Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 136

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 136
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 the calculation of the lease liabilities
because they are variable. Payments for these variable, non-lease components are considered variable lease costs and are recognized in
the period in which the costs are incurred.

Below are the lease commitments for the next 5 years:

| Schedule of lease commitments 
 Years Ending June 30          |     | Lease Expense |           |   |
|:------------------------------|:----|:--------------|----------:|:--|
| 2025                          |     | $             |   554,453 |   |
| 2026                          |     |               |   457,876 |   |
| 2027                          |     |               |   334,788 |   |
| Thereafter                    |     |               |    79,830 |   |
| Less imputed interest         |     |               |   (91,005 | ) |
| Total                         |     | $             | 1,335,942 |   |

Sublease Agreement

On June 20, 2022, the Company entered into a sublease Agreement with One Health Labs (the “Subtenant”), whereby the Subtenant agreed to lease 3,554 square feet of space currently rented by the Company in Century City Medical Plaza as of June 25, 2022, for a period of 3.5 years with an option to renew for the remaining term of the lease that ends as of June 19, 2028. The base rent was $17,770 per month plus $750 towards utility fees that are part of the original lease agreement and would increase by 3% each year over the term of the sublease. The Company received a total of $57,022 on July 1, 2022 after execution of the sublease to cover the first month rent, utility fee and deposit. The first sublease payment began on August 1, 2022.

In accordance with ASC Topic 842,
the Company treated the sublease as a separate lease, as the Company was not relieved of the primary obligation under the original lease.
The Company continues to account for the Century City Medical Plaza lease as a lessee and in the same manner as prior to the commencement
date of the sublease. The Company accounted for the sublease as a lessor of the lease. The sublease was classified as an operating lease,
as it did not meet the criteria of a sales-type or direct financing lease.

F-18

On April 18, 2023, the