Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001731122-25-000258
Chunk: 71

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 8
Chunk 71
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 equivalents of $311,764 and an accumulated deficit of $383,919,510
and a working capital deficit of $26,898,493. These conditions raise substantial doubt about the Company’s ability to continue as
a going concern for one year after the 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.

    9

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.

NOTE 3 — FAIR VALUE MEASUREMENTS 

The Company accounts for fair value
measurements for financial assets and financial liabilities in accordance with FASB ASC Topic 820, “Fair Value Measurements”.
The authoritative guidance among other things, defines fair value, establishes a consistent framework for measuring fair value and expands
disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value
is defined as the exit price, representing the amount that would either be received to sell an asset or be paid to transfer