Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 93

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 93
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The Company intends to use
the net proceeds from the Private Placement for general corporate purposes. Each Subscription Agreement contains customary representations
and warranties of the Company and of each Investor, including that all Investors purchasing the Securities are not “U.S. persons”
as defined by Rule 902 of Regulation S. The Private Placement was made directly by the Company and no underwriter or placement agent was
engaged by the Company. The Company did not engage in general solicitation or advertising and did not offer the Securities to the public
in connection with the Private Placement.

Going Concern and Management’s Plans

The financial statements included
elsewhere herein for the year ended June 30, 2024, were prepared under the assumption that we would continue our operations as a going
concern, which contemplates the realization of assets and the satisfaction of liabilities during the normal course of business. As of
June 30, 2024, we had cash and cash equivalents of $220,467, an accumulated deficit of $332,455,081 and total liabilities of $31,152,306.
We have incurred losses from continuing operations, have used cash in our continuing operations, and are dependent on additional financing
to fund operations. These conditions raise substantial doubt about our ability to continue as a going concern for one year after the date
the financial statements are issued. The financial statements included elsewhere herein do not include any adjustments to reflect the
possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result
from the outcome of this uncertainty.

Management has reduced overhead and administrative costs by streamlining the organization to focus around the development and validation of its AI driven cancer diagnostics platform. The Company has tailored its workforce to focus on these activities. In addition, the Company intends to attempt to secure additional required funding through equity or debt financing. However, there can be no assurance that the Company will be able to obtain any sources of funding. Such additional funding may not be available or may not be available on reasonable terms, and, in the case of equity financing transactions, could result in significant additional dilution to our stockholders. If we do not obtain required additional equity or debt funding, our cash resources will be depleted and we could be required to materially reduce or suspend operations, which would likely have a material adverse effect on our business, stock price and our relationships with third parties with whom we have business relationships, at least until additional funding is obtained. If we do not have sufficient funds to continue operations, we could