Company: LNAI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000765
Chunk: 27

Company: Lunai Bioworks Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 under the HBV License. On February 6, 2020, the Company paid the $1.2 million up-front payment. The HBV License Agreement
contains customary representations, warranties, and covenants of the parties with respect to the development of the Treatment and the
HBV License.

The cash funding for research costs
pursuant to the HBV License Agreement consisted of monthly payments amounting to $144,500 that covered scientific staffing resources to
complete the project as well as periodic payments for materials and equipment needed to complete the project. There were no payments made
after January 31, 2022. The Company paid zero under the HBV License Agreement during the quarters ending March 31, 2025, and 2024. The
Company has filed a claim against the Licensors, which includes certain payments it made related to this license (see Contingencies sub-section
below).

On April 18, 2021, the Company
entered into a Statement of Work and License Agreement (the “License Development Agreement”), by and among the Company, G
Tech and SRI (collectively, the “Licensors”), whereby the Company acquired a perpetual sublicensable, exclusive license (the
“Development License”) to research, develop, and commercialize certain formulations which were aimed at preventing and treating
pan-coronavirus or the potential combination of the pan-coronavirus and pan-influenza, including the SARS-coronavirus that causes COVID-19
and pan-influenza (the “Prevention and Treatment”).

The Development License Agreement
was entered into pursuant to the existing Framework Agreement between the parties dated November 15, 2019. The Development License Agreement
states that in consideration for the Development License, the Company shall provide cash funding for research costs and equipment and
certain other in-kind funding related to the Prevention and Treatment over a 24-month period. Additionally, the Development License Agreement
provides for an up-front payment of $10,000,000 and a $760,000 payment for expenditures to date prior to the effective date related to
research towards the Prevention and Treatment within 60 days of April 18, 2021. The Development License Agreement provides for additional
payments upon the occurrence of certain benchmarks in the development of the technology set forth in the Development License Agreement,
in each case subject to the terms of the Development License Agreement.

    16

The Development License Agreement
provides for (i