Company: SMNR
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001213900-25-044889
Chunk: 39

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-05-16
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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 on behalf of the Company through
a transfer of shares or other consideration, the fair value of the shares transferred less the consideration received would be recognized
as an expense by the Company.

The Company estimated the fair value of the Company’s
500,000 Class B ordinary shares on September 3, 2024 transferred to Scilex by the Sponsor, which was less than the $2,000,000 Cash Consideration
plus the fair value of 300,000 Scilex Shares. The Company determined that the 500,000 Class B ordinary shares were sold at premium and
no expense should be recorded.

Working
Capital Loans

In order to finance transaction costs in connection
with a Business Combination, the Sponsor or an affiliate of the Sponsor, or certain of the Company’s officers and directors, may,
but are not obligated to, provide the Company Working Capital Loans. If the Company completes a Business Combination, it would repay
the Working Capital Loans out of the proceeds of the Trust Account released to the Company. In the event that a Business Combination does
not close the Company may use a portion of proceeds held outside of the Trust Account to repay the Working Capital Loans, but no
proceeds held in the Trust Account would be used for such repayment.

21

Denali Capital Acquisition Corp.

Notes to Unaudited Consolidated Financial Statements

The Working Capital loans would either
be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $1.5 million
of such Working Capital Loans may be convertible into units of the post-business combination entity at a price of $10.00 per unit.
On April 11, 2023, the Company issued the Convertible Promissory Note in the total principal amount of up to $825,000 to the Sponsor.
The Convertible Promissory Note bears an interest accruing on the unpaid and outstanding total principal amount at the lowest short-term
Applicable Federal Rate as in effect on the date thereof and is payable in arrears on the Maturity Date. Interest will be calculated
on the basis of a 365-day year and the actual number of days elapsed, to the extent permitted by applicable law. The Convertible Promissory
Note was issued with an initial principal balance of $412,500. The Sponsor has further lent loans in the aggregate amount of $430,000 on
July 18, 2023, October 12