Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 718

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 6
Chunk 718
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”) plus 5,610,100 shares of Common Stock representing the Seller’s Earnout Shares (defined below) resulting from
the automatic conversion of the Company’s Series A Convertible Preferred and, (ii) following the Closing Date, such Seller’s
pro rata percentage of the shares of Common Stock (the “Earnout Shares” and, together with the Closing Consideration, the
“Exchange Consideration”) to be issued to the Sellers upon the exercise or conversion of any of the Company’s derivative
securities (subject to certain exceptions) that are outstanding at the Closing Date (the “Closing Derivative Securities”).
Each Seller’s pro rata percentage of the Exchange Consideration is equal to the ratio of the aggregate number of GEDi Cube Shares
owned by such Seller divided by the aggregate number of GEDi Cube Shares issued and outstanding, in each case, as of the Closing Date.

The
transaction was accounted for in accordance with the provisions of ASC 805-10 - Business Combinations. As a result
of the issuance of the Closing Consideration on the Closing Date and based on the number of shares of Common Stock outstanding as of the
Closing Date, the Sellers held approximately 49% of the issued and outstanding shares of Common Stock immediately following the closing
of the Transaction and the conversion of the Series A Convertible Preferred Stock.

    F-33

The assets
acquired and liabilities assumed were initially recognized provisionally in the accompanying consolidated balance sheets at their estimated
fair values as of the acquisition date. The fair values as of the acquisition date are based on information that existed as of the acquisition
date. The Company completed its accounting for this acquisition during the period ended June 30, 2024. As a result of the completion of
the Company’s analysis, the amount of in-process research and development was determined to have a value of nil. Accordingly, the
amount of goodwill recognized was increased to include the previously recognized amount of in-process research and development. There
was no impact to the Company’s consolidated statement of operations as a result of this change to the allocation.

The acquisition-date
fair value of the consideration transferred totaled approximately $156.6 million, which consisted of the following:

    Schedule of acquisition
date fair value 

    Common stock 
    $136,001,631 
  
    Contingent consideration 
     20,557,500 
  
    Total consideration transferred 
    $156,559,131 

The
fair value of