Company: LNAI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000765
Chunk: 117

Company: Lunai Bioworks Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 117
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 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 effect on our business, stock price and our relationships with third parties with whom we have business relationships, at least
until additional funding is obtained. If we do not have sufficient funds to continue operations, we could be required to seek bankruptcy
protection or other alternatives that could result in our stockholders losing some or all of their investment in us.

32

Funding that we may receive during
the fiscal year 2025 is expected to be used to satisfy existing and future obligations and liabilities and working capital needs, to support
commercialization of our products, to conduct the clinical and regulatory work to develop our product candidates, and to begin building
working capital reserves.

Results of Operations for the Three and Nine Months ended March 31,
2025 and 2024

The following table sets forth
our revenues, expenses and net loss for the three and nine months ended March 31, 2025 and 2024. The financial information below is derived
from our unaudited condensed consolidated financial statements.

    For the Three Months Ended 

    For the Nine Months Ended 

    March 31, 
    Increase/(Decrease) 
    March 31, 
    Increase/(Decrease)

    2025 
    2024 
    $ 
    % 
    2025 
    2024 
    $ 
    %
  
    Operating Expenses 

    General and administrative 
    $4,224,590  
    $7,652,