Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001731122-25-000258
Chunk: 115

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 8
Chunk 115
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 $2,679,004 in notes payable – related parties,
net and an increase in accounts payable of $1,485,872.

The following is a summary of the
Company’s cash flows (used in) or provided by operating, investing, and financing activities:

    Six Months  Ended 
December 31, 2024 
    Six Months Ended 
December 31, 2023
  
    Net Cash Used in Operating Activities 
    $(4,576,052) 
    $(5,923,830)
  
    Net Cash Used in Investing Activities 
     —  
     (1,115,209)
  
    Net Cash Provided by Financing Activities 
     4,620,162  
     5,409,682 
  
    Effect of exchange rates on cash 
     47,187  
     (1,143)
  
    Change in Cash and Cash Equivalents 
    $91,297  
    $(1,630,500)

34

Cash Flows

The decrease in our cash used in
operating activities is primarily related to the changes in our operating assets and liabilities. The change is primarily drive by our
net loss offset by significant non-cash charges such as stock based compensation, impairments and change in fair value of contingent consideration.
Additionally, our operating cash flow was positively impacted by changes in our operating assets and liabilities, primarily other receivables,
prepaid expenses and accounts payable.

Cash used in investing activities
during the prior period primarily related to the issuance of notes receivable prior to the acquisition of Renovaro Cube totaling $1,073,625.

Cash provided by financing activities
during the period primarily related to net proceeds of $2,671,926 from issuance of notes payable and $2,376,181 from private placements
that were partially offset by $427,945 in repayment of a finance agreement.

Off-Balance Sheet Arrangements 

The Company does not have any off-balance
sheet arrangements that have or are reasonably likely to have a current or future effect on the Company’s financial condition, changes
in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material
to investors.

Significant Accounting Policies and Critical Accounting
Estimates 

The methods, estimates, and judgments
that we use in applying our accounting policies have a significant impact on the results that we report in our financial statements. Some
of our accounting policies require us to make difficult and subjective