Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 1172

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 1172
---
 may place a significant strain on its management, operating and financial systems,
research and development, and its sales, marketing, and administrative resources. As a result of growth, our operating costs may escalate
even faster than planned, and some of its internal systems may need to be enhanced or replaced. If Renovaro Cube or BioSymetrics cannot
effectively manage expanding operations and costs, Renovaro Cube or BioSymetrics may not be able to grow successfully or it may grow at
a slower pace, and its business could be adversely affected.

Renovaro
Cube and BioSymetrics will need to grow the size and capabilities of their organizations, and may experience difficulties in managing
this growth.

As of
June 30, 2025, Renovaro Cube had 14 full-time employees, and BioSymetrics had 6. As our growth plan and strategies develop, it must add
a significant number of additional managerial, operational, financial and other personnel. Future growth will impose significant added
responsibilities on members of management, including:

    ●
    identifying, recruiting, integrating, retaining and motivating additional employees;

    ●
    managing its internal development efforts effectively, including creating compliant programs and processes, and managing the regulatory requirements for its products, while complying with its contractual obligations to contractors and other third parties;

    ●
    expanding its operational, financial and management controls, reporting systems and procedures; and

    ●
    managing the increasing complexity associated with a larger organization and expanded operations.

Renovaro
Cube’s and BioSymetrics’ future financial performance and their ability to commercialize their respective products will depend,
in part, on their ability to effectively manage any future growth. Renovaro Cube’s and BioSymetrics’ management may also have
to divert a disproportionate amount of their attention away from day-to-day activities in order to manage these growth activities.
Renovaro Cube’s and BioSymetrics’ ability to successfully manage expected growth is uncertain given the fact that Renovaro
Cube has been in full operation as an independent company focusing on cancer diagnostics AI only since 2018, and BioSymetrics similarly
since 2017. Renovaro Cube’s and BioSymetrics’ executive management team’s lack of long-term experience working
together may adversely impact their ability to effectively manage its business and growth.

If Renovaro
Cube or BioSymetrics is not able to effectively expand its organization by hiring new employees, each may not be able to successfully