Company: LNAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001731122-25-001544
Chunk: 6

Company: Lunai Bioworks Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 6
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 necessary to present fairly the financial position, results of operations and cash flows at September 30, 2025, and 2024
and for the periods then ended have been made. Certain information and footnote disclosures normally included in financial statements
prepared in accordance with U.S. GAAP have been condensed or omitted. The accompanying unaudited condensed consolidated financial statements
should be read in conjunction with the financial statements and notes thereto included in the Company’s June 30, 2025 audited financial
statements. The results of operations for the period ended September 30, 2025 are not necessarily indicative of the operating results
for the full year.

Consolidation – For
the three months ended September 30, 2025, and 2024, the condensed consolidated financial statements include the accounts and operations
of the Company and its subsidiaries. All material inter-company transactions and accounts have been eliminated in the consolidation.

Bankruptcy - The Company
accounts for bankruptcy under ASC 810, Consolidation. On September 2, 2025, the Court of Amsterdam declared bankrupt Gedi Cube B.V. (“Gedi”),
an indirect subsidiary of Lunai Bioworks, Inc. As of September 30, 2025 the Company deconsolidated Gedi Cube B.V., derecognizing its net
liabilities and releasing the cumulative translation adjustment balance to earnings. The bankruptcy resulted in a gain of $12,019,227
during the three months ended September 30, 2025.

Accounting Estimates –
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the
date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ
from those estimated. Significant estimates include the fair value of assets acquired in a business acquisition, contingent consideration,
and equity instruments issued for goods or services.

Loss Per Share –Basic earnings per common share (EPS) are based on the weighted average
number of shares of Common Stock outstanding during each period. Diluted earnings per common share are based on shares outstanding (computed
as under basic EPS) and potentially dilutive shares of Common Stock. Potential shares of Common Stock included in the diluted earnings
per share calculation include in-the-money stock options that have been granted but have not been exercised and shares issuable upon conversion
of convertible common stock and convertible notes.