Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000250
Chunk: 65

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 65
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|------------:|
| Cash                                                                   |     | $ |      65,851 |
| Prepaid & Other Assets                                                 |     |   |     151,544 |
| Fixed Assets                                                           |     |   |      16,243 |
| Operating lease ROU                                                    |     |   |     624,366 |
| In-process research and development                                    |     |   |  10,684,091 |
| Total Assets Acquired:                                                 |     |   |  11,542,095 |
| Accounts Payable                                                       |     |   |     583,577 |
| Accrued Expenses                                                       |     |   |     722,509 |
| Operating Lease liability                                              |     |   |     624,367 |
| Notes Payable                                                          |     |   |   1,832,460 |
| Deferred tax liabilities                                               |     |   |   2,756,495 |
| Total Liabilities Assumed                                              |     |   |   6,519,408 |
| Net Assets Acquired                                                    |     |   |   5,022,687 |
| Goodwill                                                               |     |   | 151,536,444 |
| Total Consideration                                                    |     | $ | 156,559,131 |

The goodwill
recognized is attributable primarily to expected synergies and the assembled workforce of Gedi Cube. None of the goodwill is expected
to be deductible for income tax purposes.

The
fair values of the acquired tangible and intangible assets were determined using variations of the income approach. The income approach
valuation methodology used for the intangible assets acquired makes use of Level 3 inputs.

34

RENOVARO INC. AND SUBSIDIARIES
NOTES TO UNAUDITED RESTATED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 12 — ACQUISITION (Continued)

The in-process
research and development acquired represents know-how and intellectual property being developed by GEDi Cube pertaining to its diagnostic
platform currently being developed. The fair value of this asset was determined based on a cash flow model with forecasted revenues and
expenses specifically tied to the diagnostic platform. Those cash flows were then discounted at 19.2% over the life of the projections.
The discount rate was determined by the use of a weighted average return on assets analysis.

The
Company recognized approximately $1.2
million of acquisition related costs that were expensed during the period ended March 31,