10-Q · May 15, 2026
Lunai Bioworks reported a significant increase in service revenue totaling $20,942 for Q3 FY 2026, a considerable rise compared to zero revenue in the same quarter last year. Operating expenses saw a drastic decrease by…
Earnings analysis · 10-K
LNAI earnings analysis
Filed October 13, 2026 · Our reading of the company's report
The latest report
Lunai presents an AI-driven precision-medicine and pre-clinical therapeutics strategy, supplemented by the Neurobridge intranasal Alzheimer’s asset, but fiscal 2026 revenue was only $51,992 and no product revenue has…
Read full summary
Lunai presents an AI-driven precision-medicine and pre-clinical therapeutics strategy, supplemented by the Neurobridge intranasal Alzheimer’s asset, but fiscal 2026 revenue was only $51,992 and no product revenue has been generated. The reported improvement in net loss to $3.6 million from $178.0 million was dominated by the absence of a prior-year goodwill impairment and other nonrecurring items, while operating cash burn remained $5.3 million. The investment case is dominated by less than one month of cash, substantial doubt about going concern, Nasdaq monitoring and delisting risk, material control weaknesses, litigation and significant potential dilution.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-1.06
What stood out
-
AI-driven precision medicine strategy
Lunai describes an AI-driven precision-medicine platform combining multimodal data analytics with experimental biology across therapeutic development, biomarker discovery and biodefense. Its reportable segments are BioSymetrics and RENB, with BioSymetrics focused on genomics, imaging, EHR and real-world evidence, and RENB focused on allogeneic cell and gene therapies.
-
Neurobridge expands product roadmap
The company acquired Neurobridge on May 1, 2026, adding an intranasal nose-to-brain drug-delivery platform and an Alzheimer’s disease compound. The intellectual property was acquired for a recorded fair value of $1.84 million, with estimated useful lives of 10 to 15 years for assets available for use.
-
Initial revenue remains immaterial
Fiscal 2026 service revenue was $51,992 from a single research-services customer, versus zero revenue in fiscal 2025. Gross profit was also $51,992 because cost of goods sold was zero, but the company states it has generated no product revenue and does not expect material product revenue until regulatory approval.
-
Loss narrows on restructuring and one-offs
Net loss improved to $3,562,479 from $178,007,489 in fiscal 2025, while operating expenses fell 95% to $8,749,925 from $188,966,002. The improvement was driven primarily by the absence of the prior-year $170,419,429 goodwill impairment, lower G&A expense and a $12,019,227 gain from the GEDi bankruptcy deconsolidation, rather than operating profitability.
-
Operating cash burn declined
Net cash used in operating activities declined to $5,288,197 from $7,874,647. Financing provided $6,391,458, including $5,047,829 from ATM offerings and $750,000 from a private placement, leaving cash of $1,713,653 at June 30, 2026 versus $92,700 a year earlier.
-
Financing prioritized over investment
Capital allocation focused on survival financing and debt restructuring: the company issued 1,103,385 ATM shares for approximately $5,047,829, exchanged $828,770 of debt for 488,663 shares and warrants for 179,203 shares, and made $1,000,001 of note repayments. It repurchased no equity and paid no dividends during fiscal 2026.
What to watch
-
Near-term liquidity and going concern
As of October 13, 2026, Lunai reported less than one month of available cash resources under its current operating plan. At June 30, 2026, cash was $1,713,653 against a $16,874,093 working-capital deficit and $18,966,734 of total liabilities; management states that substantial doubt remains about continuing as a going concern.
-
Nasdaq compliance and delisting risk
Nasdaq delisting risk has become materially acute: the company is under a one-year Mandatory Panel Monitor, has previously completed 1-for-10 and 1-for-8 reverse stock splits, and had a stockholders’ deficit of $9,024,946 at June 30, 2026 versus Nasdaq’s $2,500,000 minimum stockholders’ equity requirement. Delisting would impair liquidity, market price and access to capital.
-
Material weakness in financial controls
Management concluded that disclosure controls and internal control over financial reporting were not effective as of June 30, 2026 because the company lacked adequate resources to address complex accounting matters. The filing identifies a material weakness and warns that remediation may require financial and personnel resources the company may not have.
-
Preferred stock dilution and seniority
The Series B Convertible Preferred Stock issued for Neurobridge has a $20,000,000 liquidation preference and may convert into up to 1,666,666 common shares at $12.00 per share after stockholder approval. Based on 4,615,503 common shares outstanding at June 30, 2026, full conversion would increase outstanding shares by approximately 36%; common stockholders would likely receive nothing in a liquidation given the $9,024,946 stockholders’ deficit.
-
Litigation and regulatory overhang
Legal and regulatory exposure remains substantial. The filing identifies a pending securities class action and derivative matters, while a former claimant made a $10 million settlement demand on October 7, 2026; management says losses for certain derivative matters cannot be estimated.
-
Pre-clinical execution and approval risk
The company remains pre-clinical, has no approved products, and has never successfully developed and commercialized a new drug. RENB programs including RENB-DC-11 and BioS_831 remain in pre-clinical development, and the company warns that clinical trials are expected to take at least several years.
Management's outlook
No quantitative annual revenue or EPS guidance is provided. Management states that fiscal 2027 funding, if received, is expected to support obligations, working capital, product development and commercialization; the company has less than one month of available cash as of October 13, 2026.
Earlier filings 4
10-Q · February 17, 2026
Lunai Bioworks reported a quarterly net loss of $1,799,404 (EPS $(0.08)) for the three months ended December 31, 2025, an improvement versus a $(7,252,394) loss (EPS $(0.45)) a year earlier. Operating expenses fell…
10-Q · November 14, 2025
Lunai Bioworks reported GAAP net income of $2,819,021 (EPS $0.13) for the quarter ended September 30, 2025, driven largely by a $12,019,227 gain on the bankruptcy/deconsolidation of a subsidiary and other non‑operating…
10-Q · February 19, 2025
Renovaro reported no revenue and continued net losses for the quarter; net loss was $(7,252,394) for the three months and $(51,464,429) for the six months ended December 31, 2024, driven primarily by a $47,614,729…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.