Company: LNAI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000765
Chunk: 152

Company: Lunai Bioworks Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 152
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 $446,938 and consumables and reagents related expenses of $231,281. 

The Company recorded other income
of $4,351,668 for the three months ended March 31, 2025, compared to other expense of $7,609,230 for the three months ended March 31,
2024, representing an decrease in other expense of $11,960,898 or 157%. The variance is primarily due to the change in fair value of contingent
consideration liability of $11,619,156.

The Company recorded other income
of $10,772,108 for the nine months ended March 31, 2025, compared to other expense of $8,159,190 for the nine months ended March 31, 2024,
representing a decrease in other expense of $18,931,298 or 232%. The variance is primarily due to the change in fair value of contingent
consideration liability of $18,279,156.

Net Loss 

Net income (loss) for the three
months ended March 31, 2025, and 2024, was $189,176 and $(58,990,070), respectively, representing a change in net income (loss) of $59,179,246
or approximately 100%. The decrease in net loss was primarily due to a decrease in intangible asset impairment of $42,611,000 and the
change in fair value of contingent consideration of $11,619,156.

Net loss for the nine months ended
March 31, 2025, and 2024, was $51,275,253 and $72,694,219, respectively, representing a decrease in net loss of $21,418,966 or approximately
29%. The decrease in net loss was primarily due to decreases in intangible asset impairment of $42,611,000, general and administrative
expenses of $5,680,018, research development expenses of $1,817,121 and change in fair value of contingent consideration of $18,931,298,
partially offset by the increase in goodwill impairment of $47,614,729.

34

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