Company: LNAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001731122-25-001544
Chunk: 21

Company: Lunai Bioworks Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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, the Company had approximately $192,608 of unrecognized compensation cost related to non-vested options.

NOTE 7 — COMMITMENTS AND CONTINGENCIES 

Commitments

On January 31, 2020, the Company
entered into a Statement of Work and License Agreement (the “HBV License Agreement”) by and among the Company, G Tech Bio,
LLC, a California limited liability company (“G Tech”), and G Health Research Foundation, a not-for-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 during the quarters ending September 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