Company: LNAI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000765
Chunk: 60

Company: Lunai Bioworks Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 60
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 loss of $21,418,966 or approximately
29%. The decrease in net loss was primarily due to decreases in intangible asset impairment of $42,611,000, general and administrative
expenses of $5,680,018, research development expenses of $1,817,121 and change in fair value of contingent consideration of $18,931,298,
partially offset by the increase in goodwill impairment of $47,614,729.

34

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 March 31, 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.

As of March 31, 2025, the Company
had $923,002 in cash and working capital deficit of $25,173,586 as compared to $220,467 in cash and working capital deficit of $28,312,274
as of June 30, 2024, an increase of 319% and decrease of 22%, respectively.

Assets

Total assets at March 31, 2025,
were $117,726,120 compared to $163,129,450 as of June 30, 2024. The decrease