Company: SMNR
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001213900-25-044889
Chunk: 97

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-05-16
Form: 10-Q
Item: Part I, Item 2
Chunk 97
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topic 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 December 11, 2025 (as extended pursuant to amended and restated memorandum and articles of association
of the Company dated April 11, 2025), 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 may have insufficient funds available to operate our business prior to our initial business combination. Moreover,
we may need to obtain additional financing either to complete our business combination or because we become obligated to redeem a significant
number of our public shares upon completion of our business combination, in which case we may issue additional securities or incur debt
in connection with such business combination. 

Off-Balance Sheet Arrangements 

We have no obligations, assets
or liabilities, which would be considered off-balance sheet arrangements as of March 31, 2025 and December 31, 2024. We do not participate
in transactions that create relationships with entities or financial partnerships, often referred to as variable interest entities, which
would have been established for the purpose of facilitating off-balance sheet arrangements. We have not entered into any off-balance sheet
financing arrangements, established any special purpose entities, guaranteed any debt or commitments of other entities, or purchased any
non-financial assets. 

Other Contractual Obligations 

Registration Rights 

The holders of our founder
shares, Private Placement Shares and Private Placement Warrants, including any of those issued upon conversion of any Working Capital
Loans (and any Private Placement Shares issuable upon the exercise of the Private Placement Warrants that may be issued upon conversion
of any Working Capital Loans) will be entitled to registration rights pursuant to a registration and shareholder rights agreement signed
on April 6, 2022. The holders of these securities are entitled to make up to three demands, excluding short