Company: SMNR
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027319
Chunk: 708

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 4
Chunk 708
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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 December 31, 2024, there was an amount of $1,275,000 outstanding in the form of the Convertible
Promissory Note issued to FutureTech. Further, the amount of $58,586 with interest at 4.80% on amount borrowed from Futuretech
for the Extension was recognized as accrued interest expense – others as of December 31, 2024. 

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”) 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 April 11, 2025 (as extended pursuant to amended
and restated memorandum and articles of association of the Company dated July 10, 2024), 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. 

If
our estimate of the costs of identifying a target business, undertaking in-depth due diligence and negotiating a business combination
are less than the actual amount necessary to do so, we