Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001731122-25-000258
Chunk: 21

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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On August 23, 2024, Avram Miller,
a former member of the Company’s board of directors (the “Board of Directors”), forfeited 833,333 shares of Common Stock
from the original 1,000,000 shares of Common Stock for advisory services originally granted to him on October 11, 2023. As consideration
for such forfeiture, the Company granted to Mr. Miller, an option to purchase 978,261 shares of Common Stock of the Company with a per-share
exercise price of, $0.69. The Company determined that this transaction represented a modification of the original award. The Company measured
the fair value of the options issued as compared to the fair value of the original issuance and determined that there was no incremental
compensation to recognize as the fair value of the options was less than the fair value of the Common Stock. Therefore, the Company will
recognize the remaining fair value of the original award over the remaining vesting period, which is one year. The Company recognized
stock-based compensation expense of $538,127 related to the vesting of the stocks options during the period ended December 31, 2024. At
December 31, 2024, the Company had $806,716 of unrecognized compensation cost related to the options which vest at August 23, 2025.

 On October 14, 2024, the
Company issued 1,600,000 stock options to its Chief Executive Officer. The options had a fair value of $731,200, fully vest on January
1, 2027 and expire on October 14, 2034.

On November 4, 2024, the Company
issued 362,904 stock options to its board of directors. The options had a fair value of $190,525 on the grant date, fully vest on October
14, 2025 and expire on November 4, 2034.

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On November 4, 2024, the Company
issued 58,500 stock options to its former interim Chief Financial Officer. The options had a fair value of $31,005 on the grant date,
fully vest on January 6, 2025 and expire on November 4, 2034.

In
total, the Company recognized stock-based compensation expense related to options of $558,631 and $916,279 for the three and six
months ended December 31, 202