Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 152

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 152
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 of the tax position is uncertain. The first step is to determine
whether the tax position meets the more-likely-than-not condition for recognition, and the second step is to determine the amount to be
recognized based on the cumulative probability that exceeds 50%. The amount of and ultimate realization of the benefits from the deferred
tax assets for income tax purposes is dependent, in part, upon the tax laws in effect, the Company’s future earnings, and other
future events, the effects of which can be difficult to determine and can only be estimated. Management estimates that it is more likely
than not that the Company will not generate adequate net profits to use the deferred tax assets; and consequently, a valuation allowance
was recorded for all deferred tax assets.

A reconciliation of income tax
expense at the federal statutory rate to income tax expense at the Company’s effective rate is as follows for the years ended June
30, 2024 and 2023:

| Schedule of reconciliation of income tax expense |     | Years ended June 30, 
 2024                 |             |   |     | 2023 |             |   |
|:-------------------------------------------------|:----|:---------------------|------------:|:--|:----|:-----|------------:|:--|
| Computed tax at expected statutory rate          |     | $                    | (24,066,011 | ) |     | $    | (70,341,751 | ) |
| Non-US income taxed at different rates           |     |                      |           — |   |     |      |           — |   |
| Non-deductible expenses / other items            |     |                      |           — |   |     |      |           — |   |
| Valuation allowance                              |     |                      |  24,066,011 |   |     |      |  70,341,751 |   |
| Income Tax Expense (Benefit)                     |     | $                    |           — |   |     | $    |           — |   |

The components of income tax expense
(benefit) from continuing operations for the years ended June 30, 2024 and 2023 consisted of the following:

| Current Income Tax Expense                           |     | Years ended June 30, 
 2024                 |              |   |     | 2023 |              |   |
|:-----------------------------------------------------|:----|:---------------------|-------------:|:--|:----|:-----|-------------