Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 224

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1B
Chunk 224
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-consenting shareholders
of Renovaro Denmark.

Stock-based Compensation 

The Company recognizes compensation
costs for stock option awards to employees based on their grant-date fair value. The value of each stock option is estimated on the date
of grant using the Black-Scholes option-pricing model. In the year ended June 30, 2025, the weighted-average assumptions used to estimate
the grant date fair values of the stock options granted using the Black-Scholes option-pricing model are as follows:

    Schedule of weighted-average assumptions used to estimate the fair values of the stock options granted 

    Lunai Bioworks Inc.
  
    Expected term (in years) 
     5.5

    Volatility 
     109.45% – 118.99%
  
    Risk free interest rate 
     3.86%- 4.40%
  
    Dividend yield 
     0%

    F-24

The Company recognized stock-based
compensation expense related to all equity instruments of $3,313,291 and $4,673,129 for the years ended June 30, 2025 and 2024, respectively.
At June 30, 2025, the Company had approximately $1,009,277 of unrecognized compensation cost related to non-vested options.

Plan Options

On February 6, 2014, the Company’s
Board of Directors adopted the Company’s 2014 Equity Incentive Plan (the “2014 Plan”), and the Company had reserved
1,206,000 shares of Common Stock for issuance in accordance with the terms of the 2014 Plan.

On October 30, 2019, the Board
approved and on October 31, 2019, the Company’s stockholders adopted its 2019 Equity Incentive Plan (the “2019 Plan”),
which replaced the 2014 Plan. The 2019 Plan provided that the maximum aggregate number of shares of the Company’s Common Stock reserved
and available for issuance under the 2019 Plan was the sum of (1) 6,000,000 new shares, and (2) the number of shares available for the
grant of awards as of the effective date under the 2014 Plan plus any options related to awards that expire, are terminated, surrendered,
or forfeited for any reason without issuance of shares under the 2014 Plan after the effective date of the 2019 Plan.

Effective July 21,