Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 341

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 2
Chunk 341
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 two companies closely associated with Gumrukcu. In the complaint, the Company alleges that Gümrükcüand others
deliberately and fraudulently concealed a murder-for-hire scheme from the Company in order to induce the Company to enter into the merger
agreement, which resulted in the defendants receiving shares and compensation. The Company asserts claims for fraudulent concealment,
equitable fraud, unjust enrichment, and civil conspiracy and seeks, inter alia, equitable relief, including, but not limited to,
return to the Company any shares received in connection with the merger, and damages. On October 1, 2024, the defendants moved to dismiss
the complaint. A hearing took place on June 25, 2025 and the Court took defendants’ motion under advisement.

Lunai commenced an action against
Predictive Oncology, Inc. (“POAI”) in the Delaware Court of Chancery claiming that POAI breached a “definitive”
January 2025 Letter Agreement pursuant to which Lunai was going to acquire POAI. As a result of its breach, POAI made that acquisition
impossible and dramatically devalued the share price of stock Lunai had already acquired as well as the value of the company it was contractually
entitled to acquire. Lunai sought specific performance or, in the alternative, money damages. The parties have exchanged paper discovery
and noticed depositions. The action has been held in abeyance while the parties attempt to negotiate a settlement.

NOTE 12 — RELATED PARTY TRANSACTIONS

As of June 30, 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.

    F-31

On August 23, 2024, Avram Miller,
a former member of the Company’s board of directors (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