Company: SMNR
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001213900-25-077047
Chunk: 36

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-08-15
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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 Allocation of net loss including accretion of temporary equity 
    $(104,431) 
    $(620,160) 
    $(562,129) 
    $(318,671)
  
    Accretion of temporary equity to redemption value 
     144,866  
     -  
     1,594,042  
     - 
  
    Allocation of net income/(loss) 
    $40,435  
    $(620,160) 
    $1,031,913  
    $(318,671)

    Denominators: 

    Weighted-average shares outstanding 
     433,193  
     2,572,500  
     4,537,829  
     2,572,500 
  
    Basic and diluted net income/ (loss) per share 
    $0.09  
    $(0.24) 
    $0.23  
    $(0.12)

Income
Taxes

The Company accounts for income taxes under FASB
ASC 740, “Income Taxes” (“ASC 740”). ASC 740 requires the recognition of deferred tax assets and liabilities for
both the expected impact of differences between the financial statements and tax basis of assets and liabilities and for the expected
future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be
established when it is more likely than not that all or a portion of deferred tax assets will not be realized.

ASC 740 also clarifies the accounting for uncertainty
in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process
for financial statements recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits
to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides
guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition.

19

Denali Capital Acquisition Corp.

Notes to Unaudited Consolidated Financial Statements

The Company recognizes accrued interest and penalties
related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest
and penalties as of June 30,2025 and December 31, 2024. The Company is currently not aware of any issues under review that could result
in significant payments, accr