Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001731122-25-000258
Chunk: 60

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 60
---
 deadline to file a joint
status report in the Koenig matter is April 11, 2025. On October 28, 2024, the court in the Solak matter stayed the case for ninety (90)
days. On January 29, 2025, the court in the Solak matter stayed the case for an additional ninety (90) days. The defendants have not yet
responded to either complaint. The Company intends to contest these matters but expresses no opinion as to the likelihood of favorable
outcomes. Management is unable to determine the likelihood of a loss, including a possible range of losses, if any, arising from this
matter as of the reporting date.

36

State Derivative Litigation. On October 20,
2022, Susan Midler filed a shareholder derivative action in the Superior Court of California, Los Angeles County, reciting similar underlying
facts as those alleged in the Securities Class Action Litigation. The action, filed on behalf of the Company, names Serhat Gümrükcü
and certain of the Company’s current and former directors as defendants. The action also names the Company as a nominal defendant.
The action sets out claims for breaches of fiduciary duty, contribution and indemnification, aiding and abetting, and gross mismanagement.
Plaintiff does not quantify any alleged injury, but seeks damages, disgorgement, restitution, and other costs and expenses. On January
20, 2023, the Court stayed the Midler matter pending resolution of the defendants’ anticipated motion to dismiss in the Securities
Class Action Litigation. On June 28, 2024, the United States District Court for the Central District of California denied defendants’
motion to dismiss the Securities Class Action Litigation. On October 28, 2024, the court in the Midler matter stayed the case for ninety
(90) days. On January 24, 2025, the court in the Midler matter stayed the case for an additional ninety (90) days. The parties’
deadline to file a joint status report in the Midler matter is April 28, 2025. The defendants have not yet responded to the complaint.
The Company intends to contest this matter but expresses no opinion as to the likelihood of a favorable outcome. Management is unable
to determine the likelihood of a loss, including a possible range of losses, if any, arising from this matter as of the reporting date.

On October
21, 2022, the