Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000254
Chunk: 7

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 7
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 beginning after December 15, 2023, and interim periods
within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted this ASU on July 1, 2024. The
adoption of this ASU had no impact on the Company's condensed consolidated financial statements.

7

In December
2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which enhances
the transparency and decision usefulness of income tax disclosures by requiring; (1) consistent categories and greater disaggregation
of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments
to improve the effectiveness of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2025, with
early adoption permitted. These amendments are to be applied prospectively, with retrospective application permitted. The Company is currently
evaluating the impact this standard will have on its condensed consolidated financial statements.

The Company
currently believes there are no other issued and not yet effective accounting standards that are materially relevant to our condensed
consolidated financial statements.

NOTE 2 — RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

During the preparation of the
Company’s Form 10-Q for the period ended December 31, 2024, the Company determined that certain warrants which were exercised during
the three months ended March 31, 2024, had not been appropriately reflected as a component of the change in fair value of the contingent
consideration for the year ended June 30, 2024. The number of shares underlying these warrants was 3,425,399 which had a fair value of
$7,775,656 on the date of exercise.

The impact of the restatement
on these financial statements by line item is as follows:

| Schedule of restatement       
 on these financial statements |     | As Reported |              |   |     | Change |            |   |     | As Restated |              |   |
|:------------------------------|:----|:------------|-------------:|:--|:----|:-------|-----------:|:--|:----|:------------|-------------:|:--|
| Common stock                  |     | $           |       15,763 |   |     | $      |        343 |   |