Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 32

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 32
---
 licenses from third parties, which may be impossible or require substantial time and monetary expenditure. Additionally,
parties making claims against us may be able to sustain the costs of complex patent litigation more effectively than we can because they
have substantially greater resources. Furthermore, because of the substantial amount of discovery required in connection with intellectual
property litigation or administrative proceedings, there is a risk that some of our confidential information could be compromised by disclosure.
In addition, any uncertainties resulting from the initiation and continuation of any litigation could have a material adverse effect on
our ability to raise additional funds or otherwise have a material adverse effect on our business, results of operations, financial condition
and prospects.

Issues in the development
and use of AI, including machine learning and computer vision, in Renovaro Cube’s AI platform may result in reputational harm
or liability.

AI is
integrated into Renovaro Cube’s and BioSymetrics’ platforms and is a significant element of each of their business offerings
going forward. As with many developing technologies, AI presents risks, challenges and unintended consequences that could affect its further
development, adoption, and use, and therefore Renovaro Cube’s and BioSymetrics’ business. AI algorithms and training methodologies
may be flawed. Data sets may be insufficient, of poor quality, or contain biased information. Inappropriate or controversial data practices
by data scientists, engineers, and end-users of Renovaro Cube’s or BioSymetrics’ systems could impair the acceptance
of AI solutions. If the analyses that AI applications assist in producing are deficient or inaccurate, Renovaro Cube or BioSymetrics could
be subjected to competitive harm, potential legal liability, and brand or reputational harm. Some uses of AI present ethical issues, and
Renovaro Cube’s or BioSymetrics’ judgment as to the ethical concerns may not be perceived as accurate. While Renovaro Cube
and BioSymetrics aim to develop and use AI responsibly and attempt to identify and mitigate ethical and legal issues presented by its
use, Renovaro Cube and BioSymetrics may be unsuccessful in identifying or resolving issues before they arise. If Renovaro Cube or BioSymetrics
use AI as part of their platform in a manner that is controversial or perceived as unethical, this may lead to adverse results for Renovaro
Cube’s or BioSymetrics’ financial condition and operations or the financial condition and operations of their collaborators
or vendors, which may further lead to Renovaro Cube or BioSymetrics experiencing competitive