Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000250
Chunk: 107

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 107
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 in the United Kingdom, the European Union, the United States and/or
other foreign jurisdictions, or that existing laws and regulations may be interpreted in ways that would affect the operation of Renovaro
Cube’s AI platform and data analytics and the way in which Renovaro Cube uses AI and machine learning technology. Further, the cost
to comply with such laws or regulations could be significant and would increase Renovaro Cube’s operating expenses, which could
adversely affect its business, financial condition and results of operations.

For example,
in Europe, on April 21, 2021, the European Commission proposed a regulation seeking to establish a comprehensive, risk-based governance
framework for AI in the European Union market. The proposed legislation is intended to apply to companies that develop, use and/ or provide
AI in the European Union and includes requirements around transparency, conformity assessments and monitoring, risk assessments, human
oversight, security and accuracy, and proposes fines for breach of up to 6% of worldwide annual turnover. In addition, on September 28,
2022, the European Commission proposed the AI Liability Directive and the revised Product Liability Directive seeking to establish a harmonized
civil liability regime for AI in the European Union in order to facilitate civil claims in respect of harm caused by AI and to include
AI-enabled products within the scope of the European Union’s existing product liability regime. If enacted, this regulatory framework
is expected to have a material impact on the way AI is regulated in the European Union, and together with developing guidance and/or decisions
in this area, may affect Renovaro Cube’s use of AI and its ability to provide and to improve its services, require additional compliance
measures and changes to its operations and processes, result in increased compliance costs and potential increases in civil claims against
Renovaro Cube, and could adversely affect its business, operations and financial condition.

Risks Related to Renovaro Cube’s Technology and Intellectual Property

Issues in the development and use of AI, including machine learning and computer vision, in Renovaro Cube’s AI platform may result in reputational harm or liability.

AI is
integrated into Renovaro Cube’s platform and is a significant element of its business offerings going forward. As with many developing
technologies, AI presents risks, challenges and unintended consequences that could affect its further development, adoption, and use,
and therefore Renovaro Cube’s business. AI algorithms and training methodologies may be flawed. Data sets may be insufficient, of
poor