Company: SMNR
Filing Date: 2025-10-21
Form Type: S-1
Source: 0001193125-25-245178
Chunk: 166

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-10-21
Form: S-1
Chunk 166
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 autonomous entity adjustment based on New Semnur’s estimated annual effective tax rate for the year ended December 31, 2024 and New Semnur having a full valuation allowance on its net deferred tax asset. Accounting Treatment for the Business Combination The Business Combination was accounted for as a reverse recapitalization. Because Scilex controlled Legacy Semnur before the Business Combination and will also control New Semnur following the Business Combination, Denali was treated as the “acquired” company for financial reporting purposes. Accordingly, the Business Combination was treated as the equivalent of Legacy Semnur issuing stock for the net assets of Denali, accompanied by a recapitalization whereby the net assets of Denali will be stated at historical cost and no goodwill or other intangible assets are recorded. Transaction costs incurred by Legacy Semnur which are incremental costs and directly attributable to the proposed Business Combination were deferred and charged against the proceeds of the transaction instead of expensed. Denali’s transaction costs incurred prior to the Closing are recognized as expenses in Denali’s separate financial statements and, upon the Closing, treated as a reduction of the net cash proceeds and deducted from the New Semnur’s additional paid-in capital. Operations prior to the Business Combination will be those of Legacy Semnur. In addition the Business Combination was accounted as a reverse recapitalization based on the following facts and circumstances:

| • |     | Scilex has the largest voting interest in New Semnur immediately after the Business Combination; |

| • |     | individuals designated by, or representing, Scilex constitute all of the members of the New Semnur Board immediately after the Business Combination; |

| • |     | Semnur management continues to hold executive management positions in New Semnur and be responsible for the day-to-day operations; |

| • |     | the post-combination company assumed the name “Semnur Pharmaceuticals, Inc.”; |

| • |     | the operations of Legacy Semnur comprises the ongoing operations of New Semnur; and |

| • |     | New Semnur is maintaining the existing office facilities of Legacy Semnur. |

Note 2 — Accounting Policies Following the consummation of the Business Combination, we will perform a comprehensive review of the two entities’ accounting policies. As a result of the review, we may identify differences between the accounting 110

policies of the two entities which, when conformed, could have a material impact on the financial statements of the post-com