Company: SMNR
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001213900-25-077047
Chunk: 29

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-08-15
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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ptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date
of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Accordingly, the
actual results could differ significantly from those estimates.

Cash
and Cash Equivalents

The Company
considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company
did not have any cash equivalents on June 30, 2025 and December 31, 2024.

Cash and Investment Held in Trust Account

Prior to June 4, 2024, substantially all of the
assets held in the Trust Account were invested in United States “government securities” within the meaning of Section 2(a)(16)
of the Investment Company Act having a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7
promulgated under the Investment Company Act which invest only in direct U.S. government treasury obligations. Gains and losses resulting
from the change in fair value of these securities are included in income on Trust Account in the accompanying condensed consolidated
statements of operations. The estimated fair values of investment held in the Trust Account are determined using available market
information.

Since June 4, 2024, all of the assets held in
the Trust Account have been held solely in cash in an interest-bearing demand deposit account at a bank. Interest on bank deposit accounts
is variable and such accounts currently yield interest of approximately 3.5% per annum.

15

Denali Capital Acquisition Corp.

Notes to Unaudited Consolidated Financial Statements

Fair
Value of Financial Instruments

The fair value of the Company’s assets and
liabilities, which qualify as financial instruments under the FASB ASC 825, “Financial Instruments,” approximates the carrying
amounts represented in the consolidated balance sheet, primarily due to its short-term nature.

Warrants

The Company accounts for warrants as either equity-classified
or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance
in FASB ASC 480 and FASB ASC 815, “Derivatives and Hedging” (“ASC 815”). The assessment considers whether
the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and meet
all of the requirements for equity classification under FASB ASC