
The appeal remains pending.

On June 21, 2024, the Company filed
suit against Weird Science, Wittekind, and certain trusts in connection with the February 16, 2018 merger involving the Company and two
companies closely associated with Gumrukcu. In the complaint, the Company alleges that Gumrukcu and others deliberately and fraudulently
concealed a murder-for-hire scheme from the Company in order to induce the Company to enter into the merger agreement, which resulted
in the defendants receiving shares and compensation. The Company asserts claims for fraudulent concealment, equitable fraud, unjust enrichment,
and civil conspiracy and seeks, inter alia, equitable relief, including, but not limited to, return to the Company any shares received
in connection with the merger, and damages. On October 1, 2024, the defendants moved to dismiss the complaint.

Item 1A. Risk Factors.

As a “smaller reporting company”
as defined by Rule 12b-2 of the Securities Exchange Act of 1934, the Company is not required to provide the information required by this
Item.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities. 

None.

Item 4. Mine Safety Disclosures. 

Not applicable.

Item 5. Other Information