Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 917

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 8
Chunk 917
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 467,290 shares of common stock at a purchase price of $1.07 per share. The investment in equity securities was recorded
at a fair value of $500,000 at the time of purchase and is subsequently remeasured to fair value at the end of each reporting period.
As of June 30, 2025, the Company held 467,290 shares of common stock in connection with the investment in equity securities. 

Level 3 liabilities held as of
June 30, 2025, consisted of a contingent consideration liability related to the February 13, 2024 acquisition of Renovaro
Cube, (the “Acquisition”). As consideration for the Acquisition, the stockholders of Renovaro Cube received (i) 70,834,183
shares of Common Stock, and (ii) the right to receive up to 11,899,545 contingent shares pro rata upon the exercise of convertible notes,
options, and warrants, which were outstanding at closing. The contingent consideration liability was recorded at fair value of $20,557,500
at the time of the Acquisition and is subsequently remeasured to fair value at the end of each reporting period. As of June 30, 2025,
there were 2,775,650 contingent shares issuable in connection with the Acquisition.

The Company’s assets and
liabilities measured at fair value on recurring bases as of June 30, 2025 were as follows:

    Schedule of assets and
liabilities measured at fair value on recurring bases 

    Fair Value Measurements at Reporting Date Using

    Level 1 
    Level 2 
    Level 3

    Assets: 

    Investment in equity securities 
     387,851  
     —  
     — 
  
    Total assets at fair value 
    $387,851  
     —  
    $— 
  
    Liabilities: 

     —  

    Contingent consideration 
     —  
     —  
     630,000 
  
    Total liabilities at fair value 
    $—  
     —  
    $630,000 

The fair value of the contingent
consideration liability is estimated using a Black-Scholes option-pricing model and a Monte-Carlo option pricing model. The key inputs
to the model are all contractual or observable with the exception being volatility, which is computed based on the volatility of the Company’s