Company: SMNR
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027319
Chunk: 16

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1
Chunk 16
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BS Act also provides that an “emerging growth company” can take advantage of the extended
transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other
words, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise
apply to private companies. We have taken and intend to continue to take advantage of the benefits of this extended transition period.

We
will remain an emerging growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary of
the completion of the IPO, (b) in which we have total annual gross revenue of at least $1.235 billion, or (c) in which we are deemed
to be a large accelerated filer, which means the market value of our ordinary shares that are held by non-affiliates exceeds $700 million
as of the end of that year’s second fiscal quarter, and (2) the date on which we have issued more than $1.0 billion in non-convertible
debt securities during the prior three-year period.

7

Competition

In
identifying, evaluating and selecting a target business for our initial business combination, we have encountered, and expect to continue
to encounter, intense competition from other entities having a business objective similar to ours, including other blank check companies,
private equity groups, leveraged buyout funds, public companies and operating businesses seeking strategic acquisitions. Many of these
entities are well established and have extensive experience identifying and effecting business combinations directly or through affiliates.
Moreover, many of these competitors possess greater financial, technical, human and other resources than us. Our ability to acquire larger
target businesses will be limited by our available financial resources. This inherent competitive limitation gives others an advantage
in pursuing the acquisition of a target business. Furthermore, our obligation to pay cash in connection with our public shareholders
who exercise their redemption rights may reduce the resources available to us for our initial business combination and potential future
dilutions that our outstanding warrants represent, which may place us at a competitive disadvantage in successfully negotiating an initial
business combination.

Facilities

We
currently maintain our executive offices at 437 Madison Avenue, 27th Floor, New York, New York 10022. We consider our current office
space adequate for our current operations.

Employees

We
currently have two executive officers. These individuals are not obligated to devote any specific number of