Company: LNAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001731122-25-001544
Chunk: 58

Company: Lunai Bioworks Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 58
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for the full year.

Consolidation – For
the three months ended September 30, 2025, and 2024, the condensed consolidated financial statements include the accounts and operations
of the Company and its subsidiaries. All material inter-company transactions and accounts have been eliminated in the consolidation.

Bankruptcy - The Company
accounts for bankruptcy under ASC 810, Consolidation. On September 2, 2025, the Court of Amsterdam declared bankrupt Gedi Cube B.V. (“Gedi”),
an indirect subsidiary of Lunai Bioworks, Inc. As of September 30, 2025 the Company deconsolidated Gedi Cube B.V., derecognizing its net
liabilities and releasing the cumulative translation adjustment balance to earnings. The bankruptcy resulted in a gain of $12,019,227
during the three months ended September 30, 2025.

Accounting Estimates –
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the
date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ
from those estimated. Significant estimates include the fair value of assets acquired in a business acquisition, contingent consideration,
and equity instruments issued for goods or services.

Loss Per Share –Basic earnings per common share (EPS) are based on the weighted average
number of shares of Common Stock outstanding during each period. Diluted earnings per common share are based on shares outstanding (computed
as under basic EPS) and potentially dilutive shares of Common Stock. Potential shares of Common Stock included in the diluted earnings
per share calculation include in-the-money stock options that have been granted but have not been exercised and shares issuable upon conversion
of convertible common stock and convertible notes. The Company had 1,244,888 and 1,729,342 potential shares of Common Stock excluded from
the Diluted EPS calculation as of September 30, 2025, and 2024, respectively.

    7

Functional Currency & Foreign
Currency Translation – The functional currency of Renovaro Denmark is the Danish Kroner (“DKK”) and the functional
currency of Renovaro Cube is the Euro (“EUR”) and the functional currency of BioSymetrics Corp. is Canadian Dollar (“CAD”).
The Company’s reporting currency is the U.S. Dollar for the purpose of these financial statements. The