Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 128

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 128
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-employees in accordance with ASC 718, Compensation—Stock Compensation Non-Employees.
All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based
on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.
Equity instruments issued to consultants and the cost of the services received as consideration are measured and recognized based on the
fair value of the equity instruments issued and are recognized over the consultants’ required service period, which is generally
the vesting period.

The Company does not have sufficient
historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior.
Accordingly, the Company has elected to use the “simplified method” to estimate the expected term of its share-based awards.
The simplified method computes the expected term as the sum of the award’s vesting term plus the original contractual term divided
by two.

New Accounting Pronouncements Not Yet Adopted
- Recent accounting pronouncements issued by the FASB that have not yet been adopted by the Company are not expected to have a material
impact on the Company’s present or future consolidated financial statements.

F-13

NOTE 2 — RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

During the preparation of the
Company’s Form 10-Q for the period ended December 31, 2024, the Company determined that certain warrants which were exercised during
the three months ended March 31, 2024, had not been appropriately reflected as a component of the change in fair value of the contingent
consideration for the year ended June 30, 2024. The number of shares underlying these warrants was 3,425,399 which had a fair value of
$7,775,656 on the date of exercise.

The impact of the restatement on
these financial statements by line item is as follows:

| Schedule of restatement                          
 on these financial statements                    |     | As Reported |              |   |     | Change |            |   |     | As Restated |              |   |
|:-------------------------------------------------|:----|:------------|-------------:|:--|:----|:-------|-----------:|:--|:----|:------------|-------------:|:--|
| Common stock                                     |     | $           |       15,504 |   |     | $      |        343 |   |     | $           |