Company: SMNR
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027319
Chunk: 265

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1B
Chunk 265
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 make estimates
and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date
of the consolidated financial statements, and income and expenses during the periods reported. Actual results could materially differ
from those estimates. Management does not believe that the Company has any critical accounting estimates. 

Recent
Accounting Pronouncements 

On
December 14, 2023, the FASB issued a final standard on improvements to income tax disclosures. The standard requires disaggregated information
about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is intended
to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. ASU
2023-09, Improvements to Income Tax Disclosures, applies to all entities subject to income taxes. For public business entities (PBEs),
the new requirements will be effective for annual periods beginning after December 15, 2024. For entities other than public business
entities (non-PBEs), the requirements will be effective for annual periods beginning after December 15, 2025. The guidance will be applied
on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently assessing
the impact, if any, that ASU 2023-09 would have on its financial position, results of operations or cash flows. 

Management
does not believe that any other recently issued, but not effective, accounting standards, if currently adopted, would have a material
effect on our consolidated financial statements. 

Item
7A. Quantitative and Qualitative Disclosures About Market Risk

Until
June 4, 2024, the net proceeds of our IPO and the Private Placement held in the Trust Account were invested in U.S. government securities
with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company
Act which invest only in direct U.S. government treasury obligations. However, on June 4, 2024, to mitigate the risk of being deemed
to have been operating as an unregistered investment company under the Investment Company Act, the Company instructed Wilmington Trust,
National Association, the trustee with respect to the Trust Account, to liquidate the U.S. government securities or money market funds
held in the Trust Account and thereafter to hold all funds in the Trust Account in cash in an interest-bearing bank deposit