Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 944

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 8
Chunk 944
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-profit entity organized
under the laws of California doing business as Seraph Research Institute (“SRI”) (collectively the “Licensors”),
whereby the Company acquired a perpetual, sublicensable, exclusive license (the “HBV License”) for a treatment under development
(the “Treatment”) aimed to treat Hepatitis B Virus (HBV) infections.

The HBV License Agreement states
that in consideration for the HBV License, the Company shall provide cash funding for research costs and equipment and certain other in-kind
funding related to the Treatment over a 24-month period, and provides for an up-front payment of $1.2 million within 7 days of January
31, 2020, along with additional payments upon the occurrence of certain benchmarks in the development of the technology set forth in the
HBV License Agreement, in each case subject to the terms of the HBV License Agreement. Additionally, the HBV License Agreement provides
for cooperation related to the development of intellectual property related to the Treatment and for a 2% royalty to G Tech on any net
sales that may occur under the HBV License. On February 6, 2020, the Company paid the $1.2 million up-front payment. The HBV License Agreement
contains customary representations, warranties, and covenants of the parties with respect to the development of the Treatment and the
HBV License.

The cash funding for research
costs pursuant to the HBV License Agreement consisted of monthly payments amounting to $144,500 that covered scientific staffing resources
to complete the project as well as periodic payments for materials and equipment needed to complete the project. There were no payments
made after January 31, 2022. The Company paid zero under the HBV License Agreement in years ended June 30, 2025, and 2024. The Company
has filed a claim against the Licensors, which includes certain payments it made related to this license (see Contingencies sub-section
below).

On April 18, 2021, the Company
entered into a Statement of Work and License Agreement (the “License Development Agreement”), by and among the Company, G
Tech and SRI (collectively, the “Licensors”), whereby the Company acquired a perpetual sublicensable, exclusive license (the
“Development License”) to research, develop, and commercialize certain formulations which were aimed at preventing and treating
pan-coronavirus or the potential combination of the pan-cor