Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 241

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1B
Chunk 241
---
 Act of 1933, as amended (the “Securities Act”),
in reliance on the exemption from registration requirements thereunder provided by Section 4(a)(2) thereof. Lunai relied in part upon
representations contained in the Merger Agreement that all those receiving Shares in connection with the Transaction are “accredited
investors” as defined in Rule 501(a) under the Securities Act.

The
transaction was accounted for in accordance with ASC 805-10 - Business Combinations. The assets acquired and liabilities
assumed are initially recognized in the accompanying consolidated balance sheets at their estimated fair values as of the acquisition
date. The fair values as of the acquisition date are based on information that existed as of the acquisition date.

The acquisition-date
fair value of the consideration transferred totaled approximately $6 million, which consisted of the following:

    Schedule of acquisition
date fair value 

    Common stock 
    $6,058,500 
  
    Total consideration transferred 
    $6,058,500 

The
fair value of the Company’s common shares issued as consideration was based on the closing price of the Company’s common stock
as of the Acquisition Date. 

The
following table details the fair values of the assets acquired and liabilities assumed at the acquisition date:

    Schedule of fair value of assets acquired and
liabilities assumed 

    Cash 
    $(3,822)
  
    Prepaid & Other Assets 
     17,405 
  
    Fixed Assets 
     13,365 
  
    Total Assets Acquired: 
     26,948 

    Accounts Payable 
     975 
  
    Accrued Expenses 
     7,594 
  
    Other Current Liabilities 
     73,879 
  
    Total Liabilities Assumed 
     82,448 
  
    Net Assets Acquired 
     (55,500)
  
    Software 
     143,000 
  
    Trade Name 
     8,000 
  
    Goodwill 
     5,963,000 
  
    Total Consideration 
    $6,058,500 

    F-32

The
goodwill recognized is attributable primarily to expected synergies and the assembled workforce of BioSymetrics. None of the
goodwill is expected to be deductible for income tax purposes.

The fair
values of the acquired tangible and intangible assets were determined using variations of the income approach. The income approach valuation
methodology used for