Company: LNAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001731122-25-001544
Chunk: 82

Company: Lunai Bioworks Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 82
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 seeks, inter alia, equitable relief, including, but not limited to, return to the Company any shares received
in connection with the merger, and damages. On October 1, 2024, the defendants moved to dismiss the complaint. A hearing took place on
June 25, 2025, and on November 7, 2025, the Court granted defendants’ motion and dismissed the complaint.

Lunai commenced an action against Predictive Oncology, Inc. (“POAI”)
in the Delaware Court of Chancery claiming that POAI breached a “definitive” January 2025 Letter Agreement pursuant to which
Lunai was going to acquire POAI. As a result of its breach, POAI made that acquisition impossible and dramatically devalued the share
price of stock Lunai had already acquired as well as the value of the company it was contractually entitled to acquire. Lunai sought specific
performance or, in the alternative, money damages. The parties have exchanged paper discovery and noticed depositions. The action has
been held in abeyance while the parties attempt to negotiate a settlement.

NOTE 8 — RELATED PARTY TRANSACTIONS 

As of September 30, 2025, the Company
has accrued $384,949 of compensation related expenses for the Company’s former Chief Executive Officer, Mark Dybul, related to budget
constraints.

On August 23, 2024, Avram Miller,
a former member of the Company’s board of directors (the “Board of Directors”), forfeited 83,333 shares of
Common Stock from the original 100,000 shares of Common Stock for advisory services originally granted to him on October 11,
2023. As consideration for such forfeiture, the Company granted to Mr. Miller, an option to purchase 97,826 shares of Common
Stock of the Company with a per-share exercise price of $6.90. The Company determined that this transaction represented a modification
of the original award. The Company measured the fair value of the options issued as compared to the fair value of the original issuance
and determined that there was no incremental compensation to recognize as the fair value of the options was less than the fair value of
the Common Stock. Therefore, the Company will recognize the remaining fair value of the original award over the remaining vesting period,
which is one year. The Company recognized stock-based compensation expense of $185,373 related to the vesting of the stocks options