Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 131

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 131
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 as follows:

| ● | Level 1. Observable inputs                                                   
 such as quoted prices in active markets for identical assets or liabilities; |

| ● | Level 2. Inputs, other                                                                       
 than quoted prices in active markets, that are observable either directly or indirectly; and |

| ● | Level 3. Unobservable inputs                                                                                   
 in which there is little or no market data, which require the reporting entity to develop its own assumptions. |

There were no Level 1, 2 or 3 assets,
nor any Level 1 or 2 liabilities as of June 30, 2024.

Level 3 liabilities held as
of June 30, 2024, consisted of a contingent consideration liability related to the February 13, 2014, acquisition of Renovaro Cube, (the “Acquisition”). As consideration for the Acquisition, the stockholders of Renovaro Cube received (i) 70,834,183shares of Common Stock, (ii) the right to receive contingent shares pro rata upon the exercise of convertible notes, options, and warrants, which were outstanding at closing less (iii) an as of yet undefined discount of the number of shares to be issued as a result of any such exercise. The Company and the stockholders of Renovaro Cube have not determined or agreed on the amount of any such discount which may be applied towards future exercises.The contingent consideration liability was recorded at fair value of $ 20,557,500at the time of acquisition and is subsequently remeasured to fair value at the end of each reporting period. At June 30, 2024, there were 7,613,301contingent shares issuable in connection with the Acquisition of Renovaro Cube.

F-14

The fair value of the contingent consideration liability is estimated using
a Black-Scholes option-pricing model and a Monte-Carlo option pricing model. The key inputs to the model are all contractual or observable
with the exception being volatility, which is computed based on the volatility of the Company’s underlying stock. The key inputs
to valuing the contingent consideration liability as of June 30, 2024, were:

| Schedule of key input to valuing the   
 contingent consideration liability     |     |   |               |   |
|:---------------------------------------|:----|:--|--------------:|:--|
| Stock Price                            |     | $ |          1.75 |   |
| Exercise Price                         |     |   |