Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000250
Chunk: 16

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 16
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 of the equity instruments issued and are recognized over the required service period, which is generally
the vesting period. Stock based compensation costs for the vesting of options and RSUs granted for the three and nine months ended March
31, 2024 were $1,861,601 and $3,844,658, respectively. Stock based compensation costs for the vesting of options and RSUs granted for
the three and nine months ended March 31, 2023 were $1,076,203 and $2,922,166, respectively (See Note 9.)

Recently Adopted Accounting Pronouncements – Recent accounting pronouncements issued by the FASB do not or are not believed by management to have a material
impact on the Company’s present or future financial statements.

NOTE 2 — RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

On July 12, 2024, the Company
received an SEC Comment Letter questioning its accounting for its indefinite life intangible assets impairment related to the
license agreement with Weird Science, LLC which was terminated on March 31, 2024, as described in Note 6.

After further analysis by
management and review of the applicable accounting requirements, the Company determined that its original impairment recognized in
its March 31, 2024 financial statements was not correct and those financial statements should be restated to reflect further
impairment of certain of its indefinite life intangible assets related to the license agreement with Weird Science, LLC.

The impact of the restatement
on these financial statements by line item is as follows:

| Schedule of financial statements by line items                                 |     | As Reported |              |   |     | Change |             |   |     | As Restated |              |   |
|:-------------------------------------------------------------------------------|:----|:------------|-------------:|:--|:----|:-------|------------:|:--|:----|:------------|-------------:|:--|
| Indefinite life intangible assets                                              |     | $           |   44,945,255 |   |     | $      | (34,190,000 | ) |     | $           |   10,755,255 |   |
| Total other assets                                                             |     | $           |  210,570,510 |   |     | $      | (34,190,000 | ) |     | $           |  176,380,510 |   |
| Total assets