Company: SMNR
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027319
Chunk: 711

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 4
Chunk 711
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2025. The guidance will be applied
on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently assessing
the impact, if any, that ASU 2023-09 would have on its financial position, results of operations or cash flows. 

Management
does not believe that any other recently issued, but not effective, accounting standards, if currently adopted, would have a material
effect on our consolidated financial statements. 

Item
7A. Quantitative and Qualitative Disclosures About Market Risk

Until
June 4, 2024, the net proceeds of our IPO and the Private Placement held in the Trust Account were invested in U.S. government securities
with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company
Act which invest only in direct U.S. government treasury obligations. However, on June 4, 2024, to mitigate the risk of being deemed
to have been operating as an unregistered investment company under the Investment Company Act, the Company instructed Wilmington Trust,
National Association, the trustee with respect to the Trust Account, to liquidate the U.S. government securities or money market funds
held in the Trust Account and thereafter to hold all funds in the Trust Account in cash in an interest-bearing bank deposit account.
Interest on bank deposit accounts is variable and such accounts currently yield interest of approximately 3.5% per annum. Due to the
short-term nature of these investments, we believe there will be no associated material exposure to interest rate risk.

21

Item
8. Financial Statements and Supplementary Data.

Reference
is made to Pages F-1 through F-28 comprising a portion of this Annual Report on Form 10-K.

Item
9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.

(a)
Dismissal of Independent Registered Public Accounting Firm

Denali,
at the direction of the board of directors, and upon the recommendation of the Audit Committee of the board of directors, dismissed its
independent registered public accountant Marcum LLP (“Marcum”), effective as of July 15, 2024.

Marcum’s
report on the Company’s consolidated financial statements for the fiscal years ended December 31, 2023 and 2022 did not contain
an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope, or accounting principles,
except that