Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 71

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 71
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,684.

Net Loss

Net loss for the years ended June
30, 2025 and June 30, 2024 was $178,007,489 and $88,425,828, respectively, representing an increase in net loss of $89,581,661 or 101%.
The increase in net loss was primarily due to the increase of non-cash goodwill impairment of $158,779,429, offset by the decrease in
non-cash intangible asset impairment of $42,611,000, decrease in general and administrative expenses of $6,677,558, decrease in research
and development expenses of $2,171,401 and by the change in fair value of contingent consideration of $14,728,183.

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 States and/or Europe. Even if we are successful in having our therapies or products approved for
sale in the United States and/or Europe, we cannot guarantee that a market for the therapies or products will develop. We may never be
profitable.

As noted above under the heading
“Going Concern and Management’s Plans,” through June 30, 2025, we have incurred substantial losses. We will need additional
funds both in the next twelve months and beyond for (a) research and development, (b) increases in personnel, (c) the purchase of equipment,
and investment in the development and validation of our technology. The availability of any required additional funding cannot be assured.
In addition, an adverse outcome in legal or regulatory proceedings in which we are currently involved or in the future may be involved
could adversely affect our liquidity and financial position. We may raise such funds from time to time through public or private sales
of our equity or debt securities. Such financing may not be available on acceptable terms, or at all, and our failure to raise capital
when needed could materially adversely affect our growth plans and our financial condition and results of operations.

58

As of June 30, 2025, the Company
had $92,700 in cash and working capital of $(28,109,502) as compared to $220,467 in cash and working capital of $(28,312,274) as of June