Company: LNAI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000765
Chunk: 183

Company: Lunai Bioworks Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 4
Chunk 183
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(a), 10b-5(c) and 14a-9 of the Exchange Act of 1934. The Derivative Complaint also includes claims of breach of fiduciary
duty, corporate waste, unjust enrichment, and contribution/indemnification. Weird Science and Wittekind seek unspecified compensatory,
exemplary, and punitive damages and certain injunctive relief. The Derivative Complaint names the Company as a nominal defendant. On July
19, 2024, certain of the director defendants, who had agreed to waive service of the summons and Derivative Complaint, filed a motion
to dismiss the Derivative Complaint on a variety of procedural and substantive grounds. A hearing on the motion dismiss was held on October
3, 2024 and the court subsequently took the motion under submission. On October 22, 2024, the plaintiffs filed a notice of certain subsequent
events that they allege relate to their pending motion to dismiss. On October 29, 2024, the court granted the director defendants’
motion to dismiss and dismissed the Derivative Complaint without prejudice, but also without leave to amend.

39

On November 27, 2024, Weird Science
and Wittekind filed a notice of appeal of the court’s decision granting the director defendants’ motion to dismiss. The appeal
remains pending.

On June 21, 2024, the Company filed suit against Weird
Science, Wittekind, and certain trusts in connection with the February 16, 2018 merger involving the Company and two companies closely
associated with Gumrukcu. In the complaint, the Company alleges that Gumrukcu and others deliberately and fraudulently concealed a murder-for-hire
scheme from the Company in order to induce the Company to enter into the merger agreement, which resulted in the defendants receiving
shares and compensation. The Company asserts claims for fraudulent concealment, equitable fraud, unjust enrichment, and civil conspiracy
and seeks, inter alia, equitable relief, including, but not limited to, return to the Company any shares received in connection
with the merger, and damages. On October 1, 2024, the defendants moved to dismiss the complaint and a hearing has been scheduled for June
25, 2025.

Item 1A. Risk Factors.

As a “smaller reporting company”
as defined by Rule 12b-2 of the Securities Exchange Act of 1934, the Company is not required to provide the information required by this