Company: LNAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001731122-25-001544
Chunk: 119

Company: Lunai Bioworks Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 119
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 the United States and/or Europe, we cannot guarantee that a market for the therapies or products will develop. We may never be
profitable.

As noted above under the heading
“Going Concern and Management’s Plans,” through September 30, 2025, we have incurred substantial losses. We will need
additional funds both in the next twelve months and beyond for (a) research and development, (b) increases in personnel, (c) the purchase
of equipment, and investment in the development and validation of our technology. The availability of any required additional funding
cannot be assured. In addition, an adverse outcome in legal or regulatory proceedings in which we are currently involved or in the future
may be involved could adversely affect our liquidity and financial position. We may raise such funds from time to time through public
or private sales of our equity or debt securities. Such financing may not be available on acceptable terms, or at all, and our failure
to raise capital when needed could materially adversely affect our growth plans and our financial condition and results of operations.

As of September 30, 2025, the Company
had $624,808 in cash and working capital deficit of $18,922,114 as compared to $92,700 in cash and working capital deficit of $28,109,502
as of June 30, 2025, an increase of 574% and decrease of 33%, respectively.

Assets

Total assets at September 30, 2025,
were $6,960,663 compared to $8,230,840 as of June 30, 2025. The decrease in assets is primarily due to the impairment of operating lease
right-of-use assets of $687,371, amortization of prepaid assets of $390,529, partially offset by the increase of cash of $532,108 in the
current period.

Liabilities 

Total liabilities at September
30, 2025, were $20,001,437 compared to $29,580,681 as of June 30, 2025. The decrease in total liabilities was primarily related to the
decrease of $7,285,741 in notes payable – related parties, $974,383 in accrued expenses, $461,411 in accounts payable, $370,000
in contingent consideration liability and $306,853 in other current liabilities.

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

Three Months