SACRAMENTO, Calif. , June 17, 2026 /PRNewswire/ -- Fellow Shareholders, Over the past several months, Lunai Bioworks (NASDAQ: LNAI ) has continued to execute its strategy of building a next-generation biotechnology company at the intersection of artificial intelligence, and national security and biology. I would like to update you on developments that have substantially strengthened our position and created multiple pathways for shareholder value creation. A RARE STRATEGIC POSITION: THE NATIONAL SECURITY BIODEFENSE PLATFORM In April 2026, we secured our first revenue-generating, multi-year defense collaboration through BioSymetrics to deploy our AI-enabled platform for chemical threat assessment. This contract represents not a research relationship but an active commercial engagement with the U.S. government. Beyond that initial contract, we have established the Pathfinder Consortium—a national alliance of leading institutions including Harvard University, Brigham and Women's Hospital (led by Dr. Calum MacRae), the University of Utah, Purdue University, and the University of Colorado. These partnerships reflect the scientific rigor and national security relevance of our approach. Looking forward to the second half of 2026 we believe our Augusta platform which combines Contingent AI, large toxicity databases, and in vivo testing aligns with the priorities outlined in the 2027 Defense Authorization Bill published this month. It specifically calls for the nation "to develop a strategy to leverage artificial intelligence-enabled and high-throughput biological screening approaches in support of identifying and characterizing potential chemical neurotoxic threat agents". This is precisely what we are doing under our current contract and further involves the capabilities we now have with the Pathfinder Consortium. PRECISION NEUROLOGY: A COMPLEMENTARY GROWTH ENGINE In parallel, Lunai continues to advance its precision neurology pipeline through our Augusta™ AI platform in Epilepsy, Parkinsons, and Alzheimer's. We recently announced and are advancing collaborations including a partnership with BrainStorm Therapeutics supported by foundation funding, and we continue to benefit from NIH-supported research initiatives, including a Phase I/II STTR grant ($1.85 million awarded to BioSymetrics) for alcohol use disorder research. These partnerships represent external validation of our biology-first discovery approach. Neurological diseases remain among the most challenging and costly medical conditions, affecting millions of patients worldwide. By combining large-scale patient datasets with advanced AI analytics and validated with in vivo testing, we are identifying therapeutic opportunities that conventional methods miss. This work represents a significant long-term value driver for Lunai, and one that is independent of our biodefense activities. THE CONVERGENCE: AI, BIOTECHNOLOGY, AND THE FULL SPECTRUM OF BIOLOGICAL THREATS The strategic importance of biodefense is increasingly recognized by governments, scientists, and technology leaders worldwide. Recently, the chief executives of Anthropic, OpenAI, Google DeepMind, and Microsoft AI, alongside numerous leaders from biotechnology and national security organizations, signed a public letter supporting enhanced safeguards around synthetic DNA and nucleic acid synthesis technologies. The letter highlights a fundamental concern: advances in artificial intelligence are rapidly reducing barriers to the design and engineering of biological agents. This is not theoretical. The risks are dual: engineered biological threats from state and non-state actors, and the accelerating risk of novel pandemics—whether natural or human-engineered. The line between public health preparedness and national security has blurred entirely. COVID demonstrated the global health and economic cost of a biological event. The prospect of deliberate bioweapon creation through synthetic biology represents an equally grave but far less recognized threat. Governments are responding. The recognition that the next biological crisis—pandemic or weaponized—could originate from either natural evolution or deliberate engineering is driving substantial investment in detection, identification, and countermeasure development at speeds and scales previously reserved for kinetic warfare. Lunai's current biodefense activities focus on chemical threat assessment through our first revenue-generating defense contract and the Pathfinder Consortium. However, our AI-driven platform for threat identification, phenotypic screening, and countermeasure discovery is directly applicable across the full spectrum of biological threats—both pandemic and weaponized. We are actively exploring partnerships and opportunities to expand our biodefense capabilities into biological threat detection and countermeasure development. Given the government's growing recognition of both pandemic and bioweapon risks, and our existing partnerships wi