Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 43

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 43
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 our day-to-day operations
and devote a substantial amount of time to managing these growth activities. We might not be able to effectively manage the expansion
of our operations, which may result in weaknesses in our infrastructure, operational inefficiencies, loss of business opportunities, loss
of employees and reduced productivity among remaining employees. Our expected growth could require significant capital expenditures and
may divert financial resources from other projects, such as the development of our current and potential future product candidates. If
our management is unable to effectively manage our growth, our expenses may increase more than expected and our ability to generate and
grow revenue could be reduced and we might not be able to implement our business strategy. Our future financial performance, our ability
to commercialize product candidates, develop a scalable infrastructure and compete effectively will depend, in part, on our ability to
effectively manage any future growth.

Management
and employee turnover creates uncertainties and could harm our business.

We have
experienced significant turnover in our executive leadership and management in recent years. Changes to strategic or operating goals,
which oftentimes occur with the appointment of new executives and board members, can create uncertainty, may negatively impact our ability
to execute quickly and effectively, and may ultimately be unsuccessful. In addition, executive leadership transition periods are often
difficult as the new executives gain detailed knowledge of our operations, and friction can result from changes in strategy and management
style. Management turnover inherently causes some loss of institutional knowledge, which can negatively affect strategy and execution.
Until we integrate new personnel, and unless they are able to succeed in their positions, we may be unable to successfully manage and
grow our business, and our financial condition and ability to become profitable may suffer.

42

As we
continue our exploration of strategic alternatives, we may experience additional turnover in our board and senior management. Departures
of our management team and board members have created, and will create if they continue, significant continuity risks and challenges to
our ability to operate our business, assess and manage risks and comply with applicable laws. If key members of our senior management
team depart, it will be important that we attract and retain qualified managers promptly and develop and implement an effective succession
plan. We expect to face significant competition in attracting experienced executives and other key personnel, and there can be no assurance
that we will be able to do so. Further, to the extent we experience additional management turnover, competition for top management is
high and it may take months to find a candidate that meets our requirements. If we are