Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001731122-25-000258
Chunk: 177

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part II, Item 1
Chunk 177
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mrükcü and certain of the Company’s former
directors as defendants. The actions also name the Company as a nominal defendant. The actions allege violations of Sections 14(a) and
20(a) of the Securities Exchange Act of 1934 and also set out claims for breach of fiduciary duty, contribution and indemnification, aiding
and abetting, and gross mismanagement. Plaintiffs do not quantify any alleged injury, but seek damages, disgorgement, restitution, and
other costs and expenses. On January 24, 2023, the United States District Court for the Central District of California stayed the Koenig
matter pending resolution of the defendants’ anticipated motion to dismiss in the Securities Class Action Litigation. On April 4,
2023, the United States District Court for the District of Delaware stayed the Solak matter pending resolution of the defendants’
anticipated motion to dismiss in the Securities Class Action Litigation. On June 28, 2024, the United States District Court for the Central
District of California denied defendants’ motion to dismiss the Securities Class Action Litigation. On October 23, 2024, the court
in the Koenig matter stayed the case pending further order of the court. On January 10, 2025, the parties in the Koenig matter filed a
joint status report requesting that all pending deadlines in the matter remain suspended. The parties’ deadline to file a joint
status report in the Koenig matter is April 11, 2025. On October 28, 2024, the court in the Solak matter stayed the case for ninety (90)
days. On January 29, 2025, the court in the Solak matter stayed the case for an additional ninety (90) days. The defendants have not yet
responded to either complaint. The Company intends to contest these matters but expresses no opinion as to the likelihood of favorable
outcomes. Management is unable to determine the likelihood of a loss, including a possible range of losses, if any, arising from this
matter as of the reporting date.

36

State Derivative Litigation. On October 20,
2022, Susan Midler filed a shareholder derivative action in the Superior Court of California, Los Angeles County, reciting similar underlying
facts as those alleged in the Securities Class Action Litigation. The action, filed on behalf of the Company, names Serhat Gümrükcü
and certain of the Company’s