Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 116

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 116
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,619) 
    $8,258 
  
    Excess of tax over book depreciation of patents 
     —  
     8,415 
  
    Stock/options compensation 
     463,099  
     6,672,252 
  
    Depreciation and amortization 
     —  
     188,422 
  
    Net operating loss carryforwards 
     76,296,814  
     148,832,041 
  
     Impairment expense 
     —  
     16,188,497 
  
    Contingent consideration fair value 
     —  
     (909,577)
  
    Amortization 
     1,961,747  
     — 
  
    Section 174 R&E Capitalization 
     3,292,075  
     — 
  
    ROU Assets and Lease Liabilities 
     14,227  
     — 
  
    Section 481(a) Adjustment 
     (40,895) 
     — 
  
    R&D Tax Credits 
     1,718,415  
     — 
  
    Change in tax rate 
     —  
     — 
  
    Valuation allowance 
     (83,680,863) 
     (170,988,308)
  
    Total Deferred Tax Assets (Liabilities) 
    $—  
    $— 

    F-20

In accordance with prevailing
accounting guidance, the Company is required to recognize and disclose any income tax uncertainties. The guidance provides a two-step
approach to recognizing and measuring tax benefits and liabilities when realization of the tax position is uncertain. The first step is
to determine whether the tax position meets the more-likely-than-not condition for recognition, and the second step is to determine the
amount to be recognized based on the cumulative probability that exceeds 50%. The amount of and ultimate realization of the benefits from
the deferred tax assets for income tax purposes is dependent, in part, upon the tax laws in effect, the Company’s future earnings,
and other future events, the effects of which can be difficult to determine and can only be estimated. Management estimates that it is
more likely than not that the Company will not generate adequate net profits to use the deferred tax assets; and consequently, a valuation
allowance was recorded for all deferred tax assets.

A reconciliation of income tax