Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001731122-25-000258
Chunk: 70

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 8
Chunk 70
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 than the functional currency are included in the statement of operations as incurred.

Recently Adopted Accounting
Pronouncements – In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable
Segment Disclosures,” which requires a public entity to disclose significant segment expenses and other segment items on an
annual and interim basis and to provide in interim periods all disclosures about reportable segment’s profit or loss and assets
that are currently required annually. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods
within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted this ASU on July 1, 2024. The
adoption of this ASU had no impact on the Company’s condensed consolidated financial statements.

In December 2023, the FASB issued
ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which enhances the transparency and
decision usefulness of income tax disclosures by requiring; (1) consistent categories and greater disaggregation of information in the
rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the
effectiveness of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2025, with early adoption
permitted. These amendments are to be applied prospectively, with retrospective application permitted. The Company is currently evaluating
the impact this standard will have on its condensed consolidated financial statements.

The Company currently believes
there are no other issued and not yet effective accounting standards that are materially relevant to our condensed consolidated financial
statements.

NOTE 2 — GOING CONCERN

The Company’s consolidated
financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates
the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has incurred substantial
recurring losses from continuing operations, has used cash in the Company’s continuing operations, and is dependent on additional
financing to fund operations. The Company incurred a net loss of $7,252,394 and $51,464,429 for the three and six months ended December
31, 2024, respectively. As of December 31, 2024, the Company had cash and cash