Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 1197

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 1197
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 in consulting expenses of $534,564, and decreases in consumables of
$241,982.

Other Income (Expenses)

Net other income (expenses) for
the years ended June 30, 2025 and 2024 was $10,958,513 and $(6,786,532), respectively, representing a change of $17,745,045 or 261%. The
increase in other income was due primarily to the change in the fair value of the contingent consideration in the amount of $11,680,000,
which resulted from the mark to market adjustment on the remaining contingent consideration liability in the year ended June 30, 2025,
offset by interest expense of $725,684.

Net Loss

Net loss for the years ended June
30, 2025 and June 30, 2024 was $178,007,489 and $88,425,828, respectively, representing an increase in net loss of $89,581,661 or 101%.
The increase in net loss was primarily due to the increase of non-cash goodwill impairment of $158,779,429, offset by the decrease in
non-cash intangible asset impairment of $42,611,000, decrease in general and administrative expenses of $6,677,558, decrease in research
and development expenses of $2,171,401 and by the change in fair value of contingent consideration of $14,728,183.

Liquidity and Capital Resources

We have historically satisfied
our capital and liquidity requirements through funding from stockholders, the sale of our Common Stock and warrants, and debt financing.
We have never generated any sales revenue to support our operations, and we expect this to continue until our therapies or products are
approved for marketing in the United States and/or Europe. Even if we are successful in having our therapies or products approved for
sale in the United States and/or Europe, we cannot guarantee that a market for the therapies or products will develop. We may never be
profitable.

As noted above under the heading
“Going Concern and Management’s Plans,” through June 30, 2025, we have incurred substantial losses. We will need additional
funds both in the next twelve months and beyond for (a) research and development, (b) increases in personnel, (c) the purchase of equipment,
and investment in the development and validation of our technology. The availability of any required additional funding cannot be assured.
In addition, an adverse outcome in