/PRNewswire/ --

Fellow Shareholders,

During recent months Lunai Bioworks (NASDAQ: LNAI) has moved forward with its plan to establish a forward-looking biotechnology enterprise positioned at the crossroads of artificial intelligence national security and the life sciences. I want to brief you on progress that has reinforced our standing and opened several routes to greater shareholder value.

A RARE STRATEGIC POSITION: THE NATIONAL SECURITY BIODEFENSE PLATFORM

In April 2026 BioSymetrics secured our first revenue-producing multi-year defense agreement to apply our AI-supported platform to chemical threat evaluation. This arrangement is a true commercial engagement with the U.S. government rather than a research arrangement.

In addition we formed the Pathfinder Consortium a nationwide group that unites leading organizations such as Harvard University Brigham and Women's Hospital under Dr. Calum MacRae the University of Utah Purdue University and the University of Colorado. These ties underscore the scientific strength and national security importance of our methods.

Looking to the second half of 2026 we expect our Augusta platform which merges Contingent AI extensive toxicity data and in vivo studies to match priorities in the 2027 Defense Authorization Bill released this month. The bill calls for development of strategies that use artificial intelligence and high-throughput biological screening to identify and characterize potential chemical neurotoxic threats exactly the work we perform under our current contract and through the Pathfinder Consortium.

PRECISION NEUROLOGY: A COMPLEMENTARY GROWTH ENGINE

At the same time Lunai is advancing its precision neurology programs via the Augusta AI platform in Epilepsy Parkinsons and Alzheimers. We recently disclosed and are progressing collaborations including work with BrainStorm Therapeutics backed by foundation support and we continue to gain from NIH-backed projects such as a Phase I/II STTR grant of 1.85 million dollars awarded to BioSymetrics for alcohol use disorder studies. These ties provide outside confirmation of our biology-first discovery model.

Neurological disorders remain among the most difficult and expensive health challenges affecting millions globally. By integrating large patient data sets with advanced AI tools and confirming results through in vivo testing we uncover treatment possibilities that traditional approaches overlook. This effort forms a major long-term growth driver for Lunai independent of our biodefense work.

THE CONVERGENCE: AI BIOTECHNOLOGY AND THE FULL SPECTRUM OF BIOLOGICAL THREATS

The strategic weight of biodefense is gaining wider recognition among governments researchers and technology executives around the world.

Recently leaders from Anthropic OpenAI Google DeepMind and Microsoft AI together with executives from biotechnology and national security groups signed an open letter urging stronger protections for synthetic DNA and nucleic acid synthesis technologies. The letter stresses that advances in artificial intelligence are quickly lowering obstacles to the design and engineering of biological agents.

The concern is concrete. Risks exist on two fronts engineered biological dangers from state or non-state actors and the rising threat of new pandemics whether natural or deliberately created. The boundary between public health readiness and national security has largely disappeared. COVID illustrated the worldwide health and economic toll of a biological incident while the possibility of intentional bioweapon development through synthetic biology poses an equally serious though less acknowledged danger.

Governments are acting. Awareness that the next biological crisis pandemic or weaponized could arise from natural evolution or deliberate engineering is spurring major investment in detection identification and countermeasure creation at speeds once reserved for conventional conflict.

Lunai current biodefense efforts center on chemical threat assessment through our initial revenue-generating defense contract and the Pathfinder Consortium. Yet our AI-driven platform for threat identification phenotypic screening and countermeasure discovery applies directly across the entire range of biological threats both pandemic and weaponized. We are exploring partnerships to extend our biodefense reach into biological threat detection and countermeasure work. With growing government attention to both pandemic and bioweapon risks plus our established ties to leading scientific bodies and federal agencies we believe we are well placed to contribute to what is becoming a major national security and public health focus.

PROTECTING SHAREHOLDER VALUE: LITIGATION AS VALUE UNLOCK

As we continue to deliver meaningful milestones we have seen trading patterns that fail to reflect the progress Lunai has achieved.

In May 2026 we filed suit in the U.S. District Court for the District of Delaware against unnamed parties accused of naked short selling and related manipulative practices. The supporting data was extensive including anomalous fails-to-deliver totaling 29.6 million shares or 81.6 percent of all outstanding shares along with peak trading volumes on March 17 2026 that reached 554 million shares 15.3 times the entire share count in one day.

Importantly the Court recognized good cause for expedited discovery and established a prima facie basis for our claims. This ruling allows us to obtain trading records from broker-dealers custodians and other market participants to identify those responsible. We are now in the discovery phase.

The goal of this action is clear identify parties involved in improper trading hold them accountable and recover shareholder value that has been artificially depressed. Discovery will compel disclosure of positions trading records and brokerage ties that short sellers prefer to keep private. As identities surface regulatory examination of the short positions will follow and become costly to sustain.

We plan to pursue this case aggressively. In our judgment safeguarding shareholder interests and seeking accountability for market manipulation is not a diversion but a fundamental duty of management.

LOOKING FORWARD

Lunai today differs markedly from the company of a year ago. We have secured our first revenue-generating defense contract built a national network of top-tier scientific and military partners continued to confirm our AI-driven methods in both biodefense and precision neurology and launched legal steps to counter market manipulation that has weighed on our share price.

The intersection of AI biotechnology and national security is generating a distinctive strategic opening. Through our biodefense platform and precision neurology pipeline we are constructing an enterprise ready to serve some of the largest and most critical markets supported by government partners and validated by premier scientific institutions.

As we progress through the second half of 2026 our priorities stay focused advancing and broadening our biodefense platform neurology programs executing our litigation approach and further validating our platform across healthcare and national security uses. With NASDAQ listing compliance now achieved we are ready to generate lasting value for shareholders.

I thank you for your ongoing support.

Sincerely,

David Weinstein
Chief Executive Officer
Lunai Bioworks, Inc.

SOURCE Lunai Bioworks Inc.