Company: SMNR
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027319
Chunk: 1789

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 11
Chunk 1789
---

  
    Ordinary shares subject to possible redemption – December 31, 2024 
     751,837  
     9,021,005 

Concentration
of Credit Risk

Financial
instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution,
which, at times, may exceed the Federal Depository Insurance Coverage of $250,000. The Company has not experienced losses on this account.

Net
Income Per Ordinary Share

The
Company complies with the accounting and disclosure requirements of FASB ASC 260, “Earnings Per Share.” Net loss per redeemable
and non-redeemable ordinary share is computed by dividing net loss by the weighted average number of ordinary shares outstanding between
the redeemable and non-redeemable shares during the period, excluding ordinary shares subject to forfeiture. Weighted average shares
were reduced for the effect of an aggregate of 93,750 founder shares that were forfeited during the three months ended June
30, 2022, due to the underwriters’ partial exercise of their over-allotment option. In order to determine the net income attributable
to both the redeemable shares and non-redeemable shares, the Company first considered the undistributed income allocable to both the
redeemable shares and non-redeemable shares and the undistributed income is calculated using the total net loss less dividends paid.
The Company then allocated the undistributed income based on the weighted average number of shares outstanding between the redeemable
and non-redeemable shares.

Subsequent
measurement adjustments recorded pursuant to ASC 480-10-S99-3A related to redeemable shares are treated in the same manner as dividends
on redeemable shares. Class A ordinary shares are redeemable at a price determined by the Trust Account held by the Company. This redemption
price is not considered a redemption at fair value. Accordingly, the adjustments to the carrying amount are reflected in the Earnings
Per Share (“EPS”) using the two-class method. The Company has elected to apply the two-class method by treating the entire
periodic adjustment to the carrying amount of the Class A ordinary shares subject to possible redemption like a dividend.

Based
on the above, any remeasurement of the redemption value of the Class A ordinary shares subject to possible redemption is considered to
be dividends paid to the Public Shareholders. Warrants issued are contingently exercisable (i.e., on