Company: LNAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001731122-25-001544
Chunk: 95

Company: Lunai Bioworks Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 95
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(94
)%

Other Income (Expenses)

Change in fair value of contingent consideration

370,000

9,250,000

(8,880,000
)

(96
)%

Change in fair value of equity securities

156,849

—

156,849

100
%

Gain on bankruptcy of subsidiary

12,019,227

—

12,019,227

100
%

Loss on extinguishment of debt

(6,329,592
)

—

(6,329,592
)

(100
)%

Interest expense

(122,400
)

(250,080
)

127,680

(51
)%

Interest income and other income (expense)

33,297

126,598

(93,301
)

(74
)%

Total Other Income (Expense)

6,127,381

9,126,518

(2,999,137
)

(33
)%

NET INCOME (LOSS)
 
$
2,819,021

$
(44,212,036
)
 
$
47,031,057

(106
)%

Revenues

We are a pre-revenue, pre-clinical
biotechnology and artificial intelligence driven healthcare technology company. We have never generated revenues and have incurred losses
since inception. We do not anticipate earning any revenues until our therapies or products are approved for marketing and sale.

31

Expenses 

Our operating expenses for the
three months ended September 30, 2025 and 2024, were $3,308,360 and $53,338,554, respectively, representing a decrease of $50,030,194,
or approximately 94%. The decrease in operating expenses primarily relates to the decrease in goodwill impairment of $47,614,729 and by
the decrease in general and administrative expenses of $2,890,735, partially offset by the impairment of fixed assets and right of
use assets of $831,915 due to no longer using assets.

General
and administrative expenses for the three months ended September 30, 2025, and 2024, were $2,410,516 and $5,301,251, respectively, representing
a decrease of $2,890,735 or approximately 55%. The variance is primarily related to a decrease in consulting fees of $1,576,761, legal
expenses of $899,802 and compensation and related expenses of $205,381. 

Research and development