Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 863

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 7A
Chunk 863
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ent Shares of Common Stock pro rata upon the exercise or conversion of warrants,
which were outstanding at closing. As of June 30, 2025, no further Contingent Shares are issuable.

Acquisition of Renovaro Denmark

At June 30, 2025 and 2024, the
Company maintained a reserve of 17,414 Escrow Shares, all of which are reflected as issued and outstanding in the accompanying financial
statements. The Escrow Shares are reserved to acquire the shares of Renovaro Denmark held by non-consenting shareholders of Renovaro Denmark
on both June 30, 2025 and 2024, in accordance with Section 70 of the Danish Companies Act and the Articles of Association of Renovaro
Denmark. There have been 167,639 shares of Common Stock issued to non-consenting shareholders of Renovaro Denmark as of June 30, 2025.
During the years ended June 30, 2025 and 2024, the Company did not issue any shares of Common Stock to such non-consenting shareholders
of Renovaro Denmark.

Stock-based Compensation 

The Company recognizes compensation
costs for stock option awards to employees 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. In the year ended June 30, 2025, the weighted-average assumptions used to estimate
the grant date fair values of the stock options granted using the Black-Scholes option-pricing model are as follows:

    Schedule of weighted-average assumptions used to estimate the fair values of the stock options granted 

    Lunai Bioworks Inc.
  
    Expected term (in years) 
     5.5

    Volatility 
     109.45% – 118.99%
  
    Risk free interest rate 
     3.86%- 4.40%
  
    Dividend yield 
     0%

    F-24

The Company recognized stock-based
compensation expense related to all equity instruments of $3,313,291 and $4,673,129 for the years ended June 30, 2025 and 2024, respectively.
At June 30, 2025, the Company had approximately $1,009,277 of unrecognized compensation cost related to non-vested options.

Plan Options

On February 6, 2014, the Company’s
Board of Directors adopted