Company: SMNR
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001213900-25-077047
Chunk: 32

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-08-15
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 of uncertain future events. Accordingly, as of June 30, 2025 and December 31, 2024, 43,739
and 751,837 Class A ordinary shares subject to possible redemption are presented at redemption value as temporary equity, respectively,
outside of the shareholders’ deficit section of the Company’s consolidated balance sheets.

On August 16, 2022, the Inflation Reduction Act
of 2022 (the “IR Act”) was signed into U.S. federal law. Among other provisions, the IR Act imposes a new 1% U.S. federal
excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly
traded foreign corporations, effective for transactions occurring on or after January 1, 2023. Since the Company is incorporated in the
Cayman Islands and is neither a U.S. domestic corporation nor a U.S. domestic subsidiary of a publicly traded foreign corporation, it
is exempt from the 1% U.S. federal excise tax on stock repurchases.

The Company recognizes changes in redemption value
immediately as they occur and adjusts the carrying value of redeemable ordinary shares to equal the redemption value at the end of each
reporting period. Increases or decreases in the carrying amount of redeemable ordinary shares are affected by charges against additional
paid-in capital or accumulated deficit if additional paid-in capital equals to zero.

As of June 30, 2025 and December 31, 2024, the
ordinary shares reflected in the consolidated balance sheets are reconciled in the following table:

    Shares  
    Amount 
  
    Ordinary shares subject to possible redemption – December 31, 2023 
     4,537,829  
    $50,477,963 
  
    Redemption of shares ($11.47 per share) 
     (3,785,992) 
     (43,425,328)
  
    Subsequent measurement of Class A ordinary shares subject to possible redemption (income earned on Trust Account) 
     -  
     1,578,042 
  
    Subsequent measurement of Class A ordinary shares subject to possible redemption (extension deposit) 
     -  
     390,328 
  
    Ordinary shares subject to possible redemption – December 31, 2024 
     751,837  
     9,021,005 
  
    Subsequent measurement of Class A ordinary