Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 31

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 31
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 intellectual
property utilized in our product candidates is owned, some is licensed from our licensors, who hold patents and provisional patents in
their names. We have not conducted extensive freedom of use patent searches and no assurance can be given that patents do not exist or
could be issued which would have an adverse effect on our ability to market our technology or maintain our competitive position with respect
to our technology. We also cannot be sure that patents or provisional patents filed by others are valid or will be upheld if challenged.
It is possible that there are additional patents that may cover certain other aspects of technology used in our product candidates that
is not covered by our licensed intellectual property. If our licensed technology or other subject matter are claimed under other United
States patents or other international patents or are otherwise protected by third party proprietary rights,

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we or our licensors may be
subject to infringement actions. In such event, we may challenge the validity of such patents or other proprietary rights or we may be
required to obtain licenses from such companies in order to develop, manufacture or market our technology. There can be no assurances
that we would be successful in a challenge or be able to obtain such licenses or that such licenses, if available, could be obtained on
commercially reasonable terms. Furthermore, the failure to succeed in a challenge, develop a commercially viable alternative or obtain
needed licenses could have significant adverse consequences to the development of our pipeline. Adverse consequences include delays in
marketing some or all of our product candidates based on our technology or the inability to proceed with the development, manufacture
or sale of products requiring such licenses. If we defend ourselves against charges of patent infringement or to protect our proprietary
rights against third parties, substantial costs will be incurred regardless of whether we are successful. Such proceedings are typically
protracted with no certainty of success. An adverse outcome could subject us to significant liabilities to third parties and force us
to curtail or cease the research and development of our technology.

Parties making claims against
us may obtain injunctive or other equitable relief, which could effectively block our ability to further develop and commercialize our
product candidates. Defense of these claims, regardless of their merit, would involve substantial litigation expense and would be a substantial
diversion of resources from our business. In the event of a successful claim of infringement against us, we may have to pay substantial
damages, including treble damages and attorneys’ fees for willful infringement, pay royalties, redesign our infringing products
or obtain one or more