Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000250
Chunk: 25

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 25
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 implicit rate. As the Company does not have any external borrowings for
comparable terms of its leases, the Company estimated the incremental borrowing rate based on the U.S. Treasury Yield Curve rate that
corresponds to the length of each lease. This rate is an estimate of what the Company would have to pay if borrowing on a collateralized
basis over a similar term in an amount equal to the lease payments in a similar economic environment. As of March 31, 2024, the weighted-average
discount rate is 5.16%.

Lease and non-lease components
— In certain cases the Company is required to pay for certain additional charges for operating costs, including insurance, maintenance,
taxes, and other costs incurred, which are billed based on both usage and as a percentage of the Company’s share of total square
footage. The Company determined that these costs are non-lease components, and they are not included in 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.

15

RENOVARO INC. AND SUBSIDIARIES
NOTES TO UNAUDITED RESTATED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 7 — LEASES (Continued)

Below are the lease commitments
for the next 5 years:

| Year Ending June 30th |           Schedule of 
     lease commitments 
                  2024 |     | Lease Expense |   286,252 |   |
|:----------------------|----------------------:|:----|:--------------|----------:|:--|
|                       |                  2025 |     |               |   557,851 |   |
|                       |                  2026 |     |               |   349,204 |   |
|                       |                  2027 |     |               |   309,491 |   |
|                       |                  2028 |     |               |    59,439 |   |
|                       |             Sub-total |     |               | 1,562,237 |   |
|                       | Less imputed interest |     |               |  (108,658 | ) |
|                       |                 Total |     | $             | 1,453,579 |   |

Sublease Agreement

On June 20, 2022, the Company entered into a sublease Agreement with One Health Labs