Company: SMNR
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027319
Chunk: 488

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 2
Chunk 488
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emplates that, at or prior to the closing of the Business Combination (the “Closing”), Denali, Scilex,
the Sponsor and certain shareholders of Denali will enter into an Amended and Restated Registration Rights Agreement (the “A&R
Registration Rights Agreement”), which, among other things, will govern the registration of certain shares of New Semnur Common
Stock for resale and be effective as of the Closing.

Underwriting
Agreement 

The underwriters received
a cash underwriting discount of $0.20 per Unit, or $1,650,000 in the aggregate, paid upon the closing of the IPO. In addition, the underwriters
will be entitled to a deferred fee of $0.35 per Unit, or $2,887,500 in the aggregate. The deferred fee will become payable to the underwriters
from the amounts held in the Trust Account solely in the event that we complete a business combination, subject to the terms of the underwriting
agreement. On November 20, 2023, the Company entered into a Deferred Discount Agreement with the underwriters and Holdco, pursuant to
which the representatives of the IPO agreed to receive $866,250 of the aggregate $2,887,500 deferred fee owed to them upon the closing
of the Business Combination in the form of 86,625 shares of the combined company’s common stock (the “Common Stock Consideration”).
Upon the terms of the Deferred Discount Agreement, the Common Stock Consideration will be issued at the closing of the Business Combination
and the remaining $2,021,250 of the aggregate deferred fee owed will remain payable at the closing of the Business Combination. The Deferred
Discount Agreement will terminate in the event that the Company does not consummate the Business Combination.

20

Critical
Accounting Estimates

The
preparation of consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date
of the consolidated financial statements, and income and expenses during the periods reported. Actual results could materially differ
from those estimates. Management does not believe that the Company has any critical accounting estimates. 

Recent
Accounting Pronouncements 

On
December 14, 2023, the FASB issued a final standard on improvements to income tax disclosures. The standard requires disaggregated information
about a reporting entity’s effective tax rate reconciliation as well as