Company: LNAI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000765
Chunk: 61

Company: Lunai Bioworks Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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 in assets is primarily due to goodwill impairment of $47,614,729
in the current period.

Liabilities 

Total liabilities at March 31, 2025, were $29,339,269 compared to $31,152,306
as of June 30, 2024. The decrease in total liabilities was primarily related to the decrease of $10,990,000 in contingent consideration
liability, partially offset by an increases of $3,534,901 in notes payable – related parties, net, $2,277,375 in accounts payable
and $3,000,000 in Stock subscription payable.

The following is a summary of the
Company’s cash flows (used in) or provided by operating, investing, and financing activities:

    Nine Months  Ended  March 31, 2025 
    Nine Months Ended  March 31, 2024
  
    Net Cash Used in Operating Activities 
    $(6,063,511) 
    $(8,557,649)
  
    Net Cash Used in Investing Activities 
     (1,464,389) 
     (1,206,806)
  
    Net Cash Provided by Financing Activities 
     8,204,415  
     8,050,737 
  
    Effect of exchange rates on cash 
     26,020  
     151,935 
  
    Change in Cash and Cash Equivalents 
    $702,535  
    $(1,561,783)

Cash Flows

The decrease in our cash used in
operating activities is primarily related to the changes in our operating assets and liabilities. The change is primarily driven by our
net loss offset by significant non-cash charges such as stock based compensation, impairments and change in fair value of contingent consideration.
Additionally, our operating cash flow was positively impacted by changes in our operating assets and liabilities, primarily other receivables,
prepaid expenses and accounts payable.

35

Cash used in investing activities
during the period related to the investment in equity securities of $1,464,389. Cash used in investing activities in the prior period primarily
related to the issuance of notes receivable prior to the acquisition of Renovaro Cube totaling $1,206,806.

Cash provided by financing activities
during the period primarily related to net proceeds of $3,527,822 from issuance of notes payable and $5,376,181 from private placements
that were partially offset by $699,588 in