Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 1132

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 1132
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, which would adversely impact our potential revenues, future results of operations and financial condition.

From time to time, we may
be subject to legal proceedings, regulatory investigations or disputes, and governmental inquiries that could cause us to incur significant
expenses, divert our management’s attention, and materially harm our business, financial condition, and operating results.

From time to time, we may be subject
to claims, lawsuits, government investigations, and other proceedings involving intellectual property, privacy, securities, tax, labor
and employment, and other matters that could adversely affect our business operations and financial condition. Recently, we have seen
a rise in the number and significance of these disputes and inquiries. The arrest, indictment and conviction of Serhat Gümrükcü,
a co-founder of the Company, has, and could in the future, subject us to regulatory proceedings and litigation by governance agencies
and private litigants brought against us, that regardless of their merits, could harm our reputation, divert management’s attention
from our operations and result in substantial legal fees and other costs. Additionally, we have in the past been subject to intense media
scrutiny, which exposes us to increasing regulation, government investigations, legal actions, and penalties.

We have also been named in several
lawsuits related to Mr. Gümrükcü. For example, the Company and certain of its current and former officers have been named
in securities class actions by purported stockholders of ours, alleging defendants violated Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934, as amended, and Rule 10b-5 thereunder, by making false and misleading statements and omissions of material fact
in connection with the Company’s relationship with Mr. Gümrükcü and its commercial prospects. In addition, two stockholders
filed stockholder derivative action lawsuits purportedly on behalf of the Company against certain of our executive officers
and the members of our Board of Directors alleging violations of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 and also
setting out claims for breach of fiduciary duty, contribution and indemnification, aiding and abetting, and gross mismanagement. Additionally,
from time to time, we may be, and currently are, subject to inquiries from regulators in which they seek information about us. Such further
inquiries could result in more formal investigations or allegations, which could adversely impact our business, financial condition, and
oper