Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 97

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 97
---
 We will need additional funds both in the next twelve months
and beyond for (a) research and development, (b) increases in personnel, (c) the purchase of equipment, and investment in the development
and validation of our technology. The availability of any required additional funding cannot be assured. In
addition, an adverse outcome in legal or regulatory proceedings in which we are currently involved or in the future may be involved could
adversely affect our liquidity and financial position. We may raise such funds from time to time through public or private sales of our
equity or debt securities. Such financing may not be available on acceptable terms, or at all, and our failure to raise capital when needed
could materially adversely affect our growth plans and our financial condition and results of operations.

<div align='center'>61</div>

As of June 30, 2024, the Company had $220,467 in cash and working capital
of $(28,312,274) as compared to $1,874,480 in cash and working capital of $(8,457,693) as of June 30, 2023. The decrease in cash of $1,654,013
is primarily due to the cost of operations of $10,971,430, notes receivable prior to acquisition of $1,255,600 and repayments of finance
agreement of $870,073, partially offset by funding totaling $11,387,528 related to private placements, proceeds from note payables and the exercise of warrants during the period.

Equity

On February 15, 2024, the Company
closed a private placement of 344,827 shares of Common Stock, $0.0001 par value, at $2.90 per share for aggregate proceeds
to the Company of $1,000,000 in cash (see Note 10 to the Financial Statements).

On August 1, 2023, the Company
closed a private placement of 280,505 units (the “Units”), each
consisting of (i) one share of the Company’s Series A Convertible Preferred Stock, (the “Preferred Stock”) and (ii) one common stock purchase warrant (each, a “Warrant”,
and together with the Units and the shares of Preferred Stock, the “Securities”)
to purchase five shares of the Company’s common stock, at a price per Unit equal to $7.13 for aggregate proceeds to the Company
of $2,000,