Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 743

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 7
Chunk 743
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 the Company’s obligations under the Promissory Note, the Company entered into a Security Agreement with the
Holder, pursuant to which the Company granted a lien on all assets of the Company (the “Collateral”) for the benefit of Paseco
ApS, Rene Sindlev and Laksya Ventures. Upon an Event of Default (as defined in the notes, respectively) Paseco ApS, Rene Sindlev and Laksya
Ventures may, among other things, collect or take possession of the Collateral, proceed with the foreclosure of the security interest
in the Collateral or sell, lease, or dispose of the Collateral (see Note 8 to the Financial Statements).

Cash Flows

Year ended June 30, 2025 compared to the year ended June 30, 2024

Following is a summary of the
Company’s cash flows provided by (used in) operating, investing, and financing activities:

    For the Years Ended

    June 30,

    2025 
    2024
  
    Net Cash Used in Operating Activities 
    $(7,874,647) 
    $(10,971,430)
  
    Net Cash Used in Investing Activities 
     (500,000) 
     (1,260,179)
  
    Net Cash Provided by Financing Activities 
     8,382,772  
     10,517,455 
  
    Effect of exchange rates on cash 
     (135,892) 
     60,141 
  
    Net (Decrease) in Cash 
    $(127,767) 
    $(1,654,013)

At June 30, 2025, we had cash
and cash equivalents of $92,700, a decrease of $127,767, when compared to the June 30, 2024 balance of $220,467. This decrease was primarily
due to cash used in operating activities, partially offset by cash provided by financing activities.

We plan to use our cash and cash
equivalents to fund research and development, specifically to increase investment in the development and validation of our AI driven cancer
diagnostics platform. These activities will require an increase in selling, general and administrative costs, and research and development
costs to support the expected growth. As additional funds are required, we may raise such funds from time to time through public or private
sales of our equity or debt securities.

Cash
used in operating activities represents the cash receipts and