Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 33

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 33
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 harm, legal liability and brand or reputational
harm. In addition, AI-related issues, deficiencies and/or failures could give rise to legal and/or regulatory action, including with respect
to proposed legislation regulating AI in jurisdictions such as the European Union and others, and as a result of new applications of existing
data protection, privacy, intellectual property, and other laws.

Failure
of, or defects in, Renovaro Cube’s or BioSymetrics’ machine learning and cloud-based computing infrastructure, or
increased regulation in the machine learning space, could impair their ability to process data, develop products, or provide test results,
and harm their business and results of operations.

The design,
development, maintenance and operation of Renovaro Cube’s and BioSymetrics’ technologies over time is expensive and complex,
and may involve unforeseen difficulties including material performance problems, undetected defects or errors. Overcoming technical obstacles
and correcting defects or errors could prove to be impossible or impracticable, and the costs incurred may be substantial and adversely
affect either’s results of operations. Additionally, regulation in the machine learning space is constantly evolving and may make
it difficult for Renovaro Cube or BioSymetrics to continue using its machine learning approach. If Renovaro Cube’s or BioSymetrics’
technology does not function reliably, fails to meet expectations in terms of performance, or cannot be fully utilized due to increasing
regulation, we may be unable to provide, or its customers may stop using, our products.

37

Renovaro
Cube currently hosts all of its data on, and conducts its data analysis through, local hosting facilities. Any technical problems
or outages that may arise in connection with these hosting facilities could result in the loss of Renovaro Cube’s data or delayed
or ineffective data processing. A variety of factors, including infrastructure changes, human or software errors, viruses, malware, security
attacks, fraud, spikes in customer usage, or denial of service issues could cause interruptions in Renovaro Cube’s service. Such
service interruptions may reduce or inhibit Renovaro Cube’s ability to provide its products, delay any further clinical validation
and any future clinical studies, and damage its relationships with its customers. Renovaro Cube could also be exposed to potential lawsuits,
liability claims or regulatory actions, if, for example, Renovaro Cube’s local servers experienced a data privacy breach. If Renovaro
Cube was required to transfer its data to an