Company: SMNR
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001213900-25-044889
Chunk: 24

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-05-16
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 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.

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 the United States, have
instituted economic sanctions against the Russian Federation and Belarus. Further, the impact of this action, related sanctions on the
world economy and the ongoing hostilities in the Middle East are not determinable as of the date of these consolidated financial statements.
The specific impact on the Company’s financial condition, results of operations, and cash flow is also not determinable as of the
date of these consolidated financial statements.

13

Denali Capital Acquisition Corp.

Notes to Unaudited Consolidated Financial Statements

On October 2, 2024, the Company received a written notice (the
“Notice”) from the staff at Nasdaq notifying the Company that the Company is not in compliance with Nasdaq Listing Rule 5450(b)(2)(A)
(the “MVLS Rule”), which requires the Company to maintain a MVLS of $50.0 million, and Nasdaq Listing Rule 5450(b)(3)(A) (the
“Total Assets Rule” and, together with the MVLS Rule, the “Listing Rules”), which requires the Company to maintain
total assets and total revenue of at least $50.0 million each for the most recently completed fiscal year or two of the three most recently
completed fiscal years, for continued listing on the Nasdaq Global Market. The Notice was only a notification of deficiency, not of imminent
del