Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 53

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 53
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 trading price
of our Common Stock could impair our ability to retain and recruit employees, many of whom are granted stock-based awards that vest over
time and are influenced by the market value of our Common Stock.

48

We have incurred and will
continue to incur increased costs as a result of being a public company and our management expects to devote substantial time to public
company compliance programs.

As a public company, we have incurred
and will continue to incur significant legal, accounting and other expenses. We are subject to the reporting requirements of the Exchange
Act, which require, among other things, that we file with the SEC annual, quarterly, and current reports with respect to our business
and financial condition. In addition, the Sarbanes-Oxley Act, as well as rules subsequently adopted by the SEC and The Nasdaq Stock Market
to implement provisions of the Sarbanes-Oxley Act, impose significant requirements on public companies, including requiring establishment
and maintenance of effective disclosure and financial controls and changes in corporate governance practices. As a Smaller Reporting Company
and Non-accelerated Filer, we are able to take advantage of certain accommodations afforded to such companies, including being exempt
from the requirement to conduct an audit of our internal controls. In the event we no longer qualify as a Smaller Reporting Company and
Non-accelerated Filer, we will lose such accommodations, which could involve significant costs that could affect our operations. Changes
in reporting requirements, the current political environment and the potential for future regulatory reform may lead to substantial new
regulations and disclosure obligations, which may lead to additional compliance costs and impact the manner in which we operate our business
in ways we cannot currently anticipate.

The rules and regulations applicable
to public companies have substantially increased our legal and financial compliance costs and make some activities more time-consuming
and costly. To the extent these requirements divert the attention of our management and personnel from other business concerns, they could
have a material adverse effect on our business, financial condition and results of operations.

Because we do not anticipate
paying any cash dividends on our capital stock in the foreseeable future, capital appreciation, if any, will be the sole source of potential
gain for our stockholders.

We have never declared or paid
cash dividends on our capital stock. We currently intend to retain all of our future earnings, if any, to finance the growth and development
of our business. As a result, capital appreciation, if any, of our Common Stock will be the