Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 269

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 2
Chunk 269
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). The shares were issued without any additional consideration from
the Investors.

As a result of the foregoing transactions,
the Company (i) eliminated $9.7 million of secured indebtedness, (ii) issued $16.1 million in Convertible Notes to the same holders, and
(iii) issued 53.6 million shares of common stock upon full conversion of such Convertible Notes. The shares of common stock will be issued
on or before July 11, 2025, and no cash will be issued for any fractional shares. The transactions did not involve any cash proceeds to
the Company.

Known Trends

Going Concern and Management’s Plans

The financial statements included
elsewhere herein for the year ended June 30, 2025, were prepared under the assumption that we would continue our operations as a going
concern, which contemplates the realization of assets and the satisfaction of liabilities during the normal course of business. As of
June 30, 2025, we had cash and cash equivalents of $92,700, an accumulated deficit of $510,462,570 and total liabilities of $29,580,681.
We have incurred losses from continuing operations, have used cash in our continuing operations, and are dependent on additional financing
to fund operations. These conditions raise substantial doubt about our ability to continue as a going concern for one year after the date
the financial statements are issued. The financial statements included elsewhere herein do not include any adjustments to reflect the
possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result
from the outcome of this uncertainty.

56

Management has reduced overhead
and administrative costs by streamlining the organization to focus around the development and validation of its AI driven cancer diagnostics
platform. The Company has tailored its workforce to focus on these activities. In addition, the Company intends to attempt to secure additional
required funding through equity or debt financing. However, there can be no assurance that the Company will be able to obtain any sources
of funding. Such additional funding may not be available or may not be available on reasonable terms, and, in the case of equity financing
transactions, could result in significant additional dilution to our stockholders. If we do not obtain required additional equity or debt
funding, our cash resources will be depleted and we could be required to materially reduce or suspend operations, which would likely have
a material adverse effect on our business, stock price and our relationships with third parties with whom we