Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 2

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 2
---
 will likely continue to be volatile and may decline regardless of our operating performance.

    ●
    Sales of a substantial number of shares of our Common Stock in the public market could cause our stock price to fall.

    ●
    Future sales and issuances of our Common Stock or rights to purchase Common Stock, including pursuant to our equity incentive plans, could result in additional dilution of the percentage ownership of our stockholders and could cause our stock price to fall.

Investing in our Common Stock involves a high degree
of risk. Investors should carefully consider all of the risk factors and uncertainties described below, in addition to the other information
contained in this Annual Report on Form 10-K, including the section of this report titled “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” and our consolidated financial statements and related notes, before investing
in our Common Stock. 

The risks described below may not be the only ones
relating to our Company and additional risks that we currently believe are immaterial may also affect us. If any of these risks, including
those described below, materialize, our business, competitive position, reputation, financial condition, results of operations, cash flows
and future prospects could be seriously harmed. In these circumstances, the market price of our Common Stock could decline, and investors
may lose all or a part of their investment.

Risks Related to Our Financial Position and Capital
Requirements

We have incurred substantial
losses since our inception and anticipate that we will continue to incur substantial and increasing losses for the foreseeable future.

Lunai is a pre-clinical-stage
biotechnology company and AI-driven healthcare technology company. Investment in biotechnology related to genetically modified cells is
highly speculative because it entails substantial upfront capital expenditures and significant risk that a product candidate will fail
to prove effective, gain regulatory approval or become commercially viable. We do not have any products approved by regulatory authorities
and have not generated any revenues from product sales or otherwise to date, and have incurred significant research, development and other
expenses related to our ongoing operations and expect to continue to incur such expenses. As a result, we have not been profitable and
have incurred significant operating losses in every reporting period since our inception. For the years ended June 30, 2025, and 2024,
respectively, we reported a net loss of $178,007,489 and $88,425,828. We had an accumulated deficit of $510 million and $332 million as
of June