Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 879

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 7A
Chunk 879
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 25, 2025 and the Court took defendants’ motion under advisement.

Lunai commenced an action against
Predictive Oncology, Inc. (“POAI”) in the Delaware Court of Chancery claiming that POAI breached a “definitive”
January 2025 Letter Agreement pursuant to which Lunai was going to acquire POAI. As a result of its breach, POAI made that acquisition
impossible and dramatically devalued the share price of stock Lunai had already acquired as well as the value of the company it was contractually
entitled to acquire. Lunai sought specific performance or, in the alternative, money damages. The parties have exchanged paper discovery
and noticed depositions. The action has been held in abeyance while the parties attempt to negotiate a settlement.

NOTE 12 — RELATED PARTY TRANSACTIONS

As of June 30, 2025, the Company
has accrued $384,949 of compensation related expenses for the Company’s former Chief Executive Officer, Mark Dybul, related to budget
constraints.

    F-31

On August 23, 2024, Avram Miller,
a former member of the Company’s board of directors (the “Board of Directors”), forfeited 833,333 shares of
Common Stock from the original 1,000,000 shares of Common Stock for advisory services originally granted to him on October 11,
2023. As consideration for such forfeiture, the Company granted to Mr. Miller, an option to purchase 978,261 shares of Common
Stock of the Company with a per-share exercise price of $0.69. The Company determined that this transaction represented a modification
of the original award. The Company measured the fair value of the options issued as compared to the fair value of the original issuance
and determined that there was no incremental compensation to recognize as the fair value of the options was less than the fair value of
the Common Stock. Therefore, the Company will recognize the remaining fair value of the original award over the remaining vesting period,
which is one year. The Company recognized stock-based compensation expense of $1,159,470 related to the vesting of the stocks options
during the year ended June 30, 2025. At June 30, 2025, the Company had $185,373 of unrecognized compensation cost related to the
options which vest at August 23, 2025.

NOTE 13 — ACQUISITIONS

BioSym