Company: SMNR
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027319
Chunk: 447

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1C
Chunk 447
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 is
unable to register or qualify the underlying securities for sale under all applicable state securities laws.

If
the Company calls the warrants for redemption as described above, its management will have the option to require all holders that wish
to exercise warrants to do so on a “cashless basis.” In determining whether to require all holders to exercise their warrants
on a “cashless basis,” the Company’s management will consider, among other factors, the cash position, the number of
warrants that are outstanding and the dilutive effect on the Company’s shareholders of issuing the maximum number of ordinary shares
issuable upon the exercise of the Company’s warrants. In such event, each holder would pay the exercise price by surrendering the
warrants for that number of Class A ordinary shares equal to the quotient obtained by dividing (x) the product of the number of
Class A ordinary shares underlying the warrants, multiplied by the excess of the “fair market value” over the exercise
price of the warrants by (y) the fair market value. The “fair market value” shall mean the volume weighted average price
of the Class A ordinary shares for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption
is sent to the holders of warrants.

NOTE
8 – FAIR VALUE MEASUREMENTS

The
fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would
have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction
between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company
seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable
inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is
used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and
liabilities:

    Level 1:
    Quoted prices in active
    markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the
    asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

    Level 2:
    Observable inputs other
    than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and