Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000254
Chunk: 8

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 8
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 | $           |       16,106 |   |
| Additional paid-in capital    |     | $           |  460,665,481 |   |     | $      |  7,775,313 |   |     | $           |  468,440,794 |   |
| Accumulated deficit           |     | $           | (368,891,461 | ) |     | $      | (7,775,656 | ) |     | $           | (376,667,117 | ) |

NOTE 3 — GOING CONCERN

The Company’s consolidated
financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates
the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has incurred substantial
recurring losses from continuing operations, has used cash in the Company’s continuing operations, and is dependent on additional
financing to fund operations. The Company incurred a net loss of $44,212,036 and $9,175,028 for the quarters ended September 30, 2024
and 2023, respectively. As of September 30, 2024, the Company had cash and cash equivalents of $220,571 and an accumulated deficit of
$376,667,117 and a working capital deficit of $21,087,220. These conditions raise substantial doubt about the Company’s ability
to continue as a going concern for one year after the date the financial statements are issued. The consolidated financial statements
do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities
that might be necessary should the Company be unable to continue in existence.

Management has reduced overhead and administrative costs by streamlining the organization
to focus around the development and validation of its AI-driven cancer diagnostics platform. The Company has tailored its workforce to
focus on these activities. In addition, the Company intends to secure additional required funding through equity or debt financing. However,
there can be no assurance that the Company will be able to obtain any sources of funding. Such additional funding may not be available
or may not be available on reasonable terms, and, in the case of equity financing transactions, could result in significant additional
dilution to our stockholders. If we do not obtain required additional equity or debt funding, our cash resources will be depleted and
we could be required to materially reduce or suspend operations, which would likely have a material adverse