Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001731122-25-000258
Chunk: 143

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 2
Chunk 143
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 an increase in net loss of $2,723,273 or approximately
60%. The increase in net loss was primarily due to an increase in the change in fair value of contingent consideration of $2,590,000,
an increase in general and administrative expenses of $736,731, partially offset by a decrease in research and development expenses of
$459,437.

33

Net loss for the six months ended
December 31, 2024, and 2023, was $51,464,429 and $13,704,149, respectively, representing an increase in net loss of $37,760,280 or approximately
276%. The increase in net loss was primarily due to an increase in goodwill impairment of $47,614,729, partially offset by the decrease
in general and administrative expenses of $2,252,229 and change in fair value of contingent consideration of $6,660,000.

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 December 31, 2024, we have incurred substantial losses. We will need
additional funds both in the next twelve months and beyond for (a) research and development, (b) increases in personnel, (c) the purchase
of equipment, and investment in the development and validation of our technology. The availability of any required additional funding
cannot be assured. In addition, an adverse outcome in legal or regulatory proceedings in which we are currently involved or in the future
may be involved could adversely affect our liquidity and financial position. We may raise such funds from time to time through public
or private sales of our equity or debt securities. Such financing may not be available on acceptable terms, or at all, and our failure
to raise capital when needed could materially adversely affect our growth plans and our financial condition and results of operations.

As of December 31, 2024, the Company
had $311,764 in cash