Company: SMNR
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001213900-25-044889
Chunk: 96

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-05-16
Form: 10-Q
Item: Part I, Item 2
Chunk 96
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, with the remaining
$164,963 drawable at the Company’s request and upon the consent of the sponsor prior to the maturity of the Sponsor Extension Convertible
Promissory Note. 

On July 11, 2023, the Company issued a convertible
promissory note in the total principal amount of $825,000 to FutureTech Capital LLC, a Delaware limited liability company (“FutureTech”)
(the “FutureTech Convertible Promissory Note”), and 100% of such amount has been utilized to fund the required payment
in order to extend the period of time to consummate a business combination. On October 11, 2023, the Company issued another convertible
promissory note in the total principal amount of up to $450,000 to FutureTech (the “Second FutureTech Convertible Promissory
Note”). The Second FutureTech Convertible Promissory Note was issued with an initial principal balance of $50,000, with the remaining
$400,000 drawable at the Company’s request and upon the consent of FutureTech prior to the maturity of the Second FutureTech
Convertible Promissory Note. Consequently, $400,000 of such amount has been utilized to fund the required payment in order to extend
the period of time to consummate a business combination from October 11, 2023 to July 11, 2024. As of March 31, 2025, there was an amount
of $1,275,000 outstanding in the form of the Convertible Promissory Note issued to FutureTech. Further, the amount of $68,351 with
interest at 4.80% on amount borrowed from Futuretech for the Extension was recognized as accrued interest expense – others
as of March 31, 2025. 

34

Based on the foregoing, management
believes that we will not have sufficient working capital and borrowing capacity to meet our needs through the consummation of the initial
business combination. If we are unable to raise additional capital, we 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. We cannot provide any assurance that new financing will be available to us on commercially acceptable terms,
if at all. 

In accordance with Accounting Standards Codification
(“ASC”) Sub