Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 56

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 56
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 seek regulatory approval of, and to market, products identical
to ours and we may be required to cease our development and commercialization of product candidates covered by any such licenses. Any
of the foregoing could have a material adverse effect on our competitive position, business, financial condition, results of operations,
and prospects.

Moreover, disputes may arise regarding
intellectual property subject to a licensing agreement, including:

| ● | the                                                                                                                                      
 scope of rights granted under license agreements and other interpretation-related issues;                                                |
| ● | payment                                                                                                                                  
 obligations due to licensors under license agreements and other disputes related to the obligations for payment related to intellectual  
 property protection;                                                                                                                     |
| ● | the                                                                                                                                      
 extent to which our product candidates, technology and processes infringe on intellectual property of a licensor that is not subject     
 to a licensing agreement;                                                                                                                |
| ● | the                                                                                                                                      
 sublicensing of patent and other rights under our collaborative development relationships;                                               |
| ● | our                                                                                                                                      
 diligence obligations under license agreements and what activities satisfy those diligence obligations;                                  |
| ● | the                                                                                                                                      
 inventorship and ownership of inventions and know-how resulting from the joint creation or use of intellectual property by our licensors 
 and us; and                                                                                                                              |
| ● | the                                                                                                                                      
 priority of invention of patented technology.                                                                                            |

In addition, the agreements under
which we currently license intellectual property or technology from third parties are complex, and certain provisions in such agreements
may be susceptible to multiple interpretations.

The resolution of any contract
interpretation disagreement that may arise could narrow what we believe to be the scope of our rights to the relevant intellectual property
or technology or increase what we believe to be our financial or other obligations under the relevant agreement, either of which could
have a material adverse effect on our business, financial condition, results of operations, and prospects. Moreover, if disputes over
intellectual property that we have licensed prevent or impair our ability to maintain our licensing arrangements on commercially acceptable
terms, we may be unable to successfully develop and commercialize the affected product candidates, which could have a material adverse
effect on our business, financial condition, results of operations, and prospects.

If we do not obtain required intellectual property
licenses or rights, we could encounter delays in our product development efforts while we attempt to design around other patents or even
be prohibited from developing, manufacturing or selling products requiring these rights or licenses. There is also a risk that legal disputes
may arise as to the rights to technology developed in collaboration with other parties, all