Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 126

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 126
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 fair value of $31,005 on the
grant date, fully vest on January 6, 2025 and expire on November 4, 2034. Subsequently, during the period ended March 31, 2025,
pursuant to the Company’s executive officer compensation claw back policy, the board of directors directed the Company to claw back
and cancel the 58,500 options which were issued on November 4, 2024.

    F-25

On August 23, 2024, Avram Miller,
a former member of the Company’s board of directors (the “Board of Directors”), forfeited 833,333 shares of
Common Stock from the original 1,000,000 shares of Common Stock for advisory services originally granted to him on October 11,
2023. As consideration for such forfeiture, the Company granted to Mr. Miller, an option to purchase 978,261 shares of Common
Stock of the Company with a per-share exercise price of $0.69. The Company determined that this transaction represented a modification
of the original award. The Company measured the fair value of the options issued as compared to the fair value of the original issuance
and determined that there was no incremental compensation to recognize as the fair value of the options was less than the fair value of
the Common Stock. Therefore, the Company will recognize the remaining fair value of the original award over the remaining vesting period,
which is one year. The Company recognized stock-based compensation expense of $1,159,470 related to the vesting of the stocks options
during the year ended June 30, 2025. At June 30, 2025, the Company had $185,373 of unrecognized compensation cost related to the
options which vest at August 23, 2025.

All of the above options are exercisable
at the market price of the Company’s Common Stock on the date of the grant. On February 13, 2024, the Company repriced 3,849,931
eligible employee and consultant options from the original issued exercise price to a new exercise price of $1.92 per share, the closing
price of the Company’s Common Stock on February 13, 2024. The Company recognized stock-based compensation expense related to the
repricing of options of $921,254 during the year ended June 30, 2024.

 To date the Company has
granted