Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 1169

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 1169
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 specialized functions, which may create challenges
in retaining institutional knowledge and ensuring continuity.

●Recruiting, training, and retaining qualified personnel may require significant costs, and failure to
manage these costs could adversely affect our business and financial results.

We have limited corporate
infrastructure and may experience difficulties in managing growth. 

As of June 30, 2025, we had 29
full-time employees. We rely on third-party contractors for the provision of professional, scientific, regulatory, and other services.
As our development and commercialization plans and strategies develop, we may need additional managerial, scientific, operational, financial,
and other resources. Our management may need to divert a disproportionate amount of its attention away from our day-to-day operations
and devote a substantial amount of time to managing these growth activities. We might not be able to effectively manage the expansion
of our operations, which may result in weaknesses in our infrastructure, operational inefficiencies, loss of business opportunities, loss
of employees and reduced productivity among remaining employees. Our expected growth could require significant capital expenditures and
may divert financial resources from other projects, such as the development of our current and potential future product candidates. If
our management is unable to effectively manage our growth, our expenses may increase more than expected and our ability to generate and
grow revenue could be reduced and we might not be able to implement our business strategy. Our future financial performance, our ability
to commercialize product candidates, develop a scalable infrastructure and compete effectively will depend, in part, on our ability to
effectively manage any future growth.

Management
and employee turnover creates uncertainties and could harm our business.

We have
experienced significant turnover in our executive leadership and management in recent years. Changes to strategic or operating goals,
which oftentimes occur with the appointment of new executives and board members, can create uncertainty, may negatively impact our ability
to execute quickly and effectively, and may ultimately be unsuccessful. In addition, executive leadership transition periods are often
difficult as the new executives gain detailed knowledge of our operations, and friction can result from changes in strategy and management
style. Management turnover inherently causes some loss of institutional knowledge, which can negatively affect strategy and execution.
Until we integrate new personnel, and unless they are able to succeed in their positions, we may be unable to successfully manage and
grow our business, and our financial condition and ability to become profitable may suffer.

42

As we
continue our exploration of strategic alternatives, we may experience additional turnover in our board and senior management