Company: LNAI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000765
Chunk: 98

Company: Lunai Bioworks Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 98
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2025, the Company received gross proceeds of $3,000,000 from
an investor participating in the equity offering of up to $15,000,000 made
to a group of investors whereby each investor is to receive one Common Stock and one Warrant for every dollar invested. As of March 31,
2025, the equity offering had not yet closed. Pursuant to the terms of the offering, the investors retain the right to require the return
of their funds in the event the offering does not close.

Because the closing of the offering has not occurred yet as of March 31, 2025,
and the return of proceeds remains within the control of the investor, the Company has classified the $3,000,000 as a liability on its
condensed consolidated balance sheet as of March 31, 2025. The Company will reassess the classification of this amount in future periods
based on the status of the offering and any changes to the related rights or obligations.

NOTE 8 — RELATED PARTY TRANSACTIONS 

As of March 31, 2025, the Company
has accrued $384,949 of compensation related expenses for the Company’s former Chief Executive Officer, Mark Dybul, related to budget
constraints.

On August 23, 2024, Avram Miller,
a former member of the Board of Directors, forfeited 833,333 shares of Common Stock from the original 1,000,000 shares of Common Stock
for advisory services originally granted to him on October 11, 2023. As consideration for such forfeiture, the Company granted to Mr.
Miller, an option to purchase 978,261 shares of Common Stock of the Company with a per-share exercise price of $0.69. The Company determined
that this transaction represented a modification of the original award. The Company measured the fair value of the options issued as compared
to the fair value of the original issuance and determined that there was no incremental compensation to recognize as the fair value of
the options was less than the fair value of the Common Stock. Therefore, the Company will recognize the remaining fair value of the original
award over the remaining vesting period, which is one year. The Company recognized stock-based compensation expense of $847,082 related
to the vesting of the stocks options during the period ended March 31, 2025. At March 31, 2025, the Company had $497,761 of unrecognized
compensation cost related to the options which