Company: SMNR
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001213900-25-077047
Chunk: 25

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-08-15
Form: 10-Q
Item: Part I, Item 1
Chunk 25
---
 Company.

From April 2025 to June 2025, Scilex had deposited
an aggregate of $2,624 drawn down from the Extension Scilex Convertible Promissory Note to the Trust Account to extend the time the Company
has to consummate an initial business combination from April 11, 2025 to July 11, 2025. As of June 30, 2025, Scilex deposited aggregated
total of $123,107 drawn down from the Extension Scilex Convertible Promissory Note.

From July to August 2025, Scilex had deposited
an aggregated total of $1,750 drawn down from the Extension Scilex Convertible Promissory Note to the Trust Account to extend the time
the Company has to consummate an initial business combination to September 11, 2025.

Based on the foregoing, management believes that
the Company will not have sufficient working capital and borrowing capacity to meet its needs through the consummation of the initial
Business Combination. If the Company is unable to raise additional capital, it may be required to take additional measures to conserve
liquidity, which could include, but not necessarily be limited to, curtailing operations, suspending the pursuit of a potential transaction,
and reducing overhead expenses. The Company cannot provide any assurance that new financing will be available to it on commercially acceptable
terms, if at all.

In accordance with ASC Subtopic 205-40, “Presentation
of Financial Statements – Going Concern”, the Company has evaluated that there are certain conditions and events, considered
in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern through December 11, 2025
(as extended pursuant to amended and restated memorandum and articles of association of the Company dated April 11, 2025), the date
that the Company will be required to cease all operations, except for the purpose of winding up, if a Business Combination is not consummated.
These consolidated financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification
of the liabilities that might be necessary should the Company be unable to continue as a going concern.

13

Denali Capital Acquisition Corp.

Notes to Unaudited Consolidated Financial Statements

Risks
and Uncertainties

In February 2022, the Russian Federation and Belarus
commenced a military action with the country of Ukraine. As a result of this action, various nations, including