Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 73

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 73
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 a licensed
provider or internally, and return results to providers on a timely basis and at an appropriate quality standard, and on Renovaro Cube’s
reputation for such timeliness and quality. Failure to establish necessary arrangements with licensed providers, to implement necessary
procedures, to transition to new equipment or processes, or to hire the appropriately qualified personnel could result in higher costs
of processing, longer turnaround times or an inability to meet market demand. There can be no assurance that Renovaro Cube or any such
licensed provider will be able to perform tests on a timely basis at a level consistent with demand, that Renovaro Cube will be able to
maintain the quality of its test results as Renovaro Cube scales its commercial operations, or that Renovaro Cube will be successful in
responding to the potential growing complexity of its operations, including the related data analysis requirements.

In addition,
Renovaro Cube’s growth may place a significant strain on its management, operating and financial systems, research and development,
and its sales, marketing, and administrative resources. As a result of Renovaro Cube’s growth, its operating costs may escalate
even faster than planned, and some of its internal systems may need to be enhanced or replaced. If Renovaro Cube cannot effectively manage
its expanding operations and its costs, Renovaro Cube may not be able to grow successfully or it may grow at a slower pace, and its business
could be adversely affected.

Renovaro Cube will need to grow the size and capabilities of its organization, and it may experience difficulties in managing this growth.

As of
June 30, 2024, Renovaro Cube had 12 full-time employees and seven independent contractors. As Renovaro Cube’s growth plan and strategies
develop, it must add a significant number of additional managerial, operational, financial and other personnel. Future growth will impose
significant added responsibilities on members of management, including:

| ● | identifying,                                                                                                                                
 recruiting, integrating, retaining and motivating additional employees;                                                                     |
| ● | managing                                                                                                                                    
 its internal development efforts effectively, including creating compliant programs and processes, and managing the regulatory requirements 
 for its products, while complying with its contractual obligations to contractors and other third parties;                                  |
| ● | expanding                                                                                                                                   
 its operational, financial and management controls, reporting systems and procedures; and                                                   |
| ● | managing                                                                                                                                    
 the increasing complexity associated with a larger organization and expanded operations.                                                    |

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Ren