Company: LNAI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000765
Chunk: 30

Company: Lunai Bioworks Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 and also set out
claims for breach of fiduciary duty, contribution and indemnification, aiding and abetting, and gross mismanagement. Plaintiffs do not
quantify any alleged injury, but seek damages, disgorgement, restitution, and other costs and expenses. On January 24, 2023, the United
States District Court for the Central District of California stayed the Koenig Matter pending resolution of the defendants’ anticipated
motion to dismiss in the Securities Class Action Litigation. On April 4, 2023, the United States District Court for the District of Delaware
stayed the Solak Matter pending resolution of the defendants’ anticipated motion to dismiss in the Securities Class Action Litigation.
On June 28, 2024,

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the United States District Court for the Central District
of California denied the defendants’ motion to dismiss the Securities Class Action Litigation. The Koenig Matter is currently stayed
and the parties’ deadline to file a joint status report is July 11, 2025. On April 30, 2025, the court stayed the Solak Matter for
ninety (90) days and the deadline for the parties to file a joint status report or further stay of the action is July 29, 2025. The defendants
have not yet responded to the Koenig or Solak complaints. The Company intends to contest these matters but expresses no opinion as to
the likelihood of favorable outcomes. Management is unable to determine the likelihood of a loss, including a possible range of losses,
if any, arising from this matter as of the reporting date.

State Derivative Litigation.
On October 20, 2022, Susan Midler filed a shareholder derivative action in the Superior Court of California, Los Angeles County, reciting
similar underlying facts as those alleged in the Securities Class Action Litigation (the “Midler Matter”). The action, filed
on behalf of the Company, names Serhat Gümrükcü and certain of the Company’s current and former directors as defendants.
The action also names the Company as a nominal defendant. The action sets out claims for breaches of fiduciary duty, contribution and
indemnification, aiding and abetting, and gross mismanagement. Plaintiff does not quantify any alleged injury, but seeks damages, disgorgement,
restitution, and other costs and expenses. On January