Company: SMNR
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027319
Chunk: 652

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 3
Chunk 652
---
. The estimated fair values of investment held in the Trust Account
are determined using available market information.

Since
June 4, 2024, all of the assets held in the Trust Account have been held solely in cash in an interest-bearing demand deposit account
at a bank. Interest on bank deposit accounts is variable and such accounts currently yield interest of approximately 3.5% per annum.

Fair
Value of Financial Instruments

The
fair value of the Company’s assets and liabilities, which qualify as financial instruments under the FASB ASC 825, “Financial
Instruments,” approximates the carrying amounts represented in the consolidated balance sheet, primarily due to its short-term
nature.

Warrants

The
Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s
specific terms and applicable authoritative guidance in FASB ASC 480 and FASB ASC 815, “Derivatives and Hedging” (“ASC
815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition
of a liability pursuant to ASC 480, and meet all of the requirements for equity classification under FASB ASC 815, including whether
the warrants are indexed to the Company’s own ordinary shares and whether the warrant holders could potentially require “net
cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This
assessment is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding. 

For
issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component
of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all of the criteria for equity
classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet
date thereafter. The Company accounts for the 8,250,000 Public Warrants (as defined in Note 3) and 510,000 Private
Placement Warrants (as defined in Note 4) as equity-classified instruments.

F-18

Denali
Capital Acquisition Corp.

Notes
to Consolidated Financial Statements

Convertible
Debt

The
Company issues debt that may have conversion features.

Convertible
debt – derivative treatment – When the Company issues debt with a conversion feature, the Company