Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 170

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 170
---
uciary duty, contribution and indemnification, aiding and abetting, and gross mismanagement. Plaintiffs do
not quantify any alleged injury, but seek damages, disgorgement, restitution, and other costs and expenses. On January 24, 2023, the United
States District Court for the Central District of California stayed the Koenig matter pending resolution of the defendants’ anticipated
motion to dismiss in the Securities Class Action Litigation. On April 4, 2023, the United States District Court for the District of Delaware
stayed the Solak matter pending resolution of the defendants’ anticipated motion to dismiss in the Securities Class Action Litigation.
On June 28, 2024, the United States District Court for the Central District of California denied defendants’ motion to dismiss the
Securities Class Action Litigation. The deadline for the parties to file a proposed schedule or to continue the stay or proceedings in
the Koenig matter is October 21, 2024. The deadline for the parties to file a proposed schedule or to continue the stay or proceedings
in the Solak matter is October 22, 2024. The defendants have not yet responded to either complaint. The Company intends to contest these
matters but expresses no opinion as to the likelihood of favorable outcomes. Management is unable to determine the likelihood of a loss,
including a possible range of losses, if any, arising from this matter as of the reporting date.

F-34

State Derivative Litigation.
On October 20, 2022, Susan Midler filed a shareholder derivative action in
the Superior Court of California, Los Angeles County, reciting similar underlying facts as those alleged in the Securities Class Action
Litigation. The action, filed on behalf of the Company, names Serhat Gümrükcü and certain of the Company’s current
and former directors as defendants. The action also names the Company as a nominal defendant. The action sets out claims for breaches
of fiduciary duty, contribution and indemnification, aiding and abetting, and gross mismanagement. Plaintiff does not quantify any alleged
injury, but seeks damages, disgorgement, restitution, and other costs and expenses. On January 20, 2023, the Court stayed the Midler matter
pending resolution of the defendants’ anticipated motion to dismiss in the Securities Class Action Litigation. On June 28, 2024,
the United States District Court for the Central District of California denied defendants’ motion to dismiss