Company: SMNR
Filing Date: 2025-07-02
Form Type: S-4/A
Source: 0001193125-25-154936
Chunk: 585

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-07-02
Form: S-4/A
Chunk 585
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 ended March 31, 2025 and the year ended December 31, 2024

| (AA) | Represents adjustments to general and administrative expenses as follows: |

|                                                               | (In thousands) |   | For the three months 
 ended March 31, 2025 |     |   | For the year ended 
  December 31, 2024 |
|:--------------------------------------------------------------|:---------------|:--|---------------------:|:----|:--|-------------------:|
| Represents Semnur expenses not eligible for capitalization(1) |                | $ |                    — |     | $ |                590 |
| New compensation arrangements with executives(2)              |                |   |               69,744 |     |   |            278,480 |
| Advisor Fees(3)                                               |                |   |                    — |     |   |             80,000 |
|                                                               |                | $ |               69,744 |     | $ |            359,070 |

| (1) | Represents estimated transaction costs to be incurred subsequent to the balance sheet date which do not qualify to be capitalized as a result of not being incremental and directly attributable to the Business Combination. The costs which are not capitalizable are primarily related to certain services provided by Scilex employees on behalf of Semnur in connection with the Business Combination as well as certain accounting advisory and audit fees incurred in preparation of Semnur’s annual audited financial statements and interim unaudited financial statements. Semnur’s other estimated Business Combination costs, including costs relating to certain legal and other advisory services, were deemed to be incremental and directly related to the Business Combination and are reflected as equity issuance costs, reducing New Semnur’s additional paid-in capital balances. |

356

| (2) | Represents compensation expense associated with certain options to purchase Semnur Common Stock which were granted on August 30, 2024 and will be exchanged into options to purchase New Semnur Common Stock pursuant to the terms of the Merger Agreement (if the Option Exchange Proposal is approved by Denali’s shareholders). The awards vest monthly over a 4-year term. The exercisability of the options is contingent on the approval of the Option Exchange Proposal and the unaudited pro forma condensed combined statement of operations reflects the expense to be recognized subsequent to such approval. As a result of the options containing an “other” exercisability condition, the expense for the options is recognized on a