Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 173

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 173
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of Delaware. In the Verified Complaint, Plaintiffs alleged that the Company breached the February 16, 2018 Investor Rights Agreement between
the Company, Weird Science, and RS Group ApS (the “Investor Rights Agreement”). According to the Verified Complaint, the Investor
Rights Agreement required the Company to (i) notify all “Holders” of “Registrable Securities” at least 30 days
prior to filing a registration statement and (ii) afford such Holders an opportunity to have their Registrable Securities included in
such registration statement. Plaintiffs alleged that the Company breached these registration rights by failing to provide the required
notice in connection with S-3 registration statements filed by the Company on July 13, 2020 and February 11, 2022. The Company moved to
dismiss the Verified Complaint on September 15, 2023.

F-35

On December
4, 2023, in lieu of opposing the motion to dismiss, Plaintiffs filed a Verified First Amended Complaint (“FAC”). In the FAC,
Plaintiffs assert claims against the Company and others for purported breaches of the Investor Rights Agreement, fraud, tortious interference
with a contract, and several other torts. Plaintiffs seek compensatory, exemplary, and punitive damages, as well as certain declaratory
relief, specific performance, and pre- and post-judgment interest, costs, and attorneys’ fees. The Company filed a motion to dismiss
the FAC on December 18, 2023. The Court scheduled oral argument on the motions to dismiss for November 15, 2024. The Company denies Plaintiffs’
allegations and intends to vigorously defend against the claims.

On August 24, 2023, counsel on
behalf of Weird Science, Wittekind, individually, and Wittekind, as trustee of the Trusts served a demand to inspect the Company’s
books and records (the “Demand”) pursuant to Delaware General Corporation Law, § 220 (“Section 220”).
The Demand seeks the Company’s books and records in connection with various issues identified in the Demand. The Company takes
its obligations under Section 220 seriously and, to the extent that the requests are proper under Section 220, intends to comply with
those obligations.

On January 19, 2024, Weird Science
and Wittekind sent the Company’s Board of Directors a letter demanding it take corrective actions with respect to twenty-one issues
identified therein