Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 135

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 135
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 1, 2019, where it expanded the lease area to include another 1,101 square feet for a total rentable 3,554 square feet. The base rent increases by 3% each year, and ranges from $17,770 per month for the first year to $23,186 per month for the tenth year. The equalized monthly lease payment for the term of the lease is $20,050. Renovaro subleased the space as
of June 25, 2022 through April 30, 2023. (See subsection below “Sublease Agreement” for details.)

F-17

Renovaro Cube leases an office
facility in Amsterdam, Netherlands, under a 30-month operating lease agreement commencing on September 1, 2023, with a maturity date of
February 28, 2026. In determining lease asset values, the Company considers fixed and variable payment terms, prepayments, incentives,
and options to extend, terminate or purchase.

The Company identified and assessed
the following significant assumptions in recognizing the right-of-use assets and corresponding liabilities:

Expected lease term—
The expected lease term includes both contractual lease periods and, when applicable, cancelable option periods when it is reasonably
certain that the Company would exercise such options. The Company’s leases have a remaining lease term of 38 and 20 months. As of
June 30, 2024, the weighted-average remaining term is 2.54 years.

Incremental borrowing rate
— The Company’s lease agreements do not provide an implicit rate. As the Company does not have any external borrowings for
comparable terms of its leases, the Company estimated the incremental borrowing rate based on the U.S. Treasury Yield Curve rate that
corresponds to the length of each lease. This rate is an estimate of what the Company would have to pay if borrowing on a collateralized
basis over a similar term in an amount equal to the lease payments in a similar economic environment. As of June 30, 2024, the weighted-average
discount rate is 5.14%.

Lease and non-lease components
— In certain cases the Company is required to pay for certain additional charges for operating costs, including insurance, maintenance,
taxes, and other costs incurred, which are billed based on both usage and as a percentage of the Company’s share of total square
footage. The Company determined that these costs are non-lease components, and they are not included in