Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 96

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 96
---
368 or 35%.
The decrease in research and development expenses is primarily related to $2,090,957 in collaborating partner expenses with CDMO
and CROs related to discontinued product candidates, partially offset by an increase in consumables of $238,862 and consulting expenses
of $333,894.

Other Income (Expenses)

Net other income (expenses) for
the years ended June 30, 2024 and 2023 was $(6,786,532) and $(1,127,165), respectively, representing an increase of $5,659,367 or 502%.
The increase in other income was due primarily to the change in the fair value of the contingent consideration in the amount of $(3,048,183),
which resulted from the mark to market adjustment on the remaining contingent consideration liability in the year ended June 30, 2024,
offset by a loss on extinguishment of debt in the amount of $1,303,578 and interest and other expense of $1,423,449.

Net Loss

Net loss for the years ended June 30, 2024 and June 30, 2023 was $88,425,828
and $39,684,056, respectively, representing an increase in net loss of $48,741,772 or 123%. The increase in net loss was primarily due
to the increase of non-cash intangible asset impairment of $23,651,000, the non-cash goodwill impairment of $11,640,000 and the increase
in general and administrative expenses of $9,239,410 offset by the change in fair value of contingent consideration of $(3,048,183) and
by the $1,456,368 decrease in research and development expenses.

Liquidity and Capital Resources

We have historically satisfied
our capital and liquidity requirements through funding from stockholders, the sale of our Common Stock and warrants, and debt financing.
We have never generated any sales revenue to support our operations, and we expect this to continue until our therapies or products are
approved for marketing in the United States and/or Europe. Even if we are successful in having our therapies or products approved for
sale in the United States and/or Europe, we cannot guarantee that a market for the therapies or products will develop. We may never be
profitable.

As noted above under the heading “Going Concern and Management’s
Plans,” through June 30, 2024, we have incurred substantial losses.