Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 150

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 150
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 at June 30, 2024 is $824,418.

Finance Agreement—

On November 30, 2023, the Company
entered into a premium finance agreement (the “Agreement”) related to insurance, which resulted in the recognition of a liability and prepaid expense with a principal amount of $ 906,834at 7.90% interest per annum, which is reflected on the consolidated balance sheet under “other current liabilities” and “prepaid assets and other assets”, respectively. The repayment of the Agreement will be made in nine equal monthly installments of $ 77,127after a down payment of $ 235,000. For the years ended June 30, 2024 and 2023 the Company made payments of $ 870,073and $ 1,121,767, respectively.The remaining balance at June 30, 2024 is $231,381; the amount is reflected in other current liabilities. For the years ended June 30, 2024 and 2023 the Company recorded total interest expense in the amount of $ 20,128and $21,180related to the Agreement. This amount is reflected in other income and expenses.

Total
interest expense recorded for the years ended June 30, 2024 and 2023, was $1,011,322 and $580,344, respectively.

NOTE 9 — INCOME TAXES

The Company accounts for income
taxes in accordance with FASB ASC Topic 740, Accounting for Income Taxes; which requires the Company to provide a net deferred tax asset
or liability equal to the expected future tax benefit or expense of temporary reporting differences between book and tax accounting and
any available operating loss or tax credit carryforwards. The amount of and ultimate realization of the benefits from the deferred tax
assets for income tax purposes is dependent, in part, upon the tax laws in effect, the Company’s future earnings, and other future
events, the effects of which cannot be determined.

As of June 30, 2024 and 2023, the Company had net operating loss carryforwards
of approximately $489,177,759 and $476,965,239, respectively, giving rise to deferred tax assets of $144,191,530 and $140,547,314, respectively.
The net operating loss carryforwards generated prior to January 1, 2018 expire over various dates from 2031 to 2038. All subsequent net
operating loss carry