Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001731122-25-000258
Chunk: 144

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 2
Chunk 144
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 and working capital deficit of $26,898,493 as compared to $220,467 in cash and working capital deficit of $28,312,274
as of June 30, 2024, an increase of 41% and decrease of 5%, respectively.

Assets

Total assets at December 31, 2024,
were $111,340,272 compared to $163,129,450 as of June 30, 2024. The decrease in assets is primarily due to goodwill impairment of $47,614,729
in the current period.

Liabilities 

Total liabilities at December 31,
2024, were $29,280,954 compared to $31,152,306 as of June 30, 2024. The decrease in total liabilities was primarily related to the decrease
of $6,660,000 in contingent consideration liability, partially offset by an increase of $2,679,004 in notes payable – related parties,
net and an increase in accounts payable of $1,485,872.

The following is a summary of the
Company’s cash flows (used in) or provided by operating, investing, and financing activities:

    Six Months  Ended 
December 31, 2024 
    Six Months Ended 
December 31, 2023
  
    Net Cash Used in Operating Activities 
    $(4,576,052) 
    $(5,923,830)
  
    Net Cash Used in Investing Activities 
     —  
     (1,115,209)
  
    Net Cash Provided by Financing Activities 
     4,620,162  
     5,409,682 
  
    Effect of exchange rates on cash 
     47,187  
     (1,143)
  
    Change in Cash and Cash Equivalents 
    $91,297  
    $(1,630,500)

34

Cash Flows

The decrease in our cash used in
operating activities is primarily related to the changes in our operating assets and liabilities. The change is primarily drive by our
net loss offset by significant non-cash charges such as stock based compensation, impairments and change in fair value of contingent consideration.
Additionally, our operating cash flow was positively impacted by changes in our operating assets and liabilities, primarily other receivables,
prepaid expenses and accounts payable.

Cash used in investing activities
during the prior period primarily related to the issuance of notes receivable prior to the acquisition of Renovaro