Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 477

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 4
Chunk 477
---
 unit level, or more frequently if events or circumstances indicate
it is more likely than not that the fair value of a reporting unit is less than it’s carrying amount. The Company recognized an
impairment loss of approximately $48 million during the three months ended September 30, 2024 with the remaining goodwill amount being
impaired at June 30, 2025. The determination of the fair value of the reporting unit on September 30, 2024, and June 30, 2025, required
management to make significant estimates and assumptions.

How
the Critical Audit Matter was Addressed in the Audit

We
identified the evaluation of the impairment analysis for goodwill as a critical audit matter because of the significant estimates and
assumptions management makes in performing impairment tests for the RenC reporting unit. These required a high degree of auditor judgment
and an increased extent of effort when performing audit procedures to evaluate the reasonableness of such estimates and assumptions.

Our
audit procedures related to the following:

●We
                                            tested management’s processes for estimating the fair value of the reporting unit at
                                            each respective date

●We
                                            evaluated whether the valuation techniques used were appropriate and reasonable and

●We
                                            evaluated the significant assumptions and underlying data used in developing the fair value
                                            of goodwill

In
addition, professionals with specialized skill and knowledge were utilized by the Firm to assist in the performance of these procedures.

/s/
Sadler, Gibb & Associates, LLC

We
have served as the Company’s auditor since 2018.

Draper,
UT

September
29, 2025

F-3

LUNAI BIOWORKS INC. FKA: RENOVARO INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

    June
    30,

    2025 
    2024

    ASSETS 

    CURRENT
    ASSETS: 

    Cash 
    $92,700  
    $220,467 
  
    Insurance
    receivable 
     —  
     1,108,247 
  
    Investment
    in equity securities 
     387,851  
     — 
  
    Prepaids
    and other assets 
     566,081  
     668,929 
  
    Total
    Current Assets 
     1,046,632  
     1,997,643 

    Property