Company: LNAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001731122-25-001544
Chunk: 44

Company: Lunai Bioworks Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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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 expenses
for the three months ended September 30, 2025, and 2024, were $24,407 and $390,189, respectively, representing a decrease of $365,782
or approximately 94%. The variance is primarily driven by a decrease of $346,100 in consumables and reagents used in discontinued product
candidates.

The
Company recorded other income of $6,127,381 for the three months ended September 30, 2025, compared to other income of $9,126,518 for
the three months ended September 30, 2024, representing a decrease in other income (expense) of $2,999,137 or 33%. The variance is primarily
due to the decrease in fair value of contingent consideration of $8,880,000 and loss on extinguishment of debt of $6,329,592, partially
offset by the gain on the bankruptcy of Gedi Cube B.V. of $12,019,227.

Net Income (Loss) 

Net income (loss) for the three
months ended September 30, 2025, and 2024, was $2,819,021 and $(44,212,036), respectively, representing a decrease in net loss of $47,031,057
or approximately 106%. The decrease in net loss was primarily due to the decrease in goodwill impairment of $47,614,729 in the prior period.

32

Liquidity and Capital Resources 

We have historically satisfied
our capital and liquidity requirements through funding from stockholders, the sale of our Common Stock and warrants, and debt financing.
We have never generated any sales revenue to support our operations, and we expect this to continue until our therapies or products are
approved for marketing in the United States and/or Europe. Even if we are successful in having our therapies or products approved for