Company: SMNR
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001213900-25-044889
Chunk: 99

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-05-16
Form: 10-Q
Item: Part I, Item 2
Chunk 99
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. 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. We adopted ASU 2023-09 on January 1, 2025, and the
adoption did not have a material impact on our unaudited condensed consolidated financial statements.

In November 2024, the FASB
issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (“ASU 2024-03”),
which requires disaggregated disclosure of certain costs and expenses, including purchases of inventory, employee compensation, depreciation,
amortization and depletion, in each relevant expense caption. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026,
and interim reporting periods beginning after December 15, 2027. Early adoption and retrospective application is permitted. We are currently
assessing the impact of this guidance; however, we do not expect a material impact on our unaudited condensed consolidated financial statements.

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. 

36

Item 3. 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