Company: SMNR
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027319
Chunk: 94

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1
Chunk 94
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 the consolidated balance sheets.

Class
A Ordinary Shares Subject to Possible Redemption

The
Company accounts for its Class A ordinary shares subject to possible redemption in accordance with ASC 480. Class A ordinary shares subject
to mandatory redemption (if any) are classified as a liability instrument and measured at fair value. Conditionally redeemable ordinary
shares (including shares that feature redemption rights that are either within the control of the holder or subject to redemption upon
the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other
times, ordinary shares are classified as shareholders’ equity. The Company’s ordinary shares feature certain redemption rights
that are considered to be outside of the Company’s control and are subject to the occurrence of uncertain future events. Accordingly,
as of December 31, 2024, and 2023, 751,837 and 4,537,829 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.

F-19

Denali
Capital Acquisition Corp.

Notes
to Consolidated Financial Statements

As
of December 31, 2024 and 2023, the ordinary shares reflected in the consolidated balance sheets are reconciled in the following table:

    Shares  
    Amount 
  
    Ordinary shares subject