Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 114

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 114
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 30, 2024 and 2023, respectively (see Note 6 to the financial statements).

The carrying values of IPR&D
and goodwill at June 30, 2024, were zero and $159,330,161, respectively.

Fair Value of Financial Instruments– 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 a liability in an orderly transaction between market participants. As such, fair value is a market-based
measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. There
were no Level 1, 2, or 3 assets, nor any Level 1, or 2 liabilities measured at fair value on a recurring basis as of June 30, 2024. Level 3 liabilities held as of June 30, 2024, consisted of a contingent consideration liability related to the February 13, 2024, acquisition of Renovaro Cube(see Note 4.) There were no Level 1, 2, or 3 assets, nor any Level 1, 2, or 3 liabilities measured at fair value
on a recurring basis as of June 30, 2023.

Stock-Based Compensation -The
Company has granted stock options, restricted share units (“RSUs”) and warrants to certain employees, officers, directors,
and consultants. The Company accounts for options in accordance with the provisions of FASB ASC Topic 718, Compensation – Stock Compensation. Stock based compensation costs for the vesting of options and RSUs granted to certain employees, officers,
directors, and consultants for the years ended June 30, 2024 and 2023 were $4,673,129 and $3,535,051, respectively (see Note 10 to the
Financial Statements).

The Company recognizes compensation
costs for stock option awards to employees, officers and directors 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. The weighted