Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001731122-25-000258
Chunk: 142

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 2
Chunk 142
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2024, and 2023, were $9,654,373 and $11,906,602, respectively, representing a decrease of $2,252,229
or approximately 19%. The variance is related to a decrease in consulting fees expense of $2,098,916, and non-cash stock-based compensation
expense of $1,066,778, partially offset by an increase in compensation and related expenses of $637,587 and legal expenses of $192,571.

Research and development expenses
for the three months ended December 31, 2024, and 2023, were $161,084 and $620,521, respectively, representing a decrease of $459,437
or approximately 74%. The variance is primarily driven by a decrease of $236,026 in collaborating partner expenses with
CDMO and CROs and $205,057 in consumables related to pre-clinical testing.

Research and development expenses
for the six months ended December 31, 2024, and 2023, were $551,273 and $1,187,165, respectively, representing a decrease of $635,892
or approximately 54%. The variance is primarily driven by a decrease of $498,092 in collaborating partner expenses with
CDMO and CROs, and consulting expenses of $107,433. 

The Company recorded other expense
of $2,706,078 for the three months ended December 31, 2024, compared to other expense of $259,046 for the three months ended December
31, 2023, representing an increase in other expense of $2,447,032 or 945%. The variance is primarily due to an increase of $2,590,000
in the change in fair value of contingent consideration in the current period.

The Company recorded other income
of $6,420,440 for the six months ended December 31, 2024, compared to other expense of $549,960 for the six months ended December 31,
2023, representing a decrease in other expense of $6,970,400 or 1,267%. The variance is primarily due to the change in fair value of contingent
consideration liability of $6,660,000 in the current period.

Net Loss 

Net loss for the three months ended
December 31, 2024, and 2023, was $7,252,394 and $4,529,121, respectively, representing